The Latest Spanish Property News from Kyero.com

Around 100,000 illegal homes, including one owned by a former prime minister, face demolition in Spain, according to a new prosecutor appointed to tackle building fraud and corruption.

Special prosecutor Antonio Vercher said yesterday Spanish law was clear that illegal homes should be demolished, regardless of whether they had been bought in good faith. “We have to knock them down,” he said, claiming that Spanish judges had been too lenient.

Mr Vercher said he did not believe that most owners were unaware that their houses were illegal, and that many had benefited from lower prices for properties. He said that a simple check at the local property register, which is routinely carried out by most Spanish home-buyers, should reveal whether a building had been properly approved.

“It is obvious that when you buy you have to go to the register,” he told El País newspaper yesterday. “I find it astonishing that people could spend so much money without checking.”

El País said that 100,000 homes were illegal, many with licenses wrongly handed out by corrupt or inefficient town planning officials.

Mr Vercher said those people tricked by sellers or builders could take them to court if their homes were demolished. “One would have to use civil law to demand indemnification.”

Amongst those liable to be affected by Mr Verger’s zealous campaign to pull down illegal buildings is former prime minister José María Aznar, who recently bought an apartment in Marbella in a building that was not properly licensed.

The prosecutor’s campaign came as authorities began reacting to outrage over excessive construction, building fraud and town hall corruption.

The regional government of Andalucia, which has 30,000 illegal homes in the province of Malaga alone, has said it will prevent towns from growing at a rate of more than 30% to 40% over eight years, according to El País. The measure will put the brakes on towns which have announced expansion plans to double or triple their size.

Campaigners in south-west Spain, meanwhile, were celebrating a victory over a golf, hotel and villas development near the River Guadiana after local authorities there said they would refuse to grant permission on environmental grounds.

The area involved is a habitat for endangered species such as the Iberian lynx and the Imperial eagle.

Story from guardian.co.uk

Spain’s two groups of islands could hardly be further apart either geographically or culturally. To the west, the Canaries offer snow birds year-round sunshine while the Balearics serve up rugged beauty, tourist hotspots and a world-famous club scene. Despite their small size, the Balearic Islands have an over-sized reputation for everything from the hugely developed delights of Palma in Mallorca to the tripped-out club scene of Ibiza.

Yet such reputations disguise the real personality of the four islands - Mallorca, Ibiza, Menorca and Formentera - which have a smooth coast line dominated by bays, coves and capes and which throw up contrasts almost as vast as those of the mainland.

The ruggedly beautiful northern Mallorca still surprises many first-time visitors, while Ibiza’s club scene has matured into a serious world festival venue and laid back Menorca provides families with a compact and gentle island enclave. Both Mallorca and Menorca are also home to major caves formations.

Palma remains many visitors’ first introduction to Mallorca and it is famous for its beaches and sea, has a lovely historic quarter and a vibrant nightlife which attracts and deters in equal measure.

The cathedral, the Palau de L’Almudaina, the fish market and Plaza Mayor are cultural stops on tour while to the north the jagged coastline and pine groves are home to villas and a peaceful lifestyle.

The main tourist destinations in Ibiza are party capitals Ibiza Town and San Antonio, synonymous with the global dance scene and hosting world famous clubs and international DJs. Yet look beyond the surface and San Antonio’s old town has recently been given UNESCO World Heritage status and outside of the core summer months the island calms back down. Ibiza is also a hugely popular gay destination.

Little brother Menorca is bookmarked by capital Maó to the east and Ciutadella to the west. Once an important strategic base for the British - the island produces an excellent gin which locals drink with bitter lemon - Maó has also given the world mayonnaise.

Long established as a property buying destination, the Balearics are an enclave for wealthy British and Spanish buyers and villas can run into the millions.

However, price growth has slowed and after years out-performing the mainland there are signs that property increases may now be harder hit on the islands.

Most of the volcanic islands of the Canaries are equally familiar names, notably Tenerife, Lanzarote, Gran Canaria and La Palma. Perched in the Atlantic, close to Africa, their proximity to the equator makes them Europe’s only true warm weather winter destination. The Canary Islands are characterised by their volcanic scenery, with craters and volcanic rocks, while Tenerife’s Teide is the tallest mountain in Spain.

Although the coasts are blessed with vast sandy beaches full of outstanding reefs, capes and bays, the dark sand is not immediately the most picturesque. In some areas along the western and northern coasts of Tenerife are the biggest and most developed of the islands and have been a British enclave for many years. More recently the Germans have moved into the market. However, property price growth in the last 12 months was a modest 8% and in the last few months prices in Tenerife have actually slipped back slightly.

Lanzarote - helped by sensitive local government policy - has kept the quality and quantity of new homes well above Spanish norms and growth potential for investors should be aided by this longer-term vision.

Story from timesonline.co.uk

Overseas mortgage specialist USHE Overseas Ltd have announced a new Spanish mortgage that can run up to your 80th birthday, making thousands of retired individuals now eligible for a mortgage in Spain. The non resident Spanish mortgage is a combination of interest only for the first 15 years reverting to repayment in the latter part of the mortgage making it more affordable in the early years of the mortgage.

Property in Spain continues to be the most sought after destination amongst overseas buyers from the UK this is despite the attractions of lower property prices offered by the emerging markets. Attractive mortgage options are set to keep Spanish property as the UK’s most desirable place to buy property abroad.

Anna Brewer director USHE Overseas Ltd says “The lower cost of Spanish mortgages and the flexible terms offered by mortgages in Spain is a powerful combination to help those afford to buy a property in Spain. The days of mortgage brokers turning customers away owing to age restrictions seems to becoming a thing of the past and is a welcome development”.

Overseas property expert Amberlamb believes that while prices for some properties have come down, the high demand for villas in Spain means that many second home buyers may have to bring their expectations down somewhat in relation to what they can afford.

“The popularity of property in Spain has meant that prices for real estate have risen far faster than the average second home buyer can afford which has meant that town houses and apartments have grown in popularity simply because this is what the buying public can afford,” explained the company’s co-owner, Rhiannon Williamson.

According to a leading Spanish property expert, the demand for new courses and attached properties shows no sign of dwindling, despite the extensive facilities that are already in place in the country.

Paul Collins executive of BuyAssociation which deliver impartial overseas property advice through buying guides radio shows and podcasts remarked on the effect that Golf is having on the Spanish markets.

“Golf tourism is an area of ‘strong growth’ and is fuelling the Spanish and Portuguese property markets. For the builders to fund the golf courses they build properties around the site. Thus we are seeing more golf property developments appearing in overseas property, even in Spain and Portugal, where there are already large amounts of golf facilities and properties associated with golf courses.

He added that many of the new courses are being designed by well-known current and past players, such as Tiger Woods, Greg Norman and Jack Nicklaus.

Story from homesgofast.com

Playing golf in your room or using a private elevator are luxuries few of us can afford. Only the rich can enjoy a night in a hotel costing 3,750 euros a day.

JUST over a year ago, the King and Queen of Sweden visited Marbella for a party organised by their friend Gunilla von Bismarck. They have no embassy on the Costa del Sol to stay in, of course, so they opted for the next best thing: one of the many “grand luxury” five-star hotels in the Marbella area. Their choice was a private villa in the Marbella Club, the first luxury hotel in the municipality, each with its own private swimming pool, five bedrooms and 300 square metres of private living space set in semi-tropical gardens. This is hotel accommodation fit for a king.

It does not come cheap. At 3,750 euros a night, one needs to have a royal salary to stay there. Or to be Pierce Brosnan or Lenny Kravitz, who like to stay in this type of hotel while on the Costa del Sol because it is also a safe refuge from the paparazzi photographers.

Marbella continues to be synonymous with luxury in Spain, and its outward expression is in its luxury hotels. Cost is the key element here: one can stay in the new five-star hotel designed by famous architect Frank Gehry for the Marqués de Riscal wine company in Alavés, considered one of the most exclusive in the country, for three times less than in some hotels in the Marbella area.

If one is not entirely happy with the exquisite service in the Marbella Club, one can head down the Golden Mile to the Gran Melía Don Pepe Hotel, where a night will cost 2,800 euros in one of the presidential suites. Here one can relax in presidential luxury looking out over the Mediterranean, or soak in the jacuzzi, have a drink in the private bar followed by a siesta in the Balinese bed on the private terrace or play a round of mini-golf without leaving the suite.

Or one might have decided to stop along the way and drop into the Puente Romano Hotel instead, to take a private elevator up to the Imperial Suite. This overlooks the beach, and has a hall, sitting rooms, bedroom and private terrace. The decoration is Mediterranean in style, with high ceilings reminiscent of classic Greece, and touches of chic that make the price of the room a bargain at only 2,600 euros a night. Among the many rich and famous personalities to have stayed here are Italian film actress Gina Lollobrigida, French actor Alain Delon, Elizabeth Taylor and singer Tom Jones.

There are less expensive places to stay in Marbella, without skimping too much on luxury, and one of them is the Los Monteros Hotel. Here one can stay in the Ambassador Suite, for example, which measures 89 square metres and costs only 1,010 euros a night, or one could go down-market and opt for the Spa Suite at 750 euros for the night. This has pressure showers, a hydro-massage bath and a Turkish bath, all very necessary to relieve the stress of not being able to afford anything better.

Story from surinenglish.com

Spain’s schools, hospitals and public transport score higher than their UK equivalents, according to a new survey.

Spain offers much more than sunshine and cheap sangria to its UK expat population. Its education and health services, and its public transport system, leave the UK in the shade.

These are the findings emerging from a new survey of UK expats. The survey is being conducted by Home Espana, a leading Spanish estate agent with a busy and expanding Spanish property website, homeespana.co.uk. The survey was conducted online and individuals from a cross-section of the UK expat community - retired, self employed, and those working for Spanish or non-Spanish companies - logged on to answer a range of questions about their life in Spain.

Spain’s obvious attractions like its sunnier climate and lower cost of living scored highly as expected, but people also gave top marks to Spain’s public services compared to those in the UK. These findings reflect the general feedback given to the Home Espana team. The company has built up long term relationships with many customers who leave the UK to live in Spain and go on to buy more properties with the company or recommend their friends and family. According to Kieran Bryan, Home Espana’s Managing Director, “So many of our buyers tell us how impressed they are by the high standard of the local public services in their area of Spain. As new expats, this really helps make them feel welcome and settle in quickly.”

Nearly 50 percent of replies stated Spain’s public healthcare was better or much better, with a further 26 percent stating it was equivalent to the UK. These high percentages are especially reassuring for older, retired people and parents with young families - or indeed anyone who is concerned about health service standards.

In education, over 50 percent of people said Spanish schools were the same or better than their UK equivalent - and remember, that’s despite the language difference. Spain has heavily invested its transport infrastructure in recent years and. this is reflected in the survey results with again, over 50 percent of people stating public transport is the same or better than in the UK.

The survey also covered the main reasons why people had moved to Spain. Interestingly, while 70 percent of people stated that they found the cost of living was lower in Spain than in the UK, under 3 percent put this as the best thing about living in Spain. The most popular reason why people had moved to Spain, getting over 35 percent of votes, was the general quality of Spanish life.

These results seem to be showing that the high quality of Spain’s public services really add to people’s quality of life. For many UK expats, Spain is not just for holidays - it is also real place to call home.

Story from emediawire.com

In Spain you can enjoy a nice warm autumn break in any of the following destinations: the Balearic Islands, the Canary Islands or Almeria.

The Balearic Islands is an archipelago of 5 islands (Mallorca, Menorca, Ibiza, Formentera y Cabrera) located in the east of Valencia. Thanks to its perfect climate (sun and warm temperatures during the whole year), it has become one of the most famous destinations for tourists in Spain. Tourists can not only enjoy crystalline waters in one of the 300 beaches of the archipelago, but also a wide range of activities: water-skiing, scuba-diving, fishing, water parks, etc. The Balearic Islands also offers a great variety of landscapes: beaches, dunes, untouched coves, forests, etc. We encourage you to travel round the archipelago and observe the flora and the fauna. And to give your holidays a cultural touch, you can also visit one of the most emblematic buildings: the Bellver Castle and the Arab baths in Mallorca, the Cathedral (La Seu) in Menorca and the Llotja (a wonderful Gothic building) in Ibiza. Nightlife in the archipelago is pretty busy. Restaurants, bars, clubs and casinos will be happy to welcome you until the very early hours of the morning.

Another alternative is the Canary Islands. Located off the north-western coast of Africa (Morocco and Western Sahara), the Canary Islands is an archipelago made up of 7 volcanic islands: El Hierro, La Palma, La Gomera, Tenerife, Gran Canaria, Fuerteventura y Lanzarote. With an annual average temperature of 22 degrees Celsius (71.6 degrees Fahrenheit), it is a great destination for late summer holidays. Like the Balearic Islands, the archipelago offers a wide range of fun activities (beach, fishing, diving, kite surf, etc), nature and culture. We encourage you to tour the archipelago and discover wonderful beaches such as the Playa de los Cristianos - a beach of golden sand and crystal clear water situated next to a picturesque village on the island of Tenerife. In addition, take advantage of your holidays on the Canary Islands to discover the delicious traditional cuisine of the archipelago. Fish, meat, cheese, honey, pastries, wines - the experience will be very pleasant!

