A SMART INVESTMENT

The large coastline has attracted many construction companies to build homes to the specific needs and wants of foreign buyers. It has also started to attract investors. In the last year, the value of real estate in Spain has increased by an astounding 17.5 percent. And to further protect this great spurt of development and the interests of foreign buyers, the government has passed new laws regarding construction and sale of real estate. Buying a home in Spain is now much more secure! have made buying a home in Spain safer than ever before.

Low interest rates and a growing demand for rental property in the tourism industry also means that this real estate bubble is not going to burst anytime soon. There will be growth for many years to come.

CHOOSING A PROPERTY

Should you buy a house on the coast? It’s more expensive but is more profitable in the long run. Should you get a house in the quieter farmlands? It’s more affordable but more difficult to rent out. What kind of property should you invest in? It depends on your preferences and needs you can see Egypt property and Calabria property.

Look at how much you can really afford to pay and what you want to achieve and then hunt around. If you want to recover your investment through rentals but can’t afford a seaside home, then consider an apartment. If you want the peace and quiet of a rural home but want a bigger return on investment then consider buying in an up and coming area and then selling it in the future once prices increase.

TAXES CONCERNS

Good news for non residents. After extensive “encouragement” from the European Union, the Spanish government has set into motion a series of policies that will significantly remove the discriminatory practices towards property owners who are non Residents of Spain.

As from January 2007 it is planned that the effective rate of tax that will be paid by a Resident or a Non-resident on a Capital Gain made on, for example, a property sale will be equalised at 18%. This is a reduction from the current rate of 35% for a non-resident and an increase for the resident up from 15%.

Remember the best way to deal with all this foreign law is to ask! Make friends with local people and they’ll be able to guide you through the what seems like endless paperwork…Once you’re done you’ll find yourself at the agencia de viajes in no time, ready to head out to sunny skies!