MAY
2012
Spain
and the Spanish economy have featured strongly over the past few weeks.
A double dip-recession with 25% unemployment, unknown bank debts caused
by the property boom, required structural reforms and much more. However
the facts remain clear for the purchaser of property in Spain and these
are the important points to consider - the exchange rate between pound
sterling and the euro has remained over 1.2 for several months and there
are further suggestions of a weaker euro; the debt on property held
by the Spanish banks is still an unknown but the truth is getting closer
with the bottom of the market in sight there are now substantial discounts
available, however actual value remains an important issue; tax on property
transactions could be tinkered further but probably there will be little
future change; the supply side for good Spanish property stock is increasing;
the weather remains recession proof and the forecast is good.
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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.
FURTHER
MARKET COMMENT
