The Latest Spanish Property News from Kyero.com
March 16th, 2006
Average Spanish mortgage rises to EUR 144,352
Figures from the National Institute of Statistics show that the average mortgage loan value rose to EUR 144,352 in November 2005, 15 percent higher than November 2004. Average property prices rose to EUR 130,761, up 15.9 percent on a year before.
Spanish investors turn to Coast of Death after Prestige disaster
The Spanish daily ‘El Periodico de Catalunya’ reports of an investment lead real estate boom on the Coast of Death (Costa de la Muerte), on Galicia’s northwest coast around Finisterre.
This coastline was devastated by oil spills from the tanker ‘Prestige’ that sank just off the coast of Galicia in November 2002. However the disaster and clean up operation, now complete, created an extra exposure to the area’s beauty that is now turning into real estate investments, including golf course developments.
Costa del Sol property speculators turn to renting
The Spanish daily ‘Sur’ reports that many of the people who speculated with property on the Costa del Sol are now trying to rent out the properties that they have been unable to sell.
Spanish tax authorities to blitz real estate fraud
Luis Pedroche, Director of Spain’s Inland Revenue (national agency responsible for tax collection and known as the Agencia Tributaria in Spain) has announced that a full third of the agency’s resources will be dedicated to preventing and controlling real estate fraud in 2006. A failure to declare or pay property related taxes is one of the biggest sources of tax evasion in Spain. This could have a significant impact on foreign buyers.
During a breakfast organised by the Association of Economic Journalists (APIE), Pedroche announced the creation of special fraud units dedicated to identifying all types of real estate fraud, such as failing to declare the full amount of a property transaction in the deeds of sale.
“Greater fiscal control of the real estate sector is justified by the economic size of the sector, by its social impact, and because of the prevalence of money laundering opportunities and tax evasion”, explained Pedroche.
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