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The Association of International Property Professionals (AIPP) has expelled overseas property specialist Bulgarian Dreams due to a “breach of the voluntary professional code”. Although the AIPP has previously expelled members over unpaid membership fees, it said this is the first time the trade body has expelled a company for breaking its code of conduct.

In a statement, the AIPP explained that: “Member companies against whom complaints have been upheld will not be published, providing the company has followed the Disciplinary Procedure and accepted any sanction imposed by the Association”. It added that “in cases where the sanction imposed is expulsion from membership, the AIPP reserves the right to publish the details of the company and the complaint(s).”

A spokesperson for the AIPP said it reached the decision after its board meeting in late January. A statement from that meeting read:

“The Tribunal finds the essence of membership of AIPP is that members must agree to abide by the Code of Conduct of the organisation and by its constitution. The essence of the Code of Conduct is that they should behave professionally in their relationships with their potential buyers.

“The Tribunal finds that the conduct of Bulgarian Dreams in this regard fell way short of the ambits that should be expected. The Tribunal was also very concerned that Bulgarian Dreams had failed completely to respond to the orders of the Tribunal – not the requests – that it supplied further information to allow it to establish the truth or otherwise of the client’s remaining allegations.

“In these circumstances the Tribunal considers that it is inappropriate for Bulgarian Dreams to continue as a member of the organisation and recommends the Board to expel.”

Bulgarian Dreams had seven days to appeal the decision, which has since lapsed according to the Association, and added that it now has a maximum of 28 days to remove all mention of the AIPP from its marketing materials.

The AIPP also revealed that it has received a total of 79 formal complaints about its members since its inception. Of those, 12 cases were mediated between the complainant and the member company (without payment) and 12 cases were mediated with a financial settlement paid by the member to the complainant. This brings the total monies paid out in financially mediated settlements by AIPP members to £76,000. A further eight complaints have been taken before the AIPP’s disciplinary panel, resulting in five fines awarded to complainants totalling £25,500. Only one member, Bulgarian Dreams, has been expelled from the AIPP.

Story from The Overseas Property Professional (subscription required)

If you think Majorca is all about noisy beach resorts and flash yachts filled with celebrities – well, you’re not entirely wrong, but you’d be doing the “other half” of the island a great disservice. It’s true to say that this Spanish island does have its fair share of wealthy residents (Michael Douglas, Boris Becker, Claudia Schiffer and so on), and that their presence has created high demand and higher prices, but that isn’t the whole story.

Large swathes of Majorca are still characterised by quiet coves and pretty countryside. Most of the cash-flashing goes on in the south-west resorts of Puerto Andratx and Santa Ponsa. In these wealthy enclaves, yachts jostle for space in the turquoise waters, and a one-bedroom apartment will set you back at least £200,000, with standard villas costing nearer to £500,000.

Development in the south-west has been so rife that there is now an investigation into whether corruption concerning building licences, previously seen on the Spanish mainland, has also been happening here. Despite this, most beach resorts are still seeing increasing levels of demand for new builds. So where can you get more space and character, not to mention peace of mind, for your money?

Anyone wanting to escape the bucket-and-spade set should head for the hills – specifically, the Tramuntana Mountains and pretty Soller Valley. Here, you can find quiet wooded hillsides, olive and citrus groves and historic towns, without the overcrowding found elsewhere on the island. “The north-west is surrounded by mountains, so building is restricted,” says Thomas Crawford of the local agency Immobilaria Mas. “Plus, there are laws against building in certain areas, such as olive groves, and this has prevented a lot of development.”

The lack of supply in certain places means the Soller Valley does have its hot spots. The pretty village of Deia, for example, has attracted a luxury hotel as well as a raft of wealthy expats prepared to pay prices starting from £450,000 for a small stone house. Similar properties 20 minutes away, however, can cost around half that. “Deia is fashionable,” explains Crawford, “and people will pay just for the kudos of owning there.”

In contrast, Crawford has country villas starting at around £200,000, historic townhouses in attractive Soller town from around £300,000, and small, rural casitas (small stone houses) with several acres of land for under £150,000.

Casitas or olivars (as they are known when in olive groves), are worth checking out for those who just want a place to get away to. These tiny one- or two-room properties used to be a base for farmers to stay while harvesting their crops.

Crawford says prices are often low because these buildings don’t have road access and can’t be externally enlarged or altered in any way, though the interiors can be updated, and utilities such as water, septic tanks and solar panels can be installed.

“Some agents tell buyers that you can extend the casitas, but it’s not true,” says Crawford. “The local authority will send people out in helicopters looking for anyone breaking the rules and force them to demolish anything illegal.”

He says that most olivar buyers like being tucked away on their own land and use them throughout the summer. “The owners often live in cities and want to be isolated when they’re here, and artists also buy them as somewhere to escape and work. People think having so much land is hard to manage, but because the climate is so dry, the landscape is pretty low-maintenance.”

Rural villas with more facilities and easier access can also be found in the surrounding valleys. For around £350,000 to £500,000 you can get pretty three- or four-bedroom properties with a garden, pool and mountain or distant sea views – or you can get something large in need of restoration.

If you want a little more excitement, try Soller town. Just 10 minutes from the coast, there are direct trains to Palma and a local population that keeps the place lively and distinctly Majorcan.

The town offers a mix of character properties and newer apartments. Prices range from £200,000 for two bedrooms to around £400,000 for something pretty with four or more bedrooms in good condition, and from £110,000 for new one-bedroom properties. However, the town won’t get overcrowded, because the local authority has imposed a ban on planning permission for at least the next few years.

The news has already made buyers move more swiftly. Crawford has seen prospective purchasers lose a property during the time it took them to buy a cup of coffee, but thinks it’s good to protect the local area and its character. “People buying here want to be near the coast but also integrate with the locals and enjoy a slower, more peaceful way of life.”

For rural properties, such as olivars, the Spanish government will contribute up to 50 per cent of the cost of upgrading facilities and adding solar panels and septic tanks.

In coastal areas where development has been rampant, including trendy Puerto Andratx and Calvia, the local authorities are under investigation for allegedly granting illegal building licences.

Property in Majorca is probably legal if it was built more than seven years ago. If it is younger than that, check the deeds thoroughly and make sure the planning permissions are all complete and legal before purchasing.

A raft of proposals for golf courses, roads and urbanisations caused anti-development demonstrations on Majorca last spring. Plans are now being reviewed, but check that the site of your new home isn’t scheduled for future development.

Full story from The Independent

Most people associate Spain as a destination for beaches and sunbathing, and until a few years ago Spain's ski resorts were often ignored by anyone outside the country. However, Spanish ski resorts are now gaining in popularity, and chalets are very reasonably priced, compared to many other European countries, so if you are thinking of investing in a Spanish property perhaps its time to consider the slopes as well as the costas.

One of the largest and well-known ski resorts in Spain is Baqueira-Beret in the Val d'Aran. The resort has probably grown in popularity with the British after Victoria Beckham was pictured there in the tabloid press in 2006. They reported how she went equipped with Chanel skis and Dolce & Gabbana boots, and even her children were kitted out with Ralph Lauren ski suits. Baqueira-Beret is also popular with the Spanish royal family who own a chalet there, as well as other sportsmen and celebrities.

As you would expect, it isn't the cheapest resort to buy property in but you can be sure of a good return if you choose to rent your property at Spain's most exclusive ski destination.

