SPAIN NEWS

Spanish Capital Gains Tax change offers expat on the back!

15 DECEMBER 2006. SOURCE: MONEYEXTRA.COM

Britons living or working temporarily in Spain could be in line to save thousands of pounds following cuts to Spanish Capital Gains Tax. From 1st January 2007, the Capital Gains Tax on Spanish property sales and personal income for non-residents in Spain will drop from 35% to 18%.

The tax cut comes in the wake of a European Court upholding a complaint that is was unfair for the tax to be charged at 35% for non-residents, but at only 18% for Spanish residents.

Research by Mintel estimates that 800,000 Britons now own a second home abroad. Spain is the most popular location amongst more than four in ten respondents who have either already bought or who are looking to buy abroad.

Banco Halifax Hispania reckons the cut in capital gains tax will benefit all Britons who purchase holiday homes, live temporarily in or who work for short periods in Spain and are therefore not registered with the Spanish authorities as residents.

At present, those over the age of 65, who have lived in their home in Spain for the last three years are exempt from Spanish Capital Gains Tax. The Spanish rules are in sharp contrast to the domestic UK tax regime governing property - here CGT is charged at 40% but, crucially, does not apply to your main home but only to a second home.

Spanish homes needn't costa packet!

15 DECEMBER 2006. SOURCE: MONEYEXTRA.COM

Norwich and Peterborough Building Society (N&P) has unveiled three new mortgage options aimed at people looking to buy property abroad. Richard Barker, N&P's product manager, said, "With an estimated 761,000 Britons living in Spain and the trend to move abroad showing no signs of slowing, we are constantly reviewing our product range to ensure we meet our customers' needs."

On offer are two fixed rate mortgage options, each with a follow-on rate of Bank Base Rate + 1%. Alternatively, the new tracker offers one of the lowest currently available rates for those looking to buy in Spain with a Sterling loan.

Norwich and Peterborough Spanish Home Loans has been offering UK residents, ex-pats and Gibraltar residents finance to buy or re-mortgage their main home, holiday property or retirement residence since December 1998. N&P lends from Gibraltar, along the whole of the Costa del Sol and along the Costa Blanca to La Manga.

Spain remains a 'hot spot' for Brits buying abroad according to HiFX's seventh Global Property Hot Spots review into trends for Brits buying property abroad. France and Spain continue to beat off stiff competition from the bargain basement emerging markets such as the Eastern Bloc countries, together accounting for just over half (55%) of all HiFX's currency transactions for buying property abroad in November.

Mark Bodega, Marketing Director of HiFX comments, "Despite a fair amount of dabbling by investors in some more exotic locations, old time favourites France and Spain are still the first choice for British buyers looking for a holiday home or retirement home.

"Spain for example, pioneered the trend to own overseas property and is still one of the UK's favourite destinations for a place in the sun."

sPAINS PUBLIC SERVICES WIN OVER UK EX-PATS

Spain's schools, hospitals and public transport score higher than their UK equivalents, according to a new survey.

15 DECEMBER 2006

Spain offers much more than sunshine and cheap sangria to its UK expat population. Its education and health services, and its public transport system, leave the UK in the shade.

These are the findings emerging from a new survey of UK expats. The survey is being conducted by a leading Spanish estate agent online with individuals from a cross-section of the UK expat community -- retired, self employed, and those working for Spanish or non-Spanish companies.

Spain's obvious attractions like its sunnier climate and lower cost of living scored highly as expected, but people also gave top marks to Spain's public services compared to those in the UK.

"So many of our buyers tell us how impressed they are by the high standard of the local public services in their area of Spain. As new expats, this really helps make them feel welcome and settle in quickly."

Nearly 50 percent of replies stated Spain's public healthcare was better or much better, with a further 26 percent stating it was equivalent to the UK. These high percentages are especially reassuring for older, retired people and parents with young families -- or indeed anyone who is concerned about health service standards.

In education, over 50 percent of people said Spanish schools were the same or better than their UK equivalent -- and remember, that's despite the language difference. Spain has heavily invested its transport infrastructure in recent years and. this is reflected in the survey results with again, over 50 percent of people stating public transport is the same or better than in the UK.

The survey also covered the main reasons why people had moved to Spain. Interestingly, while 70 percent of people stated that they found the cost of living was lower in Spain than in the UK, under 3 percent put this as the best thing about living in Spain. The most popular reason why people had moved to Spain, getting over 35 percent of votes, was the general quality of Spanish life.

