Three hidden advantages to being a Spanish home owner in Costa del Sol.

Three hidden advantages to being a Spanish home owner in the Costa del Sol.

A lovely, profitable property located on the Mediterranean: this is not just the dream of some people but a real possibility for a large number British nationals who purchase in Spain.

Marbella coast line.

There are numerous advantages to such a venture, one being the opportunity to be an owner of a year-round holiday home in the sun, and being able to renting the property out in the Costa del Sol . But what would be considered the unseen benefits of purchasing a Spanish property?

Apart from the already known attractions, purchasing a Spanish property will also mean.

1. You have a whole new access to another world.

Whether you need to take off on Friday evening to arrive in Andalucía at the ski resort of Sierra Nevada in Granada or spend your Saturday morning discovering the stunning city of Seville, or need to pop over to Gibraltar to stock up on some UK products, being a Spanish homeowner does open up a whole new world more than just sun soaked location for you and your family to enjoy.

There is windsurfing and all types of water sports in Spain, golf, trekking, city breaks, a weekend excursion to Morocco, horse riding, a day in Tarifa, even a visit north to take in Madrid, Barcelona and Valencia, all achieved very easily with the fast link train AVE, or even a weekend outing to Portugal. Whatever you feel like doing this weekend, southern Spain and Andalucía truly is gem waiting to be explored. What's more, the best part is that in the event that you do not want to go exploring or venture too far and wide, then there are enough places and locations to go very close by with top bars and restaurants in Spain that will suit your needs

2. An opportunity to truly act naturally

Living overseas does make people to behave in a more relaxed, open manner compared to the way the lived back at home, yes it might sound strange but living abroad does make people more uninhibited in their behaviour. When you think about it, if people are free of the responsibilities and pressures of UK life, people find that they start to discover a whole new side to themselves.

Also, having a superb home in southern Spain permits you to truly explore who you really are. Maybe you are a great host/hostess; however, you could never understand that in light of the fact that your UK home was too little to entertain in? Maybe your choice of decoration are more Mediterranean than DFS, however maybe before you have never been inspired to try?

3. A new point of view on home

Home is definitely where the heart is, your heart might never genuinely stop being British in spite of owning that property in southern Spain and all the joy that it brings. In any case, having a second property, somewhere else to call your own, and one that offers an alternate point of view, can give you a new outlook on life.

Mainly: exactly what are your needs? Is the rat race of the UK truly where you need to be located? Will your children thank you for giving them this chance to grow up with a chance to experience two different cultures? Can you now see the possibilities of living a British life, while additionally appreciating and enjoying a life in Spain? Yes to all three. Owning a property in southern Spain is an opportunity to truly widen your existence, seek a good investment for your retirement fund and extend your social and topographical circles – It’s a win – win situation with very few negatives.

UNPAID OVERSEAS TAX IN SPAIN WILL BE ABLE TO BE CHARGED BACK UNDER NEW POWERS BY HMRC.

UNPAID OVERSEAS TAX IN SPAIN WILL BE ABLE TO BE CHARGED BACK UNDER NEW POWERS BY HMRC.

Tax Law

New laws will make it harder for Britons to hide undeclared rental income on properties in the Costa del Sol and on assets in many overseas countries from 1^st of January 2016. This will include holiday homes and personal properties. A new information sharing system between international banks is to be adopted to stop this kind of fraud.

A public campaign started last year is to inform potential tax fraudsters of its new powers. This has come into force from December 31^st 2015 once the LDF closes in 2016 (Liechtenstein Disclosure Facility)

Over 90 countries that also include Spain have signed the agreement allowing the HMRC to be able to look into bank and savings accounts in foreign countries going as far back as 20 years.

At this moment the LDF permits HMRC to investigate possible tax evasion in particular counties, but has not fully been put into effect. This new system will mean that all nationals’ financial information will be shared within the 90 countries. This will include all trust funds and personal properties. This could mean that HMRC will fine and sanction criminals for non-payment of tax.

Current records of HMRC show that the amount owed to the UK Treasury is approximately £565 million in non-paid taxes from British nationals who have hidden undeclared hidden wealth. The new system and minority who do hide assets abroad will face tougher sanctions.