However, the resort in the Sierra Nevadas is probably the most appealing to Brits, and there are opportunities for year-round rentals. Close to the Costa del Sol and Costa Calida it is Europe's most southerly ski resort, but it is cold enough in the mountains for snow in winter, meaning it is often possible to ski and sunbathe in the same day.

In the heart of the Sierra Nevadas Natural Park, the resort is only 32 kilometres from the city of Granada, however, once the ski season is over it is a bit like a ghost town so you may want to buy in Alpujarras or Lecrín valley, at the foothills of the Sierra Nevadas instead. It is possible to purchase a three-bed apartment for €120,000, and there is a growing expat community in this area. You will also be able to use your property throughout the summer as well, and attract year-round rentals.

Investors could also consider the Costa Verde in the north of Spain. Again you can combine snow with beaches, and most of the resorts in this area can be used all year, with football, mountain sports, badminton and swimming on offer after the snow has melted. It is still possible to buy a three-bed property here for under €150,000, and you have the beautiful beaches of the Costa Verde to enjoy during the summer. Again this is an ideal place for year-round rentals, and is gaining popularity with the British.

Full story from www.homesworldwide.co.uk

Thanks to Property Pulse reader, Judith Robinson, we tracked down an article about a new UN report criticising property speculation in Spain. (Thankfully, someone wrote an article summarising the report because the UN website is a convoluted mass of broken links and mystery navigation.)

Aside from the issues I wrote about last week of inadequate provision of subsidised housing, the report makes a very good point about what motivates town councils in Spain.

It says that town councils generate over a quarter of their income from granting building licences and other property related taxes. Makes you think doesn’t it?

I wonder if that’s why licences are freely granted at the local level, only to be later rescinded at the regional level? The sad case of demolition in Almeria seems to fall into this category.

Last year, where I live in Almuñecar, a new 10 storey hotel was erected in the centre of town – four storeys higher than any surrounding building.

Now the hotel has been ordered to close by the regional authorities who claim that the town council had no authority to issue a building licence in the first place. The owners of the hotel hope to sell it – complete with the liability of removing the top four floors.

The problem is that the town council seems to be able to shrug its shoulders and walk away from a problem that they’re at least complicit in, if not fully responsible for.

How can you keep the bulldozers from your door?

It’s important to check the town General Plan (PGOU). It details the local council’s plans for the general development of the municipality over a stipulated period of time.

What’s important is that the plan must must obtain final approval from the regional government in question.

The PGOU goes through various stages of approval and amendment but, once it is finally ratified, it’s a strong indication that the regional government won’t send the bulldozers in.

Have your lawyer check that your property is included in the PGOU which has, in turn, been fully ratified.

Martin Dell, Kyero.com

Just when you thought that every aspect and area of Spain had been explored, every secret delight of this stunning European nation had been uncovered and that each pristine beach, vibrant city and cultural and historic sight had been seen, the Spanish authorities announce that a brand new international airport is to be constructed in a hidden corner of secret Spain.

This new airport in Corvera will open up the skies and indeed the entire region of magnificent Murcia to a global audience, revealing a brand new holiday hotspot in one of the leading travel and tourism destinations in the world for us all to explore and enjoy.

The autonomous region of Murcia is tucked away in a lesser known and once secluded part of south-eastern Spain. It has a fabulous Mediterranean coastline, an enviably attractive climate, a vibrantly exciting regional capital city, the largest saltwater lake in Europe, a wealthy cultural heritage, property prices well below the national norm and now, an emerging and soon to be booming tourism and real estate markets.

If you’re seeking a brand new Spanish holiday hotspot or if you’re looking for a corner of Spain in which you can live, retire or invest in property whilst remaining confident in the knowledge that you’re getting in ahead of the rest, Murcia will be your destination of choice in 2008, and here’s why: -

The region of Murcia will see construction of its international airport begin in 2008 with construction time estimated to take just two years. The region’s councillor for public works, housing and transport, José Ballesteros, is said to be confident that the airport’s private owned status will mean that it can attract low cost airlines and provide travellers with low flight costs and greater flexibility compared to state owned airports. It is understood that Mr. Ballesteros has already been in meetings with the lower cost European carriers such as Ryanair, Air Europa, Air France, Iberia and TUI which bodes exceptionally well for the likely number of tourism arrivals that the region can expect when the airport comes online as early as 2010.

Current predictions for the increase in arrivals that the new airport will bring to Murcia are in the region of 1.5 million passengers when the airport opens, increasing to over 5 million by 2015 – and if you’re going to be one of these passengers you will benefit from easy and affordable access to one of Spain’s most beautiful and unspoiled regions.

Murcia embodies diversification in terms of the travel and holiday experience it can offer its visitors. From the fabulous Mediterranean coastline with its soft sandy beaches, pretty fishing villages and inimitably evocative ocean views, to the mountainous and rural interior where the landscape is stunning, the climate is perfect and the lifestyle is so life-enhancing and laid back. Whatever type of holiday location you prefer, you will find it in Murcia.

Not only can Murcia offer visitors a laid back holiday location, it is home to a city of the same name where holidaymakers and residents alike are treated to a vibrant and positive atmosphere and where they can enjoy an exciting café, bar and restaurant scene, where they can indulge in fantastic retail therapy or take in the historic attractions of everything from the world famous Santa Maria Cathedral in Murcia to the Almudí Palace, from the Monteagudo Castle to the Ramón Gaya Museum in the Plaza Catalina.

Property prices in Murcia have completely defied the national norm in recent months. Whereas prices for homes in many of the most well known areas of Spain have declined in the last twelve months, prices in Murcia have continued to rise steadily at about 4% year on year At the same time, it is worth noting that the Kyero.com Spanish House Price Index records the median price of a home in Murcia as lying well below the national average, proving that there is plenty of room for price growth over the coming years. Interest in property for sale in Murcia has been increasing ever since talk about the proposed airport began. Now that construction of the airport has been given the go ahead, local developers are witnessing a strong increase in interest. Mike Hamilton, Director of Casas de Lorca a highly regarded real estate development company in Murcia, recently commented on his personal predictions for real estate in the region in light of the airport announcement:

“My predictions for the coming year are for a gradual rise in demand. Murcia is one of the fastest growing regions in Spain anyway, and a new international airport will further drive growth. The supply of property in the holiday home market has increased over the last 3 years and demand had been struggling to keep up. Therefore prices are currently very attractive but should naturally begin to rise towards the end of the year as demand begins to take over supply. The demand in the retirement or early retirement market still vastly outweighs the supply so I predict prices will increase more in this sector. This is where Spain is still a firm favourite versus emerging countries. So far in 2008 we have seen business more than quadruple and 90% of our clients are looking for properties to relocate to. We are looking forward to a very good year.”

Murcia is affordable, it is about to become highly accessible, it has the best climate in Spain, it is not over developed, it is rich in culture, history, heritage, gastronomy, nature, sport and leisure. It is a region in which to live, to retire, to enjoy a holiday and what’s more, it is one of the corners of Spain where there is still a buoyant property market, where prices remain affordable, where the real estate for sale is expansive and exclusive and where an investment made today could well reap significant dividends, gains and yields over the short to medium term.

Whether your interest in Spain lies in finding a hidden corner in which to lay your hat and find a home or in holidaying in a highly exciting emerging destination, Murcia embodies the realisation of all your personal interests. It is quite possibly the final part of Spain to be made so much more accessible thanks to the new international airport, and it is certainly a region of this beautiful nation that should not be overlooked or ignored for a moment longer. Discover the real Spain, visit Murcia.

