Property in Spain
Exploring the ins and outs of buying and owning a property in Spain as an investment choice or as a home for life for example
Clear and professional advice about why owners of assets in Spain need a correctly structured and worded will to protect their beneficiaries from the Spanish Civil Code and taxation on Spanish property for example
If you are a non-Spanish owner of property in Spain, then except in unusual circumstances, you should make a will nominating the chosen beneficiaries of your Spanish property. As Andrew Eastwood, Managing Director of Legal4spain writes, if you do not make a will dealing with your Spanish property, you risk the following issues occurring following your death: -
Someone other than your chosen beneficiaries could inherit your Spanish property. Your beneficiaries could end up with an unnecessarily lengthy and stressful legal process to claim their Spanish inheritance. Your beneficiaries could also be burdened with very substantial legal fees in securing their Spanish inheritance. Your beneficiaries could be faced with high Succession Tax charges, which can significantly erode the value of their Spanish inheritance.
So, could you feel comfortable knowing you were leaving your loved ones with the problems outlined above? Are you happy to think of someone other than your chosen beneficiaries claiming your Spanish property? Are you relaxed about the prospect of the Tax Authorities unnecessarily having a claim to a large proportion of your hard-earned wealth? If not, then please read on! We are going to explain clearly why you need a Spanish will if you own a property or any other assets in Spain…
With Ryanair committing 16 new flights to the Canary Islands and property prices having fallen to incredible 8 year lows, could a corner be turned in terms of Lanzarote’s fortunes
After a miserable year for overseas property owners on Lanzarote there are some signs that a corner may just have been turned in terms of the popularity of the island as a holiday destination. And as we all know, where the tourists lead, the property market eventually follows!
The rate of decline in terms of visitor numbers to the island fell dramatically last month according to the latest arrival figures just released by the Spanish airport operators AENA. This is a small sign of positivity, but could it herald brighter skies for Lanzarote property and tourism economies?
The Spanish Canary Island has year round sunshine and a very long history as a popular destination, particularly with European travellers, so if it can just reach a point of stability in terms of visitor numbers, perhaps this could bode well over the short to medium term for the property market as well. Owners of homes on the island certainly hope so because property prices in Lanzarote are just so low at the moment – of course this means that there are rich pickings for bargain hunters!
Are there any real estate finance products on the market for those who need a mortgage to buy a property in Spain?
The property market in Spain has many parallels and similarities to that in the UK in that if a property is competitively priced it will sell, where there are still pockets of demand there is buoyancy in the market, agents have talked the market up to an unsustainable level, prices have fallen below what the media and government are promoting and people still hanker after owning a home in Spain, just as there is a desire for homeownership in the UK.
The only trouble is, not everyone can afford to take advantage of some of the bargains that are genuinely coming to the market in Spain because they don’t have the cash in hand to pay full asking price in cash for a Spanish property…
We’re aware that properties in the UK are not selling in part because people cannot secure mortgage financing – but is the situation the same in Spain? Can you still get mortgages to buy Spanish property or not? In this report we’re going to look at what property financing products are available to British buyers interested in buying a home in Spain.
Has the Spanish property market bottomed out, are there bargains to be bagged even though the pound buys less Spanish real estate thanks to the strong euro?
We’re very well aware that Spain remains one of the most attractive overseas destinations for Britons of all ages thinking about going to live abroad. The facts of the matter are, Spain is accessible from the UK easily and cheaply, Spain is warm, sunny and enticing, the cost of living is comparable with the UK whilst the quality of life is widely regarded as superior in Spain - and it’s a very easy nation to move to, set up home in, retire to or even get a job in.
Therefore, it is of no surprise that we have received a few requests for information about the current state of the Spanish property market from Britons interested in moving to live abroad in a sunnier destination than the UK – the enquiries have been along the lines of: ‘is it safe to buy property in Spain yet?’
The problem that many Britons are facing is that the high value of the euro in relation to the pound has eroded the benefits that they could otherwise have gained from the falling Spanish property market you see. What’s more, others are worried about how safe an investment made into Spanish bricks and mortar is, bearing in mind how spectacularly the market in Spain has crashed recently. So, naturally enough, it is important for anyone thinking about making a move to Spain to understand the state of the market right now. Which is where we come in! Here’s the latest overview of Spain’s property prospects in our humble opinion.
It looks as though the Spanish property market is more dependent on British buyers than anyone first thought, which is bad news as Brits have no buying power
As if the scandals, demolitions, arrests and repossessions weren’t enough, more bad news for the Spanish property market was published this week in the New York Times.
It appears that the Spanish government have basically shot themselves in the foot if they were hoping that they could kick start some sort of positive promotion of the nation’s real estate landscape in the press!
