Tarifa and Zaragoza new property hotspots
Spanish Property Investment Advice
Brought to you each week by our property expert, Iain Maitland.
Posted on 23 June 2006
Tarifa and Zaragoza Property Hotspots
Tarifa is currently being tipped as a Spanish hotspot in a number of newspapers, magazines and websites. But, for me, this story looks as though it is being driven by a very clever press advertising campaign by someone trying to sell properties there! Yes, there is a severe shortage of properties in the old town. Yes, it is very beautiful with stunning views. Yes, prices have been rising at a fantastic rate. But, on the downside, prices are incredibly high. There is a ripple effect just waiting to happen. A new urban plan is coming in which will lead to a massive supply scenario. There are also some problems with properties having been built illegally. For me, the bulk of the price-rising profits are behind us, not in front. Buy in now and, arguably, you are doing so at or very close to a peak. Hotspot-wise, there are better places to buy. Mind you, it is a gorgeous place!
I have written before about HMRC targeting those Brits with overseas property and/or offshore accounts. Off-the-record, I have been told that retired folk are next in line for investigation. There are three areas on which HMRC is focusing – how long you spend where, where you are paying your tax, and what you are claiming. Generally, you are liable to pay UK taxes if you spend 183 days or more in the UK. Double taxation agreements with Spain mean you should not be taxed twice on the same income. Depending on where you live, you can ask for UK income paid net of basic rate tax to be paid to you gross without the deduction of UK tax. HMRC believes some people are falling through the net and are following through. I am sure your tax affairs are all in order, but do just double-check that everything is squeaky clean.
When I am looking for a hotspot, I have a little checklist of ‘must-have’ features and one ‘must not have’ feature – it must not have quotes from someone trying to sell property there! Zaragoza is one place that is currently catching my eye. It is on the up. It is the venue of The Expo 2008. The infrastructure is improving. The new motorway links it to the North and centre of the country much better. There is foreign investment coming in. British Land is building Puerto Venecia, a massive retail development scheduled for completion next year. I am told this alone will create 3000 jobs and an estimated 15 million visitors a year. Everything I look at gets a tick on my must-have checklist. Check it out!
All for now
Iain Maitland
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