A new United Nations report claims that as much as 26 percent of income for local town halls comes from income from real estate development

A new United Nations report has criticised the housing policy in Spain, and highlighted the fact that local councils have been dependent on granting of building licences and other real estate deals for their income. The report warns that the high number of empty properties in Spain means that it will suffer the slowdown the most in Europe.

The UN report says that 26% of the income for local town halls comes from construction and this has promoted the speculation seen in the sector over recent years, according to the UN compiler of the report, Miloon Kothari.

The study looked at the sale of municipal land and the collection of the IBI rates and other taxes, such as granting permission to build.

The cases of Marbella and Mallorca are both highlighted in the new report. Kothari claims that ‘uncontrolled speculation has taken place for the past twenty years’ and this, with the large number of empty properties, meant that Spain is bottom of the European list for access to housing. Those most to suffer as a consequence from this are named in the report as ‘women, youngsters, pensioners, the disabled, gypsies, immigrants and the homeless’.

The report says that in Spain there are 20.9 million homes for 14.1 million families. Once second homes are discounted, there are over three million empty flats, about 15% of the total. The report supports the policy in Cataluña where in extreme cases homes can be expropriated.

The United Nations warns that the current situation is not sustainable in the long term and says the government’s housing policies have not managed to slow down the increase in home prices, although the new measures designed to stimulate rental were hoped to contain prices. They say what is needed is a firm agreement between developers, builders, public administration and society at large so that the right to proper housing can become a reality.

Article from Typically Spanish

The Spanish property market has been in the headlines consistently throughout the latter half of 2007 and all the way into 2008. Media reports currently vacillate between highlighting negative issues such as the over-supply of apartments in some locations which has had a detrimental effect on pricing, and focusing on the evergreen and unshakable positive factors that make Spain a consistently popular location with property buyers, retirees and expatriates.

The positive factors that far outweigh the negatives and which are undeniable include the fact that Spain remains the most popular overseas destination with British lifestyle property buyers and has been named the top holiday home investment hotspot of the year in a poll by HolidayLettings.com.

Spain is also one of the top ten countries among would-be retirees when it comes to the quality of life achievable in retirement according to the recent 'NatWest International Personal Banking Quality of Life Report,' and Spain is currently very much a buyer's market - with those who buy carefully finding themselves in a position of being able to own property and land where once their euros might only have stretched as far as a villa on a Spanish housing estate.

It's not just Britons who have a long standing love affair with Spain either, the Irish are just as keen on Spain for holidays and property according to the Overseas Property Index from MyOverseasProperty.ie, which reveals that Spain is the fourth most popular destination in the world specifically for real estate investors and lifestyle buyers from Ireland at the moment.

Internationally speaking, Spain is the number two destination in the world for holidaymakers after France – but for Britons holidaying overseas, according to the Office for National Statistics Spain is actually the most popular destination, with tourist arrivals from the UK continuing to rise annually. Backing up these facts is the World Travel and Tourism Council which is optimistic about Spain's continuing dominance in the global personal and business tourism market, they are predicting positive annual growth in both sectors for at least the next ten years.

Despite some media reports which are choosing to focus on the decline in property prices in certain areas of Spain and a drop in the buoyancy of the Spanish housing market along the most popular Costas where oversupply has impacted the market, many reports are actually looking a little closer at facts and statistics relating to Spain's overall economy, the data from which actually support the nation's ongoing appeal. According to the Organisation for Economic Cooperation and Development for example, Spain's macro-economy is performing exceptionally well and has actually grown for 13 years in succession; added to this is the fact that, historically speaking, when Spain's property market has suffered a downturn before it has been a brief period that has acted as the forerunner to a period of exceptional expansion and has been a period of time when wise buyers have bought in and bagged bargains!

Seemingly Spain is a market that has undeniable fundamentals supporting it's continued dominance as a location for lifestyle and investment property buyers, retirees and would-be expatriates then – and because right now it's a buyer's market in Spain it's possible to secure some seriously good real estate deals...

In Murcia for example, which was recently named one of the fastest up-and-coming areas of Spain by the property editor at BuyAssociation.co.uk, it is possible to affordably own an entire estate rather than just a home on a housing estate! This fact will very likely appeal to all those who want to retire to Spain or set up a permanent home in Spain.

The Casas de Lorca 5 acre residential project near the town of Lorca in the Murcia province offers buyers the chance to own a stunning, custom tailored villa with classic architectural features such as rows of arches courtyards or walls of glass located on 5 acres of land. These stunning properties are for sale from just GBP 196,900 / EUR 265,000 for a 4 bedroom villa and really do give buyers the chance to own their very own home on a rolling 5 acre estate rather than a generic apartment on a housing estate in an urbanised part of a popular Costa.

According to Mike Hamilton who's a Director of Casas de Lorca, the construction company behind the fabulous Casas de Lorca project: “our properties are for sale to the serious buyer who wants to own a part of the Spanish countryside and become a part of the Spanish culture. We understand that the dream of owning a second home, a retirement property or a brand new home from home in Spain is combined with the dream of achieving an exceptionally high quality lifestyle and our homes are the embodiment of both these dreams. We offer our customers space and quality at Casas de Lorca so that they can enjoy the freedom, tranquillity and peace that comes with living on 5 acres of your own land overlooking amazing mountain scenery in this stunning region of Spain. Our clients can enjoy living in a unique property which is custom finished to their personal specifications and which is designed to enjoy the amazing views from inside the house using walls of glass, glass walled courtyards, towers, arches and other architectural features which take full advantage of the views and the privacy to enjoy the outdoors which 5 acres provides.”

All homes at Casas de Lorca are within a short drive of the vibrant and historic city of Lorca with its many bars, restaurants, shops, tourism attractions, castle, multiplex cinema, theatre and sports complex - and in turn Lorca is just a twenty minute drive from the coast and the stunning and untouched beaches of the Murcia province of Spain.

Thanks to a new high speed train link connecting Lorca with most of Europe and the fact that there are three international airports within an hour's drive of Lorca and a new major international airport to be built within half an hour of the town, these homes are not only perfectly constructed and perfectly priced, they are truly perfectly located as well - whether you're considering purchasing a high yielding investment property or a home from home for yourself and your family.

Full story from easier.com

Nearly one million foreign citizens were granted permanent residency in Spain last year, bringing the official total, not counting illegal immigration, up to almost four million non-nationals residing in the country.

According to government figures, Moroccans are the biggest immigrant population in Spain with around 650,000 of its citizens living there, followed by Romanians (604,000), Ecuadorians (396,000), Columbians (254,000) and British citizens (199,000). People from EU member countries made up 39% of Spain’s total foreign population in 2007, followed by South Americans (30%) and Africans (21%).

The Spanish tourist board believes that tourism is the driving force behind its country’s rising immigration and revealed that a record 59.2 million tourists hit Spanish shores in 2007 – a rise of 1.7% y-o-y.

The board’s statistics also showed that the Costa del Sol is still the most popular destination for tourists and that the Andalucian region also grew in popularity. It noted that UK citizens were still Spain’s biggest tourist group accounting for 27.5% of all foreign visitors, however, arrivals from North America have risen by 22% in 2007, totalling 1.1 million tourists from the continent.

Low cost airlines accounted for a significant proportion of carriers travelling to Spain, flying 24 million tourists to the country in 2007 – a 34% rise y-o-y. Ryanair led the way carrying 5.4 million passengers followed by easyJet with 4.2 million. Malaga was the principal entry point accounting for 3.6 million passengers travelling via budget airlines, while six out of every ten tourists ended up holidaying on the Costa del Sol.

