Spanish government 'promoting property purchases'

 

Potential expats may wish to consider relocating abroad to Spain, as there are incentives from financial institutions and the government to encourage people to enter its real estate market.

This is according to Adrian Warriner, managing director at Spanish-Living.co.uk, who claimed this sector is "not far off rock bottom".

Furthermore, the unemployment rate during the first quarter of 2011 hit 21.29 per cent, although the economy is the seventh-largest of the Organisation for Economic Cooperation and Development.

Therefore, ministers have announced they will cut the value-added tax on the purchase of new buildings from eight per cent to four per cent.

Less than 18 months ago, many of the present opportunities available to investors "would have been unthinkable", he claimed.

At the end of this year, these deductions will no longer exist, leading to controversy in the industry.

Some wonder whether this is a long enough time, while others are "complaining that this will deprive the economy of much-needed funds".

Overall, the response from this sector has been "mixed", the expert noted.

Mr Warriner explained the government announced this policy in order to "kick start the construction industry and the property market" and only revealed these deductions a few weeks ago.

Furthermore, interest rates are particularly low, with the Euribor "the lowest it's been since 1999", he asserted.

Up to 100 per cent of the required finance can be attained from many of Spain's banks on their own properties, which has enhanced the perspective that it is currently "a good time to buy", he continued.

However, the expert noted many people who purchase property in Spain do so for "the great weather and [a] laid-back lifestyle".

The climate of this country is moderate, with hot summers in the centre and moderate temperatures or clouds along the coastline.

Islamic and Protestant faith groups are established in the nation but approximately 75 per cent of its inhabitants are Roman Catholic, according to the US Department of State.

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