SPAIN

COMMERCIAL PROPERTY & LEGAL CONSULTANTS

Blakemore Walker Chartered Surveyors

Tel: (0034) 985 899077

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PROPERTY EXPERTISE IN NORTHERN SPAIN

Blakemore Walker Ltd. provides commercial property and legal consultancy services operating a multi-discipline practice located and specialising in Northern Spain and the Costa Verde. Established in 2003, we have advised clients in all the property sectors and pride ourselves as being the only UK chartered surveyors providing impartial expert advice in this unique market location.

"Our business objective is the provision of top quality, informed property advice, at speed and in a cost-effective manner".

January 2012 HAPPY NEW YEAR

The economic minister Luis de Guindos appointed by Mariano Rajoy the new Spanish prime minister, potentially has one of the most challenging jobs in Europe. De Guindos is a banker which is probably apt when considering the current plight of the Spanish economy. Spain has suffered a severe downturn in the property market since 2007. Prior to this the property and construction sectors helped drive stong growth, but this higher than acceptable growth was uncontrolled by the Spanish authorities which resulted in a classic property bubble. This unmanaged boom and bust cycle was perhaps caused by the inequalities in the european monetary system which have only become evident in more recent times. Spain did not have the power to increase interest rates, for example, as these are controlled by the European Central Bank. The imbalance between the so called periphery southern european countries and the richer north has now come home to roost.

There still remains the unknown amount of debt that Spanish banks hold on bad property loans. The bank of Spain has indicated that there is approximately 180 billion euros, but it is likey that this, if accurately assessed, could be as high as double this figure. The Spanish property market still has downside risks and 2012 will probably not see much seasonal cheer.

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Effective from the beginning of the year capital gains tax (CGT) for non-residents has risen from 19% to 21%. The rates for spanish residents has also risen. Careful tax planning is always important if you are considering a property purchase. There are different options available in reducing tax liabilities and one of the most popular in recent times has been the purchase of property through company vehicles. As ever advice should be sought.

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