Spanish Property Investment Advice 

Brought to you each week by our property expert, Iain Maitland.

Posted on 21 July 2006

Consider the Environment when Buying in Spain

Is the Spanish property market becoming more ethical? It’s certainly something that foreign investors should consider more carefully when choosing their investments. There is no doubt that town halls are becoming stricter and many projects are now being rejected because they are not environmentally friendly. We are already seeing this approach feeding through into developments on some of the quieter coastlines. Even so, foreign investors have tended to concentrate on issues such as the proximity to beaches and nightlife when making their investment decisions but more environmental concerns should be added to these checklists now. It is often overlooked by many foreign investors that the local demand for property is strong and home buyers are also looking at issues such as water provisions, coastal protection, local healthcare and so on.

It is interesting to note that the Observer recently reported that, if you want to buy a bargain property in Andalucia, you should draw a line between Malaga and Granada and look at Alhama de Granada. It is famous for its gorge and hot springs and offers lakeside and mountain views. It is also close to the airport and the coast which are both plus points. Best of all it is affordable. I have since seen this being re-reported elsewhere as being a hotspot! The fact is that the Brits are always looking for the next big thing. Many go off inland to these little places and buy there waiting for the rest of the market to follow on. By and large, the market won’t - it stays in the cities, the coasts, and close to airports, motorways and entertainment facilities. Alhama de Granada is beautiful. It is a great place to live or visit and price-wise, you’ll do okay. But it does not have hotspot written all over it.

The Spanish tax authorities are cracking down on the non-payment of local property taxes by foreign property investors. There is a lot of talk about naming and shaming those property owners who have outstanding taxes. It is said that names will be published in newspapers and on websites. Frankly, most of this comes down to ignorance rather than deliberate tax-dodging, The tax authorities don’t help. They have been known to take up to three years to issue bills to new owners. If you think you might be involved, do take professional advice. Local taxes range from between 500 to 1,000 euros per property per annum. The naming and shaming will not worry too many people as I suspect they do not read the local papers or check the local websites. But the penalties of up to 300% of any outstanding taxes (in theory if not in practice) should be enough to encourage everyone to sort it out. Anyone who is about to buy a property should also check this out. These taxes are levied against the property rather than the owner. Failure to pay can result in a charge on the property etc.

All for now

Iain Maitland

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