Is 'now' the time to buy in Spain… is the wait finally over?

Well if anyone is expecting free property, they will be dissapointed, surely it can't go down much further, so yes it must be the right time. Now if you should buy is a completely different question, if we were to see the right property when we are over in April we might just take a punt.

Yes indeed and if you are willing to make a significant contribution each year to the Spanish economy then fine. That you will do in buying your second home as a none resident. Spain needs all the revenue can get from your contributors and as I'm self interested in hoping Spain can improve it's health service et al. I encourage you.

As you would to any country you bought a second home in. The Spanish "contributions" are far less significant than your council tax in UK would be.

And, as you seem to have a permanent downer on Spain, why bother even coming here? And, finally, what is wrong with the Spanish health system?

I viewed 'A Place In The Sun' today, two women with a £45K budget were viewing 2 bed apartments in Torrevieja, not my sort of area, but I was surprised at the quality that they were shown. With prices like that anyone who's boat is floated by Torrevieja can't really go far wrong.

Marirdav- perhaps  by significant contribution to the economy, there is also the buyers transfer tax of several thousand euros, something not paid in the U

I thought we weren'[t making "silly comparisons" between UK and Spain? However, France was mentioned in a previous post. There you pay 20% on property up to 5 years old then 5.8% of the value but a stamp duty of 3% on top (0.7% on the property you've paid 20% VAT on). Same as if you're buying land at 20%. Notaire charges are also higher.

Portugal, Cyprus, Germany and Italy (for ones I know) also charge the VAT or transfer tax. Property taxes in the USA are mind boggling as is the "imputed tax" on rentals at more than double a non-resident pays in Spain.

Anyhow, that wasn't the point. It was making out that this only happens in Spain and so another way to denigrate the country which seems to be the norm on this site lately.

You ain't gonna escape taxes, no matter where you buy your second home unles the Inuit now have a des res igloo or the Mongolians have gone into the second hand Yurt market.

My advice to anyone considering purchasing property in Spain this year would be to wait and see what the result of the forthcoming Spanish General Election is before making such a decision.  The reason being, that if the new and rapidly uprising far left wing party gain power, then who knows what changes will be brought in to potentially 'penalise' anybody who is perceived as being wealthy enough to own more than one property.

Purchase fees in France depend of whether the property is new or second hand. The 20% TVA is on new property only and notary fees are around 1% depending on the age of the property. However you will only pay around 2% taxes and registration fees. The total fees and taxes payable for the purchase of an existing property are between 7% and 10% of the purchase price, excluding estate agency fees, although for very low priced transactions it may be higher. The French market has been hit very badly by the recession but perhaps not quite as bad as Spain largely to very restricted bank lending.

Then there are two annual property taxes, Tax fonciere and tax habitacion. Both these taxes in the countryside are relatively quite low.

Second home property anywhere carries with it significant ongoing financial overheads. They are a discretionary purchase; you don’t need to do it. Most people are content with one home and enjoy holidays in hotels or tents. They have a choice each year where they go and are free from overhead costs when not on holiday.

Governments have seen this buying trend as a cash cow and have up to the crash encourage people to do it. In Spain the hotel lobby is pressuring the government to restrict private lending and announcements along these lines are expected soon. The utility companies in Spain also cash in on second homes by charging exorbitant standing charges. The government also seems to be rowing back on encouragement by restricting bank lending criteria.

I have no negative axe to grind against Spain. I actually love the country and have lived part time in the country off and on for many years. I hope the austerity program that’s cutting back the healthcare system ends soon and employment and economy for Spanish people improves.

So that's why I suggested the more people who buy property and contribute to Spain’s empty and needy coffers the better.

However that said I would not advise anyone to buy a second home in Spain, or France for that matter unless you have substantial and secure financial resources. However if you must, yes it is probably a better time to buy now than it was in 2008, based solely on the purchase price but not these other matters. However as with all discretionary purchases you pays your money and takes your chance.

A very good first post, I often think that the Spanish in general look at tourists as being wealthy, someone who owns a holiday/second home must appear to be mega rich. A left wing administration in any country usually brings forth vendettas levied against folk perceived to be wealthy, IMHO Spain ran better under Franco.