If you prefer to stay on the Spanish peninsula, you can also reserve your break holiday in Almeria. Located in Andalucia - South of Spain - you will be able to discover the whole southern coast as well as regional traditions (flamenco, traditional cuisine, etc). If you are looking for beaches offering lots of activities, we recommend you to go to the Poniente Almeriense coast. For a more peaceful holiday, you should go to the Almeria-Cabo de Gata-Nijar and the Levante Almeriense areas to enjoy the atmosphere of picturesque fishing villages.

Story from spanishpromotions.com

Danny Lawrence emailed us with some strong thoughts about our price guides. In this article, Danny shares his concerns and Martin Dell of Kyero.com attempts an answer. Take it away Danny..!

I have just browsed through your new price guide and whilst I appreciate that it represents a huge amount of research and work I’m sorry to say that it is of little real value as the prices you report are asking prices not actual sold prices.

We all know that these can be wildly different - especially at the moment. In the USA all comparables are derived from sold prices as this is the only genuine method of using comparisons as a valuation tool. I am searching for a property currently in the Marbella area and I do believe that actual sold prices have fallen significantly but without access to the solid data I have no idea which type of property and which exact locations have been most affected.

In this regard the UK is light-years ahead of Spain in terms of openness - as you probably are aware we have numerous on-line websites which offer irrefutable direct information regarding real sold prices. Can you do the same? I hope so.

Danny Lawrence

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Hi Danny - thanks for taking the time to email. Unfortunately the short answer to your question is ‘no’ - the Kyero.com price guides as we have them today are about as good as they get.

There are a few problems that make Spain different to the UK with regard to published sales transaction prices.

The Ministry of Housing in Spain do make statistics freely available. Their figures are based on actual recorded sales which means that they ‘should’ be an accurate reflection of what ‘real’ sales values are. There are four main ‘gotchas’ though.

First, until very recently, a significant portion of the transaction value of many property sales was carried out ‘under the table’ in cash. This was common practice and the offices of public notaries even had a special room where the exchanging of wads of cash could be carried out in privacy. Recent legislation made it the notary’s responsibility to curb this practice but it has been widespread and does still continue. This means that the Ministry’s ‘official’ transaction values are artificially low - more so, the further back in time one looks.

Second, the Ministry make information available only at a provincial level. Take Malaga, for example - a huge province encompassing towns such as Marbella and many small rural villages. An average property price in this province will be virtually meaningless. The ministry do provide a breakdown of towns with more than 25,000 inhabitants - but that represents less than 0.5% of the number of towns and villages within Spain.

Third, the Ministry figures are presented as an average cost per square metre. To be of any value, this relies on the property being measured and recorded accurately in the first instance - again, something that, historically speaking, has not happened consistently. The surface area of a property I purchased 4 years ago in Spain was under-declared by almost 30% by the constructors. Aside from this, I personally find it hard to equate price per square metre to the value of any particular property.

Fourth, Spain has a woeful system of postcodes. Marbella, for example, has a single postcode that covers most of the town - and there are big variations in property prices within the town itself. Unlike the UK where a postcode narrows the area down to a few houses, in Spain a single postcode can cover a few villages. This means that even if the sales transaction data was accurate and available, it would be impossible to get the same level of ‘usefulness’ out of it as in the UK.

For all of these reasons, we started recording and trending ‘asking prices’ a couple of years ago. I believe that the trend is the important thing as is the fact that they’re recalculated and published every month by an independent organisation, Kyero.com. As the market becomes more competitive in Spain, we do see asking prices dropping and I suspect that you would see a reduction in asking prices several months before the correspondingly lower sales prices were recorded and published by the Ministry of Housing - mainly because of the length of the sales process.

The database of Spanish towns we have created also allows us to drill down to any one of the 55,000 towns in Spain. We still have the restrictions imposed by the post code system, of course, but our price guides have a ‘granularity’ potentially 95% better than the Ministry of Housing data.

The Kyero.com price guides, while not perfect, are the best of what’s available at the moment - as soon as more data becomes available or supersedes what we currently have, we’ll publish that instead. Hopefully you see that it’s not a case of withholding information - it simply doesn’t currently exist in Spain in a format that’s useful and reliable.

New laws and latest statistics show Spain is getting even greener. The most recent bulletin from Spain’s Instituto Nacional de Estadistica (National Statistics Institute) shows that Spain is above the European average when it comes to the percentage of power consumed nationally that comes from renewable sources. The most recent Europe-wide data dates from 2004, when 14.2% of the power used by the 27 nations in or about to join the EU came from renewable sources. At that point Spain was getting 18.5% of its power from renewable sources.

Those figures are old, however. In late 2006 a law was passed requiring new or newly renovated buildings to have solar power systems – hot water systems for residences and electrical generators for businesses. The law also made use of insulation and maximisation of natural light mandatory.

Businesses are already embracing renewable power. Europe’s first commercial solar power station is up and running in Seville, and this June it was announced that telecoms firm Telefonica’s Madrid office was about to become Europe’s largest solar-power-generating office, with 16,000 solar panels generating about 3.6 gigawatt hours of electricity each year. Navarre, with no coal or oil reserves of its own, has been leading the Spanish charge since the late 1980s. At present nearly 70% of the province’s energy is from green sources, and officials plan to be using 100% renewable-sourced energy by 2010.

Spain has a wealth of eco-friendly homes on offer, from the cave homes of Granada, whose thick rock walls keep them warm in winter and cool in summer with no need for heating or air conditioning, to modern developments where water is recycled to use on communal gardens and golf courses. Often rural properties, far from mains supplies of water and electricity, can be the greenest, with owners using water deposits or wells plus solar power. When you’re looking for your property, try to find a ‘green’ one – it’ll reduce your bills in the long run, and you’ll know you’re helping preserve the country’s beauty.

Story from homesworldwide.co.uk

And, like the old wine of the Gods, its geometric complexity seems to flee from its foundations, to escape from its cask in order to drink a toast with the setting to the success of the wine culture and of the architecture as the driving force behind the updating of the traditional vinicultural industry.

If the Guggenheim has become the symbol of the urban revival of a city, the building designed by Frank Gehry for the Bodegas Marqués de Riscal will go further: it will be the idol of a new city built in honour of the wine. The project has Rioja Alavesa Designation of Origin. It is located in Elciego, in the heart of an area of 100,000 m2 given over to the study, care and production of the historic wine. The City of the Wine has just uncorked its Gran Reserva: a construction in which the alliance between gastronomy and architecture generates even more art.

Gehry’s building, just like the good wines, invites people to discover it with all the senses. The complexity and innovation of the geometrical forms and materials used make this building become a great constructive and architectural challenge. The hotel-monument that has just been opened grows in the landscape of the Rioja Alavesa as if it was another piece of land with vines. Its 2,000 m2 in area neither can nor wants to escape from the person who put his signature to them. The facade bears indeed the unmistakable trademark of Gehry: titanium and steel skin. The sandstone geometrical cubes which form its structure are covered with metals that sway in a constant search for the harmony with the setting and with the original ashlar stonework of the old bodega.

Out of tradition, avant-garde arises. The Canadian architect colours his fetish material and converts it into an icon. Pink for the red wine. Gold for the mesh which covers the Marqués de Riscal bottles. Silver for the capsules which cover the cork…

Beautifully presented rooms, vinotherapy spa, exclusive restaurant, centre of the wine process and production, museum, offices…. The City of the Wine represents the clear commitment of the Marqu&eacutes de Riscal’s heirs to modernity. And architecture is at the wine’s service. Calatrava, Foster, Moneo, Aspiazu are stamping their contemporary hallmark on the traditional vinicultural lands. The City of the Wine has just been born and it is already one of the more sound and ambitious projects carried out by a Spanish bodega. Moreover, at its heart, the Hotel Marqués de Riscal, with the famous Canadian signature, will emerge as a monument, as a symbol of the Rioja Alavesa, of the flourishing wine tourism, but also of Frank Gehry himself.

Story from spanishpromotions.com

They’re chic, cheerful - and very cheap. No wonder Britons are flocking to the cave homes of Andalusia.

“We’ve heard all the comments about Flintstones and dinosaurs and cavemen with clubs,” says Iain Macdonald, sitting outside his home in the wilds of southern Spain. “But to be honest, if we weren’t part of the ‘community’, I’d probably be making them myself.”

This ‘community’, which serves as the butt of so many jokes, is both old and young at the same time. Old, because we’re talking about people who live in the earliest homes known to man. Young, because until a few years ago, this was a way of life which had all but disappeared.

These are the new cave dwellers of northern Andalusía: a group of people who have made the move to Spain, but who turned their back on the Costas and headed deep inland and deep underground.

It’s a lifestyle which has long been familiar in the area around the town of Huéscar and the nearby villages of Galera and Orce. This is the altiplano, the high plain north of Granada, hemmed in by three mountain ranges and subject to extremes of heat in summer and cold in winter.

So why would anyone want to live here - and why would they choose a cave?

Cost is a compelling reason. For hundreds of years, the locals burrowed into hillsides all over the region, digging out the soft layers between hard sandstone strata and using the tougher stuff as watertight roofing. It didn’t cost anything, and when you needed an extra room, you just dug one out.

But caves came with a social stigma. These were the refuges of gypsies and the poor, and while thousands of families across Granada province lived in cave houses as recently as the 1960s, they escaped to more conventional housing as Franco’s regime tottered and the region became more prosperous.

Five or six years ago, Spaniards began buying old caves and reforming them as holiday homes. Cave hotels followed and - in their wake - the first wave of British and French troglodytes arrived in 2002.

The locals were only too happy to sell off their old caves for a couple of thousand euros, but soon “wised up”. As Iain Macdonald says: “Not long ago, you could win a cave in a game of cards, or, if you bought one, the owner would throw in a second cave free. Nowadays, the locals know they have sought-after commodities.”

Even so, an unreformed cave is still a good buy at anything from £12,000 upwards. Turning it into a modern, habitable hole in the ground can cost as little as £10,000 or as much as £70,000, depending on the proximity of services and the size of the property.

Iain and his partner, Gayle Hartley, went the DIY route. They moved from Newcastle-upon-Tyne just over two years ago, living with their then two-year-old son, Joshua, in a caravan while they renovated their cave in the hamlet of Fuente Nueva, near Orce.

“People thought we were mad,” says Gayle. “They were convinced caves were wet and dirty and that we wouldn’t be able to live a normal life. They couldn’t be more wrong, though. We have mains drainage and sewage, mains electricity, satellite television and even a broadband internet connection.”

Their nine-room cave certainly has a finished - if rustic - feel to it: tiled floors throughout, rough-plastered walls, a tiled bathroom and a fully-equipped kitchen. But what about the lack of light?

“We have windows at the front but, of course, the rooms further back have no natural light,” Gayle says. “You don’t miss it, though. I like to think of it as a bungalow without a back door.”

And the weather? “Caves have a constant temperature of 16C-19C,” says Iain. “They’re cool in summer and escape the winter cold, when it can drop to -15C on the altiplano. You need some form of heating, but most caves - ours included - have wood-burning stoves, which is more than enough.”

Cueva Esperanza (Cave of Hope), as they have called their new dwelling, is built into the hillside, but the trend is for reformed caves to have rooms added on at the front.

Karen and Malcolm MacManus, who live on the edge of Huéscar, have gone one step further: they have a family-size swimming pool on the large, enclosed terrace in front of their house.

“We moved to Spain five years ago, to the Costa Calida,” Karen says. “But it was too ‘British’ there and we’ve moved four times since, trying to get away from those influences. We came to Spain to be part of the culture.”

In their case, that includes the gitano, or gypsy culture. The MacManuses and their daughter, Lauren, live in an area where caves are being renovated for selling to foreigners alongside others still occupied by gipsy families.

“The Spanish don’t have a good word for them, but we have found the gitanos to be really good neighbours and the children are always polite and friendly,” Karen says. “They come and play in the pool with Lauren all summer long. It’s a great way of integrating.”

The MacManuses bought their seven-room cave unrenovated and, with an additional three rooms at the front, the pool and two terraces, their total bill was £165,000. “You couldn’t buy a three-bedroom terrace for that back home,” Karen says.

“People change their mind about cave-living once they’ve visited us. They see the standard and quality of life here and they’re quite envious.”

Estimates of the number of British troglodytes in the area vary between a couple of hundred and more than 1,000. One woman who seems to know most of them is Vanessa St John-Brown. With her partner, Robert Marshall, she has bought a cave house and, with it, half a mountain. She moved her mother in from the house on the Costa Blanca where she lived for 20 years and helped set up a website called Caves R Us which acts as an estate agency, advice forum and general information point.

“We share information a lot,” she says. “As people renovate, they pick up tips and like to pass them on. It’s not exact, like building a house, so people are grateful for any help they can get.

“More and more British people are moving into the area. In the past six months or so, people have stopped scoffing and started realising that cave-living is what you want it to be. Caves can be as smart and modern as you like, but one thing they’re not is expensive - at the moment.”

Story from telegraph.co.uk

While buy-to-let investment in the UK is finally dwindling after ten years of success, wise investors are continuing to look overseas for the next pot of gold. Buying abroad is easier than ever for Brits, with the strong pound and soaring UK house prices making it increasingly affordable. Many buyers hope to help cover the costs by renting out their property to holidaymakers or locals, with a buy-to-let mortgage.

