Essential Estates, based in Marbella and covering the Costa del Sol, Costa de Almeria and Costa Calida is pleased to present another press report on the current Spanish Property Market. Looking to get on the property ladder in Spain? Contact us today for honest advice and friendly service.
Latest statistics from the Spanish government reaffirm the fact that the country remains one of the most sensible options for UK residents looking to enter a foreign property market.
Though Spain may no longer dominate the attention of British investors in the way it did in the 1990s, the consistent growth of the market and the inexorable popularity of the country as a tourist resort and second-home haven mean that astute investors are continuing to make enviable profits from their ventures.Government statistics show that house prices in Spain increased by an average of 12.8% in 2005.
This is admittedly down on the 17.2% increase in 2004, but it has been welcomed by government officials and investors alike.
The director general of Architecture and Housing Policy, Rafael Pacheco, has celebrated “more reasonable” increases while property investors appreciate that a 12.8 per cent rise shows that the market is remaining strong and has avoided a crash.
Furthermore, with developing property markets such as providing increased competition, Spain now has to prove it can remain competitive, so the more sensible price increases may prove to be beneficial to the long-term strength of property investment within the country.
Significantly, investment in is also likely to be made more desirable because of the decision by the European Commission to refer the Spanish government to the Court of Justice because of allegations of prejudiced property tax laws.
At the moment, Spanish residents are required to pay 15 per cent tax on gains from property sales, whereas non-residents are taxed at rate of 35 per cent. If the Court of Justice rules that this is indeed discriminatory, investors from abroad will look forward to much lower taxation levels which will clearly benefit those planning to sell on properties in Spain to lifestyle buyers.