Full story from www.opp.org.uk

Property owners face paying up to £25,000 in extra costs if they do not fix the exchange rates on their mortgage.

Homeowners are warned to avoid the hidden costs of owning a home in Spain, which could cost them up to £25,000 over the course of a 25-year mortgage.

To avoid the extra costs, Travelex Personal Transfers is advising all overseas buyers to consider fixing their exchange rates for up to two years, in a process known as 'forward contracts' - to ensure peace of mind.

A forward contract lets you secure an exchange rate for a payment to be made in the future. The exchange rate that you achieve on a forward contract is not quite as good as that for a spot contract but it does guarantee that you know the cost of the property, and it won't change during the term of your mortgage.

Paying for a foreign mortgage in sterling can lead to wide variations in outgoings as the exchange rate fluctuates from month to month, depending on the state of the market.

Travelex Personal Transfers offer a personal broking service that can provide much more competitive rates than the deals offered by many foreign exchange bureaux and banks.

As a recent example, Travelex Personal Transfers shows that a Spanish villa on the market for €250,000 in September 2007, with the Pound/Euro exchange rate at 1.4397, would cost an average of £173,647. However, towards the end of December the British Pound fell to a four-year low against the Euro of 1.3350, resulting in the cost of the villa rising to £187,265 – requiring an additional budget of £13,618 in just two months.

Adding on the costs of banks' fees and commission can push the extra charges to as high as £25,000 over a 25-year period.

Debbie Brown, Travelex’s head of marketing, said: “Buying a foreign property is fraught with difficulties. Not only can the extra red tape, language difficulties and foreign legal system weigh things down, but over the course of a 25-year mortgage, bank fees, commission and changes to exchange rates can add enormously to the amount people pay for a property.

“Not only will fluctuating exchange rates directly alter the price of a property before completion, but the delays and legal red tape associated with any property purchase will increase the risk of purchasers spending more than they initially intended.

"Even the most mundane things such as transferring a mortgage or rental payment are likely to incur a cost, and over a period of time this will quickly mount up. We would urge anyone considering buying a property abroad to think carefully about the total cost – not just the list price.”

The study by Travelex Personal Transfers shows the average foreign property can cost buyers an additional £25,000 on top of the original list price. Fluctuating currency rates could add to the price of a property between the initial exchange and completion, while additional bank charges and commissions can, over the course of a standard 25-year mortgage, add an extra £13,000 to the total cost of the purchase – banks can charge up to £30 and take two per cent commission on each international mortgage payment.

Full story from homesworldwide.co.uk

You can tell there's a general election looming in Spain, can't you?

In No State Props for Developers we witness a representative of the Treasury saying very sensible things indeed.

Of course the government shouldn't prop up a flagging construction industry - the very flagging of which was aggravated by over-construction in the first place.

Of course, Spain has a subsidised housing shortage - that's what happens after a property market booms - people at the bottom of the ladder can no longer reach the first rung.

Clearly this announcement won't be welcomed by the G14 - an association of fourteen of Spain's largest property developers. Here's how they made their case in November last year.

I remember reading that at the time, feeling a little bemused that their proposed solution to an oversupply of new homes was .. to build even more.

Perhaps in this election year, the government might be able to turn the current situation to their advantage? Assuming that they stand by this policy of not assisting ailing developers, there could be a lot of newly-built property available at knock-down prices, courtesy of the liquidators.

By acquiring these properties for subsidised housing projects, the government could win some new young voters and prevent the glut of new properties entering the market from killing property resale values in Spain.

Meanwhile in Granada, according to Brits Keep Property Market Afloat, there's no problem to solve at all.

Homesworldwide, quoting Sur in English, quoting the Granada Real Estate Association, says that one in three homes in the province is purchased by non-Spaniards.

I find that ratio a little optimistic but Granada is the most popular province in Spain according to our own statistics ..

Martin Dell, Kyero.com

The minister of Economy and Treasury, Pedro Solbes: “The state should not be stepping-in now to help those who have previously earned large amounts of money through property.”

The vice president of Spain is not in favour of providing support for real estate companies and developers who have over-extended themselves during this downturn in the market. He is, however in favour of promoting government subsidies for those who cannot afford their own homes.

He rejects the notion of the state intervening in the real estate sector “when things go badly” and has taken the alternate position of promoting the construction of subsidised homes.

Solbes made this announcement at a conference in Vitoria, before dozens of basque businessmen, in a speech entitled “The perspectives of the Spanish economy”.

“It is not my philosophy that the State should enter into a sector, such as that of real estate”, he remarked, although he added that the State needs to intervene in one particular area, the promotion and construction of subsidised housing.

“Should we, as some think, act as in previous times, backing some of the companies who have taken more risks and have been more daring than others, and therefore allowed them to gain hugely, and when things go badly, it is the State that needs to act? Of course, it is not my philosophy, I am strongly against these ideas”.

“I don’t believe that the State should do anything at all, except regarding one particular point – the support and construction of subsidised housing”, indicated Solbes.

He added that the Government is prepared to act “more aggressively” in making more subsidised housing available, even though “we know that this is complicated by the issues of local and regional competition”.

He stated, “we will continue subsidising the construction of housing to assist those who cannot afford to purchase their own home”.

“In my opinion, every constructive and sensible idea is open to discussion, but I find it difficult to entertain any idea of the State stepping-in when private enterprise is struggling”.

Full story from El Pais (in Spanish)

One in three properties in the Granada region is sold to a foreign buyer, which is helping to keep the industry afloat.

The real estate boom may be over in Spain, but in some provinces, such as Granada, it isn't all doom and gloom.

Foreign buyers, mainly from Britain and Germany are snapping up one in three properties, and are helping to lift the market during this slow period.

Unlike the Spanish buyers, foreign buyers do not try and push the price of a property down, and trust the professionals to do their job, according to the website Sur in English, the newspaper for southern Spain.

A third of all properties sold in the province of Granada are being bought by foreigners, and these are located in areas such as Alpujarra, the Granada coastline, the Lecrin Valley, and the Baza area.

However, it isn't that sales to foreign buyers have risen sharply over the last few months, more that sales to Spaniards have plummeted, while foreigners continue to buy at more or less the same rate. The proportion of one in three may be higher on the coast though, with many developments aimed exclusively at foreign buyers.

Estate agents have reported that as much as 40 per cent of their properties are sold to foreigners, and the majority are British who are looking for a permanent base, rather than a holiday home. Buyers favour the cortijos (country houses) in the area, and a large proportion of these are owned by foreigners.

Full story from www.homesworldwide.co.uk

The environment ministers of 14 countries agreed in principle last month to ban the construction of residential and commercial developments within 100 meters of the Mediterranean coastline.

The ministers met in Almeria, Spain to ratify the new Integrated Coastal Zone Management (ICZM) agreement, part of the Barcelona Convention – a set of protocols established in 1976 designed to reduce pollution on the Mediterranean. The convention, which meets twice yearly around Europe and North Africa, agreed that along the entire 29,000 mile shoreline of the Mediterranean, no construction would be permitted within 100 metres of the coast in an effort to help protect the coastline from the damage caused by development and human contact.

“This is a pioneering Protocol and it constitutes an added value for the Barcelona Convention and the Mediterranean Action Plan (MAP),” said Paul Mifsud, MAP co-ordinator for the United Nations Environment Programme. “It is the first time that ICZM is full addressed by a legally-binding international instrument. We are confident that with such strong support from the Contracting Parties, the protocol on coastal zone management will enter force soon.”