However, experts are warning that buyers should tread carefully in volatile markets such as Turkey, Bulgaria and Dubai, where property schemes often leave buyers out of pocket two or three years down the line. Such schemes offer guaranteed rentals for the first year or two, but the rents do not necessarily reflect post-guarantee yields. Buying (before the property is built) is an increasingly popular way to buy quality property at bargain prices with high potential profit margins.

While over-development has cooled in more established markets such as Spain’s Costa del Sol, investment in less saturated Spanish markets like Murcia, Galicia and Ayamonte are becoming increasingly lucrative for buy-to-letters. Experts have also tipped the likes of Cape Verde, Brazil and the Western Algarve in Portugal to become property hotspots in the coming years. Bear in mind however that property markets can be fickle and exotic locations are prone to going in and out of fashion. Bulgaria is a typical example of this, according to the latest figures.

One of the most straightforward ways to buy abroad is to raise the cash against your property in the UK. If that isn’t possible, a number of UK lenders will offer you mortgages. If buying in the euro zone, you could get lower rates by going to the overseas lending arm of a UK bank.

Regarding taxes, rental income may be taxed locally. Some countries charge a wealth tax simply for owning a property, while most charge capital gains tax on any profit when you sell. UK residents may also face UK income tax on any rental earnings, plus capital gains tax. The UK has a double taxation treaty with a host of countries, which means you shouldn’t have to pay tax twice but this is a complex area and you will need specialist advice.

Before you shell out for your bargain property make sure you have some spare cash set aside for estate agency and legal costs and local taxes. Never try to cut corners on legal costs and make sure that you find an established lawyer who can speak fluently in your language. Lawyers can charge between 3 and 10 per cent, depending on location. You must also budget for insurance, maintenance, property management fees, service charges and tax.

Common sense dictates that an attractive, family-sized property near a beach, golf course and local amenities will produce better yields than a one-bed rundown squat 30km from the nearest shop. A local airport is a must if you are renting to foreigners and proximity to a golf course will extend rental periods into the winter months. Consider carefully how you will find your tenants. Many investors use a local holiday lettings or management agency, which advertise for tourists and handle the bookings. This will cost at least 15 to 20 per cent of any rental income although you can offset some of these costs against tax. Renting out to locals is an easy option depending on your property type, as these tenants will usually stay for longer periods.

A little common sense goes a long way when buying. Do plenty of research to make sure you stay ahead of the game and have a clear idea of what you want and how much you want to spend before you begin your property hunt. If you are buying with the sole purpose of letting, clear thinking can save you a lot of money.

Story from 999today.com

New data from currency specialist HIFX shows enquiries for France and Spain from October to November rose from 25 to 28 per cent and 24 to 27 per cent respectively.

Despite recent favourable exchange rates for the dollar, the latest figures show a drop in enquiries for US properties.

Following French and Spanish properties, the next largest number of enquiries was for Bulgarian property (11 per cent), followed by Cape Verde property (eight per cent).

“Despite a fair amount of dabbling by investors in some more exotic locations, old time favourites France and Spain are still the first choice for British buyers looking for a holiday home or retirement home,” said Mark Bodega of HIFX.

“With the markets in both countries having slowed down over the last 12 months, we are seeing some really good bargains coming up, and it seems that many canny Brits have also spotted this and are beginning to return to these traditional overseas markets in increasing numbers.

“Spain for example, pioneered the trend to own overseas property and is still one of the UK’s favourite destinations for a place in the sun.

“Whilst the market has cooled, the more traditional Brits are now looking for opportunities away from the traditional hotspots, in the lesser known costas and inland amongst the olive groves.”

Story from aboutproperty.co.uk

We are flocking to Spain for our holidays in greater numbers than ever before. But forget the old annual fortnight’s package holiday. Now we want to hop on a low-cost flight to our own home in Spain - preferably, for two thirds of us, on the Costa Blanca or Costa del Sol - and we want to visit it at least four times a year with friends and family. These are the findings of a new report by Lighthouse Spain, which caters for ‘residential tourists’ - people who have shifted from spending on package holidays to buying a holiday home there instead.

While the Spanish property and construction markets boom, along with local services catering for residential tourists such as furniture shops, supermarkets and restaurants, many hoteliers are hanging up their room keys in despair as they watch 14 million Brits each year head to Spain, only to see 4.1 million of them last year stay in a property belonging to friends or relatives instead of in a hotel.

“Spain is by far the number one destination for residential tourists and the Costa Blanca is particularly popular because of its excellent year-round climate, good infrastructure and extensive expat communities,” says Shaun Powell, Managing Director of Lighthouse Spain, which works with a network of ethical Spanish estate agents to sell holiday homes to British and other Northern European buyers.

“In Costa Blanca, especially in the south of the region, you still have a large choice of properties available from 100,000 euros, so people who have been priced out of the Costa del Sol can still afford a Spanish holiday home on a popular coastline,” adds Powell. “Home owners have the added benefit of being able to rent out their home to other holidaymakers so their property is a source of enjoyment and investment.”

The Costa Blanca has been a bastion of package tourism since the 1960s. But now it has become a hub of residential tourism, with Alicante airport witnessing passenger numbers from the UK rise by 30% in 2003.

While Benidorm, with its long sandy beaches and year-round entertainment, remains a thriving resort for foreign and Spanish tourists, surrounding coastal and inland towns which have been little-known to the average British holidaymaker are starting to figure on the residential tourist’s map.

As prices in prime coastal locations such as Calpe and Javea approach those on the Costa del Sol - with seaview villas from 600,000 euros and apartments from 350,000 euros - inland towns and villages within easy access of the coast’s facilities are growing in appeal for foreign buyers.

“Hotels are becoming non-existent in some places as more foreigners buy properties as a holiday base instead,” says Tomás Mazón, Professor in the Sociology of Tourism at Alicante University. “There is a shift inland among foreign second home buyers who want to live in small, less developed villages with a higher quality of life, but which are well connected to the coast by motorways,” says Mazón.

Funded by the Valencian Government to research the impact of residential tourism in the Alicante province, Mazón recently interviewed 1,000 foreign home owners who spend at least six months a year in the province.

Full Story from market-day.net

Here’s a little general knowledge test for you: one is famous for its elegant streets, stunning setting and internationally acclaimed arts festivals. The other was once a proud industrial powerhouse which has tried to re-invent itself, replacing decaying shipyards with stylish riverside apartments and avant-garde architecture. Oh, and it only takes an hour on the motorway to get from one to the other.

Ask most Scots to name cities that match this profile and, not surprisingly, the answer would probably be Edinburgh and Glasgow. But it could as easily be the Basque provincial capitals of San Sebastian and Bilbao. Situated on the north coast of Spain, San Sebastian has long been a draw for Europe’s aristocracy and, like the Scottish capital, its appeal is immediately apparent.

The fountains and elaborate bridges you pass going into town are a warm-up for the star act - the stunning La Concha Bay.

Protected from the swell of the Bay of Biscay by the Isla de Santa Clara just offshore, the crescent-shaped beaches of La Concha and Ondarreta are justifiably regarded as among the finest city beaches in the world.

Since Queen Isabel made San Sebastian - or Donostia, as it’s known in the Basque language - the summer capital of Spain, people have been flocking to these golden sands. If you can drag yourself off the beach, the city is an easy place in which to get your bearings, largely because the capital of Gipuzcoa province, like Edinburgh, is built around hills. At one end of La Concha Bay is Monte Urgull, which looms over the harbour and the Parte Vieja (Old Quarter) and is topped by a statue of Christ and the ruins of a 12th-century fortress. At the other end of the bay is Monte Igeldo, the summit of which can be reached by funicular and from where you get great views over the city.

Wander along the city’s boulevards and it quickly becomes apparent they have lost none of the belle-époque elegance that captivated Hemingway in the 1920s.

Today, though, the casino has been converted into the town hall - no jibes about money still being frittered away - but the grand hotels are still in rude health. The chic shops and boutiques off the Avenida de la Libertad also reflect the fact that property in San Sebastian is among the most expensive in Spain.

But even if many of its residents are unmistakably well-heeled, you don’t necessarily need big money to enjoy the city. If your budget doesn’t stretch to five-star luxury then there are plenty of good-value hostales in the grid of narrow streets that makes up the Parte Vieja.

Since much of San Sebastian’s nightlife is also found here, anyone looking for a quieter locale would be advised to cross the Río Urumea to Gros. This former working-class district is now popular with surfers because of its location behind Zurriola beach, which is more exposed than La Concha. The city end of the beach is dominated by the box-like Kursaal auditorium, home to the annual international film festival.

San Sebastian has made a name for itself as a festival venue - as well as this month’s film extravaganza it hosts jazz, horror films, music and book festivals - but it still finds the time to celebrate more traditional occasions such as the riotous Carnival in February and August’s Semana Grande (Big Week), which culminates in an international fireworks competition.

After a day on the beach, a stroll around the shops or a walk up one of the city hills, it’s time to test San Sebastian’s reputation for fine food. For a city of just 180,000 people, it has a disproportionately high number of Michelin-starred restaurants, but there is no need to pay a fortune to sample some creative Basque cuisine.

Before it was chosen as the new European home of the Guggenheim Museum, Bilbao was not a place many people chose to visit. Even today, nearly a decade after the Frank Gehry-designed modern art museum was opened on the banks of the river Nervion, the approach to the centre can be drab. However, all this disguises a vibrant city that has instigated a programme of urban renewal - especially along its riverbanks - that Glasgow’s planners would be daft not to have looked at.

Leading the charge is the Guggenheim, where the structure housing the 20-odd galleries is as much an attraction as the collection of 20th-century art within. And while the Guggenheim is at the heart of Bilbao’s renaissance, there is much more to the city than this swirl of titanium and glass.

The Museo de Bellas Artes, just a few minutes’ walk away, has a great collection of Spanish and Basque paintings. The Maritime Museum is a fascinating introduction to the city’s industrial and seafaring heritage.

When you’ve sated your appetite for things cultural, the best place to head for is the Casco Viejo (Old Town), a compact medieval enclave on the right bank of the river. The historical heart of the city, its cobbled streets are lined with bars and cafés. If you do nothing more than spend a night mingling with bar-hopping locals in the arcaded Plaza Nueva or on the Siete Calles (Seven Streets), you will have got a real flavour of Bilbao.

The city’s excellent public transport system includes a tram that runs along the riverbank and an efficient metro system - whose cockpit-style entrances were designed by Sir Norman Foster. The underground takes you all the way to the beaches on the north coast or along to the river-mouth suburb of Gexto to see the 100-year-old Puente Colgante (hanging bridge).

For passengers arriving on the new AT Ferries service from Portsmouth at the terminal across the bay from this immense steel structure, Bilbao still bears the hallmarks of its industrial past. It may not have the obvious charm and appeal of San Sebastian but the combination of shiny new and gritty old is an alluring mix.

Just like Glasgow and Edinburgh, the attractions of these two Basque cities are distinctly different - and being on each others’ doorsteps just adds to their appeal.

Full Story from living.scotsman.com

They do exist, but you’ll need to put in plenty of legwork, says Matt Dunn. Barcelona is a fast-paced, vibrant city, with a property market to match. And while the decision to buy in the Catalan capital is an easy one to make, trying to secure the property of your dreams can be a little more difficult.

The buying process itself is fairly straightforward. Decide where you want to live, find a place you like, and negotiate with the seller. Once your offer is accepted, you’ll be asked to pay a small deposit while your lawyer performs the necessary checks. Assuming all is satisfactory, after ten or so days you’ll be expected to sign the contrato de arras (similar to our exchange of contracts) and pay 10 per cent of the property price. This is non-refundable, but if the seller pulls out at this stage he has to pay you twice this amount back.

About four weeks later both parties go to the notario - the public official appointed by the Spanish Government - for the signing of the title deeds (escrituras). At this point you pay the balance of the purchase price, all fees and taxes, and the apartment is yours. Sounds simple? It does. Until you realise how complicated each of those steps can be.

Barcelona’s a big city, with a number of diverse neighbourhoods, each with its own style of buildings, so first think about how you want to live, as this will influence the type of apartment you’ll be buying. And be aware of the market. If you’re after modern accommodation, perhaps a two-bedroom apartment with a lift, you’ll be in Eixample or Gracia fighting off young Spanish couples, while your main competition for the older-style properties in and around the Barri Gotic will probably be other foreign buyers looking for holiday homes.

And while the higher you go, the brighter your apartment will be, can you really stand walking up five flights of stairs in the Spanish heat carrying your shopping? Don’t rely on a new law that says that every building that doesn’t have a lift will shortly have to be fitted with one - the Spanish “shortly” can be very different from an English one, and if the building doesn’t have space then it won’t happen.

Unless you plan to let your apartment, don’t buy in one of the tourist areas. Staying near your favourite bar or restaurant is good, living right above it is another thing entirely. Remember that the public transport system is reliable (and air-conditioned) and taxis are cheap, and you’ll certainly get more for your money away from the centre. Once you’ve decided on your area, next you have to find an estate agent.

Barcelona has an estate agent on almost every corner, so the simplest way to do this is by hitting the streets. Then all you have to do is go on viewings. Lots of them. That’s when you discover the difference between the description the agent gives you and what a property is actually like. For example, the Spanish are bedroom-obsessed, always describing apartments as if the number of rooms is the most significant factor. Ignore this, and concentrate instead on the number of square metres - four bedrooms in 70 square metres means at least three of them will be very small indeed.

