Archive for the ‘Investors in Spain’ Category
Thursday, November 24th, 2011
PP Leader, Mariano Rajoy, wins the national elections with the biggest swing in Spanish history
Last weekend’s national election saw the biggest swing in government that Spain has seen since the birth of its democracy some 33 years ago. The PSOE, the previous socialist government paid a heavy price for the economic crisis, losing 59 of the 169 seats they held in the senate.
The economy was by far the biggest talking point in the run up to the vote, with other issues taking a back seat. With 20% unemployment and the austerity measures biting hard, the ruling party was severely punished with change being the only objective of a disillusioned electorate.
And now the hard work begins for Partido Popular leader Mariano Rajoy and his cabinet as they try to steer the country out of the troubled waters into which it has drifted.
Along with the change of government comes the usual wave of optimism and this is bound to give the country a lift – at least in the short term. However, it will be the long term plans which will lead to economic recovery and it will be the construction and tourism sectors which will have to lead the way.
The construction of luxury property on the Spanish Costas has for many years been one of the foundations of the country’s growth. Beachfront villas and apartments around the golf courses attract important investment from overseas, not only creating employment in the construction itself, but also in the ancillary industries which service the new residents and visitors. Having taken the luxury property market for granted for many years, not only in Marbella and the Costa del Sol but all along the Mediterranean coastline, property developers and town planners alike are rallying to attract the next generation of foreign property investors.
The next few months will determine how effective these plans will be.
Posted in Investment Property in Spain, Investors in Spain, Spain Economy | No Comments »
Tuesday, September 13th, 2011
Property investors take another look at Spain
Over the past few years the traditional investment advice of putting money into bricks and mortar has been questioned as a safe strategy. The volatility in property prices coupled with the global financial crisis has left property investment towards the bottom of many advisers “to do” lists.
But this situation is now turning. Like so many things in the world of finance, the attraction of property investment is cyclical. And the smart investors are always a few steps ahead of the pack. Consider the factors at play. Firstly, property prices have stabilised. Certainly, compared with a couple of years ago prices appear to have not only touched bottom, they now seem to be rising, albeit slowly. Interest rates in the banks are at an all time low, so the value of any money left on deposit is being eroded by inflation.
In respect of property in Spain, and in particular, investment property on the Costa del Sol, the circumstances are further affected by the return of Spain as a premier tourist destination. Whilst the tourist market may have flirted with other, more exotic, destinations, Spain has any number of factors in its favour. Whether visitors are looking for sunshine and beaches, golf or nightlife, the Costa del Sol has it all. And, with so many other destinations presenting security issues, Spain has regained its rightful place in the hearts of visitors.
For the British investor – and indeed any of those from outside the euro-zone – the relative weakness of the euro is another contributing factor. The pound, which was languishing just above parity, has risen and stabilised around 1.16 euros. Whilst this is a long way from the headier days of 1.45 euros, it must be remembered that the reduction in property prices which has been seen over the last couple of years of around 30%, more than compensates for the difference.
With this in mind, there are certain property types that hold their prices well. The top end of the market – luxury property in the 4 – 10million euro bracket – has been remarkably stable. Properties on the golf course, and beachfront properties are generally in demand, as the supply is limited to a degree. And there are popular property developments and apartment complexes which have maintained their prices well.
As a result, many of the smart investors are looking towards property again as not only a safe bet, but one which is most likely to give returns in the medium term. Certainly compared to the stock markets, which have been more than unpredictable, the idea of owning a home in Spain becomes increasingly attractive.
Posted in Costa del Sol, Golf Property, Interest Rates, Investment Property in Spain, Investors in Spain, Property in Spain, Property on the Costa del Sol | 1 Comment »
Tuesday, August 9th, 2011
In what has been something of a surprise move, Spain’s Premier, Jose Luis Rodriguez Zapatero announced general elections are to be held in November this year. Most political analysts expected the elections to take place next Spring, but continued pressure on the government from all sides seems to have brought this unexpected reaction.
The Spanish economy, despite having had relatively good results from the recent banking tests, has continually been mentioned in the same breath as Greece and Ireland. Now with Italy showing signs of stress, Spain is being closely watched by international investors.