Spain’s minister for the environment Cristina Narbona and José Fernández Pérez, the environment ministry’s director of coastal areas told a press conference that the nations of Albania, Algeria, Croatia, France, Greece, Israel, Italy, Malta, Montenegro, Morocco, Slovenia, Syria, and Tunisia have all ratified the Barcelona Convention, while Turkey, Lebanon, Libya, Cyprus, Bosnia, and Egypt have refrained at this stage, however they are believed to be signing the agreement later this year.

Spain has already acted upon the Barcelona Convention by demolishing over 600 properties along the Costa del Sol under its 20-year old Ley de Costa law. Narbona admits that although the delegates at the meeting have talked the talk, enforcing it is another matter.

“I know from our experience in Spain that compliance is the problem,” she said. “Every single one of the provisions agreed to in Almería already exists under Spanish law; but there just hasn’t been the sufficient will or awareness to enforce them. To address that challenge, the Almería protocol has created a committee to ensure that the convention’s provisions are carried out,” she added.

Story from The Overseas Property Professional

The 2008 Spanish income tax rates and allowances are now available. Anyone who is planning on moving to Spain this year and who will be living there for 183 days or more during this calendar year will become a Spanish tax resident and liable for Spanish income tax on their worldwide income.

Spanish taxes on income for 2008 are payable in 2009. Spanish tax residents are liable for tax on their ‘general’ income, which includes salaries, pension and rental income, at progressive scale rates from 24% to 43% over four income bands. Non-residents pay tax on any general income, including gross rental income, at a flat rate of 24%.

Income that is not categorised as general income is ‘savings income’ which includes interest and dividends and is taxed at a fixed rate of 18% for Spanish residents and non-residents.

The new income tax rates on 2008 income to be declared in 2009 are:

• Up to €17,707.20 - 24%
• Between €7,707.21 and €33,007.20 - 28%
• Between 33,007.21 and €53,407.20 - 37%
• Over €53,407.21 - 43%

The standard allowance (Minimo Personal y Familiar) consists of the total of:

• 1) the basic allowance for the taxpayer (including his/her own age addition), plus further allowances for:
• 2) dependent children/grandchildren (descendants) living with the taxpayer, and
• 3) dependent elderly or disabled parents/grandparents (ascendants) living with the taxpayer, and 4) for the incapacity of the taxpayer or any descendant/ascendant living with the taxpayer.

For 2008 the basic personal allowance is €5,151 per person (€5,050 in 2007), or twice this being €10,302 for a joint return. A single parent gets €5,661 (€5,550 in 2007).

The basic allowance is increased by €918 (€900 in 2007) for someone aged 65 or more (so €6,069 in total) and by a further €1,122 (€1,100 in 2007) for someone aged 75 or more (so €7,191 in total).

The additional allowance amounts for dependent children (descendants) or aged/disabled parents etc (ascendants) living with the claimant are:

• Child under 25 (or disabled) and single: first child €1,836; second child €2,040; third child €3,672; fourth, fifth etc child €4,182. Where the child is younger than 3 years old an extra €2,244 is available per child.

• Parent etc aged 65 and over (or disabled): €918 per dependant

• Parent etc aged 75 and over: €1,122 further (i.e. €2,040) per dependant

To get the family deduction the additional family members must be living in the taxpayer’s home and their own income must total less than €8,000 per annum (excluding exempt income). Incapacity

For handicapped taxpayers and handicapped dependent relatives as above, there is €2,316 (for more than a 33% handicap) or €7,038 (for more than a 65% handicap) in addition to any allowances above.

This allowance is increased by a further €2,316 for assistance costs where someone needs the help of a third person, or is of reduced mobility, or 65% disabled.

The recipient of earned income (including pension income – but not, say, rental income) has an additional deduction for 2008 of up to €4,080. The maximum amount of €4,080 applies to those on low earned/pension income of up to €9,180. The minimum deduction for those who earn more than €13,260 is €2,652. If earning some figure between €9,180 and €13,260, the deduction is on a sliding scale between €2,652 and €4,080.

These deductions are higher for handicapped workers (€3,264 for 33-65% incapacity and €7,242 incapacity above that).

Those working beyond age 65 get twice the allowance as do those who move to a new area to take up work having been unemployed. This increase is usually available in both the year of relocation and the following tax year.

Only 50% of the net residential rental income of a resident of Spain is taxable at the normal scale rates.

From 1st January 2008, 10.05% of the rent paid on the main home can be deducted, provided your taxable income is less than €24,020 per year.

The maximum deduction is:

• €9,015 where your taxable income is equal to or less than €12,000
• €9,015 less the result of multiplying by 75% the difference between your taxable income and €12,000, where your taxable income is between €12,000 and €24,020 per year.

Tax returns for the income earned in 2008 have to be submitted by 1st July 2009 at the latest, and at some point within May/June, and the tax due must also be paid by this date.

Story from BlevinsFranks

A beach in Almería has been named the best in Spain, making it the perfect place to buy a holiday home.

Property owners in Carboneras, Almería, can look forward to a bustling tourist season this summer, as Los Muertos, the municipal beach, has been classified as the ‘Best Beach in Spain’ by the Institute for Quality Tourism in Spain.

Carboneras sits at the start of the Cabo de Gata Natural Park, and though it boasts a number of historical monuments, including the 16th century San Andrés Castle, the town is best known for its beaches. Almost 17km of fine sand stretches along its coast, including the central El Ancón, which receives the blue EEC flag award annually.

However, the most beautiful of these is the nudist beach Los Muertos, which can only be reached by boat or via a 1km hike through the natural park.

Los Muertos was presented with one of the Q certificates for quality tourism during a ceremony forming part of the activities of the International Exhibition for Tourism (FITUR), held annually in Madrid. The secluded beach is also rated one of the top five in the world for its crystal-clear water and peaceful sands, where you can relax with little fear of being undisturbed.

At present, accommodation nearby is comprises a handful of guesthouses, so as the beach becomes better known, Carboneras will be an ideal place to make a buy-to-let investment.

Full story from homesworldwide.co.uk

Our first article this week, Who's to Blame in Spain, was brought to my attention by Kyero visitor, Judith Robinson. It's a great perspective article and well worth a read if you're at all flustered by the recent Almeria demolition story.

Thanks to feedback from numerous Kyero.com visitors we found a bug colour-coding our graphs for prices and weather. Depending on the browser version being used the colours were reversed. For now, we've removed the graphs (but left the data charts) until we can reliably figure out why that's happening.

If you missed last week's newsletter, let me remind you of our survey about The Cost of Living in Spain. Please take two minutes to complete it - there are no mandatory questions and it's completely anonymous.

We've added some new features to the Agents directory on Kyero.com. Now you can search for estate agents in exactly the same way as searching for properties.

It means that if you're searching for a three-bed, two-bath villa in Almuñecar, with a pool between €300,000 and €400,000 - you can find properties for sale and estate agents using exactly the same search techniques.

Over the next few days, we'll be making it easier to switch between 'property view' and 'estate agent view' so you can find exactly what you're looking for.

It's already getting warmer here in Almuñecar. We had our first BBQ of 2008 on Saturday and had lunch on the beach on Sunday - I even got a little bit sunburned.

When the doom and gloom of the current property market in Europe gets under my skin, it only takes a little bit of sunshine, a BBQ and a couple of beers to restore my perspective.