Assuming you find somewhere you like, next you have to make an offer. If your offer is accepted, however, your lawyer is on a two-week race against time to make sure that the property isn’t about to be knocked down, repossessed or have a motorway built through it, and more importantly is actually owned by the person selling it. This is when most deals go wrong.

At least when it comes to finance, the good news is that arranging an overseas mortgage is getting easier. Banks like BBVA and Barclays can lend you up to 70 per cent of the purchase price and will help you to set up a Spanish bank account from Britain. But while a European mortgage is cheaper than borrowing the equivalent amount here, Spanish stamp duty, at 7 per cent, makes Gordon Brown seem positively generous. In total you?ll spend 10 per cent of the property’s value on purchase costs. And although it’s happening less nowadays (because it’s illegal), be aware that you might be asked to pay a percentage of the purchase price in “black” money, with a lower price stated on the deeds and a figure paid to the seller in cash.

This could leave you with a higher tax bill when you sell the property on - plus the alarming prospect of walking through a foreign city carrying a large amount of currency.

Story from Timesonline.co.uk

Get advice before moving pensions abroad.

People who want greater freedom to decide how they spend their personal or company pension savings may find rules less restrictive abroad than in Britain.

An estimated 1.3 million Britons have made Australia their home, for example, with more than 23,000 people emigrating there from the United Kingdom last year.

As well as the appeal of sunnier climes and a high standard of living, one of the lesser-known attractions is that the Australian pension system is much more permissive on pensions.

The whole fund you have saved up can be taken tax-free at retirement, although you have to wait five complete British tax years after leaving the UK and before you can access your entire transferred pension fund as cash.

Typically in Britain, the most you can take in tax-free cash is a quarter of your pension fund. But from July 1 this year, the maximum contribution that can be made to an Australian fund, in a tax-efficient manner, is A$150,000 a year, equivalent to around £60,000.

Andrew Tully, pensions technical manager at Standard Life Assurance, said: “People in the process of emigrating to Australia should take advice and consider carefully whether to transfer their pension benefits overseas. If they believe that transferring is in their best interests then it may be worthwhile trying to push the transfer through before July.”

You can only transfer your pension fund overseas to schemes that are recognised by HM Revenue & Customs (HMRC) as “approved arrangements”, otherwise known as a Qualifying Recognised Overseas Pension Schemes (QROPS). QROPS must be regulated as pension schemes in the country in which they are established, and they must be recognised for tax purposes.

Robert Brealey, a pension consultant at the independent financial adviser John Siddall International, said: “The concept of QROPS was to introduce portability to pensions, but there are conditions that any receiving scheme must fulfil.

“After transfer, the QROPS must report to the HMRC any payment made to the member if it exceeds 25 per cent of their fund, or if the member takes benefits before they are permitted in the UK.

“If this happens, then HMRC reserves the right to tax the individual at between 40 per cent and 55 per cent of the payment, if the member was a UK resident in the tax year of withdrawal, or any of the previous five tax years.”

Murray Payne, private client adviser at Dynamic Management Solutions, which provides expats and professionals with tax advice and financial services, said: “The maximum amount of ‘undeducted contributions’, or contributions made from after-tax income, that you can make to an Australian pension scheme looks like being set at A$150,000 a year from July 1, but you can roll three years into one.”

“So, for example, you can make contributions of AU$450,000 in the current tax year 2007-08, but that means you will not be able to make further contributions until the tax year 2010-11.”

“The changes create a serious issue for people with very large pension funds, although some schemes will allow partial transfers.” Those who have already transferred pension funds to Australia in full are in an enviable position.

Not only can they spend their pension as they please, rather than having to purchase an annuity, but if they are domiciled in Australia, they can pass this money on to any dependants, free of UK inheritance tax.

Broadly speaking, you are considered to be domiciled in the country where you have your permanent home. Mr Payne said: “If you are still domiciled in the UK, or deemed domiciled there, then you would be subject to inheritance tax under UK rules on all your worldwide assets.” But those receiving their UK state pensions in Australia will not have their state pension uprated in line with the Retail Prices Index.

Few other countries offer such flexible pension systems for those transferring funds as Australia. If you were planning a move to France, for example, and were thinking about transferring a pension there, you must use your whole pension fund to buy an annuity. You may therefore be better off leaving your pension in the UK, although you could still benefit from lower income tax payments on your pension in France and other European countries.

Marjorie Mansfield, associate director at John Siddall Financial Services, said: “For Britons taking UK pensions to France, they will remain under UK legislation but under French taxation - unless they are UK public sector civil service-type pensions.”

Income tax rates range from 15 per cent to 45 per cent in Spain, from 0 per cent to 40 per cent in France and from 10 per cent to 42 per cent in Portugal. If you are considering moving overseas, whether to Europe or further afield, you should seek independent financial advice. If you cannot transfer your UK scheme, there will be a currency risk when you draw your pension in sterling.

Ms Mansfield said: “It can be possible to use a specialised euro-denominated self-invested personal pension (Sipp) arrangement to avoid currency risk if you are moving to Europe.”

Story from telegraph.co.uk

In the province of Valladolid, just ten minutes from the capital, you will find Aldamayor Golf, a complex which was opened just a year ago. Its facilities are brand new and of the highest quality. This golf course has 9 holes Par 27, designed for expert players and for those who are beginning this kind of sport. The training golf course has a total length of 400 metres, with 50 posts distributed in two positions, of which 14 are covered. A putting green with bunkers complete the area set aside for training. The complex also offers a beautiful natural environment and is close to the Castilian capital, which is well worth a visit. This complex meets all your sports and tourist needs.

In Motril, Granada, you will find Los Moriscos golf course, which has 9 holes and combined offers a route of 18 holes, with a total distance of 5,072 metres. At this golf course, you will not only enjoy playing golf, but you will also find beautiful surroundings, a large green and tall palm trees which give the place a feeling of peace and quiet. This course offers no difficulties, except the paths affected by some lakes. All in all, it is a complex where, besides golf, visitors can enjoy priviledged views of the sea and Sierra Nevada.

In the province of Zaragoza, you have the Augusta Golf Calatayud golf course, with 9 holes, Par 36 and a distance of 3,000 metres. The training golf course, with 30 posts in two heights, allows one to enjoy different techniques, with the guarantee of being in top class installations. The route of this course is very demanding, with holes at 500 metres, small greens, narrow paths requiring very accurate strokes. It has two typical lakes, strategically located so that the game can be started from several holes, thus, challenging players. The complex is between mountains and surrounded by spectacular scenery from which one can admire the Ayud castle in the background, and the Roman ruins of Bilbilis.

A few miles from Salamanca, in Monte de Zarapicos, you can find a 6,045 metre golf course with a Par 72. It is situated between mountains, however, this does not mean that the route is very steep. Its length will be the delight of great strikers, without forgetting it needs precise strokes and a select choice of clubs. The bunkers, strategically located, are some of the obstacles which call for more technical golf. As it is very near Salamanca, golf players have a unique opportunity to visit this beautiful city and enjoy a stroll in its Main Square, visit the University, see the two cathedrals, the House of Shells or just have a “tapa” in one of its many bars.

Right in Cantabria, in the locality of Mogro, golfers have Abra del Pas Golf Course, a place where enjoying this sport becomes a joy. Located in an incredible spot, in the mouth of this river, visitors will be overwhelmed by the beauty of the scenery, surrrounded by forests and fine sand dunes. This course has 9 holes and is open to the public. It also gives you the chance to start this sport with short courses for beginner and advanced players.

Golf surrounded by beautiful natural landscape is what these complexes offer. Places where, besides enjoying a sport, you can also enrich your visit by sightseeing in the surrounding areas. A unique opportunity to combine sport and at the same time stroll through a natural environment of great beauty.

Story from Spanishpromotions.com

Norwich and Peterborough Building Society (N&P) has unveiled three new mortgage options aimed at people looking to buy property abroad. Richard Barker, N&P’s product manager, said, “With an estimated 761,000 Britons living in Spain and the trend to move abroad showing no signs of slowing, we are constantly reviewing our product range to ensure we meet our customers’ needs.”

On offer are two fixed rate mortgage options, each with a follow-on rate of Bank Base Rate + 1%. Alternatively, the new tracker offers one of the lowest currently available rates for those looking to buy in Spain with a Sterling loan.

Two year fixed rate mortgage

5.59% fixed for two years, followed by Bank Base Rate + 1% for term Maximum 75% loan to value £499 reservation fee Valuation fee from £250 £125 application fee 5% redemption fee within first two years

Five year fixed rate mortgage

5.59% fixed for five years, followed by Bank Base Rate + 1% for term Maximum 75% loan to value £499 reservation fee Valuation fee from £250 £125 application fee 5% redemption fee within first five years

Tracker mortgage

Bank Base Rate + 0.24% for term Maximum 75% loan to value £599 reservation fee Valuation fee from £250 £125 application fee 7% redemption fee within first seven years

Norwich and Peterborough Spanish Home Loans has been offering UK residents, ex-pats and Gibraltar residents finance to buy or re-mortgage their main home, holiday property or retirement residence since December 1998. N&P lends from Gibraltar, along the whole of the Costa del Sol and along the Costa Blanca to La Manga.

Spain remains a ‘hot spot’ for Brits buying abroad according to HiFX’s seventh Global Property Hot Spots review into trends for Brits buying property abroad. France and Spain continue to beat off stiff competition from the bargain basement emerging markets such as the Eastern Bloc countries, together accounting for just over half (55%) of all HiFX’s currency transactions for buying property abroad in November.

Mark Bodega, Marketing Director of HiFX comments, “Despite a fair amount of dabbling by investors in some more exotic locations, old time favourites France and Spain are still the first choice for British buyers looking for a holiday home or retirement home.

“With the markets in both countries having slowed down over the last 12 months, we are seeing some really good bargains coming up, and it seems that many canny Brits have also spotted this and are beginning to return to these traditional overseas markets in increasing numbers.

“Spain for example, pioneered the trend to own overseas property and is still one of the UK’s favourite destinations for a place in the sun. Whilst the market has cooled, the more traditional Brits are now looking for opportunities away from the traditional hotspots, in the lesser known costas and inland amongst the olive groves.

Story from moneyextra.com

Ernest Hemingway said the ideal spot in Spain to witness a bullfight for the first time was in Ronda. He was guaranteed the best seat in the house on his many visits to the Plaza del Toros. As was another fan of bullfighting, film director Orson Welles. Had they been at the peak of their careers today they would no doubt have wanted to buy an apartment with a permanent view of the oldest bullring in Spain. Clever men though they were, they would have had their work cut out. Such a property is as rare as a safe driver on the streets of this ever popular tourist destination.

Ronda is blessed with views. The mountains and the gorge are the most photographed. Then there is the bullring, a building that oozes character. It is easy to see why Hemingway and Welles spent so much time there. It has the feel of a spiritual retreat and out of the high season it can, perhaps surprisingly, be the quietest spot in Ronda: a haven of peace and tranquillity despite the amount of blood that has been spilled there over the years.

Ronda has always considered itself to be the home of bullfighting. In 1775, Pedro Romero was the first matador to display his skills there. Today, its 5000 seats are more likely to be occupied by extras on a film set than by spectators at an actual bullfight. Such events have been banned in some areas of Spain. But other towns and cities are defying politically correct thinking and building new bullrings. Today, the greatest danger to tourists and house hunters alike comes not from a stray bull but from the humble motor car. Plans to only allow into Ronda cars owned by residents cannot come a moment too soon. Here is a place that is crying out for further pedestrianisation.

Considering how low the bullring is, it is surprising that so few buildings overlook it. Offices above bank headquarters and local restaurants have a bird’s eye view of most of the ring. Some apartments above the Hotel Royal also look out on to the historic sight. However, one coming on the housing market is almost as rare as an actual bullfight in Ronda today. It is not so much the bullring that potential residents wish to see from their windows but the adjacent Alameda del Tajo (Promenade of the Gorge).

This is a wonderfully designed tree lined avenue where locals and tourists alike take a stroll to witness the panoramic view of the surrounding countryside. Without question, this is one of the most consistently enjoyable views in Spain. The Tajo was completed in 1806 courtesy of monies raised from fines imposed on those who foul mouthed in public. Today the serene surroundings are likely to leave you speechless.

In order to overlook the bullring you would have to live on the road that dissects the city, the Virgen de la Paz. It is a very central location for all that the city has to offer, but is by no means the prettiest area of Ronda.

There is no shortage of property for sale all within ten minute’s walk of the bullring. Some are being sold at low prices not seen in much of modern day Spain.

For example, A&B are selling a home in the Padre Jesus area of Ronda for just 114,000 euros. Living here means a steep walk up into the centre of the city but you are away from the tourist coaches and have many splendid countryside walks on your doorstep. It has three bedrooms, a courtyard, central heating and air conditioning. It has splendid countryside walks on its doorstep. The historic fountain of eight spouts is across the road from the house - very handy should your water supply be cut off!

British people who have bought in Ronda will tell you that the city is not blessed with a great deal of modern day culture. When friends are due to arrive from the UK they are asked to bring with them the latest books and music. Concerts and theatre performances are few and far between in Ronda and residents travel as far as Seville to satisfy their lust for culture.

It is clear that there is a price to pay should you wish to have a permanent and memorable view in Ronda. There are many vantage points from which to savour this city and the surrounding countryside. The best view of the bullring though is from within its Neo-classical walls.

