Government encouraging overseas buyers to buy property in Spain
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 HomesGoFast.com said: “There are already lots of compelling reasons to buy property in Spain including a strong pound and falling house prices.
“Changes to rental laws which favour landlords can only help attract more British buyers to the Spanish property market.”