The Spanish government is introducing a number of measures to make the Spanish property market more attractive to foreign buy-to-let investors.
Property prices have fallen by up to 40 per cent due to the the drying-up of property financing. Encouraging foreign investment is seen by the Spanish government as one way that may assist the country’s ailing property market.
Europe’s fourth largest economy has long been at the top of the list for property developers, with the country being a particular favourite among UK residents keen to take advantage of Spain’s reliable weather.
Among the various measures will be a reduction in the time allowed for rental arrears before eviction can take place – down to 10 days. If proposed changes go ahead, a given tenant’s right to live in a property will be reduced from five years plus a three-year extension to three years with a year extension.
Tax relief on properties is also proposed – of between 60% and 100%. However, the property must be occupied by working people of under 30 years old. 12 per cent more properties were bought by foreigners in the second quarter according to Spain’s Ministry of Development. The most popular regions to buy property were Alicante, Malaga and Barcelona.
This news is likely to be well-received among many ex-pats based in the country, as well as many of our buy to let insurance customers looking for new opportunities