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Update on Spanish Tax Law and the Property Market In Spain

Big Sky in Malaga ProvinceA few weeks ago we wrote an article about how certain sellers of Spanish property will have to pay more tax next year if they do not manage to sell their property quickly. The general view of course is that this was a stupid move on behalf of the Spanish government and it meant that certain sellers were desperate to get rid of their properties before the property market in Spain moved into 2015.

Well, guess what? In a fit of “oh my God we are going to lose some middle class votes” realization, the Spanish government has now said that this new law will only apply to properties priced over €400,000. Therefore, if you are in the market for a property that has been held in the family for a long time and priced between €400-500,000 expect the actual declared price to be €399,995 when you buy it, however much you actually pay for it.

Another sign of panic by the Spanish government.

However what they haven’t changed, at least in certain areas, is that if you are buying a property and the tax bill is potentially higher than what it would be when you apply a fixed percentage then you may have to pay more in many parts of Spain. Take a look at our previous blog post about this and be aware that it may happen if you are not fully informed of the consequences of the Valor Catastral.

I am pretty sure that eventually this new law will disappear too. However until it does we have made steps to contract somebody experienced in the market, recognized by the Spanish courts and able to write full reports on properties giving them a real market value if you find yourself with a need to appeal. If you need more information about this just send us an email to info@Spanish–Property.net.

Meanwhile in general the market keeps on moving nicely with foreign buyers moving into the more popular areas of Spain and the national market is also starting to move at certain price points, usually around the 100k and below area. Banks have been instructed to give mortgages a bit more freely by the central government and they are starting to do that although the percentages they give are still a lot lower than they were in the past.

There are many foreign investment funds buying into the Spanish market too and this means that Spain is still seen as a very attractive country to make profits for these funds. Therefore you should also consider Spain as a good place to buy a decently priced property before prices start to go up eventually as where vulture funds go individual buyers follow.

Here at the Spanish Property Network we continue to keep an eye on the market for you and will inform you when there are major changes afoot. If you have any questions don’t hesitate to ask us at info@spanish-property.net or fill in the form below

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Big Sky in Malaga Province

Big Sky in Malaga Province

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