Spanish House Prices on the Rise

Everyone around Europe knows that Spain was hit hard by the recession, and that for a while Spanish property prices were at rock bottom. In fact, for a while, it was possible to move to Spain for next to nothing – something that a huge number of British expats managed to do. But these house prices couldn’t stay low forever, and now the Spanish property market has started to pick up again – the first bit of good housing news Spain has had for a long while!

spanish-house-prices on the Rise

The last time the Spanish property market rose in price was 2008, so the news that between the third and fourth quarters home prices rose by 0.5% in Spain will come as welcome news to many. After all, increasing home prices point to a strengthening economy, which can only be a good thing for anyone living in Spain. The prices are, however, still 37% lower than they were at their peak, so they still have a long way to go…

Of course, this 0.5% figure doesn’t represent the whole of Spain though, so what are the individual figures for the more popular expat locations? Current property owners in Alicante will be happy, as the prices here rose by 2.1% — the highest in the country – while expats in the Costa Brava will have seen home prices rise by 0.9%. It’s not all great news though, as expats with properties in the Costa del Sol still saw prices go down by 0.7%, while those in Tenerife saw them fall by 0.5%. The reasons why these disparities have occurred is unclear, although they will more than likely even up in the coming months.

Another sign that the Spanish property market is on the up is the fact that the number of building permits has increased by 2%, therefore showing that developers are now getting more confident that they can sell any new houses they construct for a decent profit. Previously developers had known that the market was completely unprofitable, meaning that building permits had declined for the past seven years.

But what does this rise in prices mean for those thinking about moving to Spain? Well, the recent increase in prices is not a massive one, so it should not prevent anyone from making the move. If, however, the prices continue to rise as predicted, this will start to price some people out of the Spanish property market – so it is vitally important that those thinking of moving to Spain act quickly. There’s no point risking your dream move by stalling for a few more months! This is especially true as there are still a large number of Spanish properties for sale on various websites, so finding the perfect home should not be too tough.

If you decide that you are going to act now and make the move to Spain, why not call Matthew James Removals Spain today? We have the experience and expertise needed to make sure your move to any part of Spain goes smoothly. What’s more, we’ll also be able to help with various other aspects of your move, such as planning and storage.

2015 Bringing Many Tax Changes for UK Expats in Spain

In our latest post on expat news for Spain, we bring you information on a range of tax changes that will affect Brits living in Spain

some of which are going to be very beneficial, others which could adversely affect your wallets. It is important to remember, however, that even with these tax changes living in Spain will still be much cheaper than living in the UK, which is one of the reasons many people flock to the Spanish shores every single year.

Perhaps the biggest change to the Spanish tax system for foreigners is the fact that the capital gains rate will be reduced, going from 21% down to 19% by 2016. This means that those with businesses in Spain will find that they pay much less to the government and have more left over to plough back into their business. It is also the case that inheritance tax will be drastically reduced from 34% to 1%, which will benefit many living in Spain.

Another great piece of news is that income tax has been reduced across all bands, therefore meaning that whatever your income, you’ll be paying less to the taxman. The Spanish version of VAT has not changed.

On the flip side, those who bought property in Spain before 1994 will find that, should they come to sell their property now, they will have to pay a higher amount of tax. This is because something referred to as “taper relief from capital gains tax” has now been cancelled. You’ll be exempt from this if over the age of 65 though, or if you are going to use the money to buy another property in Spain.

Hopefully that clears up some of the new tax changes being introduced in Spain that will affect expats. Make sure you keep checking back regularly to find out about more expat news for Spain!

For removals in Spain or from Spain to the UK contact Matthew James Removals Spain

Spain the Top Destination for Brit Retirees

Retiring to Spain – It is estimated that over 6,000,000 Brits plan on upping sticks and moving abroad once they are at retirement age.

Moving to Spain in your retirement

Of this six million, a massive 26% state that Spain is their preferred location, meaning that over 1.5 million people are looking to descend on the country at some point in the future. Second in the list was France, with the United States coming in third place. Surprisingly, Australia only came fourth in the list.

Of course, it is absolutely no surprise to find that Spain tops this poll, as we all know that many people from the UK move there every single year. But why do so many people choose Spain as their ideal retirement location? Well, firstly they are drawn in by the excellent weather, which outstrips the UK climate by some way. Secondly, the financial pressures of life are much lower in Spain, with a UK pension stretching much further in Spain than it does back home. Finally, there’s the relaxed pace of life, which many older expats find suits their lifestyle better than the hustle and bustle of the UK’s cities.

With 1.5 million people looking to move to Spain in the future, the big question now has to be this: can Spain cope with this massive influx of Brits? The answer has to be a resounding “yes”! The vast majority add to the local economies and don’t cost the Spanish state a euro – something that this recession hit country can certainly do with. Plus there’s the fact that Spain has a large surface area and a smaller population than the UK, meaning it has the space to support all these extra people.

If you are looking to move to Spain though, don’t wait too long, as house prices are only going to rise from this point forward…

Relocating to Valencia Spain: Buy or Rent? Moving to Valencia

Moving to Valencia is a massive life choice, and one that can have a huge impact on both you and your family.

Moving to Valencia: Buy or Rent?

Hemisferic and Reina Sofía Arts Centre

 

 

 

 

 

 

This doesn’t mean that moving there is a risk though, as the impacts are usually incredibly positive ones, which increase your quality of life no end. The biggest hurdle most people have when looking to move to Valencia though is deciding whether to buy or rent, so we’ve listed the advantages of each below, in order to make your move to Valencia slightly easier.

Firstly, let’s start with the economics – namely, the economics of Spain. Throughout Europe, currencies have come crashing down, therefore driving down prices on all manner of different things. Not many countries were hit harder than Spain, and as a result house prices are still incredibly low when compared to the UK. This means that even £100k goes a long way here – much further than it would in London, anyway! As with all house prices, they will rise though, which means that many people are taking the risk and buying now, and then hoping that they enjoy life out there. Of course, if things don’t work out, you can always sell – as previously stated, prices are only going to go up…

If you do decide to buy a property in Valencia, you should be prepared for the fact that buying in Spain is very different to the UK. Therefore, it is imperative that you hire a specialist lawyer, who has a detailed knowledge of urbanismo (Spanish land law). It is best to engage the services of a Spanish lawyer, however there are UK lawyers available as well. You should also ensure that any mortgage you take out is with a company authorised by the Bank of Spain, and that you understand your mortgage agreement. If you do not speak Spanish to a very good level, hire a specialist translator to help.

Those looking for more peace of mind will probably prefer the option of renting though, as it provides a way to experience the city without any of the financial risk. Typically a 3 bedroom apartment will cost around £300 per month to rent in Valencia, and short leases are also available, just in case you find the house of your dreams and want to buy sooner rather than later. Of course, properties within central Valencia will be more expensive, although probably still not out of reach for most people looking to relocate there. If you do rent on the outskirts, public transport links are good, so getting around the city won’t be an issue.

So, the choice is really down to personal preference. If you are 100% sure you want to move to Valencia, then you should definitely take advantage of the rock bottom property prices. If you are more cautious though, rent a property for a while and get a feel for the city before you fully commit – although you almost certainly will, as the charm of Valencia works its magic on everyone in the end!

If you are relocating To or From Valencia then please don't hesitate to contact our Bi-Lingual Staff for more information CALL NOW TEL: 0034 931 84 54 94 for advice or a Competitive Price for your Move in Valencia Spain