Tax-free buy to let deals in Spain – official01/10/2012
The Spanish government is going all out to boost inward property investment by encouraging buy to let landlords to purchase properties in the country and help bolster the failing economy and increase home ownership among locals.
Ministers want to relax the rental laws which are considered out-dated and skewed towards tenants. They will give 60% to 100% tax relief to landlords on rental income where they have Spanish tenants under 30 years-old and who are working.
Peak to present house prices have plummeted by an average of 44 per cent as Spain’s struggling banks have been selling off repossessions and key ready bargains from troubled developers. This has attracted a growing number of bargain hunters from across Europe and the Middle East, many of whom have been involved in multiple purchases through specialist Property in Spain brokers.
Spanish property analyst, Ben Walker said: “These new moves seem likely to attract big-time investors with millions of Euros to pour into Spanish real estate and I know of one consortium with $US 80 million and a growing shopping list. Earlier wholesale deals have foundered because of unrealistic pricing on some bank-owned properties, but I expect with these new incentives, the autumn sales season will see the first of these Super Deals go through.
“I know of whole blocks with 3-bed apartments that can be snapped up at less than EUR 40,000 a unit, which suggests strong prospects for a worthwhile investment return.”
The improvement in Spain’s buy-to-let market and plunging house prices could present a good opportunity for Britons, Germans and Scandinavians to buy for investment in areas they are familiar with after years of holiday visits.
Spain’s Ministry of Development data shows foreigners bought 12 per cent more properties in the second quarter of this year compared to the same period in 2011. Costa Blanca was the top buying destination followed by Costa del Sol and Catalonia.
The fall in property prices was the main driving force behind the increase in sales so Spain still ranks top of the list for property buyers.
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