A good idea would be to buy one of the cheaper homes in the less touristy areas of Ronda and then enjoy the scenic walk to the Plaza del Toros. Choose your seat, pull out your copy of Death in the Afternoon and understand why Hemingway was so in love with this historical arena.

Full Story from theolivepress.es

The thin sanded beaches of Roquetas stretch out along 16 km, indifferent to the traces left behind in history by the ancient Phoenicians, Greeks and Romans or by the eight centuries of Arabian rule. All of them are part of the collective memory of this old town, although its most outstanding architectural jewel, the Castle of Santa Ana, dates from the 17th century.

Perhaps there is no better way to get the taste of local history than by becoming familiar with the local gastronomy. In this respect, Roquetas de Mar also honours the second part of its name: the taste of its dishes is the taste of the sea. Different kinds of fish and shellfish, wisely mixed, acquire a new and spicy dimension when a zarzuela (seafood fish casserole) is cooked. The vegetables from the area are also of excellent quality ?in fact we are talking about an area referred to as la Huerta de Europa (the Orchard of Europe). But above all, if you want to take part in the locals’ and visitors’ favourite hobby, tour the bars when the sun is at its highest and try the great variety of hot or cold tapas that are served with small glasses of wine or beer. If these culinary expeditions last longer than expected - which happens quite often - your body will demand to skip the main meal and go straight to take the nap that the Spanish call siesta.

However, Roquetas does not rest on its laurels. Although still faithful to its fishing and agricultural tradition, it has grown impressively, to the point of having nearly 70,000 inhabitants today and being one of the main destinations on the coast of Almeria. It offers a wide range of possibilities as regards leisure, culture and shopping at competitive prices.

In a privileged environment for sports in general, water sports lovers will find a superb setting for surfing, sailing, and scuba diving here. Don’t worry if you lack the experience or the equipment, there are courses for everyone. Golf lovers will be happy to know that there is also a great course for them - an 18 hole one. As a quieter alternative, large open spaces, including a nature reserve, invite you to go for a walk and admire the flora and fauna all around.

In terms of cultural entertainment, activities are also endless as you can enjoy music, theatre, cinema, etc. The amphitheatre, which looks on to the sea, stands out on its own and offers open air performances during summer nights.

When night comes, the hubbub of clubs and discos takes over the streets that are swarmed with people and fun. Then it is time for a different kind of expedition and adventure. From the trendiest and busiest pubs to the most elegant and quiet ones, Roquetas’ night life captivates those who embrace it.

Listen to the sound of the waves and notice the quaint Andalucian accent (you will laugh with the locals once you manage to understand them). Behold the beauty of a sunset. Breathe the sea air in the leisure harbours. Enrapture your palate with the local specialities. Shake hands with locals, who will easily become your friends, because Roquetas is a place to be experienced with all your five senses.

Story from spanishpromotions.com

It might not surprise you to know that Barcelona is the most expensive place to buy property in Spain, but what about the cheapest? The place to snap up a bargain is in the little-known Andalucian province of Jaen. In the “Big Picture” monthly report carried out by the leading Spanish property portal - Kyero.com - the average price of a property for sale in Jaen was almost seven times cheaper than Barcelona.

Over 49,000 properties were sampled and the national average property price came out at €240,000 (£162,967). Barcelona, along with Ibiza and Mallorca, were the only places to top the half a million euro mark, compared to a mere €77,000 (£52,298) for Jaen, 68% below the national average.

So what makes Jaen so cheap? Is it a culture-free dust bowl? Does the province have unseasonably bad weather? Is it a concrete enclaved inhospitable, modern town?

The answers are all “no”. The city of Jaen, situated 92km (57 miles) north of Granada, has been inhabited since 600,000 BC (by the Flintstone-esque “Pebble” Culture!). It boasts a Moorish castle, 11th century Arab baths and a 16th century cathedral and palace amongst its points of interest, and the thriving university adds a youthful element to this historically important area.

The weather, as with the rest of Andalucia, is mild and has contributed to the economic success of Jaen’s major asset - olives. Jaen is the world’s leading producer of olives and olive oil, producing about 10% of the world’s olive oil. The crop occupies 77% of the land and the oil is manufactured by around 55 oil mills. The region also boasts numerous national parks and nature reserves, including the Sierras de Cazorla nature park, arguably one of the most beautiful nature parks in Andalucia.

Since the beginning of 2006 Jaen has found itself in demand from property purchasers seeking a slice of “real Spain” and even featured on the popular TV programme, A Place in the Sun in May. The town of Alcala la Real, just 25 minutes drive from Granada, is the province’s main property hotspot. With a population of just over 21,000, there are plenty of amenities, such as schools, restaurants, bars, doctors and swimming pools as well as striking scenery and a friendly local community. Some properties in the region have experienced price appreciation of up to 60 per cent in recent months and demand has recently intensified.

The region of Andalucia itself attracts Spain’s largest number of tourists, receiving 14 per cent of the country’s 50 million foreign visitors every year. The rural tourism market is up and coming and Jaen accounts for 7 per cent of Andalucia’s tourists, with 490,000 visitors every year. This has led to an increasing demand for rental accommodation not only from foreign holiday makers but also Spanish nationals, especially from Madrid, seeking a rural holiday.

So what’s wrong with the place that makes it so inexpensive to buy? Well because it’s inland, there are no beaches. Swimming pools - yes, sand and wet wavy stuff - no. It also doesn’t have an international airport. However, Granada is only 90 minutes drive away from the city of Jaen and both Ryan Air and Iberia fly from the UK to Granada from about £70 return. And don’t forget for all ski lovers, that the Sierra Nevada mountain range is just outside Granada, so within day trip reach.

Michael Cashman, the Labour MEP who has been defending the fundamental rights of victims of land abuses in several regions of Spain attacked the “underhanded party politics” of the Spanish Partido Popular prior to a vote in the European Parliament today.

Carlos Iturgaiz MEP and member of the EPP group (European People’s Party - group in which the Spanish Partido Popular sit in the European Parliament) attempted yet again to block the adoption of a resolution by the European Parliament condemning the behaviour of several Spanish regional governments, including the PP controlled regional government of Valencia. Thousands of EU citizens, mainly form the Valencian region, have petitioned the Parliament over the past few years decrying that their fundamental rights have been breached by abusive interpretations of EU law in the field of public procurement.

Speaking following the adoption of a tough resolution in defence of citizens affected which he authored - and which was adopted by a majority of MEPs in Strasbourg today - Michael said:

“I’m pleased that once again the EP has stood up in defence of individual and collective fundamental rights of EU citizens. The abusive interpretation of EU law by the Spanish regions is blatant and unwarranted.”

Speaking in an earlier debate on the subject this week which discussed a Petitions committee report adopted following a 3rd fact finding mission to Spain, Michael said:

“Citizens are having their legally acquired lands taken by local authorities without due process, which I am convinced is in breach of EU law. Moreover, they are being forced to pay large sums of money – tens of thousands of euros – to pay for new infrastructure and new developments that they do not want and which are on their land. This issue will be resolved in the Court of Justice or before the European Court of Human Rights in Strasbourg, and it will be to the shame of the Partido Popular in Spain.”

Speaking of the PP’s tactics Michael added:

“The last mission came under shameful attacks from the Partido Popular, which were attacks upon the integrity of this House. Today they try, once again to hide the embarrassing facts of their failures by voting against this resolution - but their attempted cover-up has failed.”

Following the adoption of the resolution Michael concluded:

“I’m delighted this important resolution has been adopted - with the support of MEPs from all major political parties including the EPP. Justice will in the end prevail. Socialists in the European Parliament will continue to fight until the issue is resolved - through the courts if necessary. It saddens me that we have to take it that far and that the Spanish regional authorities seem unwilling to stop the abuses sooner. The EP has given the Spanish regions, especially Valencia, ample opportunity to amend their law. It appears clear that the PP would rather cosy up to the business and construction industry than defend fundamental rights.”

The purchase of a second or primary home abroad carries implications - many of them connected with tax situations. It is necessary for anyone purchasing a property abroad to do their homework and consider all of the implications arising.

Let’s assume Mr and Mrs Jones purchase a second home in Spain. They intend to use it for their own enjoyment and for family and friends. The purchase price is 250,000 euros and hopefully, the property will be an investment and increase in value. Mr and Mrs Jones each has a divided share of € 125,000 in the property.

Although there are inheritance tax relief provisions in Spain on a first death, there are conditions attached to these provisions. Consequently, the chances are that if Mr Jones dies first, there will be inheritance tax to pay on his share of the property in Spain and the share also has to be declared in the UK probate forms as it forms part of his estate in the UK.

Fortunately in the UK there is no inheritance tax on the first death, but it does mean that if Mr Jones made a will leaving everything to his wife, not only is there IHT to pay in Spain on his death, but her estate has been increased in value by the inheritance left to her by her husband. Thus, on her death, there will be IHT payable in Spain but this time on a value of at least 250,000 euros and also IHT payable in the UK on the value of the Spanish asset.

If Mr and Mrs Jones had sold up in the UK and moved to Spain and had no links with the UK, then there is the possibility that as far as the UK is concerned, then there will be no IHT payable but this is dependent on proper tax planning and a proper consideration of all the circumstances to do with their assets and indeed their intentions.

The problems do not stop there: bad advice is freely available in Spain and is dispensed in bars, restaurants and anywhere else where people are prepared to stop and listen. Appearances mean little or nothing. In recent times we have experienced estate agents who prepare ‘standard wills’ for their clients who purchase through them! Making a will is an in-depth matter where many questions should be raised with clients as to their present and future intentions, their current wealth, their expected wealth and a whole host of other matters.

From these in-depth questions a profile of the clients can be made and with this profile the clients can be properly advised as to what sort of inheritance tax savings provisions can be made and there is rarely a ‘standard form will’ to suit the purpose. Clients should, on property purchase, revise their UK wills and make new or revised Spanish wills. Sometimes they can take other actions such as making gifts and utilising tax saving devices. Many clients should seriously consider the method of purchase: would they be better with an on shore Spanish resident company owning the property, for example? Or should it be in the wife’s name and not the husband’s?

Visit spanishwills.co.uk and calculate your potential Inheritance Tax savings online.

Hugging the northern coastline from west to east, much of the Celtic-influenced Green Spain has a wet climate familiar to northern Europeans. But a diverse collection of provinces, including resurgent arts centre Bilbao, plus Rioja country give it a special appeal. If ever a building reinvented a city then the Museo Guggenheim is it. A northern industrial town of little note, Bilbao has become a major tourist attraction simply for its architecturally stunning arts museum, making it a hot city break destination.

The capital of the separatist Basque Country, Bilbao is however far from the only highlight of a small but fascinating area of Spain which manages to conjure up one of Europe’s great wine regions in La Rioja (a wine that dominates the shelves of Spain), a beautiful coastline, a green interior and a corner of the Pyrenees.

The region is also known for the crazy annual bull run festival in Pamplona while for those with a taste for the finer things in life, seaside town San Sebastián serves up the best regarded bar snack tapas in Spain and the much-lauded Basque nouvelle cuisine.

Indeed San Sebastián boasts not only a stunning setting around a half-moon cove, with green hills as a backdrop, but also an old town teeming with bars and restaurants offering a vibrant nightlife.

Bilbao to its west has also rediscovered how to party after two decades decaying as an industrial relic. With the Guggenheim has come a new and dynamic attitude which makes this city one of Spain’s hippest places to visit or simply hang out.

Further west is Cantabria, one of Spain’s smallest provinces and a continuation of the verdant Basque scenery, with beautiful coves, green rolling hills and tiny fishing villages. Indeed both landscape and climate are reminiscent of parts of the UK.

Port town Santander may not be a highlight of the region but is a setting down point for ferry routes from Plymouth, Poole and Portsmouth, which put it within 24 hours reach of England without the need to jump on a plane.

Neighbouring Asturias is a similar and small region, notable for the elegant city of Oviedo and the internationally renowned jagged fissures of the Picos de Europa mountain range, just 15km in from the coast. Small but perfectly formed, they offer great outdoor pursuits.

Galicia, the most north westerly area of Spain, meets the Atlantic with force and the ocean brings with it rain at any time of year. The Celtic history remains evident and Galicians have revived their language in recent years, with many street signs given in both Galician and Castilian.

Although much of the interior has been affected by deforestation, the region still contains the religious and architectural landmark Santiago de Compostela. The cathedral is the town’s main attraction but its surrounding squares and plethora of monuments make this a must-visit destination.

La Coruña to the north is Galicia’s busiest business centre and is an attractive if unspectacular port town with some nice beaches. It is home and headquarters to one of Spain’s most successful exports, fashion store group Zara.

The most easterly of Spain’s green belt provinces is Aragón, a region with borders to France, the Basque Country, Catalonia, the Castilian heartlands and the Mediterranean Valencia province.

What Aragón serves up is a rich tapestry of castles, mountains and stone villages and the province is home to some of the best of the Pyrenees, with walking and skiing in abundance.

Further south and the central plains give way to sparsely populated countryside punctuated by fascinating villages and striking monasteries and castles. The major town of the area is Zaragoza, a likeable if unspectacular city whose population has been boosted by a gradual country to city drift. Improved rail links promise to boost the city’s economy.