These fines could be to the tune of 30% of the amount tax due as well as being made to pay the full amount outstanding. An amnesty was issued in 2009 by HMRC for all British nationals to settle up voluntarily their overseas tax bills without them receiving any fines or prosecution or nonpayment.

This saw HMRC receive a total of £1.6 billion paid back. But they are now doubling up their campaign after a change in the law from the Autumn Statement.

Before it was considered that only deliberate non-disclosing of tax could have been interpreted as a criminal act. But with the change in the law. Any non-disclosed tax offshore be it capital gains or income will now be considered as a criminal offence from this year onwards.

This will apply to UK residents who have a taxable income in Spain   or outside the country.

France and Spain will start sharing information with UK from January 2017. But anyone with undeclared assets and income will be asked to come forward now as the HMRC will be able to go back through 20 years’ worth of personal transactions.

Any British nationals who buy a property in Costa del Sol and Spain and have sought out the right legal advice should already be informed of what they have to declare when it comes to tax. If you do live in the UK and own Spanish property, we would always advise you to see the correct information and frequently asked question about property in Costa del Sol and Spain from a qualified solicitor or an IFA.

Decrease in the growth of Spanish population.

Decrease in the growth of Spanish population.

Data from INE (National Statistics Institute) published last year showed that there was more deaths than births in the first half of the year for the first time over 10 years.

The number of deaths surpassed the figure of births by 19.000 and not since the Spanish civil war of 36-39 and previously of the pandemic of 1918 from the Spanish flu has the country ever seen this increase.

Other nations in Europe for example Denmark, Sweden and Netherlands have seen a decrease over the years in the population due to age. But due to Spain´s catholic religion in Spain and the belief in big families was up to recently the reason that Spain’s birth rate exceeded its death rate.

As the world has become easier to travel and the cost of living in Spain is raising, the next generation continues to increase more than the average family wage. More people are opting to have less children in Spain or putting off having them till later in life, that way giving people more time and finances to live in other countries and to travel around the world.

Due to Spain’s mass unemployment many of the younger generation left the country between 2012-2014, looking for better work positions in Europe.

Spain´s population currently is around 46 million, but is due to decrease around 1 million by 2030 and is estimated to decrease further by 2060 to around 40 million.

Spain is also ageing also, the populations average age is 43.2 this would make it the 10^th oldest in the world. There is an expectation that this will rise to 50.1 by 2030. This would put Spain as the 4^th oldest in the worlds table.

Spain is known as one of the world countries where its population has a longer life expectancy and also their love of children is also well known but the country. So if you would like to do your part and help out, think about moving to Spain while you are still young and help the ageing population.

Spain has now been recorded to be the sixth biggest real estate investment market worldwide.

Spain has now been recorded to be the sixth biggest real estate investment market worldwide.

Property for sale in Costa del Sol and the overall real estate market in Spain has now become the sixth biggest worldwide with regards to sales volumes confirmed by CBRE consultancy company annual data.

Spain

The real estate market in Spain came in 16^th in 2013 and 11^th in 2014 but has risen to 6^th place last year due to the remarkable sale growth of 2015 and has been seen in many other regions of the country.

Spain is showing a higher interest in property purchases than China, Canada and even France according to figures, this has begun bringing high investment companies like George Soros a leading US billionaire to look into the commercial sector in Spain.

The CBRE predicted that the Spanish property market in 2015 was to have a total investment of up to €13 billion, this would surpass the Spanish record of 2007 which was €10 billion just before the market crash took place.

Due to the much needed transparency and changes made to Spain’s real estate market, this has made for a much healthier sector and has deflected any unethical investors who affected the property market with artificial price inflation.

Within the residential property market, the rise in prices have been steadily increasing in the right way, this reflects on the sector that value for money and reduced properties in the Costa del Sol that are available shows when purchasers can make a good investment when buying good quality properties in the highly sought out areas of the world.

CBRE have said that the Spanish market is one of the places that property purchases will give investors a good return on rental income and also through capital gains making it more profitable than the real estate sector in the UK for example.