Potential overseas buyers might be put off by reports of land grabs and foreigners’ villas being demolished in Spain. But the news isn’t all bad and being properly advised could save you the nightmare of losing your investment

The recent reports from Spain of a retired British couple who had their home demolished has sent alarm bells ringing for Irish owners of Spanish property. Combined with stories of compulsory purchases, and a government review of illegal coastal developments, some people thought the bulldozers had moved in quicker than they expected. So what is the truth about what’s happening in the Spanish Costas?

Spain’s popularity appears unending with Irish investors due to the guaranteed sun, quality infrastructure and convenient travel times. This was reinforced in a recent Overseas Property Index, where despite recent travails, Spain was the fourth most popular destination for property buyers. However, recent issues are starting to take the shine out of Spain’s sun.

A major issue that surfaced last autumn followed the Spanish government’s announcement that they are going to review the majority of coastal developments. Effectively, this is the government acknowledging the mistakes they have made in the past few decades, in which unchecked development has damaged the coastline. In trying to put right some of the mistakes, the demolition issue rears its ugly head again.

In 1998, Spain sought to control beachfront development by passing the Coastal Law, which decreed that the Spanish government controls a coastal strip of 106 metres in which no private housing is allowed. Technically, any property built within 106 meters of the shore after 1988 could be earmarked for demolition. The reason development still happened in the protected coastal strip was because the regional governments chose to largely ignore this law and let the building continue. It is this law that the government in Madrid is proposing to enforce.

A recent report highlighted the huge extent of the development that has taken place and the high level of damage to the coastline. The recommendations were that a full-scale review of development along Spain’s western and southern coasts should be undertaken and where necessary, remedial measures used to remove illegal developments. What this means is that thousands of properties along hundreds of kilometres of coastline could potentially be threatened.

So should you be worrying about the threats to your Spanish villa yet? No is the short answer. If we look at some of the facts here, thankfully it shows the practicalities are much different:

- Firstly, this was a proposal only and not draft law; it is due to go through wide public consultation, which could take years.

- Secondly, the Spanish government has said that there will be no mass demolitions and that each situation will be dealt with on a case-by-case basis.

- Thirdly, there is a legislative issue here: the central government has little power over local planning, so proposals would need the support of regional councils.

Also worth noting is that there are elections due in the spring and the current government in Madrid could be using this environmental issue to capture attention and generate extra votes. So there is no need to panic just yet as this could all be politically motivated.

The sad story of the recent demolition is completely separate and should not be confused with coastal issue. In fact, the demolition happened inland, but sadly both are the consequences of lax planning and administrative control in some regions of Spain.

This came about following a judicial order that was recently granted in Andalusia concerning the demolition of 17 homes that were illegally constructed in rural zones. This led to the awful bulldozing of the retired British couple’s home near Almeira. The property did not have the necessary approvals, but it seems that it could have been entirely avoidable had a solicitor checked all the required notices were in place prior to purchase.

Another common issue that gets mixed in with the horror stories coming out of Spain is that of land grabs and compulsory purchases because authorities have strong powers to remove properties that are in the way of development projects.

A high profile instance was termed the Valencia Land Grab, which has now been deemed unlawful, but there have been other instances where owners of secluded villas found that their homes have been part of a larger development project, so exercise caution before buying.

If you are planning on buying in Spain, please get an independent solicitor to thoroughly check out the property before you pass any money over. Ensure you see confirmation that the property has all the correct planning permission and permits, that there are no current or past planning permissions granted covering the property, in much the same way you would do in Ireland. If buying a property near the coast that was built after 1998, ensure your solicitor provides confirmation it accords with the Coastal Law so that there is no threat hanging over your sunshine investment.

The positives to be taken from these issues is that Spain is taking more care in the way it permits development and is trying to ensure the mistakes of the past are not repeated. This should benefit the property market there over the long term.

Full story from The Irish Independent

An idea first conceived over 30 years ago in 1976 has finally been given the green light – Huelva, capital city of the south westerly Spanish province of the same name, is to receive its own International Airport. Talks officially began in 1999, but this year the Spanish Ministry of Development has sanctioned private company, Agricola el Pintado SL, to build a 350 hectare facility valued at 150 million euros.

Huelva province takes in the western Costa de la Luz, Spain’s sunniest coastline bordering the Portuguese Algarve, a region that is seeing phenomenal growth in both tourism and real estate, but previously only accessed by air via Faro in Portugal or Seville, an hour away from key resorts such as El Rompido and Nuevo Portil. An International Airport at Huelva will reduce driving time to as little as 15 minutes and it could be fully operational by as early as 2012.

Andrew Benitz, Director of local real estate specialists, Titan Properties, comments, “Huelva is the fastest growing destination for golf tourism in Spain and mega golf resorts such as Costa Esuri fringed with residential property are driving thousands more visitors to our striking coastline with its pine-backed sandy beaches and stringent environmental standards. An additional International Airport is both logical and intrinsic to the Coast’s future growth and the news that Huelva has the official ‘nod’ is most welcome.”

The viability study currently underway states that Huelva has the lowest percentage of foreign visitors compared to the rest of the coastal provinces of Andalusia. It states that “the lack of air access for these types of tourists limits the tourism growth of the province”. This leaves Málaga, Cádiz or the Portuguese Algarve with a competitive advantage, but all is to change. The existing 700 metre runway will be replaced by a 2,400 metre runway for intercontinental flights which would see an estimated 1.5 million passengers pass through within the first decade of operation. The floodgates would open for no-frills carriers from the rest of Europe and Huelva would get its chance to flourish.

Full story from www.easier.com

Spain and France continue to top the list as Britain’s favourite holiday home investment destinations, while Greece, Malta, Croatia and Canada are tipped to be the big investment hotspots of 2008, according to consumer portal HolidayLettings.co.uk.

In its Holiday Home Hotspots Review of 2007 it found that, despite the negative publicity surrounding the country last year, Spain continues to perform strongly. The portal identified a shift away from the pure investment buyer towards what it describes as a ‘mixed use’ investor. HolidayLettings.co.uk recorded a rise of 38% in the number of Spanish holiday homes added to its inventory in 2007.

The best performer of 2007 was Portugal, however, (138%) which, according to a spokesperson, “appeals to those looking for Spanish similarities and less developed landscapes”.

Holiday properties in the UK were also very popular with the portal’s clients. Demand for domestic weekend breaks over the Christmas period, and throughout the winter, saw the number of UK holiday rental properties on the website surge by over 100% last year.

Development of the Italian TAV high-speed train service made access easier for holidaymakers in 2007 and demand for quality rental properties saw an additional 75% posted on the website.

Investment in Bulgaria however slowed down during 2007, with the Balkan state falling two spots on the portal’s Top 20 list of holiday home investment hotspots. Despite holiday letting properties on the Black Coast increasing on the website by 133%, Ross Elder, MD of Holidaylettings.co.uk, explained that Bulgaria is suffering from oversupply and insufficient tourist numbers.

“The data we hold on Bulgaria is unfortunate given the wealth of investment, he noted. “As one of the first Eastern European countries to open its doors to the buzz of foreign investment it may be the case that development began too early for the tourism market to develop or that there simply isn’t the tourism demand to support such volumes of accommodation. If investors are to benefit from short term rental income, their properties need to have a string of USPs in order stand out amongst the many competing apartments and offer better value for money propositions than established local hotels; that could be a local on the ground who can help with the language barrier, organise activities or recommend restaurants, or it could be high quality furnishings and a stunning view.”