Heading towards Valencia and Teruel is the south’s most striking stop off, a hilltop town full of some of Spain’s most ornate Mudéjar monuments. Property-wise the Costa Verde is easily the best value of the Spanish Costas although it comes without the guaranteed sunshine of the others. However, price rises are outstripping the rest of Spain, albeit from a lower base, and homes in Roman town Lugo in Galicia jumped an amazing 37.6% last year and was Spain’s top performer.

Full Story from travel.timesonline.co.uk

Before buying any new apartment or town house being built in the Manilva, Cost Del Sol Los Hidalgos development, “please be aware that you could be adversely affected if the courts find in favour of this community’s legal actions”.

This is the warning posted on a new website set up by the Hidalgos owners association, the Los Hidalgos Community of Owners.

Los Hidalgos is a fast growing, mixed development of villas, town houses and apartments, with a commercial centre nearing completion. The community wants the building licences revoked, and the ultimate sanction could be an order for demolition of properties, it warns. “Purchasers may not be able to reclaim their money”.

According to Spain’s chief prosecutor, people who buy in the knowledge or strong suspicion that a property is illegally built will not be entitled to compensation.

And last July a count accepted 146 apartments had been built in “Las Bouganvillas”, where only 22 villas had been given outline permission. The court gave Manilva Council six days to explain why this charge should not go to trial.

“Delays caused by a severe workload backlog at the Courts means that no further information is yet available”, said the website.

The three existing Pueblos and individual villas at Los Hidalgos are not affected by the court actions. The projects being challenged by The Community of Owners are El Diamonte, consisting of 16 town houses, Los Bouganvillas, and Jardines de la Duquesa, comprising 166 apartments. Further action is to start soon against Royal Vinedos del Mar, a development of 200 apartments by Royal Marbella Estates.

The direct action is being taken by the community following a catalogue of unresolved complaints against the builders including sewage ending up on the beach, cut off street lights, damage to roads and faulty water connections.

It says that over the last four years it has had to put up with building works on construction of “a great many apartments and some town houses” being built on land designated for villas.

A delegation of EU Members of the European Parliament continued their investigation in the Valencia ‘land grab’ laws by visiting 16 Spanish towns this week, including nine in Alicante province.

The Alicante association, Veïns de Parcent, said the visit is the third fact finding mission dealing with Spanish land law and urban development projects conducted by the Petitions Committee. It was finally authorised by the Bureau of the European Parliament in mid February.

To emphasise the importance of the visit the two most senior members of the Committee are participating in it. Based on the large and growing number of petitions that the Committee on Petitions receives from Spain, members will be meeting with national, regional and local authorities which, each, have a responsibility for the problems faced by petitioners as well as for the solutions which must be found. Failure to find solutions cannot fail to have a negative impact on public confidence in the building of large “urban” infrastructure projects which, in many cases, undermine the rights of European citizens - including of course Spanish citizens, to their legitimately acquired private property.

The visits included a trip to Albox, in Almeria where an estimated 6,000 property owners - many British - could lose their properties. They say they were not told that their properties were build on land classified as rural.

Story from fly-2let.co.uk

The British love affair with sun, sea and Sangria may not be over yet according to Spanish estate agent, Home Espana.

In a recent opinion poll survey carried out by Home Espana, over 50% of people enquiring about Spanish property were planning on relocating, while a further 8% planned to live in Spain for a few years, before deciding what they wanted to do.

People are watching the Spanish property market with great interest and despite media reports, are still keen to purchase a property in the sun. Those looking to relocate have become disillusioned with the cost of living and property prices at home, and see moving to Spain as a better way of life.

Despite mixed media reports, there is still a strong resale market on the Costa Blanca and Costa Calida. Prices are more reasonable now, as Home Espana’s Managing Director, Kieran Byrne explains:

“We operate in the same way as a UK or Irish based estate agent. When people ask us to list their properties, we will carry out a valuation. If the property does not meet our criteria, we will decline it. This provides a sense of realism into the market, where as previously people were valuing their own properties based on what their neighbors were selling for.”

People are doing their homework before buying. They are researching the market, rather than rushing into the idea and using reputable estate agencies and solicitors.

Kieran agrees: “Now, more and more people are making their own way over to Spain through the internet, looking for competitive prices. We only offer our clients good value for money and they know they can trust us. In fact most of our business is done through referrals and our reputation alone.”

The remaining 19% of those surveyed wanted to use their Spanish property for rental income and 20% intended on retaining their home for personal holidays. Unlike some of the fashionable countries like Bulgaria, there is an active rental market in Spain, for those looking for a return on their property. With flights from the UK and Ireland remaining cheap, and destinations taking under 2 hours, Spain remains a favorite for holidays and emigration.

¡Viva España!

The government is considering introducing congestion charges for cars circulating in Spanish cities. The idea will be debated in the PSOE’s annual political conference due to take place between 15th - 17th September. The congestion charges would work in a similar way to those already in place in other European cities like London and Rome. In large German cities like Frankfurt and Cologne motorists will be charged as from 1st January 2007.

Although the PSOE admit that introducing charges is a controversial proposal it would only be under certain conditions. Each city would have the right to decide whether to introduce the charge and be able to adapt it accordingly to suit their interests.

However, it is unlikley that the idea will be approved at the conference given that the PSOE has worked towards reducing car tolls on motorways for example in Galicia and Andalucía due to their unpopularity.

Some of the reasons behind the idea of introducing congestion charges are protecting historic buildings, improving public transport and improving the environment in city centres for its inhabitants. A similar idea was put forward by the Ministry for the Environment in 2004.

Other ways of improving the city centre and reducing traffic would be to introduce more bus lanes, introduce lanes for cars carrying more than one passenger, prohibit loading and unloading during the rush hour, create more cycle lanes and pedestrianised streets and introduce more environmentally friendly public transport.

Story from Euroresidentes.com

Spain and France are still the top two for Brits buying abroad despite the rise of new markets, reports the industry body AIPP.

In its first annual report on the international property market, the Association of International Property Professionals (AIPP) estimates that nearly 20 billion pounds (GBP) will be spent in this market by UK buyers by the end of 2006: that’s in just one year.

The figures show that Spain is still comfortably the number 1 destination for British people buying property abroad.

Nearly one-third (31.6%) of overseas properties bought by British buyers are in Spain. In second place is the other perennial favourite, France, with a little under one-fifth (18.9%) buying just across the Channel.

“This report confirms that, despite the massive increase in emerging markets, nearly half of overseas property purchases by UK buyers are in a country they know, one in which they’ve spent many holidays, and possibly learnt the language a little at school”, said AIPPs Chief Executive, Paul Owen. “This will surprise many people, including some in the industry. The story of this year’s market is not just the old favourites though.”

Bulgaria is well-established in the market now and barely merits a mention in the ‘up and coming’ category any more. This report shows that it is now the third most popular country for UK property buyers, with 7.7% of the market, just edging the US into fourth place on 7.5%. This is a phenomenal position for such a new market. Bulgaria is still one of the fastest growing markets, according to the report, but it’s an established destination now for the UK buyer and its imminent ascension into EU membership will perhaps help it further.

Seeing it sandwiched with Spain and France above and the US below highlights the level the Bulgarian market has reached. No market has grown to such prominence so quickly.

Italy sits just above a range of other destinations with 2.8% of the market. Another long-established market and familiar country shows that the UK buyer has not yet fully embraced the emerging markets, preferring to buy where they know.

Story from aipp.org.uk

If you are non-resident in Spain, my advice for you is to have a Last Will & Testament made to distribute your Spanish assets in the event of your death. The Spanish Laws on Inheritance state that, on your death, your estate will be shared amongst the heirs according to the rules of the country of origin from which you originate.

Most European nationalities (heirs of the Napoleonic Civil Code), with the exception of the British (Common Law System-Anglo-Saxon), that, as per their country’s Laws of Inheritance, the children have an automatic right to a part of the Estate on your death, even if they are not expressly mentioned in your Last Will and Testament.

Your children will have a share on your Spanish properties by virtue of the probate of your foreign will in Spain. Of course, if they do not wish to claim their Spanish legal share of the Inheritance, they can, “renounce” their right in front of a Spanish Notary, and the estate will then be shared amongst whomever you may have designated in your Last Will. (This institution is known in Spain as the Legitime: portion of inheritance reserved by Law (especially Napoleonic Law) for spouse and children or, failing these, to descendant and ascendant relations.)

British owners (country with a different Law System: Common Law) should also note that, although Spanish Law states that British Law applies in the event of your death, British Law states that it is the Law in the country where the asset is situated, i.e. Spain, which determines the legal heirs.

To hasten the international private law procedure and bureaucracy after death, it is therefore advisable to prepare a Spanish Will relating to their properties in Spain. This can easily be prepared for you by your lawyer. Once your decision has legal form, you will have to testate before the Notary (who gives faith of your identity, the authenticity of your will, your capacity to testate). The approximate costs of this legal document are 60 to 80 euros for a simple one.

If you have properties in more than one country, is advisable to have wills in each country in order to avoid complicated translations, certifications and procedures for your family after your death. Obviously, it is much simpler to keep the Spanish estate separate from any other assets and to rely on a local professional to handle the formalities.

You can also make a secret will and have its envelope sealed and notarised. These also can be registered in Madrid.

Should someone in your family die without, to your knowledge, leaving a will, you can check with the “Registro Central de Actos de Última Voluntad” - where you can find out if there is a will, if more than one, and which was the last (valid) one and the name of the Notary and Notary Office in Spain where it is.

Handwritten wills are not advisable as they must be certified as authentic before they can be executed. Spanish inheritance tax accrues six months after death. After this date penalties are incurred.

Unlike in Britain, there is no exemption from inheritance tax between husband and wife. A tax form must be completed and the taxes paid. In Spain it is the heir who is taxed and not the estate. Tax will be calculated on the relationship of the heir to the deceased, the amount of the inheritance he/she receives and existing wealth.

All assets will be taxed - bank accounts, property, cars, golf shares etc. Property will usually be valued at the “valor catastral” - the value as calculated by the Town Hall, or rateable value.

A joint bank account will normally be frozen on the death of one of the account holders, although the bank will usually allow the direct debits for services to continue to be paid out of the account. For a car to be sold following the death of the owner it is necessary for it to be detailed in the inheritance declaration and tax to be paid.

Whilst, as mentioned, Spain and many other countries apply the system of “forced heirship”, British nationals are exempt from this requirement when testating in Spain (they are submitted to their personal Law under provision 9 of the Civil Code). If you make a Spanish will which conflicts with your national inheritance laws it will be null and void.

It is important to ensure the Spanish will does not conflict with any other will that has been drawn up in another country.

If you are a legal heir, there are certain steps to follow if you wish to transfer the assets you have inherited in Spain so they are in your name:

- If the deceased has left a Will in Spain, you will only have to finalise the estate probate before a Spanish Notary. This should be a quick process, unless there is a disagreement between the heirs. Then you can use the Inheritance Deeds registered in the land Registry as a title for property transmission.

- If the deceased has left a Will in his/her country of origin but not in Spain, this Will must be validated in Spain. In order to do that, the Notary Public who is to sign the Inheritance Deeds will require you to present some very specific paperwork.

- If the person dies ab-intestato, that is, he/she has left no Will in his/her country nor in Spain, the estate can be dealt with in Spain before a Notary Public and, again, some very specific paperwork will need to be obtained (Declaration of Heirs).

Please note that the above shall apply should there be no disagreement between the heirs (if there is more than one heir). If the different heirs have not reached an agreement with regard to the estate and the inheritance, the case will need to be heard by a Spanish Judge who will decide what is applicable following the deceased’s Will and according to Spanish Estate Law.

Story from eyeonspain.com

It’s barely 700 square kilometres contain incredible contrasts within an environment ideal for relaxation. Menorca, the small one, as the Romans called it, has been since prehistoric times a stepping stone for various cultures due to its strategic location in the western Mediterranean. As a result, several civilisations have left their influence there due to the island’s value as a port of call and refuge. Their legacy has made Menorca’s heritage one of the richest in the region. So much so, that historians and archaeologists have come to regard it as an authentic open-air museum.

One example of this is the Citadel, the ancient capital of the island. The aristocratic nature of the area can be seen through the large number of palaces there and the city has been declared a National Historic Artistic Monument. Its festivals are considered to be events of great cultural importance, particularly that of San Juan. At this time, the Jaleo takes place, an impressive exhibition of horsemanship dating back to the Middle Ages. Among its architectural treasures is de Born Square, where an obelisk stands in memory of the brutal pirate attack which destroyed the city in 1558, and the Cathedral, built in the 14th century on the site of the old mosque. There are also the Seis Voltes, a collection of streets featuring large vaults.

Mahon, with 20,000 inhabitants, is the modern capital. This progressive, bourgeois city combines Mediterranean charm with the vibrancy of a welcoming metropolis. Its monuments bear witness to the former presence of the British, particularly the ruins of the old Royal English Marine Hospital. Other historical remains to be seen in Mahon are its port, where they say Admiral Nelson and Lady Hamilton shared a torrid romance. There is also the Scientific and Literary Ateneo, which hosts an important collection of rifles, maps and ceramics, and the Military Museum, formerly the fortress’ gunpowder store.

Menorcan gastronomy, on the other hand, includes the heritage of successive reigns and the customs of farmers and fishermen. Fresh shellfish, particularly lobster, features on the menu of the island’s best restaurants, while caldera, a thick soup made from the same crustacean, is a dish of international fame. Then there is mayonnaise, which some say takes its name from the island’s capital. A variation on this well-known sauce is ali-oli,to which cloves of garlic are added.

