WHAT TO EXPECT ABOUT LIVING IN SPAIN

Spain is truly the city of gold. IF you’re used to mist and peasoup weather, this delightfully warm country has over 300 days of sunshine a year. If you’re used to traffic jams and pollution, its streets are less congested and there are entire acres of farmland where you can drive for miles and be surrounded by peaceful villas and haciendas. And if you’re breaking your back just to cover rent and utilities, the cost of living is nearly 30% lower than in many European countries. All of this plus the pristine beaches and world-class golf courses means that Spanish property is still one of the safest investments you can make.

INVESTING IN SPANISH PROPERTY

Spanish authorities have gone to great lengths to attract foreigners and now Spain derives more of its foreign income from tourists than any other country in Europe. Years ago people were only able to buy commercial property, which was often too expensive. With the new laws, property can be purchased almost anywhere and “sold” to a person’s private pension fund. When the property is rented, it’s possible to receive tax deductions that are equal to your current income tax level.

Whatever your investment strategy there’s properties for you. There are several ways to invest in Spanish property and can generate either quick cash or slowly build a nest egg to fund retirement.

For the short-term investor an attractive deal is the buying of an “off plan” property where you buy into a property before it has been completely finished. It is sometimes called pre selling. .To attract money for the building project developers will offer the units at a very, very low price. Then once the project attracts more and more buyers the price goes up. By the time it’s finished the
investor can often turn around and sell the property for double digit profits and, since he never technically owned the home, avoid paying the capital gains taxes.

Most of these visitors gather towards the coastlines where the beaches are plentiful. Apartment complexes make good investments over the long haul if you choose the location wisely. Golf courses are another popular place for tourists so obtaining a property around these areas, while difficult, can be worthwhile in the long run.

However if all of this good news makes you want to rush out and grab the next available villa you should be aware that real estate laws in Spain are different than in the UK and navigating the twists and turns is best left to a professional real estate agent who is familiar with Spanish property.