Wednesday, 9 July 2014

Spanish property sales for May

Today saw the publication of the monthly transfer of property rights in Spain.

Increases in the sales of used homes.

Whilst not all good news the figures showed a marked improvement in the sale of resale residential homes with an increase in people buying in Spain. The sale of used homes is now showing a small yearly accumulated increase of 0.7% and is the only area to do so.

New Builds

Sales of new builds continued to decline in numbers for the total year against 2013 but held steady in numbers against last month.

Other transfers

All other areas of transfers which include donations, inheritance, swaps and repossessions alongh wioth commercial property showed a decline in the month and continue to show a decline for the year. Given last year these areas were increasing due to a high level of transfer of properties to the Banks a decrease is not necessarily a bad thing.

Regional differences

The Islands including both the Baleraics and the Canaries led the way in increased sales during May. Two other regions Andalucia and Murcia also showed good growth in the Month supporting the veiw from those like Lawyers working in the sector that foreign purchases are picking up.

Read the full article: News for Spanish property sales in May

Friday, 4 July 2014

Taxation for Spanish Buyers

Last week Spain announced a number of new tax measures to be implemented over the next few months.

Residential Tourism

The new bill does not go far enough according to a number of experts and legal advisers for buyers in Spain, particularily around the areas classed as residential tourism.

A panel of appointed advisers had put together a number of new measures for the goevrnment to consider which along with tax breaks for investors moving into Spain inlcuded a relaxation of the tax rules applying to income from rental.

Due to the fact that for foreign buyers other countries have much more favourable tax sytems in place and the fact Spain has a high taxation level in comparision to their own country of residency it was deemed important by the legal advisers that Spain focussed on how to attract investors and put Spain back on the tourist map.

In  the new bill nearly all the recommendations have been ignored and Spanish property taxes on income generated for foreign buyers outside the EU will remain high and in many cases unfair.

What next for non resident buyers in Spain

Foreign buyers outside the EU will remain open to the possibilty that the Spanish tax office will assume a rental income whether generated or not and ability to offset costs of a spanish mortgage or other running costs will remain impossible to do.

The experts who put together the propositions for the changes will continue to fight for the points made and it can but be hoped common sense will prevail. What seems to have been missed this time round is the level of indirect taxes an outside investor invloved in residential tourism generates.

Read the full article: tax situation for non resident buyers in Spain