All posts tagged Property in Spain
The “Spanish dream” of owning a property in Spain hit the headlines recently, after a proposed property tax was presented by the Spanish Prime Minister. An increased tax on property purchases for non residents who live outside of the EU.
This news caused concern amongst those of us from outside of the EU who are looking to purchase property in Spain. However, it isn’t always easy to find reliable and trustworthy information regarding such topics as this. So we headed straight for the ever reliable Spanish Property Insight, for their help and guidance with this topic. They have gathered data and information which helped us to look into this proposal a little closer.
The Proposal:
At the start of the year the Spanish Government stated that they plan to impose a higher tax of up to 100% on property purchases by non-resident buyers from outside of the European Union. The Spanish Government called these buyers “speculators” who they claim are exacerbating the housing crisis by driving up the property prices for local residents.
The Data:
According to the government 27,000 homes were purchased by non-resident buyers from outside of the EU in 2023. However, Spanish notary figures show that 18,648 homes were purchased by this group. That is actually a 7% year on year decline.
Furthermore, the figures also show that over the past decade this segments (non residents from outside of the EU) level of investment has been slowly shrinking, with 2023 figures being the lowest outside of the pandemic years of 2020 and 2021.
A declining growth pattern is in direct opposition with the Spanish Governments claims that this segment is the driving force behind the housing crisis:
Image by Spanish Property Insight
In 2023 non residents from outside of the European Union represented 14% of the total foreign buyer market. This is a decline from the high of 25% in 2014 and 2015.
The total foreign market, which is dominated by EU expats from countries such as France and Germany, has grown much faster.
In 2023, there were 623,000 home sales in Spain. The non residents from outside of the EU segment had a share of just 2.99% which is the smallest share, with 79% being local buyers, and 18% being foreign buyers:
Image by Spanish Property Insight
According to regional data, British buyers concentrate in coastal regions such as the Costa del Sol, Costa Blanca and Murcia, in urbanisations that cater to the international buyer. All of which are locations that do not typically overlap with the regions experiencing house shortages.
In fact, in the specific locations that are suffering the most, the number of non-residents from outside of the EU is too small to create an impact. Furthermore, the property purchases appear to be larger villas and second homes close to the coast, not the affordable housing stock within the cities.
What Does It Mean?
In conclusion, the data shows that non-resident buyers from outside of the European Union play a minor role in the Spanish housing market. The market share for this segment is not only small, but is actually declining. The data also shows that the property being purchased by this segment focuses on the Costas, well away from the areas experiencing the housing crisis.
Ultimately, the Spanish Governments portrayal of this segment as “spectators” that are driving up the housing costs for locals is not supported by the evidence. Therefore a high taxation or total ban for this segment seems both disproportionate and misaligned from the realities of the Spanish property market.
In our opinion, it could be said that the above data speaks for itself. In addition to this, the many processes that would have to be navigated in order to bring this proposal, or any proposal like this, into place could be lengthy.
We endeavour to keep on top of the information as it comes in, and update and inform our customers as soon as we can, with accurate and reliable information. Stay posted for further updates as they come in regarding this proposed tax increase.
In the meantime if you have any questions or queries, please don’t hesitate to get in touch here, e-mail us at info@yourplaceinspain.com, or call us on 0161 870 2276.
*All images, and data in this article have been sourced from Spanish Property Insight, with permission.*
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Ruth and Haydn from Manchester purchased their very own place in Spain in April of this year. They found a beautiful Villa in Villamartin, Southern Costa Blanca. At the start of the year they spoke to us about their plans to find a property that they could rent out to holiday makers during the summer months, and then visit themselves for the rest of the time.
As a family of five, it was important to them that the villa had everything that they would need when they were there. Their wish list was a villa, with a pool and garden, plenty of space inside as well as outside, and in a location just a short walk from amenities with everything that they would need for the perfect holiday.
“We always knew that we wanted to buy our own place in Spain eventually, and we also knew exactly what we wanted from a property there, but we just weren’t sure where in Spain it would be. As a young couple we lived in Marbella, and we travel to Murcia every year for our summer holidays with family and friends because we love the traditional towns by the Mar Menor. I also spent every summer on the Costa del Sol as a child as my grandparents lived there. Spain is a special place for us.”
“We have so many happy memories from our times in Spain. Being close to a lovely beach was important to us all.”
With Ruth and Haydn wanting to rent their property to holiday makers, they ideally wanted a location that would tick all the boxes with regards to amenities close by, beaches not too far away, easy access to airports, and plenty to do and see. The Southern Costa Blanca, and Villamartin in particular, was our first suggestion for a location that could be ideal.
“We really liked the Plaza, and knew that it would be good for those people who would be renting our villa too.”
We put together a portfolio of suitable properties and locations, and soon the flights were booked and the couple were off to view properties, and take in the location that they felt could be ideal.
“The first thing I saw was the lemon tree. The lemons were enormous, and it smelt amazing. I have always wanted my own lemon tree.”