Menorca offers unbeatable opportunities to mix sport and nature. Lovers of the sea will find endless possibilities, from a swim in an isolated cove to activities such as windsurfing, sailing and water-skiing. Horse-riding can also be practised in the island’s numerous riding clubs, offering the widest range of hobbies all within arm’s reach.

Story from spanishpromotions.com

I was interviewed recently by Adam Samuel of Nubricks - an Off Plan Property Blog.

I told Adam about the origins of Kyero.com, my personal experiences of buying property in Spain and my opinions about the Spanish property market in general.

Adam recorded the interview and you can listen to it as a podcast (a sound file that you download and listen to on your MP3 player or computer).

If you have a spare half-hour, visit Nubricks and hear Adam and me chatting.

Martin Dell, Kyero.com

With some television programmes tending to an over-glamourised view of life for Britons moving to the Mediterranean, a recent documentary highlighted a serious potential pitfall.

ITV’s Sick in the Sun focused on the dilemma faced by expatriates in Spain who play by the book. These individuals take early retirement, register with the authorities and get their residencia cards. This entitles them to access to the Spanish medical system, but not in quite the same way as enjoyed by a Spanish citizen, an employed expatriate or an expatriate of retirement age.

Early-retirement expats - men under 65 and women under 60 - are entitled to acute care but access to after-care services is more tightly controlled.

Television viewers witnessed how these restraints affected a stroke and cancer victim in this situation. The uninsured stroke patient and his wife had little option but to abandon their retirement plans and return to the UK. In the other case, the patient was faced with large bills for regular checks and medication for prostate cancer. Without insurance cover, but with some savings, the patient took the decision to meet the cost and remain in Spain.

Susan Colley, an insurance adviser specialising in Iberia, said: “Unfortunately many people who go out do not understand how the Spanish medical system works - if you are acutely ill you are nursed, but once you are on the wards your family is expected to help with the nursing care under the auspices of the nurses. You are expected to be fed - in other words your food is brought in. When people are discharged, having had a stroke, say, there is no domiciliary help.”

She said patchy improvements were taking place but usually patients had to rely on agencies and pay accordingly. Although insurance brokers trumpet the virtues of medical cover, standard plans might not have been of great help in the two cases highlighted as they cover acute, but not chronic, disease.

Mrs Colley said the stroke patient would have required a chronic disease plan such as the top-range Goodhealth scheme. Alternatively, critical illness cover would provide. “But that should have been planned back in England because it is difficult to get it once you are abroad - and critical illness cover does not include all chronic disease.”

She added that wide disparities existed between Spanish regions in attitudes to what constituted acute care and the stage at which a condition became chronic. This is normally the point at which doctors say further improvement is unlikely.

She said that Murcia, the region featured in the television programme, appeared to be moving to an expansion of services for expats, judging by remarks made on air by the regional health minister. On the other hand, the Valencia region was moving the other way. She said the question of precisely when provision of care could be relied on was “confused and leading to misunderstanding”.

Story from telegraph.co.uk

Given that the average property price in Spain is now €240,000 and increasing at approximately 11% per annum, it is no surprise that more and more people are considering the lower cost option of buying a plot of land (parcela) and building their own dream property, or having it built, instead of purchasing an existing finca or buying a newly built villa in Spain.

To keep up with this demand, property agents such as 1 Casa, are offering a wide selection of plots, some with planning permissions and building permits included, for sale. Cristina Sanchez of 1 Casa, comments, “We have seen a significant rise in interest from buyers of land only. People are still keen to find their very own piece of Spain but not everyone can afford the increasing property prices - buying a plot of land with a view to building your own property in the future is a cost effective option for many. You also get what you want as you want it.”

The cost of land varies considerably in Spain depending on the province, from 40 to 120 euros per square metre, and building costs range from around 300 to 700 euros per square metre depending on the quality and location. Although building your own home is not always hassle-free there are advantages as individuals can choose their perfect location, the design and finish of their home, and be assured of the quality of the materials and workmanship.

As with any property purchase abroad there are certain things to consider. Cristina offers some top tips on buying land for development:

When starting your search think carefully about location. Which province do you wish to live in, do you want to be near to a village, town, the beach or the mountains? What is the access like, are there good roads, how far is it from the airport? Is there any public transport? Don’t just get swayed by an amazing setting, think of the practicalities.

Do your research - having a good knowledge of your local market is essential so that you pay the right amount for your land. Talk to local residents, officials and agents for advice.

As with any property purchase, appoint a good Spanish lawyer. They will be able to help you check the land use status, sort out taxes, get a building permit and arrange a build contract.

Choose the right plot. Spanish property law contains some differences depending on province; in Valencia for example the effects of the LRAU have caused some residents serious problems. Andalucia does not suffer the same fate but avoid this potential problem by finding out whether the plot has got or will be granted planning permission. Approach the urbanismo department of the local town hall with your lawyer and view the Urban Plan. This will tell you if the plot has any building restrictions in place, is in a green zone or has any public access routes. Also remember to check future plans for the area as this may affect your property positively or negatively. Check with agents that they are offering a plot with permission for a house and not just an agricultural building.

Get a survey. This is standard practice in the UK and I would urge any buyer to do the same in Spain. Your land surveyor will measure the exact number of square metres of the plot. Compare this to the land register to ensure that the official measurements and boundaries match up.

Check the owners registry. It is not uncommon in Spain for some plots to be inherited by more than one party. Check to see if the vendor is the only person with the rights to sell.

Budget for additional expenses. Costs such as architects fees (from 6-10% of the build cost),aparejador (project manager who oversees the build) fees (1-2%), building permit (4-5%), the declaration of new building (0.5%), safety study (0.8%), geological report (1% if required) and a first occupation permit (0.5%). Depending on location there may also be the cost of extending utilities such as water, electricity, gas and telephone lines.

1 Casa are currently offering buyers the opportunity to purchase a 168m2 plot in stunning Alora, Malaga with full planning permission and building licences in place for 3 luxury apartments covering 417m2 in total for only £180,200 / €266,300. With projected construction costs of 600 euros per square metre and selling prices in the region of 1900 euros per square meter there is a real opportunity to gain from this investment. Also on offer is an excellent plot of urban land in Benito Suarez, Alora, with full planning permission and building licence in place for 5 apartments and several car parking spaces (there are currently none available in the area). The 207m2 plot, priced at £173,400 / €255,000, has fantastic potential with no other opportunities of a similar nature anywhere nearby.

For more information about purchasing land in Spain with a view to developing it yourself please visit 1casa.com.

Story from www.easier.com

Spain has passed a new land law which will crack down on illegal building scandals which have hit hundreds of British expatriates.

The law will force local councillors to declare any business links and incomes in case they are connected with property developers.

It follows a succession of corruption scandals across the country involving councillors who took backhanders from developers in return for granting illegal building permits.

Last year, hundreds of Britons who bought “dream homes” in Catral, near Alicante, suffered this fate when it was revealed that their villas were illegally built. British expats and other buyers were threatened with having their homes bulldozed.

The Spanish Prime Minister, Jose Luis Rodriguez Zapatero, said: “The new law will fight radically against corruption.”

The law is also intended to curb property speculation, stop the urban sprawl along Spain’s Costas and cut the price of land which has stopped millions of Spaniards buying homes in their own country. Since 1997, the price of land has risen 188 per cent.

The new law means 30 per cent of all areas designated for construction must be dedicated to social housing. It is hoped that this will provide more people with the chance to buy affordable homes.

Story from independent.co.uk

Buy-to-let Britons are learning a painful lesson from their investment in the holiday rentals market, says Hugh Ash.

Already reeling from news that their properties’ values are under threat, British homeowners in Spain are facing a double whammy that could plunge thousands into huge debt.

A fresh crackdown by Spanish tourism and tax authorities over unlicensed apartments and villas that are let to holidaymakers threatens to trap countless Britons, anxious to maximise their investment in homes on the Costas and the Balearic Islands.

The news comes two weeks after shares in major Spanish property companies slumped by up to 22 per cent - due to the oversupply of houses - and soon after the euro interest base rate’s rise to 3.75 per cent, which has added to buyers’ mortgage burden.

Many of the 300,000 British investors in Spain’s overheated property market have already turned to the lucrative holiday rentals sector and many more are considering doing so to ease their mounting financial strain.

But, seduced by the prospect of netting £1,000 a week in high season for a two-bedroom flat with a sea view, few realise that they face swingeing fines of up to £20,000 (€30,000) because they are breaking tourism laws.

The expanding opportunities for buy-to-let investments, which generate income to repay mortgages, have acted as a hefty inducement in luring thousands of British people into snapping up properties in the Spanish sun.

However, the vast majority of flats and villas cannot be offered for holiday rental, because the tourism authorities do not license them. And, even if official permission is sought, it is rarely granted.

“There are strict conditions before properties are approved for rental to holidaymakers,” says a spokesperson for the Spanish Ministry for Tourism. “Nearly all are not licensed, which means letting them to tourists is illegal.”

Property owners also face action from the Spanish and British tax authorities, who have stepped up their scrutiny of holiday rental websites if they fail to declare income from lettings.

Already several British investors in Majorca, the second most popular holiday-home market after the Costa del Sol, have fallen foul of Spanish law.

Londoner Tania Osbourne is appealing against a £20,000 fine for letting out her £200,000, two-bedroom flat on a complex in a popular Majorca resort for holiday rentals, after a Spanish neighbour tipped off the tourism authorities.

Another British owner was recently fined £4,000 and ordered to withdraw his apartment from a holiday rentals website. And five others, who wanted to let their apartments to holidaymakers, have been threatened with legal action by neighbours.

Tania, 63, from St John’s Wood, explains: “I wanted the flat as a buy-to-let investment and the developer’s sales director told me it had excellent holiday rental potential of up to £800 a week in high season. So I bought it with a mortgage from a Spanish bank.

“After I’d completed the purchase early last year, I put the apartment on a holiday rentals website and was overwhelmed with inquiries from the UK. Very quickly it was booked solid for nine months.

“But I was suddenly called to a meeting with the head of the community residents’ association. And he spelt it out in the bluntest terms that the development was unlicensed and we would be reported if we continued to offer our flats as holiday accommodation.

“We had no idea the development had to be authorised for tourism use and we were all relying on the lettings income to pay off our mortgages.

“I immediately pulled the apartment off the website and put it up for sale. But that didn’t stop one vindictive neighbour from informing on me to the authorities. Now I’ve been hit by a £20,000 fine - far more than I ever made from the lettings - but I’m hoping to get it reduced on appeal.”

Lawyer Sebastian Stalter, whose practice in Palma specialises in advising foreign clients about property purchases, warns: “The rules governing holiday rentals are particularly tough in the most popular tourism areas, like Majorca and the Costas.

“So British buyers must be extremely careful if they seek properties for buy-to-let investments, because the experience can be a painful one if they have not checked out the pitfalls in advance.

“Many developers don’t give accurate information about what their properties can be used for and it’s very rare that apartments are licensed for tourism.”

Story from telegraph.co.uk

They run film companies, sail catamarans for corporate clients or earn their livings by pulling pints in bars. They are the Britons who have led the foreign invasion of Spain which has fuelled the country’s extraordinary economic growth during the past decade. A study published recently by Caixa Catalunya, the Spanish savings bank, found that without immigrants, Spain’s economy would not have flourished.

In fact, instead of growing at a yearly rate of 2.6 per cent per capita, it would have declined at an annual rate of 0.6 per cent. Foreigners have proved crucial in boosting domestic demand and raising productivity, the report said.

Against that background, another report has shown Britons and other foreigners have played a dynamic role by starting small-businesses at a faster rate than Spaniards. Whether they are running their own bars on the Costa del Sol, teaching English or earning their living in more unusual ways, Britons have set up more companies than any other nationality.

Latest figures showed in 2005, of all the 1.6 million foreigners in Spain, 140,882 ran their own small businesses. The Spanish Business Institute said there was a 15 per cent rise in the number of foreigners opening businesses, compared with a 3 per cent increase in Spanish-run firms.

More than 21,000 Britons have registered their own small business in Spain, followed by 13,579 Germans, and 13,293 Chinese.

Nic Alderton, 34,who runs his own film company, Simplicity Films, from his home in Catalonia, is typical of the “new breed” of foreigners. He came to Spain from London three years ago to start his company, which shoots advertisements and promotional films. “So far, the business is going well. We had started in Britain but wanted to come out here,” he said.

John Woodward, 50, whose firm Voyages Orsom provides team-building courses on his catamaran from Barcelona, said: “It has got much easier in recent years in Spain. I employ 15 Spaniards and some have worked for me for years. Perhaps they like a different style of management. Instead of having a boss who smokes a cigar and shouts at you all the time, they say we are easier to work with.”

Of a total population of 45 million, immigrants now number nearly two million. The rate of immigration to Spain has been the second highest in Europe, after Italy.

Raquel Vásquez, head of analysis at Caixa Catalunya, said: “Immigrants have a direct influence on the increase in consumer spending and demand for housing, the two factors which have resulted in Spain’s GDP growth.”

Story from new.independent.co.uk

As the number of non-Spanish house-buyers rises in Spain, so does the offer of specialised services offered by Spanish banks competing to convert foreign residents and non-residents into clients.