These results seem to be showing that the high quality of Spain's public services really add to people's quality of life. For many UK expats, Spain is not just for holidays -- it is also real place to call home

Spain is Bouncing Back Woking, United Kingdom--(PR.COM)--

14 DECEMBER 2006

Despite competition from Eastern Europe, the Spanish property investment market is still holding strong mainly due to its easy access from the UK and the British search for sun. With a travel time of around two and a half hours and the availability of cheap flights from the bidget airlines, Spain still ranks high as a weekend away destination.

Low-budget buyers have previously turned away from Spain to the likes of Bulgaria after the past few years, however with a slow down in the growth rates being recorded there, investors are returning to look at the mature and stable Spanish investment property market.

More reasons to buy that holiday home in Spain

4 december 2006

Holiday Lettings keeps its homeowners informed on proposals to reduce Capital Gains taxes payable by non-residents in Spain.

If you are about to purchase a holiday home in Spain or sell up and buy another elsewhere can you wait until the New Year celebrations are over? It is likely that your vendor, if a non-resident, would be happy to wait a little too. And all because the Spanish government is about to change its stance on taxes payable by non-residents.

The Capital Gains Tax payable on the difference between the selling price and original purchase price is currently a frightening 35% if you are a non-resident vendor. Proposals set to come into effect from 1st January 2007 will bring resident and non-resident taxes to an equal value of 18%.

Should you, at some point, decide to sell your Spanish home, as non-resident 5% of the purchase price is currently retained by the purchaser and paid to the Spanish Tax Authorities upon completion. This covers any debts that could be difficult to recover from a non-resident vendor once they have left the country. This amount will be reduced to 3% under the new proposals and the amount is reimbursed to the vendor against the difference of the capital gains tax when it is paid.

If you can step away from all the jargon, the proposed changes would enable non-resident investors to reap a larger profit from their Spanish property at time of sale. Should you want to gain even more from purchasing in Spain the answer is to gain residency rights.

As a resident over 65 and having lived in your property for more than 3 years you are no longer subject to capital gains tax. But most enticing, residents can claim some of the capital gains tax back if they buy another principal residence in Spain within two years of the first.

Ross Elder, MD of commented: “This is great news for non-resident homeowners in Spain. It’s important not just to think about those exiting the market though, but about those who are thinking about upsizing or extending their investment in the country. It will bring equality amongst all Spanish homeowners.”

Asking prices for Spanish property grow steadily

9th November 2006. SOURCE: AsstezNews.com

After a mild mid-summer slump, Spanish property prices have recovered this autumn and are now growing at a strong and steady rate, according to the latest research.
A property investor considering purchasing a second home in Spain can expect to pay around €10,000 (£6,700) more this November than back in August, when the average property price was €245,000 (£165,000), reports property experts Kyero.com.
Although the study does not claim to be authoritative as its representative sample of asking prices in various regions is focused on those areas where foreigners are most likely to invest, the property firm's results do appear to fit with some experts' views, who claim that properties in Spain are accumulating value slowly but surely.
The biggest property price increases reported in the survey were in the north-west of the country, near the Costa Brava.
Barcelona's asking prices have risen 14 per cent since August and are now the highest in the country, at €617,000 (£415,000). Meanwhile close-by Girona also saw dramatic rises of 21 per cent, meaning that a property in the city would cost €428,000 (£288,000), if buyers were not able to haggle.
However, as the survey takes a higher percentage samples from Alicante and Malaga, figures from these regions claim to be a more accurate reflection of movements in the property market.
In these regions, highly popular with both tourists and investors alike, prices rose by a much slower rate than in the north-eastern cities but still considerably above UK price increases.
Sellers in Malaga are now requesting €325,000 (€219,000) for a typical property, an increase of four per cent from August's marginal slump. Likewise, those who own homes in Alicante can expect to charge six per cent more than back in August; now the average price in the region is €231,000 (£155,500).
The research backs up the opinions of many property experts who have been saying of late that Spain is now a mature property market and so investors will not see the astronomic gains of the mid-nineties but nor will they experience the pitfalls of when a volatile market is downturns.
A survey puts Spain's average asking price at €255,000 (£171,000), which is not too far off the average UK house price of £185,000, as reported by Halifax today (November 9th).
However, a survey last month by Rightmove said in terms of asking prices, upon which the Kyero research is based, UK sellers are considerably more demanding than their Spanish counterparts, requesting £218,954 for the typical home.
This demonstrates that while prices are still cheaper than in the UK, they are catching up rapidly as Spain grows to become a more mature market.

