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Zapatero to ease property pain in Spain
As a new president is elected, Andrew Collier looks at new regulations regarding the property market that are being enforced to put an end to recent controversies and alleged dampening of the country's popularity
On the 9th March 2008 Jose Luis Rodriguez Zapatero won the Spanish elections and the Spanish Socialist Party continued their leadership in the country.
In terms of overseas buyers entering the Spanish market, changes have been promised in several areas. In an effort to curb reactions to recent stories about a downturn in the numbers of people buying property abroad, he has promised extra security for those wishing to buy a house in Spain. One of the ways he hopes to achieve this is by regulating the property market. The aim of this is to instil confidence back into the market.
Zapatero has also promised to scrap the paying of wealth tax, whereby assets and property were taxed. This applied to both residents and non-resident property-owners but usually residents did not have to pay the tax on the first 108,182,18 euros of their property. There will also be an increase in the amount of tax-free inheritance tax on amounts up to 60,000 euros. This means that up to 80 per cent of beneficiaries will benefit from paying nothing plus exemption on their properties.
Recently, there has been some controversy over issues such as cowboy builders and land laws preventing property-owners from keeping their property safe from demolition. Zapatero will be looking to move away from these issues and keep those who already own property, as well as those looking to buy, feeling more confident.
Spain still remains the most popular destination for British second-home buyers. Peter Esders, a partner at The International Law Partnership, explains: "Although there has been no change in leadership, the proposals should prove very encouraging to potential investors and current owners of property.
"Regulation of the property market is long overdue, and proceedings to action this will make trading in this market safer and thus improve confidence in the Spanish property markey on a wordlwide level."
The new regulations and tax issues should therefore serve to help Spain continue to be the number one destination for buying property abroad for British people.
So for those who are looking to buy property in Spain, this news could be a welcome boost for their peace of mind.
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Pictured: Pueblo Acantilado Suites, near Alicante. Prices start from 180,280 euros (141,682 pounds) for a one-bedroom suite (www.duchyestates.co.uk).
Article first published 11 April 2008