Our position on the proposed doubling of property Tax rate in Spain for non-EU nations.
First to say, we are entirely sympathetic to the Spanish Government intentions. Namely an attempt to stem the levels at which property prices are increasing, so that local people, and particularly young families, can afford to buy or at least rent them.
However we think they are going about it in the wrong way! By doubling the tax rate from 7% to 14% (in Andalucia for example, and NOT the 100% on purchase price as been incorrectly reported), will still deter much equitable investment.
One of our main objectives is to help provide affordable housing for all. Although we are a Business and not a Charity, we believe there are alternative equitable ways to achieve the Spanish governments intentions. These ways provide sustainable housing communities with a mix of affordable and full-market-price homes. Thereby fostering a vibrant and inclusive environment bringing benefits to all. (read more about this here.) new tab.
Our view about property prices.
The expression we use is “bloated”. And by this it is clear we mean over-priced. In many areas, for example Marbella, Estepona, Torremolinos and other coastal areas of Andalucia, it has become almost impossible for local young people and families to buy or rent a home. This can not be right!
Our views about property investment in Andalucia.
One of the objectives of the Spanish Government is to stop short term speculators who are looking to make a quick profit. It may sound strange, since a large part of our business is to help buyers and sellers, but we agree with this. Property speculators have been a major factor in the rapid increase, a doubling of the prices in the past 5 years.
Having said that, we have no doubt that Spain remains an excellent investment, but only in the medium to long term. If you are looking to make a quick buck, it is not going to happen. We think prices will stabilize, but not drop. If they do it would not be fair to the people who have recently bought at the top end of the market.
Our conclusions.
- Land should released and subsidies given for 1 million++ new homes in Spain.
- Spain remains a great place to invest in the medium to long term.
- It remains an excellent investment if your intentions are to retire here.
- We do not think the proposed new law as it stands will pass. It will be amended.
- Either way, it is not catastrophic. It just means having to wait longer for ROI.
- We do not think the proposed new law is deliberately racist. It is misconceived.
- Misconceived reporting of 100% tax on the entire property price must stop.
- The developers, who even themselves are predicting “a property crash in 3-4 years time “unless action is taken to curb the excessive price increases” need have no fear. Action to curb short term increases WILL be taken, in one way or another.
Obligatory disclaimer: This content is our opinion and is subject to change as things develop. Legal advice should always be taken to assess the current situation before any transaction takes place.
I find it amusing that the Spanish government under Pedro sees it fit to open its borders to immigrants and in the same breath to double taxes for outside investment especially to Brits.
Then socialism never did have much logic to it!!!
True, and it is for all Non-EU countries, which includes all English speaking ones except Ireland who are in the EU!
We believe the correct solution would be to release Government owned land and a portion of agricultural land which is not well used to build at least one million affordable homes. We say more about this here:
https://costadelsol.villas/properties/affordable-housing-in-spain-for-young-people-families-the-elderly/
I disagree with you. I think this law wiil pass, if only to spite the Americans who are hiking their tax rates.
Hi Judy. The situation is very unclear at the mo, but one thing we do know is that this law has not come into being yet. We do not think it ever will. Also to say, if what Trump says is correct, Spain charges more import tax on the US than the reverse. So he may have a fair point.
In agreement with you. You should expose the media that are spreading these false reports. They are hurting and disappointing many people. James (Jim)
Thanks Jim. I hear what you are saying, but we are not in this to “expose” anyone or cause them harm. However I take your point. We have written to all the sources we have found asking them to correct the information. In fact our Board of Advisors have also urged me to write a report that they will publish. These include friends from USA Today, The Washington Post, The Times (London) and other friends in the media in Canada, Australia and NZ.
Our reach would be millions of people, literally, including 18,000 directly on the Costa del Sol (Facebook), with their combined reach of another quarter million, and another 6,000+ with their combined reach of around 700,000 also on Facebook, mostly in the US. I have told the Board that I will take no action until people are given the chance to retract. If they do not, we will release.
Sorry, but several comments have not been approved. We understand your viewpoints but you can not publish things that are defamatory, no matter how angry you feel. Our lawyers are watching this page, making sure we get it right. This is a very sensitive topic!
Why are you so afraid to expose the fear mongers?
Hi Tina, we are not afraid to expose anyone. We just want to give them the opportunity to retract and correct their position. Several already have.