The changes to the Capital Gains Tax legislation (CGT), approved by the Spanish Senate, is likely to result in a growing number of overseas property investors looking to the Spanish property market.

Katy Katani, UK manager for Grupo Lar Sol, said: "We are expecting an increasing number of interested property buyers as a result of the changes in the Capital Gains Tax legislation."

To meet the expected surge of investors Grupo Lar Sol is now marketing the Doña Julia development situated on the Costa del Sol between Marbella and Sotogrande on the Doña Julia Golf Course. The development comprises of 65 two- to three-bedroom apartments, including intelligent home automation systems allowing owners to activate air-conditioning or heating via SMS. Each terrace can be equipped with a jacuzzi and a private pool can be found on the roof of every block.

Other facilities include three 18- and 36-hole golf courses, an International Golf School, three football pitches, horse riding and a private clinic. Prices for a two-bedroom apartments start at 383,800 euros.

As well as the Costa del Sol, Mallorca continues to enjoy consistent popularity and is likely to benefit from the changes to Capital Gains Tax. Seventy-five per cent buy-to-let mortgages are currently available on the island at 4.45 per cent interest.

Property Tigers, a UK-based buy-to-let property investment specialist offers villas and apartments on the island, state that a typical four-bedroom, four-bathroom villa in a prime-location, sleeping eight, with air-conditioning and its own pool, could expect to generate up to 105,000 euros during the 21-week high season, with additional income from golf packages during the off-season months.

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Article published on 23 January 2007