Whilst no one is making confident predictions about the likely outcome of the elections it is recognised that the victor will be taking up something of a poisoned chalice with a number of significant issues on the agenda.
Investment in Spain has slowed as has the building of new property and employment, but some of the more recent figures are encouraging. If Spain is able to avoid some of the more worrying predictions for its economy, the recovery should come, albeit slowly and not without setbacks along the way. The strong links with South America and the improvements in Spanish tourism are, perhaps, the aces the new premier will find he has up his sleeve come November.
Posted in Interest Rates, Investors in Spain, Spain, Spain Economy, Tourism in Spain | No Comments »
Sunday, May 29th, 2011
When Sheikh Abdullah Al-Thani invested into Málaga Football Club, there were very few who had heard of the Qatari. In the relegation zone at the time, Málaga F.C. was expected to face the drop at the end of season.
Sheikh Abdullah Al-Thani relaxing in Marbella
However, through significant investment and the arrival of new players, most notably, the ex-Sevilla and Real Madrid star, Julio Baptista, they finished the season in the top half of the table.
Contracts have already been agreed to bring Ruud van Nistelrooy and Joaquín to the club in the summer, and from being a poor relation in La Liga, Málaga are, almost overnight, a force to be reckoned with.
And now the Sheikh’s attention has turned to Marbella’s fishing port as his investment company unveils a joint venture with the Marbella Town Hall which is to see a 400 million euro transformation.
The new Bajadilla Port will be the Puerto Banús of the 21st Century
This investment will see the extension of the port to accommodate 1220 boats including space for three luxury cruise liners. It is expected that La Bajadilla as the port is to be known will become an obligatory stop on the Mediterranean cruise circuit and further position Marbella as a global tourist destination.
This property investment extends beyond the nautical. The new port will also house a 200 bed five star luxury hotel, and a commercial area destined to house the top names in luxury retail.
1,000 parking spaces complete the project, which is scheduled to be completed by 2015 – probably around the same time as Málaga win their first European trophy!
Posted in Costa del Sol, Investment Property in Spain, Investors in Spain, Malaga, Marbella, Spain, Tourism in Spain | No Comments »
Thursday, April 29th, 2010
There is a positive rumble within the overseas property industry about Spanish property. Professionals and experts from all areas of the sector are emerging with encouraging results for the first quarter of 2010 and upbeat predictions for the rest of the year.
A number of sources have now quoted the increasing interest, one, in overseas property in general, and two, more specifically for Spanish property. In addition, the Costa del Sol and in particular the coastal resort of Marbella is showing promising growth. Marbella property has recorded 200% growth in property sales during the first quarter of the year.
The Overseas Property Professional (OPP), report increased interest from both lifestyle buyers and property investors alike. A Place in the Sun has also predicted Spain to be the best destination for property investors during 2010.
Overseas mortgage specialists, Conti Financial Services, recently confirmed an increase in mortgage applications by 48% in March on the previous month. The severe winter experienced in the UK has been cited as a contributing factor for the rising interest in overseas property, with many revisiting the idea of purchasing that property in the sun.
Clare Nessling, Operations Director at Conti, said, “The most popular destinations amongst our clients are still France and Spain, both of which come with easy access and good rental opportunities”. She particularly highlights bargain hunters in Spain. “Confidence is definitely growing, but there’s also an element of buyers snapping up bargains in traditional hotspots while they have the chance.”
Source: Kyero.com, Property Showrooms
Tags: Business Investment Opportunities, Costa del Sol, Investment Property in Spain, Investors in Spain, Malaga, Marbella, Property in Spain, Property on the Costa del Sol, Reduced Property, Selling Property in Spain, Spain
Posted in Business Investment Opportunities, Costa del Sol, Investment Property in Spain, Investors in Spain, Marbella, Property in Spain, Property on the Costa del Sol, Reduced Property, Selling Property in Spain, Spain | No Comments »
Monday, April 19th, 2010
Record property sales have been confirmed by the Marbella tax office for the first 3 months of 2010. 2,499 Marbella properties were sold during January, February and March representing a 200% increase on the same period of 2009 during which 820 properties were sold.
The number of Spanish properties sold this year has even surpassed the same period in the boom years; 2008 saw 1,263 properties sold, 2007 saw 1,602 properties sold and 2006 saw 1,224 properties sold. The Mayor of Marbella, Angeles Muñoz, announced she is confident the town “will be the first out of the crisis”.
