Top 8 reasons why you should retire in Spain

Spain: the best place to live in

Spain has always been associated with old world charm, romance and spectacular scenic beauty. Spain typically conjures up images of Matadors fighting with bulls and the Flamenco dance. The magnificent bars and restaurants found in almost every corner of the street, the numerous museums and art galleries, the beaches and the overall cultural vibrancy makes Spain an ideal place to live in. Therefore if you are planning to retire in Spain, then this is possibly the best decision of your life.

8 reasons to consider property investment in Spain

There are several reasons why a plan to retire in Spain can prove fruitful, especially from the point of view of property investment.

      1. Excellent transportation – Barcelona was home to the recent Olympics. The result is a high quality transportation system. Also, there is easy access to other cities of Spain which makes commuting easier.

      2. Taxation system – The taxation rules in Spain have been modified in the recent past to eliminate the huge disparities in taxation between the foreign citizens and natives of Spain. All these measures have helped foreigners retire in Spain easily. The taxes have reduced, making it conducive to settle down here.

      3. Foreign nationals need not pay double anymore. Earlier any foreign national, who wished to sell their property had to pay double the amount of capital gains tax, as compared to their Spanish counterparts. Now the capital gains tax has been made uniform for both foreigners and Spanish residents.

      4. CGT reduced. The CGT has been drastically reduced from a whopping 35% to an 18%, which incidentally is the same rate which Spanish people pay.

      5. Withholding tax reduced. Earlier if foreigners wanted to sell off their property, the buyers had to pay a withholding tax of 5%. This has now been reduced to 3%.

      6. Numerous mortgage lenders in Spain – There are several banks and financial institutions that fund loans for home purchases in Spain. They typically fund loans for all kinds of homes – from holiday homes, a permanent home, any property that you wish to build on, any plot of land that you wish to renovate etc. For all these purposes, it is very easy to get a loan from any of these banks. However, there are certain situations where loans will not get funded – these include the old properties located in the more rural areas of Spain. Therefore while considering to retire in Spain, do select a suitable location that does not fall into this category.

      7. Easier to qualify for loans – Those people who wish to retire in Spain have much better chances at qualifying for a mortgage loan. The reason being they will be permanently residing in Spain and hence banks and financial institutions will be more willing to fund loans for such people.

      8. Higher resale value of property – The real estate prices in Spain are rising and they are expected to continue. However, this need not be a deterrent to invest in property in Spain. The reason being that resale value for almost all properties in Spain, especially Barcelona is very high. Most investors like to take advantage of this option and buy and sell property to gain maximum profit. Therefore if you plan to retire in Spain, this can be a great way to make additional money.

A partner in www.buyspain.co.uk and a Fellow in the British Association of Entrepreneurs (FBAE), Steve has authored numerous articles on Spanish real estate. He is considered an expert in Spanish property in international circles.