Where in Spain

Apart from the two main cities Madrid and Barcelona, there are three regions that are targeted by the British. They are the Costa Blanca, the Costa del Sol, and the Balearic Islands. Traditionally the relaxed lifestyle is the preferred option although the option of the cultural choice of the big cities should not be ruled out without consideration.

City Life

Both Barcelona and Madrid, as you would expect, are the country’s centre of the business and government, but also have a vibrant cultural climate with exquisite museums and theatres. It is no surprise that the European city of culture is a popular destination. The cosmopolitan nature of the location makes finding development opportunities difficult for investment properties, but if you track one down, the likelihood of a good return is high.

Costa Blanca

Costa Blanca is no longer the ‘tacky ex-pat region’ of Spain that it once was. It is true that many ‘ex-pats’ have set up home in this region, but there is no hint of any stand off, and both the locals and the new foreign investors are integrated. There are some massive extremes within the region, with the lively nightlife of Benidorm, as far removed from the highbrow sophisticated town of Moraira. The region also boasts the family resorts of Denia and Javea, which basically gives. Alicante airport remains the more obvious choice, but Valencia airport has started taking low cost airlines, so getting into the region is easier than it has ever been.

Costa del sol

The translation tells you everything you need to know, as Costa del Sol, translates to Coast of the Sun. The region runs from Gibraltar to Nerja, and contains much to see. The more purpose built tourist centre of Marbella, differs beyond belief from the timeless white villages such as Casares and Manilva.

The islands are made up of realistically four options.

Firstly Menorca, with its drier climate, complimented by the constant cool breeze, which counteracts the blazing sun.

Ibiza, a target for the younger holidaymakers, has like many parts of Spain, operated a tougher approach to any misbehaviour. This has encouraged investors to look again at Ibiza as a development opportunity.

The Iargest of the islands is, of course, Mallorca. The international jet set have honed in on the island, including King Juan Carlos. The island boasts the magnificent castle of Palma, as well as an internationally renowned Opera House.

Last but by no means least is the getaway destination of Formentera. This island does not have all of the whistles and bells of some of the other islands; this is one of its attractions. This relaxed destination can best be taken in a bicycle which will give you easy access to any new developments and the old established farm houses.

Buying in Spain

If you are buying a property in Spain, it is an absolute must that you acquire the services of a lawyer who is both fluent in English and Spanish, who should assist in attaining a fiscal number (numero de identificacion de extranjeros).

If you are buying ‘off-plan’, initially a reservation contract will need to be signed, and a small fee is paid. This will ensure that the property is taken off the market, normally for a month. This one month period allows time for your lawyer to make the necessary legal checks to be carried out and once satisfied, a contract of sale (escritura de compraventa) is drawn up and signed. At this stage the first staged payment which equates to around a 10% deposit will need to be paid. Should you breach the contract the deposit will not refunded, if the seller breaches the contract they will need to pay twice the deposit. During construction, further staged payments will need to be made at given pre-agreed points.

If you buying an existing property the procedure is similar. The main difference is that rather than staged payments, you are required to pay the full price (less deposit) on a set date. If you are approached by your seller to under declare the price to the authorities, which not only illegal, you may be liable for any unpaid taxes when you attempt to sell the property in the future.

Living in Spain

As important, as having an English speaking lawyer is having an English speaking tax expert. The Spanish tax system is very complex and is made up of three levels. These levels are set by Central Government, Regional Governments, and Local Municipalities. For non residents the rate is around 24% on any Spanish sourced income i.e. interest Spanish held deposits, rental income, or any income from a Spanish business. There are also taxes charged on assets held, although this is where your tax expert will be of most use.
Provided you have a valid UK passport, you can stay in Spain for up to 3 months without applying for a Visa. If you wish to stay for longer than 3 months you will have to apply for residence permit which lasts for up to 5 years. You can apply for a renewal of the permit after the initial 5 year period. If your plan is to gain employment or set up a new business, you have 3 months to meet the requirements of the authorities. Should you wish to retire to Spain, it is important to remember that although you will be welcome, this is on the condition that you can bring income in and will not be financial burden.

Spain is as popular today as it has ever been. It still has the massive investment opportunity, but has the advantage of the experience of three decades of development so if expertise and reputation is important look no further.