Irish overseas property buyers being sought by low cost airlines

7 OCTOBER 2006. SOURCE: Easyjet & Jet 2

Jet2.com and EasyJet have both made announcements that will have Irish overseas property owners laughing all the way to the bank.Jet2.com , today announced it would double the size of its operation at Belfast International Airport with the addition of six new exciting destinations, increased frequency on existing services and more of its larger Boeing 757 aircraft will be operating to the ever popular Spanish destinations Majorca, Malaga and Murcia (Alicante). The fast-growing airline will commence services to the Spanish hotspots of Ibiza, Malaga, and Palma Majorca, while Milan in Italy and Toulouse in South West France will also be added from spring 2007.  The key growth area for the airline has been Spain and the addition of three new Spanish routes confirms that the region as undoubtedly the number one destination for the people of Northern Ireland for the airline. Further evidence of the pull of Spain and its islands was shown with Jet2.com’s announcement that larger, 235 seat Boeing 757 aircraft would replace 148-seat 737s on certain key Spanish sun destinations to meet the huge demand. Speaking about the doubling in size of its operation in Northern Ireland,  Philip Meeson, Jet2.com boss, said: “We are really excited about our brand new destinations from Belfast International and the increased choice travellers from the city and beyond now have when heading to the sun. “We know the people of Northern Ireland want more flights to Spain and are delighted to be meeting demand today with this news. EasyJet, Europe’s also made an announcement that will benefit Irish overseas property owners and buyers alike. It will be launching flights from Belfast International Airport to Krakow on 24 April 2007. This new Polish route will operate three flights weekly with fares from just £18.99 one way (£37.98 return including tax). The addition of this route is part of a wider expansion plan for Belfast International Airport, which will be announced in the coming weeks. Paul Cable, Easy Jet’s Northern Ireland marketing manager, said: “EasyJet is delighted to be announcing another new and exciting route from Belfast International to Krakow. Northern Ireland is a very important market to Easy Jet and we are looking forward to announcing more new routes and increased frequencies for Summer 2007 in the coming weeks. Low cost airlines can have a positive affect on the accessibility of a region and can therefore help drive prices upwards , so it's good news all round for those with properties abroad.

Energy prices drives down Spanish inflation

12th OCTOBER 2006.

Spanish property investors have received a boost with the news that inflation in the country has dropped down to its lowest levels since April 2004, according to local reports.
The economy's prices are now increasing at an annual rate 2.9 per cent after a 0.2 per cent fall in September, according to the National Institute of Statistics.
This spells good news for investors who were concerned by a 3.7 per cent rise in August, which, along with the damaging effects of instability on the economy, means that house price growth is being effectively eroded.
However, investors will be well aware that this rate is still considerably above the UK inflation rate of 2.5 per cent, half a percentage point above the Bank of England's target of two per cent.
The main reason for this dampening of inflation is falling energy prices, a phenomenon across Europe, including the UK, where petrol prices have fallen by ten pence per litre in some areas.
As the lowering costs of crude oil and natural gas are passed on to businesses, there is less of a pressure on firms to raise their prices to retain profits and so consumers benefit from low, stable growth in their costs.
Spanish homeowners will therefore be able to save money on the maintenance of their properties, cash which could be invested in structural or external plot developments.
This dip in energy prices could continue into the long-term future if leading politicians are to be believed. Western nations are increasingly concerned about the development of renewable forms of energy to replace the reliance on Middle Eastern oil, a resource which is both finite and liable to dramatic price rises.
Al Gore, former US presidential hopeful and now a campaigner for climate change, addressed a Malaga audience on the issue. He advised intercontinental cooperation, as reported on the Typically Spanish website: "Andalucia can carry out a key role in reintroducing the wisdom of Africa to Europe just as the Moors Maimonides and Averroes did, and at the same time in this relationship, the European technology can reach Africa via Andalucia."
The significance for homeowners is that if the politicians words become a legal reality, new homes may be obliged to be built with environmentally-friendly features which would lower reliance on fossil fuels such as heat insulation and double glazing.

Property prices rise 130% since 1997 Source: ThinkSpain

Costa Del Sol - 2006 Tourism Record Jenny Sheen

4 AUGUST 2006

Recent tourist board figures are showing that this year could be the best in the last decade for the tourism industry on the Costa del Sol.

Following a promising start to the year, the Tourist Board's provisional figures for July show a 3 per cent growth in hotel occupancy while forecasts for August predict better results than last year, despite the fact that this year there are 3,000 extra beds for the industry to fill.

According to the Tourist Board, the supply of hotel accommodation in the area has increased by 4.36 per cent since last summer and between the beginning of the decade and the end of 2005 the number of beds on offer on the Costa del Sol has gone from 61,000 to 80,000.

Spanish newspaper SUR reported today (August 4) that hotels expect to fill 85 per cent of their beds over the following weeks, an indication that the area is not only capable of absorbing the new supply, but it is also able to continue to move forward.

The figures have already exceeded those reached during the same period in 2000 and with the peak tourist season around the corner and the expected influx of last minute bookings, 2006 could be the best year in over a decade.