All posts tagged Spanish property market
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.*
Read more
Spanish Property For Sale.
Buenos Dias, and we hope you and your families are in ‘buena salud.’
Well at last, something positive to write about, the Spanish Government has begun the slow process of a return to what some are calling the new normal. We will watch with fingers crossed, hoping it goes well.
After so much has been written and broadcast across all media platforms, we hope to look forward as opposed to repeating the narrative. Now, we want to begin to provide some information to those people who are looking to move forward and re-kindle the dream of owning a property in Spain.
Your Place in Spain offers Spanish Property for Sale on the Costa Blanca, Murcia/Costa Calida & the Costa del Sol. We work with a process that (should our customers require) includes a free of charge, pre-visit chat with an independent solicitor located in Spain. We strongly advise this, and believe it is vital buyers gain an understanding of the obligations of a homeowner in Spain, once the purchase has completed.
Apartments, townhouses & villas are all available in the locations of our portfolio. As well as location information, we plan to advise on current availability of property in the those locations.
Should your search be ongoing or about to begin, for any information required please send us an e-mail using the details on our Contact Us page here.
Read moreInformation highlighting the ‘stabilising of the property sector’ from the Bank Of Spain has been released, stating that property sales to foreigners are performing especially well, also with recent statistics released by the Ministry of public works showing that prices are beginning to mellow out, with only a 0.5% decrease between the last quarter of 2013 and the first quarter of 2014.
The Spanish property market is still one of Europe’s cheapest options for purchase, ahead of France & Italy. It would appear the project, ‘Paramount theme park’, is beginning to gather momentum. It was stated last week that Central government had got involved with fundraising for the project and requested 17million euro to get the project underway from the European Foundation for Regional Development.
With the airport at Covera ready and waiting to become operational, it appears that both projects need each other and this request for funding may not have necessarily been made if the two projects were not being looked upon favourably by those that will be involved in the final decision making process.
The start of the project seems to have been on the agenda for years, but if the sound bites are correct it could be a lot closer than in previous years, the projection of attracting 3 million visitors a year and creating circa 23,000 jobs is contributing to the bigger picture that Spain continues to recover in the construction sector faster than any of its European counterparts, the demand is back Any consideration for buying in the Murcia & Costa Blanca regions now, based upon this information, could be a good move!
Read more
