Fincas and Country property - Málaga Property

News - January 2007

Why Spain is still an ideal destination for British buyers…

Mark Stucklin, the independent journalist who writes for the Sunday Times has recently published an interesting article (Sunday Times 21st Jan) supporting the view of Brits hoping to head for the sun.

Whilst many journalists have been concentrating on the negative aspects of the recent Spanish property downturn there are (if you look closely enough!) many good reasons to buy a property in Spain.

Spain has always been a popular destination for those that enjoy a warmer climate - the best sunshine rates in the whole of Europe can be enjoyed on the Costa del Sol and this is unlikely to change in the future. So if you want sun with your Sangria, the best place to head for is Spain.

Whilst the recent problems with local town hall planning have affected some buyers there are certain benefits to the new constraints being placed on new development. Many people have felt for a long time that the planning process within Spain has been in need of a serious review and that seems to be happening now.

Recent tax changes have also been forced upon the Spanish Govt., which will also help to reduce the tax bill when you sell your Spanish property. If you are a non-resident your tax liability under the Capital Gains Tax has (from the 1st of January) been reduced from 35% to just 18%, which could save a staggering €42,000 on a gain of €250,000.

Not only does this help non-residents reduce their tax liability it is also likely to increase non-resident investment from other EU countries who have previously felt that the discrepancy between resident and non-resident to be unfair.

So what about prices? When is it a good time to buy? Well Mark Stucklin certainly feels that, with the right research, there are bargains to be had across the whole of Spain and in certain places (mainly along the coastal strip) developers are offering incentives and or reductions to tempt new buyers. Make sure that you do your homework on any new property (especially off plan) as this is where many of the problems over planning permissions have been most acute.

When considering inland (and generally resale) properties, many of them will have been reduced in price already. Make sure you ask your agent how much the property had been advertised at previously because you may already be seeing the reduced price and therefore a further reduction may be pushing it.

Whilst there has been much negative press about the Spanish property market, at least one respected journalist feels that Spain is still an attractive destination for those seeking a warmer, more relaxed lifestyle and cheaper property!