What Spain needs is the none Spanish spending their cash in Spain, taxing them until their pips squeak does neither party any good, there is no way that I would enter a Spanish income tax regime after accruing all of our pensions/investments in the UK. The wife and I can earn £21,000 between us without any lability to tax, and if and when deposit interest rates increase, cash ISA investment income is also tax free, the derisary €6,700 allowances are designed for Spanish income levels.

I'm sure that some will say that we should be happy to be taxed within the Spanish regime, well there is a choice, and we choose not to be. 

Having suffered for 8 years waiting for the Spanish authorities to permit a Habitation Certificate for the Property we purchased 8 years ago. We are very disapointed now wish we had not spent almost 10 years to find the property we thought we would enjoy. having saved for very many years, paid all our taxes, The need was to live in a country which was warm & friendly.

Yes the Natives are very friendly and we have made many friends, the problem srarted with the Spanish Governing council and the slow seemingly uncaring way they treat any purchaser of the holiday homes they have passed the Spanish Law to build. Now at the age of 74, I wonder if we made the right purchase, should we have rented.

Three UK purchasers out of 10 on our complex have sold loosing 3/4 of the price they paid for their Spanish Dream. I don't want to loose my Dream. I just hope any new government will think about those who love Spain and wish to live the dream they saved for. We are not rich just thrifty and saved rather than waste our savings on a needless way of life. Sadly its looking like we have made the wrong decision.

Wake up Spain you are richer than many countries and don't realise how lucky you are living in such a wonderful part of the world. Clear out those lazy government administrators that think anyone who purchases property in Spain are. Rich. Not many of us are, We have lived acording to our means all our working lives and wish to purchase a little of what all Spanish people were born to. Our savings spent in Spain must be an asset and help all of Spain. Hard Work has never hurt anyone, it gives a sense of pride.

We did not buy to make money out of renting our apartment, Our Spanish Holiday home is for our Family only. without the Habitation Certificate, we do not feel secure. 8 years and still we have no legal Private utility meters for our Holiday home, we just keep paying the Community fees & sumo taxes etc. all very disapointing.

Having suffered for 8 years waiting for the Spanish authorities to permit a Habitation Certificate for the Property we purchased 8 years ago. We are very disapointed now wish we had not spent almost 10 years to find the property we thought we would enjoy. having saved for very many years, paid all our taxes, The need was to live in a country which was warm & friendly.

Yes the Natives are very friendly and we have made many friends, the problem srarted with the Spanish Governing council and the slow seemingly uncaring way they treat any purchaser of the holiday homes they have passed the Spanish Law to build. Now at the age of 74, I wonder if we made the right purchase, should we have rented.

Three UK purchasers out of 10 on our complex have sold loosing 3/4 of the price they paid for their Spanish Dream. I don't want to loose my Dream. I just hope any new government will think about those who love Spain and wish to live the dream they saved for. We are not rich just thrifty and saved rather than waste our savings on a needless way of life. Sadly its looking like we have made the wrong decision.

Wake up Spain you are richer than many countries and don't realise how lucky you are living in such a wonderful part of the world. Clear out those lazy government administrators that think anyone who purchases property in Spain are. Rich. Not many of us are, We have lived acording to our means all our working lives and wish to purchase a little of what all Spanish people were born to. Our savings spent in Spain must be an asset and help all of Spain. Hard Work has never hurt anyone, it gives a sense of pride.

We did not buy to make money out of renting our apartment, Our Spanish Holiday home is for our Family only. without the Habitation Certificate, we do not feel secure. 8 years and still we have no legal Private utility meters for our Holiday home, we just keep paying the Community fees & sumo taxes etc. all very disapointing.

Having suffered for 8 years waiting for the Spanish authorities to permit a Habitation Certificate for the Property we purchased 8 years ago. We are very disapointed now wish we had not spent almost 10 years to find the property we thought we would enjoy. having saved for very many years, paid all our taxes, The need was to live in a country which was warm & friendly.

Yes the Natives are very friendly and we have made many friends, the problem srarted with the Spanish Governing council and the slow seemingly uncaring way they treat any purchaser of the holiday homes they have passed the Spanish Law to build. Now at the age of 74, I wonder if we made the right purchase, should we have rented.

Three UK purchasers out of 10 on our complex have sold loosing 3/4 of the price they paid for their Spanish Dream. I don't want to loose my Dream. I just hope any new government will think about those who love Spain and wish to live the dream they saved for. We are not rich just thrifty and saved rather than waste our savings on a needless way of life. Sadly its looking like we have made the wrong decision.