The new town plan, which comes into effect this month, also appears to be having a positive impact. Confidence in the market is clearly increasing as the town hall combats the illegal scandals that have plagued the area. The town plan will legalise some 16,000 properties that to date have been frozen from the property market.
Marbella is not the only place to have seen increased activity in the property market. According to the National Institute of Statistics, in February, the Spanish property market as a whole grew by 16% when compared to the same month of the previous year. Of the 35,720 properties sold in February, 21,368 were new build whilst the remaining 19,665 were resales.
Prices have been following their downward spiral since December 2007. Since then prices have decreased by 16% throughout Spain as a whole, by 22.5% on the Mediterranean Coast and by 13.6% in the Canary Islands.
Source: Spanish Property Insight, Property Wire, Property Community
Tags: Business Investment Opportunities, Costa del Sol, Investment Property in Spain, Investors in Spain, Malaga, Marbella, Property in Spain, Property on the Costa del Sol, Reduced Property, Selling Property in Spain, Spain
Posted in Business Investment Opportunities, Costa del Sol, Investment Property in Spain, Investors in Spain, Malaga, Marbella, Property in Spain, Property on the Costa del Sol, Reduced Property, Selling Property in Spain, Spain | No Comments »
Friday, April 16th, 2010
Spain’s costas are once again hot property for Britain’s second home buyers, according to a recent article in The Times. All indicators point to a resurgence of British property buyers on Spain’s coasts.
Prices at their lowest ever level combined with one of the worst winters on record in the UK have led to renewed interest from families looking to escape the grey. And the relatively low sterling-euro exchange rate appears not to be a deterrent.
The report is confirmed by experts in the industry both in the UK and in Spain. Spanish property was the most popular search on Primelocation.com between February 2009 and 2010, accounting for 32% of total overseas property searches. Rightmove overseas recorded an overall rise of 60% in overseas property searches when compared with March last year.
Many Brits are returning to buy property in Spain for lifestyle reasons. It is an additional incentive that prices are now affordable with reduced property at a level where the purchase can also be for investment over the longer term.
And it is no surprise the British are returning. Southern Spain was rated in the Top 10 places to live abroad by Knight Frank Estate Agents. A recent article in the Daily Telegraph explored the best places to live in the world, with Southern Spain featuring high in the list.
According to a recent article by the OPP, Marbella has seen a resurge of foreign lifestyle buyers. “Total property sales in the city have risen to their highest level in four years, research from the tax office shows”.
Source: The Times, Daily Telegraph, OPP
Tags: Bargain Property Overseas, Costa del Sol, Investment Property in Spain, Investors in Spain, Malaga, Marbella, Property in Spain, Property on the Costa del Sol, Selling Property in Spain, Spain
Posted in Bargain Property Overseas, Costa del Sol, Investment Property in Spain, Investors in Spain, Malaga, Marbella, Property in Spain, Property on the Costa del Sol, Reduced Property, Selling Property in Spain, Spain, Uncategorized | 1 Comment »
Monday, April 12th, 2010
The European Court of Justice (ECJ) ruling on 6th October 2009 that the higher capital gains tax applicable to non-residents in Spain between 1997 and 2006 was discriminatory, has generated huge interest from non-residents who sold their Spanish property in this period and were subjected to the higher rate of tax.
However, the process to file for the reclaim is not so straightforward. Any application to reclaim overpaid taxes should be filed with the Spanish Tax Authorities stating the amount overpaid and the interest accrued since the payment date.
From this administrative procedure, the tax authorities are required to produce a formal statement error with the calculation of the amounts that should be paid back including the interest.
However, the tax authorities may deny the claim. In such a case the taxpayer must go through the ordinary appeals process. Under Spanish Tax Law, the reclaim period is limited to 4 years from the tax payment date. For example, a property sold on 20th April 2006 would have paid the tax within the due date (4 months from sale on 20th August 2006), the claimant has until 20th August 2010 to file for the rebate.
Failing this, there is a possibility of claiming beyond the 4 year time limit. A judgement passed on 26th January 2010 by the ECJ means the taxpayer can make a claim through an extraordinary procedure via the Council of Ministers to claim the responsibility of the Spanish state as legislator.