Confidence is flooding back to the Spanish market especially buying property in the Costa del Sol, CBRE data show that some of Spain’s capital is now making its way to overseas real estate with figures showing that half of last year reached €1.3 billion – showing a bigger investment overseas than richer countries such as Japan and Norway.

Number of UK nationals purchasing in Costa del Sol and Spain rises 26% in a year

Number of UK nationals that buy property in Costa del Sol and Spain rises 26% in a year.



Various estate agents working in the Spanish property market have informed that British nationals are purchasing again in Spain, as records at land registries show that this has risen by around 25% since 2014.

Moreover, the real estate market confirms that the recuperation of the Spanish real estate market has started again with a great surge in most Spanish regions especially the resale property Costa del Sol. With Engel & Volker’s and Lucas Fox International affirming that confidence in the Spanish market is high amongst both national and foreign purchasers mainly from Northern Europe.

In fact, as indicated by Lucas Fox, the quantity of properties sold to Spanish nationals has had a big increase with much as 50% last year alone.

The statistics of third quarter 0f 2015 which were distributed by the Spanish Property Registrars demonstrate that more than 80,000 homes were bought and sold between the months of July and September, which was 16% up on the same quarter in 2014.

Over that period, the registrars analysis affirmed, the number of purchasers from the UK was up by 53% – due to a blend of the strong sterling versus the euro, with affordable and bargain properties Costa del Sol and coupled with a strong British economy and the guarantee of rising property prices for Spain in the future.

In 2007 was the last time the pound sterling was above €1.4, and has started to reach those figures again.

Spanish property costs in prime areas are still immensely competitive, particularly if you place them against any other important key European property locations. An enhancing national economy is another main consideration – increasing at 3.4% from July to September, the speediest yearly rate growth since 2008.

Further reassuring news also has originated from Spanish mortgage expert Mortgage Direct, which stated that inexorably competitive rates are bringing more purchasers back to the Spanish property market.

"I honestly think we are in for an extended period of low rates in the Eurozone," Kevin Monger, who is the Mortgage Direct broker reported to the OPP. "The financial climate is still visibly poor in a significant number of other countries that make up the Eurozone."

Information that were distributed last year showed that the British buyers were flying in to the Coast del Sol on viewing trips and were the largest  purchasers and bought one-fifth of all Spanish property sales last year.

2016 Growth forecast to continue to rise for real estate market in Spain

2016 Growth forecast to continue to rise for real estate market in Spain

Growth forecast for Costa del Sol and Spain

2016 will continue to see the real estate market in Spain recover according to data by the evaluation company Tinsa and the General council of Notaries.

Prices are estimated to rise nationwide for the whole of 2016, as Tinsa projected forecast shows that the average property price rose in November 2015 by 1.9% compared to the previous year.

The acceleration of property prices increase is due to last year’s growth of 1.9%, with real estate values going up steadily each month throughout the whole of 2015.

Looking at individual Spanish regions, the property market of Madrid and Barcelona reached their best performance in November and saw the price increase and average of 3%. Other parts of Spain like the Costa del Sol which is another very popular coastal area was continually increasing and averaging out of 1.4%.

Spain did see some property areas for sale in the Costa del Sol increase and in places like Murcia, which saw the market value fall again around -3.3%. The property sector of Spain’s second largest bank BBVA and Tinsa have both agreed on a positive growth and is expected in nearly all Spanish regions for 2016, with the cost of property encountering continued growth.

Nearly all Spanish regions will show evidence of an increase on the 2015 sales market. The Spanish largest banks have predicted that mortgages are also going to show an increase, which also help with a large amount of property sales for the current year of 2016.

Last year’s Spanish bank reports for the summer detailed that property purchases increased a 9.5% in the month of August compared to the same figures of 2014, it also shows that September had an 8.7% increase.

New & Off Plan development properties in Spain and surplus stock that were never sold after the fanatical crisis years, have also seen an increase of sales in 2015/2016, with the surplus homes especially in the Costa del Sol nearly all extinguished and this is due to a demand in the more sought out regions of Spain and buyers are now purchasing these properties that before fell short of the property market.

