Property abroad.
Review of the market in Spain
Property abroad becomes more and more popular. In recent years the property market in Spain is the most dynamic among other countries of Western Europe. Nowadays there is building boom in the country. On a par with it financing of other infrastructures (rest, everyday life, entertainment) is carried out, which undoubtedly has influence on investment attractiveness of the Spanish seacoast. In 2009 foreign investment formed 96 % of total volume.
By purchasing foreign property the first three leading positions belong to the Spanish, the English and the Germans. Presence of the French, the Dane and the Swedes is less noticeable. Citizens from Russia, who buy property abroad, particularly in Spain, become more and more from year to year. The most popular property is in Barcelona and Madrid.
In general foreign property is in good request. It is worth to notice that the most Russians who buy property abroad choose exactly Spain. It takes second place by number of appeals and yields only to Bulgaria. So, 30 % of all appeals from our countrymen fall at these countries: Bulgaria — 17 % and Spain — 15 %. For example, in Catalonia, according to the statistics of the company Vivalt SL, Russian buyers of property abroad are in majority. They are interested both in modest apartments in multistory houses and luxurious expensive villas on the seacoast.
Property abroad divides into accommodation for rest and for constant living. Accommodation for rest — relatively not expensive apartments in the coastal zone. For constant living villas and apartments with advanced planning are bought. Villas are the most expensive and prestigious property (the price starts from 450 thousand Euros, and in prestigious areas of Spain reaches several million Euros).
According to the data from National Statistics Institute, published in May 2010, the market of property abroad (Spain) increased by 10,6 % against May of the last year.
From the first of July 2010 there was an increase of VAT in Spain. Now the VAT for foreign property increased from 7 % up to 8 %, and the general VAT grew from 16 % up to 18 % (building land is also liable to this tax). Exactly after value-added tax increase property prices will also grow (according to the specialists’ research apartments will go up in price at the average by 2 000 Euros, houses — by 2 500 — 4 000 Euros). From 2011 it is planned to cancel the tax refund for purchasing property abroad (in Spain), which will also influence increase in the cost.
It should be remembered that when buying property abroad you can reckon on benefits. For example, mortgage. The sum of credit in Spain is mostly about 50 — 60 % of property value. Mortgage is given at the rate of 3 — 4 % per annum within 5 — 25 years. Moreover, there are always single advantageous offers at every market of property abroad. Also most companies offer free familiarization tour or special presents for their customers, for example, a trip to other country.
When choosing property abroad, pay attention to Spain — at the moment prices are much less than Europe-wide.