Take advantage of cut price VAT on Spanish property before it ends!
Overseas buyers have only a few weeks left to buy a new property in Spain and take advantage of the country’s cut price VAT which ends soon. The VAT is set to increase on 01 January 2013 for new properties but there is still time to buy at the lower rate according to developer Taylor Wimpey España.
The company has found that the growing strength of the pound against the euro and low interest rates are making holiday homes attractively affordable to Brits. Indeed, some 53% of the company’s property sales last month were made to UK clients, the most sales made in a month to buyers from the UK since September of 2011. Marc Pritchard, sales and marketing manager at Taylor Wimpey España said that British investors are making the most of the current market situation in Spain.
‘It is not surprising for Spain to see the increase in foreign spending, and especially this year, as the country’s tourism sector is experiencing an influx of vacationers. These tourists are known to visit Spain mainly to improve their knowledge of the nation’s property market before deciding to invest in it,’ he explained.
Quote from PropertyCommunity.com : “I read an article that if I buy a home that costs about $200,000 U.S.D. I’ll get automatic Spanish Permanent-Residency which I imagine will lead to Spanish citizenship after a few years even though I’m not European.”
‘The decline in real estate prices in some of the serene areas of the country has seen an influx of interest from foreign investors as more and more people believe that this is the best time to purchase a holiday home in Spain, and that too for incredibly cheap prices,’ he added.
On top of this it is also cheaper to get a Euro mortgage as mortgage base rates have fallen all year, and are now well below their lows of 2010. Euribor, the interest rate most often used to calculate mortgage repayments in Spain, fell to 0.588% in November, the lowest level on record and 71% lower than the same time last year. Euribor has now fallen for 13 consecutive months and is now almost 90% below its peak of 5.393% in July 2008.
Examples of properties available through Taylor Wimpey España at 4% VAT include La Floresta de la Mairena, a new residential development near the village of Elviria which is close to Marbella and Malaga. It is in an area declared as a natural biosphere reserve by UNESCO, with views towards the oak and pine forest as well as towards the sea where prices start at €178,000.