The portal also revealed the markets of Argentina, Brazil, Slovakia, Slovenia, Russia, Jamaica, Cuba, Uruguay, Romania and Latvia all appeared for the first time on its list of available holiday rental properties. Elder added: “These markets as holiday home rental prospects are quite an interesting proposition,” comments Ross Elder. “Today’s global marketplace has opened these countries to foreign investment, but for the time being, for British investors at least, purchases in these locations are most likely to be for capital gains appreciation rather than reliable rental income.”

Story from Overseas Property Professional

Spain is still a massive draw for holidaymakers, with statistics showing higher tourism levels than ever.

Spain’s tourist board are celebrating a successful year after figures have revealed record numbers of foreigners visiting the country’s holiday hotspots last year.

During 2007, 59.2 million overseas visitors descended on cities and coastal resorts, 1.7 per cent more than 2006, with the Industrial, Tourism and Trade Ministry reporting that Andalusia was among the most popular destinations, especially areas along the Costa de Sol.

The main market is still the UK, with Britain accounting for 27.5 per cent of all foreign visitors, though Spain is also becoming increasingly popular with North American visitors, with the number of arrivals from the United States rising from 22 per cent to 1.1 million.

Britain’s passion for Spain’s holiday and property market is partly due the abundance of low cost airlines linking the two countries, making trips to Spain easy and affordable. Low cost airlines are credited with carrying 24 million passengers to Spain over the past year, an increase of 34 per cent from 2006. Ryanair are the overall leaders with 5.4 million passengers, followed by Easyjet with 4.2 million.

Málaga was the principal entry point for the 3.6 million low cost travellers who arrived in Andalucia last year, with six out of every ten tourists reaching the Costa del Sol via low cost airlines.

Full story from homesworldwide.co.uk

Madrid-Barcelona link is part of 220mph network taking on the airlines.

Delays and disruption, disgruntled passengers left standing on platforms, accusations of political incompetence and financial mismanagement: the development of the Spanish railway system has a number of things in common with its British counterpart. But when the new high-speed link between Madrid and Barcelona sets off later this month, those complaints will be set aside as the super-slick Ave S103 service carves its way through the Spanish countryside at speeds of nearly 220mph.

The Ave S103 is the kind of train that British commuters can only dream of, and forms the centrepiece of plans to make Spain a model for the rest of Europe, and the world leader in high-speed trains by 2010. Its 200-metre aluminium chassis carries 404 passengers, whose reclining chairs - which can swivel to face the direction of travel - are fitted with video and music players.

"They are the future of travel in Spain and show that the train is anything but obsolete," said Aberlado Carrillo, the director general of the state rail operator Renfe's high-speed service. "Trains will again be the dominant mode of transport in this country."

In its first term in office, the socialist government of José Luis Rodríguez Zapatero has spent €21bn (£15.7bn) as part of a 15-year €108bn project to transform the rail network. Around 70% of this will be spent on the Ave (short for Alta Velocidad Española, or Spanish high speed).

The aim is to have 10,000km (6,200 miles) of high-speed track in Spain by 2020, meaning that 90% of the population will be no more than 30 miles from a station through which the train passes.

The Barcelona line is to be extended to Perpignan in France, making the Catalan capital just four-and-a-half hours from Paris. Work to join Madrid and Lisbon is under way.

December saw the opening of lines connecting Madrid to Valladolid and to Málaga, which have slashed journey times and proved hugely popular. Carrillo describes the success of these two lines as "unprecedented and well ahead of what we expected. Traffic has doubled on the Málaga line, and grown by 75% on the Valladolid line."

The distinction between the Spanish and British models of investment, says Christian Wolmar, the author of a history of Britain's railways, comes from conflicting philosophies of rail's worth.

"We ignore the social values of trains," he says. "Just as we don't expect motorways to pay their own way, we shouldn't expect trains to.

"All the recent legislation in the UK, with privatisation, franchising and the complex structures of investment, has meant that it is impossible to have a rational transport policy to maximise the use of trains for environmental and economic reasons."

But, says Carrillo: "The Ave has to be profitable. From 2010, it will not receive any public subsidies. Our experience of the Madrid-Seville line is that it will be profitable."

The success of the Madrid-Seville corridor - the first high-speed link, which opened in 1992 - is partly a result of its pricing policy, with affordable tickets that help to keep demand high and trains full. The 290-mile journey takes two-and-a-half hours, and costs between €28.90 (£21.60) and €72.20 (£53.95) - prices that might make British travellers green with envy.

It will be the Madrid-Barcelona connection, though, that will test the high-speed service. Business people in Spain's two largest cities, with a combined population of 10 million, have been crying out for the Ave for decades. But its development has not been without problems. The inauguration was delayed by landslides that brought chaos to Barcelona's commuter service, as contractors rushed to finish the line at the end of last year.

When it finally gets running, the S103 will cover the 410 miles to Barcelona in two hours and 35 minutes, taking two hours off the journey time. But it will face stiff competition from the highly successful air-shuttle, with a route that is one of the busiest in the world.

The "air bridge" operated by Iberia airlines allows passengers to turn up at the airport, buy a ticket, and board, within 20 minutes. Iberia alone has 60 flights a day, carrying 8,000 people.

Antonio Mayo, who is in charge of the service, is not worried by the train. "We have faced competition from other airlines before, and we welcome the fight with the Ave," he says.

"We can offer one thing they cannot - time. In normal circumstances, a businessman can get from his house in Madrid to a meeting in Barcelona in under two-and-a-half hours. The train cannot do this."

Mayo accepts that Iberia will take a hit in the first few months, but he believes that an executive who needs to be in a meeting at 9am will always choose to fly.

Carrillo argues that the comparison between train and plane is a false one. "Time spent in a train is time won, while in a plane it is wasted," he says. "In a train you can work, read, talk, use the internet, eat, or simply relax and enjoy the journey. With a plane, the only objective is to arrive.

"Personally, I am not bothered if the plane arrives 20 minutes earlier than the train. The question is how that time has been used."

The fact that more than 80% of travellers choose the Ave over the plane on the route between Madrid and Seville supports his argument.

There is also the environmental question: trains produce at least four times less carbon dioxide per mile than planes, and even less when compared with short-haul flights. Spain is preparing itself for a future in which there may be limits on the number of flights a person is allowed to take, particularly within the EU.

In the end, says Carrillo, it will come down to the quality of the service: "What we are offering is unavailable in the rest of Europe in terms of comfort, speed and punctuality."

Look away now if you are a British commuter used to mind-numbing delays: if an Ave train arrives more than five minutes late, passengers are reimbursed the full price of their ticket. And the only problem for those hoping to get their money back is that the trains are nearly 98% reliable.

Full story from www.guardian.co.uk

Iain and Susan Thorlby asked us “What’s the cost of living in Spain?”

They want to know so they can plan their retirement in Spain based on fact rather than guesswork – and it occured to me that they’re probably not the only ones.

So, we turned their questions into this survey in the hope that Kyero.com visitors can help each other fully understand the cost of living in Spain.

The survey is anonymous and we’ll publish the results on Kyero.com by mid-March 2008. Will you help by taking the survey?

There are no ‘mandatory’ questions – feel free to skip any you don’t have information for. It shouldn’t take more than a few minutes to complete.
Martin Dell, Kyero.com

Did you watch Panorama on BBC1 last night? Reporting on irregularities in house pricing, overvaluation and buy-to-let mortgage scams in the UK, the programme could just as easily have been made about Spain, or Turkey or Bulgaria or ..