More and more banks employ people who can speak English, German, French, Dutch etc., especially in the areas most popular among foreign house buyers (Costa Brava, Costa Blanca, La Manga, Costa Cálida, Costa del Sol …). This is particularly important if you are thinking of taking a mortgage out with a Spanish bank.

If you are planning on buying property in Spain and coming over for regular periods, it is advisable to open a bank account with a Spanish bank. It avoids you having to change money every time you come, and means that you can pay community charges, local rates, Spanish yearly property taxes and bills directly from your Spanish bank account which is much cheaper than doing so from your bank in England. If you rent your Spanish property out when you aren’t here, your tenants can pay their rent directly into your Spanish account, which again avoids having to pay commission when changing euros to pounds.

Banks in Spain open from Monday to Friday 8.30 - 14.00 and, in the Winter, on Saturday mornings from 9.00 to 13.00 or Thursday afternoons, from 17.00 to 19.00. The name for a current account in Spanish is cuenta corriente and a savings account is cuenta de ahorro.

Most Spanish banks offer good online banking systems these days, although Bankinter - Spain’s first bank to offer Internet services - is still the best.

If you have a house for sale in Spain, you may need a Spanish bank account to pay in the cash payment which often forms part of a Spanish property sale deal. If you don’t want to return to your home country with a fistful of cash, it can be a good idea to put the money in a Spanish bank account (if you are a non-resident it won’t be taxable) and then transfer it to your bank account at home. Some banks offer you the chance to open an account in sterling which can be useful if the exchange rate is particularly favourable at the time of the sale.

Story from euroresidentes.com

The Lucky Islands, the Elysian Fields, Hesperides Garden and Atlantis were some of the first names bestowed on the Canaries by Greek and Roman scribes. The archipelago is volcanic in origin and was originally inhabited by the guanches, a clear-skinned race which lived on the cliffs, in caves and in small circular houses. In 1496, after a series of battles, they were incorporated into the Kingdom of Castile. Shortly afterwards, Colombus berthed his vessels there before departing for the New World.

The Canaries are comprised of El Hierro, La Palma, La Gomera, Tenerife, Gran Canaria, Fuerteventura and Lanzarote, every isle with its own charm and personality. Thus, contrast can be found in each, from the spectacular geological parks created by successive volcanic eruptions to immense beaches, unique forests and singular flora. There is also a people of mysterious origins, but always welcoming. On Gran Canaria, for example, while the tourists bake on the beaches beneath a winter sun, the peaks of the mountains visible from the shore are completely snow-capped.

Naturally, the climate is one of the main attractions for visitors. The average temperature of 18-24ºC allows bathing all year round. The explanation lies in the islands’ privileged situation, little more than 4º north of the Tropic of Cancer and so close to the African coast and influenced by its winds that its climate is subtropical. At the same time, its high mountains result in fascinating climatic diversity and the so-called Canaries Current maintains the temperature of the surrounding oceans at its corresponding latitude. It’s not surprising then, that many foreigners have made these islands their second home during the winter, especially given the increasing availability of low cost flights.

The Canaries have a wide range of hotels with more than 300,000 places and powerful cultural attractions, such as the Festival of Music held there each year all across the archipelago. Moreover, there are multiple traditions and popular fiestas such as the popular Dance of the Dwarfs in La Palma, the Virgin of the Kings in El Hierro, the rugs of Corpus Christi in La Orotava and the eye-catching carnival which, although celebrated on all the islands, reaches its climax in Santa Cruz de Tenerife and Las Palmas de Gran Canaria.

Full Story from spanishpromotions.com

According to the Office of National Statistics, Spain is still top of the BTL investment charts and has much to offer incoming investors who invest wisely in the right locations. Affordability is the key for many new investors. Interestingly, raw stats (i.e. they have not yet been finalised by the research body) show that the average property price in Spain is some 240,000 euros which is 10 per cent less than the average UK property price. If you are looking for affordability hotspots in Spain, check out Almeria where property prices are more than 20 per cent below the national average (even though tourist numbers are rocketing) and Valencia which is some 10 per cent below the national average (although the 2007 America’s Cup will change all that).

Interesting to note the lead that has been taken by Viva Estates who have cut their resale commission to 2 per cent and also introduced a conveyancing service for vendors at 1 per cent. 10/10! It has been clear for a while now that commission rates needed to be corrected and it is good to see that Viva Estates has taken the lead. It will be interesting to see what the effects of this are.

Watch out for the solar revolution! From October of this year, new building regulations mean that the owners of new buildings have to have solar panels fitted. The regulations apply to new buildings of more than 3,000 square metres but I expect to see these filter down in due course. From where I am sitting, Spain is going to become famous for its solar powers over the next three to five years. Everywhere you look you are going to see black solar panels - shops, hospitals, the lot. I am told that there are going to be five million fitted over the next five years. If you are buying a new home, talk to your developer - a typical 100 square metre home will need two, two square metre panels at a cost of about 2,000 euros. When you come to resell a few years down the line, I think your buyers will expect to see them fitted as standard by then.

Story from Eyeonspain.com

There’s a new ‘big-picture’ price guide available now - just download it from our Price Guide page. It’s a quick overview of which Spanish provinces are above and below the national average - conveniently arranged, side-by-side on a graph.

This new format is really easy to understand and shows up some interesting points. The most expensive place to buy property in Spain? - Barcelona with an average property price of €536,000 - more than double the national average of € 240,000.

The cheapest place to purchase property? - Jaen at €77,000 - just 32% of the national average. Surprise provinces? - Alicante’s Costa Blanca is 10% below the national average compared to Malaga’s Costa del Sol - 26% above it.

Other surprises with this comparison are Sevilla - cosmopolitan and historic Spain at a knock down price of €150,000 - 38% below the national average and Gran Canaria - affordable island living at just €188,000 - 22% below the average.

As always, it’s good to know when price guides such as this are useful and when they’re not. These average prices are calculated on the advertised prices of properties - not actual sales. There will almost certainly be a difference between asking and sales prices although it’s likely to be a similar discrepancy across all provinces. Some provinces only have a few properties advertised in them - that makes the average price less representative than provinces with a large number of properties.

Even with these caveats in mind, there is no other live source of independent and statistically accurate property pricing data available for Spain (unless you find the official Ministry of Housing reports useful). We hope you do find this new report useful though - why not send me an email and let me know?

Martin Dell, Kyero.com

If you move to Spain permanently for six months or more you will almost certainly become tax resident and be obliged to pay income, capital gains, and wealth taxes on your worldwide assets and be subject to Spanish inheritance and gifts tax rules.

You will become tax resident in Spain under Spanish rules if:

1. You spend more than 183 days in the calendar year in Spain. These days do not have to be consecutive, and temporary absences from Spain are ignored unless you can show habitual residence in another country for more than 183 days in the year
2. Your ‘centre of interests’ is in Spain, e.g. the base for your economic or professional activities is in Spain
3. Your spouse is resident in Spain and you are not legally separated, even though you may spend less than 183 days there (unless you can show habitual residence in another country for more than 183 days in the year)

The tax year in Spain ends on 31st December. You are either resident or not resident for the whole tax year (subject to any residence elsewhere under treaty rules).

So, the date from which you become resident will largely depend on the time of year you arrive in Spain.

If you arrive in Spain in the first six months of the year with the intention of staying there indefinitely, you are likely to be regarded as tax resident for the full calendar year. However, if you move directly from the UK, then it is likely that, because of the UK/Spain Tax Treaty, you will be regarded as UK resident up to the date you leave the UK and resident in Spain thereafter.

If you move to Spain in the latter half of the calendar year, then you are likely to find that you are regarded as non-Spanish resident for that year, on the basis you have not spent 183 days there during the year. However, if you have made previous visits to Spain and these have been significant or frequent, the Spanish authorities could deem you to be resident in Spain from an earlier date, and regard any subsequent time spent outside of Spain as a temporary absence (unless you were clearly resident at that time in another ‘tax treaty’ country such as the UK).

The UK/Spain Double Tax Treaty has a tie-breaker clause that comes into operation if you are resident both in the UK under the UK rules and in Spain under the Spanish rules. The purpose is to determine in which country you will ultimately be regarded as tax resident - it cannot be both.

The agreement works as follows:

• If you are dual resident in practice, you are deemed to be tax resident in the country in which you have a permanent home available to you
• If you have a permanent home in both countries (or neither), you are deemed to be resident in the country where your ‘centre of vital interests’ lies. ‘Vital’ means the whole pattern of your life
• If this test is indeterminate, you are deemed to be resident in the country in which you have an habitual abode (a place where you spend most of your time during the tax year), but if this is not clear you are deemed to be resident in the country of which you are a national. UK nationals will at this point be regarded as UK residents.

If you are thinking of making a permanent move to Spain it might be worth giving some careful consideration as to the timing of your move. As the UK tax year runs from 6th April until the following 5th April, you could, for instance, leave the UK near the end of a tax year, move to another country for a few months, or travel, and be in Spain for the latter part of the year for less than 183 days. This way you can avoid becoming Spanish tax resident for that tax year.

It is always best before making the move to Spain to take professional tax advice from a specialist who knows both UK and Spanish tax legislation.

Story by Blevins Franks

If you are considering joining the great stampede overseas and buying property abroad, be warned that it can all be a bit more taxing than it first appears.

With the holiday season under way, many people will be tempted to join the growing numbers of Britons who own foreign property.

But potential buyers are being urged to be fully aware of the different tax regimes abroad before deciding where to buy.

Latest figures show there are 257,000 British households with second homes abroad, with the most popular place for Britons to buy being Spain, ahead of France, Portugal and Italy. The US is also a popular destination, with many also tempted by off-the-beaten-track locations such as Bulgaria.

But, Richard Proctor, tax partner at financial advisers Grant Thornton, said: “While good weather, availability of low-cost flights and the cost of property are the biggest factors when making the choice of where to buy, the local tax implications should also be carefully considered, as these can have a significant impact on the costs associated with the holiday home. If you do buy a property abroad, income received from its rental may give rise to local taxes.

In many countries any gain arising on the sale of the property or merely its ownership can lead to a tax liability. Furthermore, if the owner is a UK tax resident, rental income or gain on the sale of the property may also result in a UK tax liability, with the individual having to obtain relief under the complex ‘double tax relief’ provisions. This is on top of all the property taxes associated with purchasing property.”

Among the things to consider are tax on rental income, wealth tax, capital gains tax, inheritance tax, and the interaction with UK taxes.

Mr Proctor said: “People who are considering taking the plunge should seek specialist tax advice both in the country in which they intend to buy and in the UK - otherwise it could end up costing them much more than they bargained for. Once a property has been purchased, they should make sure their will is updated, and in certain circumstances, it would be wise to have a will in the country where the property is located.”

Story from BIZOnline

Fears of a Spanish property crash have increased, prompting a sell-off in real estate shares and fanning concerns that thousands of Britons will lose money. The sell-off was triggered by worries of rising bad debts and speculation that one large company had been buying its own properties to keep prices high.

Spain is one of the main destinations for Britons looking to move abroad or buy a holiday home as an investment.

Analysts warned that a crash could spread to the wider Spanish economy.

Spain’s economy has been growing strongly in recent years - the government recently raised its forecast for this year to 3.5% - driven mainly by expansion in the construction industry.

Coupled to this has been strong demand for housing helped by the low interest rates that have also underpinned consumer spending and allowed households to take on increasingly large amounts of debt.

However, in recent months cracks have started to appear and mortgage demand has slowed as homeownership levels topped 85%.

On top of that, households now have some of the highest debt levels in the eurozone, much of which is based on variable lending rates leaving consumers open to sudden increases in borrowing costs.

The worry is that should the suspected property bubble burst, and some analysts estimate that house prices are overvalued by 30%, then many other industries such as banking and retail would also suffer.

Spain’s government and construction industry figures tried to calm fears on Wednesday, stating that the fundamentals of the property market remained solid.

Economy Minister Pedro Solbes said that the country was not in a “worrying situation”.

He argued that the outlook for household earnings, and as a result their debt repayments, was steady because there “are good prospects for employment”.

The chairman of Astroc, the Spanish property firm at the heart of the recent market wobbles, has also said that the fears are unfounded.

There had been reports that Enrique Banuelos, the chairman and majority shareholder of Astroc, had bought properties from the company and rumours that a large shareholder had sold out.

However, Mr Banuelos said that there was no “determining reason” for the sell off that has wiped more than 60% off the value of the company in the past six days.

Analysts warned that while the current fears of a crash may be over amplified, the Spanish property boom that had provided strong returns for the past eight years was probably over.

“The country is over-housed, households are over-indebted and the construction industry continues to churn out houses,” said Lombard Street analysts in a note to clients.

According to Lombard Street, the biggest problem facing the market was over-supply of housing. Industry estimates show that more than 800,000 new homes were built in Spain last year, four times the number in the UK.

“That is not good news for UK investors in Spain,” said Diana Choyleva of Lombard Street.

“We have had over-investment on a gigantic scale and it has already started a slowdown in house price growth,” she explained.

“We will definitely see house price growth stop and falls in nominal prices are likely in Spain over the next 12 to 18 months.”

Story from bbc.co.uk

Is any property below €50,000 a cheap Spanish property? Are cheap Spanish properties only to be found at auction or as bank repossessions? How much below market value does a Spanish property need to be to be considered cheap?

Continue reading: What IS cheap Spanish property?