Government encouraging overseas buyers to buy property in Spain

  • 12 years ago
  • Uncategorized

The Spanish government is
encouraging new landlords to Spain by changing the laws in favour of property
owners. Mortgage Strategy reports
that owning a property in Spain ‘now presents a viable business opportunity
thanks to a shift in rental laws.’

Keep reading to learn more about
how this law change could help you maximise your property income.

Changes to rental laws designed to encourage property investment in Spain

Writing in Mortgage Strategy, Bob Young, managing director of CHL Mortgages,
says that owners of second properties in Spain have ‘the chance to reap greater
rewards’. This is because the government is making it more attractive to buy
properties and to rent them out by giving more powers to landlords.

Spanish legislation has always
been weighted in favour of tenants, but the country’s huge national and bank
debts and ailing property market has prompted the government to take action.

The proposals will see the law
changed to reduce the time tenants are entitled to stay in rented properties.
And, the Spanish government is also offering enticing tax relief generating up
to 100 per cent on the rental income.

The plans are explicitly designed
to target overseas investors and hope that it will encourage overseas buyers to
purchase property in Spain. Figures show that overseas investors bought 12 per
cent more property in Spain in the second quarter of 2012 than in the same
period in 2011, and so Mr Young says that ‘landlords are obviously waking up to
the opportunities available in the country’.

Nick Marr, director of overseas propertyn specialists said: “There are already lots of compelling
reasons to buy property in Spain including a strong pound and falling house

“Changes to rental laws which
favour landlords can only help attract more British buyers to the Spanish
property market.”

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