We know that any unregulated market which deals in high-value items (like homes) will attract fraudsters and scammers. That's bad enough in your home country but when you're contemplating buying property abroad, there's an extra level of unfamiliarity which can leave you feeling even more vulnerable.

About a week ago, the head of the largest association of estate agents in Spain (API) announced that half of Spain's estate agents had gone bust in 2007 - 40,000 of them.

That's a huge number - big enough to attract the attention of the International Herald Tribune who quoted the API president as saying "Many of the agencies may have been nothing more than one person with a cell phone".

So, IF Spain lost 40,000 estate agents last year - the API still thinks there's another 40,000 of them still in business. My guess is that there are fewer than 10,000 'real' estate agents and that 2008 will see more of the 'man with a cellphone' fade away - I hope so.

There's another Spanish association of estate agents called GIPE. API and GIPE between them have 7,000 members. Assuming that some estate agents belong to both organisations, that probably represents a real 5,000 individual estate agents.

In Spain, in 2006, 1M property transactions were recorded, yet the two largest Spanish property portals - Fotocasa and Idealista each only list 250,000 properties - largely the same ones.

Where are the other 750,000 properties? Personally, I think fewer than 2,000 estate agents advertise and actively promote properties for sale in Spain. They account for the majority of those 250,000 properties - the rest are still 'represented' by the 30,000 or so 'men with a cellphone'.

My point is that the estate agents you find advertising on Fotocasa or Idealista or Kyero are the cream of the crop - they're the ones actively trying to promote property and investing money to do so.

Does this mean that each and every one is honest and scrupulous? Definitely not - but they're light years ahead of the 30,000 who remain anonymous and have made no such investment or commitment.

Remember, as a business, Kyero sells advertising to estate agents, so take that comment with as many pinches of salt as you like.

The Spanish property market is unregulated and largely non-transparent. I think agents who voluntarily belong to a trade organisation (FOPDAC, AIPP, etc) and who actively promote properties, are to be commended just because they have chosen not to operate at the lowest level possible.

If you're buying property abroad and are worried about being ripped off, ignore the 30,000 'men with cellphones'. Start off by looking for evidence of agents who are investing in their business and who voluntarily belong to a trade organisation.

There. I've said it. Let the rock-throwing begin!

Martin Dell, Kyero.com

144,200 euros for 1 bed apartments

2 bed apartments from 175,000 euros

Superbly priced development of apartments and penthouses, in an enviable setting in the La Cala region of the Costa del Sol.

The development of CalaBlanca is within easy walking distance of the lovely sandy beaches, shops, bars and restaurants of La Cala village, together with the nearby golf course. In addition, several more top quality golf courses can be reached within a 10 minute drive, including the three 18 hole courses at La Cala Resort, the two courses at Mijas Golf, plus Santana Golf, El Chaparral and Cerrado de Aguila.

These fabulous apartments are ideal as a great-value holiday home and/or as the perfect rental investment, just 20 minutes from Malaga International Airport, and 15 minutes from the glitz and glamour of Marbella town.

Specifications are also generous, with fitted and equipped kitchen with granite surfaces, marble flooring and pre-installed air conditioning. In addition, the communal grounds feature a lovely swimming pool and landscaped gardens.

For those who thought that the Costa del Sol was becoming over-priced, then think again! This development even offers superb payment terms for investors, with just 10% required at contract, and 80% mortgages available at completion.

For those seeking a well-priced off-plan development on the Costa del Sol, the development of CalaBlanca is ideal.

More Information

The Spanish government has announced its decision to protect Spain’s beaches from construction by demolishing homes that contravene the 1988 Coastal Law. The law states that the Spanish Government controls a coastal strip of 106 metres of which none can be dedicated to private housing.

Technically any property built close to the shore after 1988 could be torn down, which some estate agencies feel that demolishing private homes may be taking things too far.

Adam Gale, Managing Director of Duchy Estates says, “While I applaud the environmental sentiment and feel that in certain isolated cases the bulldozers should be brought in, I cannot see this widespread demolition taking place for a number of reasons. Coastal property owners will not see their life-savings or permanent place of residence razed to the ground without a fight. These cases could easily end up at the European Court of Human Rights, and the legal costs would be astronomical.”

Since demolition plans have been released, around 2,000 property owners have formed a platform to fight the decision, protesting that the doomed buildings seem to have been chosen at random.

According to the Costa Blanca News, platform lawyers accuse the ministry of applying the new law in a retroactive manner, taking advantage of the legislations ambiguity to order the demolition of buildings constructed when former rules applied and with all the legal permits granted. Lawyers also claim the ministry is offering no kind of compensation for the land it expropriates.

Complaints will be sent to the ministry, the regional government and the national and regional ombudsmen. If the platform does not get a satisfactory reply from the government, then its lawyers say they will present a formal compliant against the Kingdom of Spain before the EU.

Lino Brydges, Head of Overseas Mortgages at NatWest International Personal Banking says, "Recent reported action taken by Spanish Authorities to demolish properties on the Spanish coastline has obviously caused quite a lot of concern for people who own property in Spain. Homeowners should not panic, but those who are worried should speak to their professional and legal advisers and make sure that all relevant checks were followed when their property was built or purchased to ensure all processes when obtaining their property were legal and carried out correctly.”

Full story from www.homesworldwide.co.uk

HM Revenue & Customs (HMRC) has published its draft legislation covering changes to the taxation of non-domiciles (see below) and the counting system for determining tax residency. This counting issue could affect those expatriates living in Spain who spend much time in the UK.

An individual will be treated as tax resident in the UK for a tax year if they either spend 183 days or more in Britain for the tax year, or if they are spend an average of 91 days or more there per annum measured over a period of four tax years.

For any expatriate who spends close to these numbers of days in the UK and wishes to remain a non-UK tax resident, keeping track of the exact days you fly in and out of the UK is very important. Until now, HMRC did not count a day of arrival or departure as a day in the UK. This would mean, for example, that if you landed Britain on a Monday morning and flew out again on a Friday evening, you would only have spent three days there.

Under the new proposals, both the day of arrival and departure will count. In the above example, therefore, you would now be counted as spending five days in the UK.

The draft legislation says:

“Treat as a day spent by the individual in the United Kingdom any day on which the individual arrives or departs from (or both arrives in and departs from) the United Kingdom.

“But in determining that issue do not treat as a day spent by the individual in the United Kingdom any day on which the individual’s presence in the United Kingdom is solely that as a passenger in a part of an airport or port not accessible to members of the public”.

In simple terms, this means:

• Any day arriving or departing the UK will now be treated as a day in the UK, regardless of the time you arrive/depart.

• If you take a connecting flight through a UK airport and remain in the transit area/departure lounge, that day will not count.

• However, if you arrive at Heathrow and travel to Gatwick leaving that same day, it WILL count.

• If you (for example) arrive at Heathrow and have a meeting at Heathrow Hilton, leaving that same day, it WILL count.

The draft legislation will be put to parliament in the 2008 Finance Bill. Subject to the Bill becoming law it will take affect from 6th April this year. However, the legislation is at the consultation stage and so these rules may be amended before it is put to parliament. We will advise on the final new regulations once they are confirmed.

The legislation also includes proposed changes to the taxation of non-domiciles, which refers to foreign nationals working in the UK.

Under the proposed new rules, non-doms who have been in the UK for over seven years will need to pay an annual charge of £30,000 to be able to continue to access the beneficial remittance basis of taxation.

Story from www.blevinsfranksinternational.com