More than 19% (or 500,000 ) of all wealthy Brits plan to leave the country within the next two years in search of better weather, more value for money property and less taxation. For buyers with £250,000 and more to invest, Spain has suddenly become a lot more attractive as the base for a permanent home.
That’s because the country’s arch rival France has just scored an own goal with regard to the purchase of semi-permanent and holiday home purchases, increasing taxes threefold and charging owners of holiday homes social contributions, even though they are not eligible to get social security in France. Coupled with 19% capital gains tax and the 15.5% social charge this means somebody selling a fairly average home will be charged 34.5% on their capital gains – in Spain it is currently just 9%.
So what does a budget of £250,000 buy at the Costa del Sol, say in glamorous resort Marbella for example?
In Altos de Elviria a budget of £169,764 (EUR 215,000) buys an apartment with 87 sqm floor-space, 2 bedrooms, 2 bathrooms, sea views and private gardens. Altos de Elviria is a lovely suburb of Marbella and within just a short drive of the main beaches. EUR 240,000 (£189,504) buys an even larger apartment with 106 sqm of floor space and communal swimming pools, while EUR 255,000 (£201,348) buys a 3-bed, 2-bath apartment with panoramic views and 166 sqm living space in the same neighbourhood.
For those who can afford to increase the budget by just over £50,000 there are amazing bargains to be had in Bahia de Marbella, an easterly district of the town, where a spectacular apartment with sea views and close proximity to the beach as well as amazing communal swimming pools and gardens can be purchased for EUR 385,000 or £303,996. The apartment has 3 bedrooms and 3 bathrooms and benefits from 145 sqm of living space.
In Cabopino in Marbella East it is possible to buy a woodland villa with 120 sqm of living space and a plot of 600 sqm for £296,100 or EUR 375,000. The villa has 2 bedrooms and 2 bathrooms. In the same neighbourhood it is possible to purchase a resale flat for EUR 340,000 or £268,464. The flat has spectacular views, its own rooftop pool, 2 bedrooms and 2 bathrooms. A townhouse in Capobino with 140 sqm floor-space, 2 bedrooms and 2 bathrooms will cost rom around EUR 255,000 or £201,348.
There is an amazing choice of property styles available for sale – resales as well as key-ready, brand new property. While the government currently permits a 50% reduction in purchase tax on new builds, this is not the case for resale property, forcing many vendors to be even more “realistic” with their pricing – the perfect buyers’ market.
After yet another rain-soaked summer in the UK many people will be tempted to pack up and leave. It is important to note the current level of unemployment in Spain is very high and is forecast to remain so for the foreseeable future. For those who can afford to retire or those who run their own business or work over the internet a move to Spain now is the perfect timing, but there are also many office-based professions where it may be possible to “commute” for parts of the week, renting a room in the UK during the week, while getting ready to eventually move to Marbella, Fuengirola, Estepona or Malaga.
Buying this year, when there are so many excellent tax breaks still in place, makes sense – more and more investors are looking to Spain and other “cheap” Eurozone destinations to snap up holiday homes with the view of long-term investment.
Why live in a semi-detached home in rainy Manchester or Hull, when a home in Hacienda Las Chapas can cost less than the average UK house?
A Hacienda Las Chapas apartment with sea views, 80 sqm of floor-space, 2 bedrooms and 2 bathrooms can cost as little as EUR 199,000 (approx. £157,130), while in some new developments in neighbouring district Capobino apartments with 90 sqm floor-space and the same number of bedrooms and bathrooms starts at just EUR 178,500 or £140,944.