Archive for the ‘Spain Economy’ Category

Spain Sees Massive Swing to the Right

Thursday, November 24th, 2011
Mariano Rajoy Leader of the Partido Popular

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 »

EU to Fund Three New Rail Corridors Through Spain

Monday, October 24th, 2011

Confirmation has finally come from the EU on the future of the European rail corridors with finance being made available for three new corridors through Spain.

eu investment in spaoinish rail corridorsTwo of these originate in Algeciras, as major port some 20 kilometres West of Gibraltar and Sotogrande, one heading northeast towards Madrid and beyond into France, the other to follow the Mediteranean coastline around the Costa eel Sol, the Costa de Almeria and up through the Costa Blanca before crossing Barcelona on its way into France via the eastern coast of the Pyrenees.

The third will connect Galicia and the northern cities to the rest of Europe.

All three will make a major contribution to the future of the Spanish economy, being important transport infrastructural improvements for the transport of both passengers and freight.

The Costa del Sol is expected to be one of  the principal benefactors; stations are planned for the major cruise as well as cargo ports, with Marbella likely to be on the timetable. The high-speed rail network already connects Málaga with Madrid – the 500km journey taking a mere 2 hours 40 minutes, but the new proposed network will bring passengers from well beyond the current rail catchment areas.

Without doubt, one of the contributing factors to this decision has been the substantial growth of the Spanish costas, and the Costa del Sol in particular as a residential tourism destination over the past two or three decades. The number of holiday visitors and European property owners in Spain has enjoyed constant growth, and there has been a steady increase in the number of expatriate residents – all of whom tend to travel more regularly around Europe than ever before.

These improvements are another important effect of the coming of age of the Spanish Coastal areas as significant economic markets within which the EU are expecting future growth. They are a great indicator of the bright future the area can expect to enjoy as such substantial investment helps to build further confidence in Spain and the Mediterranean coasts.

Posted in Costa del Sol, Malaga, Marbella, Spain Economy, Tourism in Spain | No Comments »

Spain Halves VAT on New Properties

Monday, September 5th, 2011
New Development on the Costa del Sol

New Developments in Spain benefit from halving of VAT rates

In a recent move designed to give a boost to the Spanish property market, the  government has announced the halving of VAT on new development property from 8% to 4% until the end of the year. Whilst this only applies to new property, it is hoped that the measure will stimulate activity in what has been a slow year for the sector.

The savings can be substantial. On a property of 1m euros, the 4% difference represents 40,000 euros – which would furnish a new property nicely. So which properties are eligible?

Basically, all properties bought directly from the developer, with the purchaser being the first owner of the property. And, of course, those qualifying properties must be bought before the 31st December 2011 – so the window is fairly narrow.

At present new development property on the Costa del Sol is plentiful. There are developments on golf courses and frontline beach developments that have completed units for sale at very competitive prices. Many developers have reduced their prices over the past year and here at Livingstone Estates we have some exceptionally attractive offers on several new build properties. If, alongside these highly competitive prices, we add the further enticement of a 50% reduction in the VAT to be paid, the proposition becomes yet more appealing.

Visit our main website for details of new development property, or ask our sales team for further information.

Posted in Bargain Property Overseas, Costa del Sol, Investment Property in Spain, New Developments in Spain, New Developments on Costa del Sol, Property in Spain, Property on the Costa del Sol, Reduced Property, Spain Economy | 1 Comment »

Spain to go the the Polls in November

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 »

Capital Gains Tax Reclaim Update

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

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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 »

New Terminal at Malaga Airport Now Open for Business

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

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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 »

Spain Takes Action to Boost Economy

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

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Posted in Business Investment Opportunities, Investors in Spain, Property in Spain, Spain, Spain Economy | No Comments »

Moody’s Rating Agency – Spain Public Deficit Cut Proposal Credible

Thursday, February 11th, 2010

Moody’s rating agency has confirmed their support for Spain’s Austerity Plan 2010-2013, stating that measures outlined are credible and reinforces the country’s  Aaa rating.

Spain recently delivered its new plan that aims to cut the country’s public deficit from its current level of 11.4% of gross domestic product (GDP) to 3% of GDP by 2013. These measures will bring the deficit back in line with European Union directives and enable the government to regain control by substantially reducing central government spending.

The confidence in the Aaa rating is good news for the country which has seen a deluge of scepticism about its economic recovery.  It should also bolster confidence amongst investors who may be considering Spain for potential investment opportunities.

The rating assesses long-term obligations, “the possibility that a financial obligation will not be honoured as promised”, reflecting the likelihood of financial loss or default. The Aaa investment rating is the highest and grades Spain to be “of the highest quality with minimal credit risk”.

Regarding Spain’s economic recovery, Moody’s said, “The economy will not bounce back to the 3.25 percent to 4 percent growth rate it averaged in the last cycle, it will nevertheless average a more moderate, but still respectable 2 – 2.25 percent pace of growth once the excess supply from the construction cycle has been eliminated”.

It has already been noted the increased interest for property in Spain during the first weeks of 2010.  Many in the overseas property industry have already highlighted the country to be the number one destination for overseas property investment in 2010.

In addition, the Bank of Spain has told banks they must devalue their property assets by 20%, according to El Mundo. Following unexpected results posted by a number of major banks recently, analysts have highlighted that Spain’s banks have been valueing their real estate assets “pre-crisis levels”. This has been holding property stock values at inflated prices not reflecting the 14% drop since the peak values of 2007.

Increased demand and correctly priced property stock will further entice both investors and property buyers to the market reducing the oversupply of property stock in Spain.

Source: Interactive Investor, Reuters, aboutproperty.co.uk

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Posted in Business Investment Opportunities, Investment Property in Spain, Investors in Spain, Property in Spain, Spain, Spain Economy, Uncategorized | No Comments »