“We landed at Alicante airport first thing on the Saturday morning; we were collected from the airport and taken straight to our first property. It took me all of two minutes to fall in love with it! The lemon trees in the front garden, the jasmine that reminded me of my Nanna’s garden in Mijas when I was little, the beautiful pool in the garden. We were just swept off our feet by it! We had a good look around the villa, both inside and out, and we both absolutely loved it.”
“We fell in love! The garden and pool was everything we wanted. Really gorgeous.”
After a tour around the local area, the beaches, and a look at some other properties that we had shortlisted for them to take a look at, they took the afternoon to relax, and discuss all they had seen. Since January they had looked on websites and property portals trying to find a villa that they could see themselves in. It felt like finally, here was the perfect one, waiting for them in Villamartin.
“We sat under the blue sky, eating tapas, and enjoying a glass of wine. We knew we were making the right choice.”
“The weather was just beautiful, and we had left behind a grey and rainy Manchester. We sat by the pool of our hotel in La Zenia with a drink and some lunch. We thought about how perfect the villa was both for ourselves and our children, but also for those that would want to rent it out for their own holidays too. We made the decision to make an offer. It was soon accepted, and all of a sudden it wasn’t just a dream anymore. We had done it. We had our own place in Spain! It is just the best feeling.”
From going on their trip to Villamartin in early March, to getting the keys at the end of April it has been a quick turnaround for Ruth and Haydn, which is exactly what they wanted because guess where they are going for their next holiday in the sun…
Ruth and Haydn used our service from beginning to end, and took our advice by using our highly recommended independent legal team, who ensured their purchasing process was both safe, and efficient. They also used our preferred currency broker to get the best exchange rate possible at that time. If you would like to speak with our team, and use our purchasing process then contact us here. We look forward to working with you, and helping you find your very own place in Spain.
“We can’t wait to start making special memories in our new place in Spain. We love it so much.”
Your Place in Spain currently understand that the Brexit decision will affect the purchase process of buying a permanent or holiday home in Spain.
How?
Well firstly we must advise any changes will take effect only when Britain officially leaves the EU and we understand that is circa 2 to 4 years from when the button is pressed, metaphorically speaking.
What will change?
We can only look at how property in Spain is purchased from countries outside of the EU, countries such as Norway, Switzerland, Russia, Australia and America, for example. The process appears to be straight forward, affordable, and manageable.
It maybe a Visa will be required (available on-line in some locations.) It maybe that the legal costs will increase as the process required for a non EU buyer will perhaps be a little more long winded.
It maybe that the Spanish government will require another tax (why wouldn’t they, like every county they may see an opportunity)
Health care
This is an area where uncertainty is high, currently retirees (65 years plus) from the UK receive free healthcare on a reciprocal basis. It has been mooted that many tens of thousands of Spanish people currently live & work in the UK across many sectors, anything that damages that agreement may impact on those people too.
The value of the Euro
This is a difficult one, in as much as since the decision to leave the EU the euro/pound exchange rate fell to as low as circa 1.16 from a pre referendum high of circa 1.30. As we write this document the rate stands at 1.19 fluctuating around the 1.20 mark, interestingly over the last 4 years the rates have been just as volatile with some highs and lows.
One benefit not to be overlooked is that with the current rates any British seller with a view to returning to Britain will receive more sterling, which could suggest that asking prices are open to a haggle.
After speaking with our currency exchange partners we understand that until an exit, and the timeline for an exit is established, the Euro may well continue to be just as volatile.
A Property purchase stampede?
We Brits love Spain and Spain loves us Brits, the weather, the beaches, the cost of living, the people, the golf, and the villages. For many buyers the dream of owning ‘Your Place in Spain’ is still on, with 2 years at least before any changes are likely to be implemented it may just be the time to get serious again about the prospect of buying before any increases are implemented.
Here is a link to an article written by Mr Marl Stucklin a well renowned Spanish Property market analyst: http://www.spanishpropertyinsight.com/2016/06/27/post-brexit-change-will-come-slowly-british-expats-spain/
So should you begin to turn you mind to buying in Spain, let us help. We look forward to hearing your property criteria and requirements and helping you in your search. Take a look around the property on our site, and for further information get in touch here.
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Ten Reasons Why the Southern Costa Blanca Is One of Europe’s Most Sought After Locations –
If you’re thinking about purchasing a property in Spain, whether a re-sale or new build property, for investment, a holiday home or for full time living, then there are so many reasons why the Southern Costa Blanca should be top of the list.
This is a sought after location, offering blue flag beautiful beaches, golf courses, & Alicante’s largest shopping centre, but the list of reasons to purchase here is set to grow as developers are returning & building some of the most luxurious properties and innovative opportunities in Spain.
Learn a little more about this fantastic location with our top ten reasons that make this location just too good to miss –
1.Property Prices – Now Is The Time To Buy:
As a preferred location in Spain, the property prices in the Southern Costa Blanca are on their way up. Don’t let that put you off though, with the exchange rate as it is right now (keep a close eye on this here) you can still grab a great property at a great price.