Whilst it is not necessary to seek legal help through the procedure, for such a complex process, legal advice is advisable for a successful and stress free outcome.
Source: OPP
Tags: Investment Property in Spain, Investors in Spain, Property in Spain, Property on the Costa del Sol, Spain, Spain Economy
Posted in Investment Property in Spain, Investors in Spain, Property in Spain, Property on the Costa del Sol, Selling Property in Spain, Spain, Spain Economy | No Comments »
Friday, March 26th, 2010
Last week the new terminal at Malaga International Airport was officially inaugurated by King Juan Carlos alongside Queen Sofia. The opening has followed 5 years of work building the new terminal 3 and surrounding services and amenities. The second runway is due to be completed shortly.
“The new terminal we inaugurated today does justice to the importance and tradition of Malaga Airport,” the King said in his speech to a 500 strong audience. Malaga is the oldest airport in Spain that is still on its original site. The King added that the expansion has “reinforced Malaga’s important position within Spain’s dense network of airports.
Those attending the inauguration included various local and national authority and political representatives, business delegates from the fields of business, tourism, aeronautics and communications. The Minister of Development, Jose Blanco, the President of Junta de Andalucia, Jose Antonio Ginana, the Mayor of Malaga, Francisco de la Torre, the Secretary of the State for Transport, Concepcion Guiterrez and the chairman of Aena, Juan Lema, greeted the King and Queen on arrival.
Of the architectural design of the new terminal, the King described it as, “agile, light and transparent” and highlighted its modern and advanced technology. The guest also passed through the Departures Lounge which is now home to Europe’s second largest duty free shop.
The terminal officially started operations on Tuesday 16th March and reported smooth running for the first day. The expansion of the airport brings an optimistic outlook as it is expected to bring a vital boost to both economic and tourist activity in Andalucia.
Source: Sur in English, Kyero.com
Tags: Business Investment Opportunities, Costa del Sol, Holiday Rental, Investors in Spain, Malaga, Marbella, New Developments on Costa del Sol, Property in Spain, Property on the Costa del Sol, Rentals on the Costa del Sol, Selling Property in Spain, Spain, Spain Economy, Tourism in Spain
Posted in Business Investment Opportunities, Costa del Sol, Investors in Spain, Malaga, Marbella, New Developments on Costa del Sol, Property in Spain, Property on the Costa del Sol, Rentals on the Costa del Sol, Selling Property in Spain, Spain, Spain Economy, Tourism in Spain, Uncategorized | No Comments »
Tuesday, March 23rd, 2010
A new law was approved last Friday in an attempt to diversify the Spanish economy and create sustainable growth through a 10-year reform programme. New industries were highlighted for development and promotion with initiatives to boost productivity and competitiveness over the next 10 years.
The Economic Sustainability Law is a direct measure to stimulate the Spanish economy, which has suffered at the hand of the global recession. Armed with funds of €25 billion, the new law aims to diversify the economy into developing new industries such as biotechnology and renewable energy. Measures to ease the public deficit and increase exports include developing the aeronautical, automobile and food sectors.
The depressed housing market is also addressed. Although, the plan aims to reduce the dependency of the Spanish economy on the construction industry, measures include discouraging new construction, incentives for housing rentals, loans to make residential and commercial buildings energy efficient and home refurbishing packages.
Other measures to stimulate the economy include larger tax incentives for companies that invest in research and development and support for Spanish exporters. New measures will also be announced this week that focus on the development of short-term jobs to combat the significant unemployment in Spain. Support and promotion of vocational training is already on the agenda.
Following the Cabinet meeting held in Seville, the Prime Minister, Jose Luis Rodriguez Zapatero, commented, “We need to continue boosting the innovative and competitive business sectors that generate high added value”. He also highlighted that the plan is for the country’s long term development from present day, “For the present because it must contribute to the economic recovery and returning to the path of job creation and for the future because it is a key piece for a new growth pattern.”
Source: Reuters, Kyero.com
Tags: Business Investment Opportunities, Investors in Spain, Property in Spain, Spain, Spain Economy
Posted in Business Investment Opportunities, Investors in Spain, Property in Spain, Spain, Spain Economy | No Comments »