They have published some findings and statistics relating to who actually buys property in the nation, and as a result, there is nothing positive that anyone can actually say!
The number of tourist arrivals in Spain has dwindled and this is negatively impacting the Spanish property market
Statistics just released by the Spanish airport operators AENA reveal that tourist arrivals in parts of Spain previously hugely popular with international visitors, such as Lanzarote, continued to decline sharply in February. This is having a clear effect on the property market in Spain too, which has already seen significant declines in terms of levels of interest and asking prices as well.
According to AENA, the total number of foreign visitors arriving in Lanzarote in February this year had dropped by just over 19% compared to the number of arrivals in February 2008. They also recorded double digit decreases across all key tourist markets in Spain – this is very bad news for those with holiday homes in Spain that they want to profit from, and also very bad news for anyone attempting to sell their property in Spain.
Looking specifically at Lanzarote as a benchmark for Spain’s popular tourism centres, according to the latest figures from AENA total tourist numbers fell from 147,698 in February 2008 to 119,269 in February 2009. This is a drop of 19.25%. The cumulative figures for the year to date indicate a 16% fall overall in the number of people arriving on flights to Lanzarote compared to last year as the current economic crisis starts to bite deeply into Lanzarote´s all important tourist industry. As a result of this, the Spanish property market is being affected by falling tourist numbers too.
A brilliant book has been written to specifically help those affected by the Spanish property crisis and who really need to sell their home in Spain
It’s really rather hard to ignore the fact that the Spanish property industry is in crisis and that the real estate market in many parts of Spain is suffering significantly. This has had a massive impact on so many people’s lives, with those who need to sell a home to release equity or escape Spain altogether effectively prevented from doing so by market conditions.
What’s happening in Spain at the moment is not a one off event, recessions and tough financial times do happen on a relatively regular basis, and so the challenges facing home owners in Spain today have been experienced before and will probably be experienced again…which is why property insider Nick Snelling has penned his timely book ‘How to Sell Your Spanish Property in a Crisis.’
The book is for anyone out there who really needs to get their home in Spain sold, in spite of market conditions. And because it has been written by an industry insider and contains advice from other hands-on property market experts, the book and its contents are truly valuable for all those homeowners in Spain who need to off-load their property, no matter what state the market’s in. We think this book is not only perfectly timed, but that it holds long-term value, because markets have peaks and troughs on a regular basis.
Why you can benefit from the drop in the value of the pound and the dire state of the Spanish property market to buy a bargain home in Spain
Spain is still one of the top choices with Britons who would love to escape to the sun. It’s so close to the UK, so easily accessible with cheap flight airlines servicing the main tourism airports well, it has an enviable climate, there are already plenty of Brits living in Spain…and all in all, Spain ticks so many boxes for would-be retirees and expatriates that its appeal is not diminishing.
However, the Spanish property market is in a bit of a mess right now, understatement), and it has been for well over a year. This has had the effect of putting many off their dream of a move to Spain, but in our opinion at Shelter Offshore it really needn’t.
Our advice to you is ‘don’t give up your Spanish property dream,’ because there are motivated sellers out there willing to discount their property well below market value, so that even though the pound has crashed against the euro, you can still find a bargain home.
As the credit crunch bites, popular Spanish holiday destination Lanzarote sees visitor numbers fall and property prices reduced
British visitor numbers arriving in Lanzarote fell back dramatically in the last month of 2008, according to figures just released by the Spanish airports operator AENA. This suggests that the double whammy of the credit crunch and the recent fall in the value of the pound against the euro has started to bite deep into Lanzarote´s all important tourism industry.
The UK has long been the number one marketplace for Lanzarote tourism, traditionally accounting for well over 50% of all visits made to the island by non-Spanish nationals, but the latest AENA figures reveal that British tourist numbers fell to 55,024 visits in December 2008. These numbers were down from 74,167 in December 2007 revealing a decline of over 25%.
But it’s not just tourism numbers falling, property prices are also falling in Lanzarote…this may be bad news for vendors and those in business on the island, but it is good news for anyone interested in a holiday home or investment property in this fabulous location…
Taking a look at how the Spanish property market has fared over the past year and what the future holds for property in Spain
The Spanish property market reached a peak in pricing terms exactly a year ago, according to Spanish Property Insight, and since then it has seen a radical shift in its fortunes. The property bubble has burst, fraudulent activity has been identified, builders have gone bankrupt and prices have crashed.
The changes in the market have been so dramatic in just twelve months that we have decided the time is right for a Spanish property market update now in December 2008. In this article we will therefore look back at the previous year, comment on the state of the market currently, and give you the expert market opinions for 2009.
If you own property in Spain or have long dreamed of either investing in a house in Spain or perhaps moving to live, work or retire to Spain, then this information will be important for you.