Dear IPA Friend,
I start off with the cynical view that what a politician says he will do and what actually happens may be different and that I don't believe anything until it actually happens. In our office we put enough time, effort and money into SIPPs to understand the impact of governmental U-turns! I forgive those cynical readers who see this as a lawyer starting off with an exclusion clause. There are several things which may have an impact on those wishing to buy property in Spain or who have already done so.
A plan to build 1,500,000 Official protection properties over the next 10 years. These are similar to council housing in the UK. 900,000 are to be sold and 600,000 are to be rented.
Encouraging purchase of properties for rental through mortgages. There are no details of how this is going but they seem to want to encourage rentals.
Encouraging rental of properties through greater security and guarantees for landlords and better protection for tenants.
Regulation of the property market including estate agents and property administrators. This is long overdue and it will be very interesting to see how this is going to work. Now that there are many less agents in Spain than there used to be it will be easier. However, as many agents are based outside Spain but selling Spanish properties or even based in Spain but selling properties outside Spain it will be interesting to see what they come up with.
An increase in the tax free allowance for Inheritance tax of up to €60,000 which they state will mean that approximately 80 per cent of beneficiaries will now pay nothing plus an exemption for main homes.
A simplification of VAT/transfer tax for property transfers and to encourage renovation of older properties.
A clampdown on fiscal fraud and money laundering. Those who don't declare their full taxes beware!
A change in legislation to assist small businesses.
Eliminating wealth tax. I suspect that most people are not aware of this tax (although they should be) and therefore few people will feel an effect.
Improvements in transport links The aim is that by 2010 Spain will have more high speed train track than any country in the world. 1,500 km of new motorways and roads and the start of 1,600km more.
Obviously there was the usual increase in employment, improvement in healthcare, reduction in crime etc which all parties always put in and which don't really affect what we are interested in.
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