Wake up Spain you are richer than many countries and don't realise how lucky you are living in such a wonderful part of the world. Clear out those lazy government administrators that think anyone who purchases property in Spain are. Rich. Not many of us are, We have lived acording to our means all our working lives and wish to purchase a little of what all Spanish people were born to. Our savings spent in Spain must be an asset and help all of Spain. Hard Work has never hurt anyone, it gives a sense of pride.

We did not buy to make money out of renting our apartment, Our Spanish Holiday home is for our Family only. without the Habitation Certificate, we do not feel secure. 8 years and still we have no legal Private utility meters for our Holiday home, we just keep paying the Community fees & sumo taxes etc. all very disapointing.

Poedoe has made a very good point in respect of not having a utility meter, someone told me ages ago, never to buy anything that does not have it's own electricity meter. I'm begining to think that our American relatives have a point in respect of them thinking that Spain is no different to a South American bribery and corrupt junta.  

Most likely the best plan is to wait at least 4 months to see what happens to Greece re: her Euro Zone problems.

If Greece gets a deal, will Spain Portugal, Italy & Ireland want something? & will this mean even more euros for your stirling & therefore make property cheaper to buy in Spain?. Bad news if you are selling because your Euros will not buy as many pounds or dollars.

My cousin in Greece says that if they exit the Euro Zone & go back to the dracma she will lose 75% of the remaining value of her property it is currently worth only 50% of what she paid.. The Greek banks are having to cope with 2 billion Euros a week being withdrawn & "salted away" elsewhere.

Perhaps waiting a few months is the best bet.

Valid point wodger. Spare a though for British people selling now or later when Sterling is inevitably even stronger when interest rates rise and get hit with the double whammy of 40-60% reduction in value and poor rates of exchange to repatriat the dosh. A heap of money to the agent to sell it and then the retention by the state.  

Hephaestus

I don't know whether you live in Spain, but those of us who do have no choice about where to pay our taxes.

Apart from government pensions, tax on ALL worldwide income, pensions, savings, including Isas etc have to be paid in Spain

The only way to avoid this is to spend less than183 days in Spain.

Mickyfinn- I agree that the expenses are horrendous when selling, particularly the estate agents fees! cgt and plus valia.

Those who are paying their income tax in Spain, however, will not have 3% retained.

Joe-granada:-

That's interesting about your offers and what not.

It got me thinking about what if we knew the vendor's purchase price before we bid? In UK we can pay a nominal fee (about £10, i think) and get Land registry details for purchase prices from one owner to the next. If we knew that then we could tactically purchase a property by offering just a tad ove the original purchase price, perhaps?

Having said that, I doubt Spain has a similar system open to the public.

camposol,

Sorry I thought that I had made it clear that the Spanish system prohibits me from residing there. I think that it's Malta that has preferential none Maltese tax rates for retirees who wish to reside there. Spain's own Balearic Islands authorities have slashed inheritance tax libilities, perhaps common sense has started to trickle through.

I suppose that when some honest, hard working but naive Brit gets caught up in the system, they try to make the best of a bad job. I further suppose that Euro zone retirees will eventually be a drain on the Spanish health system, perhaps they are building up a war chest in preporation for this. We tend to meet UK retirees in high cost areas of Spain, in the main they are well heeled and enjoy living the good life, they usually do not to reside in Spain, UK retirees living inland in a one bed apartment and managing on two basic state pensions won't pay a deal of tax, if any at all. So who should the Spanish government be encouraging to make Spain their permanent home?  

With a change of Government later this year will it be "same old"or a way forward. One thing that is coming clear is the blanket claims world wide on assets held by doms in Spain and you cannot treat this from a Spanish only perspective as it is being entrenched across the EU and really is a natural Government response to having so many other nationalities in there countries. Overall the trend seems to take fiscal advantage of foreign doms in Spain regardless of the fact that property fees are rapidly increasing to a point where they overtake property value.

With a change of Government later this year will it be "same old"or a way forward. One thing that is coming clear is the blanket claims world wide on assets held by doms in Spain and you cannot treat this from a Spanish only perspective as it is being entrenched across the EU and really is a natural Government response to having so many other nationalities in there countries. Overall the trend seems to take fiscal advantage of foreign doms in Spain regardless of the fact that property fees are rapidly increasing to a point where they overtake property value.