Spanish property warnings for expats

Britons have long seen Spain as the prime destination for an off-shore retirement house or second home, with the Iberian Peninsula country booming since waves of UK expats flooded the shores in the 1970’s.

Current estimates place the number of British home owners in Spain at around 800,000.

The recession has also meant that property prices in Spain have taken a huge hit, some areas showing falls of up to 65%. This has meant that anyone buying off-plan, particularly in the oversupplied Costas, has been hit hard by the economic downturn. That said, now is still an optimal time to look at buying, although experts advise against doing so in the traditional hot-spots. Buyers are recommended to look at Jerez or Costa de la Luz where there is still room for growth, along with southern or inland areas.

Buyers are also urged to bargain, with private sellers often settling for 85% of the advertised price. Shopping around will also prove beneficial although the less typical UK expat hotspots may present a language barrier.

The weakening British pound in relation to the euro means choosing the right currency to buy in is also essential.

Planning laws need to be investigated thoroughly. The property bonanza that swept Spain in the 1990’s was accompanied by corrupt officials and large bribes, many of which are now coming back to sting the owners.

Potential buyers should also clearly establish what benefits and healthcare options are available to them, along with pension payments and claiming back Capital Gains Tax. Whatever the decision, a good lawyer or solicitor is certainly required.