Last year general elections have shown that the Spanish economy will show a healthy increase in 2016. All forecasts and data point to suggest that GDP growth will carry on, this will also help to assist the property market in Spain, not just in the amount of property purchases, but also in an increase of the average property price.

With the continued sales looking good for 2016 and 2017 Spain is now fully over the property financial crisis and investors can look forward to some continual growth and return on investment.

Spain will continue to be one of the best countries and the Costa del Sol area for buying property.

Marbella is developing a new luxury beachfront resort Costa del Sol.

East Marbella Beach area

Marbella is developing a new luxury beachfront property resort Costa del Sol.

January this year saw new plans drawn up to construct a new 5 star luxury development. The Platinum Estates Group (a Hong Kong-based investment conglomerate) has purchased 170,000 square meters of prime beachfront land in Las Chapas just to the east of central Marbella. A proposal of a luxury development including and 120 top of the range Luxury villas and property in Costa del Sol and 5 star hotel has been projected.

Headed by Indian businessman Roshni Mohinani, Platinum Estates main market is property marketing and construction and although the majority of its operations are centered mostly in Hong Kong and the United Kingdom, this will be their 6th project in Spain, where a considerable property investment portfolio incorporates property located in the main cities of Barcelona and Madrid.

The land purchase in Marbella is said to have come to around the figure of €50 million, with an additional €150 million to be incorporated into the development of the resort which, as indicated by Platinum Estates' Partner, Juan Luis Segalerva, will be promoted as one of the most highly luxurious projects in Spain.

The development will be styled with a Mediterranean element of design starting with the 5 star hotel with a 200 room capacity, not forgetting its independent luxury villas. The project also includes a private beach club, exclusive restaurants and high brand retail outlets.

This is great news for the Costa del Sol and east of Marbella. East Marbella has some of the nicest beaches in Spain in Spain  and the whole project is  welcome addition to the area.

Report on Spanish homes for sale in the Costa del Sol that offer the best value in Europe.

Map of southern Spain

Report on Spanish homes for sale in the Costa del Sol that offer the best value in Europe.

Another system of measuring property valuation conceived by the Organization for Economic Development (OECD) has devised research that Spanish homes show some of the best value for money in Europe.

Taking into account over 10 years of analysis, the OECD has mapped out house costs in a large number of the world's most developed economic nations against the average wage, and studied this data along a long term projection.

Its research uncover that Spanish property is really underestimated when incomes are taken into account– purchasing a home in Spain not only financially viable for the normal Spanish national, as well as remarkably great value for money for British coming over with strong Sterling and a high salary.

The OECD study did set a score of 100 as the 'average'. A score of 110 does imply that property in that location is at present over-priced by 10% against its long term average.

Spain currently has a price income score of only 74, implying that homes in Spain are as of now 74% of price average over long term. It states that homes in Spain are "under the valued price" by 26%. Considering that the current score within the UK is 107, is shows that good value for money is achieved as standard in the Spanish property market.

Another country in Europe, Hungary has a score of 83 – is also close to Spain´s score, with most other countries achieving either the mid-90s or 100´s above.

Spain's real estate sector is vary varied, and properties in the more famous areas for example, the  Property for sale in Marbella Costa del Sol would likely score more like 100, yet the OECD research took into account national predictive trends over a 10 year period.

Also, the property sector has started to take note. Spain's financial improvement in the previous 15 months, fortified by solid economies in northern Europe, have enticed purchasers back to its property market, and 2016 is projected to be an exceptionally solid year for the sector.

Besides, when new tax laws are put into effect in the UK in April, Spanish real estate will have an even bigger appeal. From April 1st, second homes purchased in the UK will be liable to an extra 3% stamp duty on the purchase price, yet this duty applies only to British property, not homes purchased in Spain.

So, if you are a British national and have UK savings, you could be enticed to look to secure your financial future with an astute property investment, there truly is not a more discerning property market in Europe than Spain at this current moment– and the research demonstrates it, concluding that Spain and the Costa del Sol is a great place to buy property.