It is important to understand that the entry level for a good quality property in this desirable location is slightly higher now. So rather than the €40-50,000 price levels of a few years ago, figures of around €85-105,000 (£62 – 77,000) are opening buyers up to a much larger number of really fantastic properties, perfect for a holiday home or full time living.
2. New Build Opportunities:
The new-build opportunities in the Southern Costa Blanca really are endless right now. With reasonable prices, and beautiful locations, property developers are very much ‘in tune’ with what their customers are looking for and are using new technology and materials.
If an investment property is what you’re after, then new build could certainly be the option for you. With fantastic locations, close to beaches, amenities and golf, new build properties offer great investment potential via rental income & capital growth.
A number of these new build developments also offer buyers the option of managing the renting of the property when they are not using it. Contact us to find out more about this option.
3. Beaches:
A large section of the Southern Costa Blanca is also known as the ‘Orihuela Costa.’ The Orihuela Costa is a coastal region situated on the Costa Blanca, which covers several coastal resorts including Punta Prima, Playa Flamenca, La Zenia, Cabo Roig, Villamartin, Campoamor and Mil Palmeras.
This is an ideal destination for those looking for property close to the beach, as many of the major beaches along this stretch of the Costa Blanca are Blue Flag, but there are also plenty of smaller, quieter beaches to be discovered and enjoyed too.
Perfect for taking the family to the beach for a day by the sea, or maybe a traditional Spanish lunch at one of the many chirringuitos.
4. Golf Courses:
For a long time Villamartin was known as the home of golf in the Southern Costa Blanca, but in recent years many more golf courses can be found in this fantastic location.
There are some stunning, high quality golf courses all within a short drive of one another. A true golfers paradise, and with all courses providing stunning views and scenery, this is a great place to soak up some sunshine and pass the time with your favourite hobby (if you’re a golfer that is!).
The courses include Las Ramblas, Campomoar La Finca, La Marquesa, Las Colinas, Lo Romero & the courses at Villamartin too.
Golf property is also excellent for rental potential too; if you’re planning on renting out your property then these golf courses bring visitors to the area all year round.
5. Shopping:
If the golf courses make the Southern Costa Blanca a ‘golfer’s paradise’ then La Zenia Boulevard means it is a ‘shopaholic’s heaven’ too!
The largest shopping centre in the province of Alicante is located in La Zenia, and if you love shopping then you’ll absolutely love La Zenia Boulevard.
There are over 100 fashion shops, restaurants & bars, a food market, a children’s play area, a casino, and a bowling alley. There are also activities that take place every weekend, drawing in the crowds from all over the Southern Costa Blanca.
There really is something for everyone, and it is open late in to the night too meaning you can quite literally shop until you drop!
6. Re-Sale Property:
There is some beautiful re-sale property on offer in this great location with everything from apartments & townhouses, to traditional fincas & villas, available at some fantastic prices.
If a new build property isn’t for you, then don’t worry as it’s safe to say that you shouldn’t have too much trouble finding another style of property in the Southern Costa Blanca
Take a look here.
7. Investment:
The term ‘investment opportunity’ is often used when people talk about overseas property purchases. The new build opportunities on the Southern Costa Blanca have opened up the possibility of investment buyers having the ‘best of the both worlds’ when it comes to reaping the benefits of owning a property in Spain.
Investment buyers can purchase a property at the entry level price (the 1st Phase) and when the building is complete they can begin to utilise on the property management and receive a profit on the running costs of the property, and of course on the capital growth too!
At the same time the buyers can use the property (low season, so as not to effect rental figures) and appreciate the benefits of such a fantastic investment and of course the Spanish sunshine! Talk to us for our take on the opportunities.
8. Easy Access:
With Alicante airport just 35-40 minutes drive away from the Southern Costa Blanca, it is very accessible. It is open 365 days a year, with flights coming in from most UK airports & there are plenty of low-cost airlines flying to the location too.
There is also Murcia San Javier airport, around a 30-35 minute drive from the location.
9. The Weather:
The Southern Costa Blanca’s climate has been recognised as one of the best in the world by the World Health Organisation.
There are almost as many sunny days in the winter months as there are in the summer, and the Costa Blanca is known for being dryer in the winter and less humid in the summer that the other Costa’s in Spain.
You can expect up to 325 days of sunshine per year…So pack you sunglasses and sun-screen…the sun is shining!!
10. Amenities:
The Southern Costa Blanca is home to golf courses, property developments, shopping centres, hundreds of restaurants, bars and shops, and more, and really does have everything you need.
It is also a place that caters for all too. If you are looking for a busy, place with night life and tourist resorts then you can easily find that. But you can just as easily find the quaint and quieter areas and small villages too, that are a little more traditional.
There is such a large and fantastic choice of places to discover.
Written by Joanne Lynsdale, for Your Place in Spain Ltd.
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