The Spanish government is encouraging landlords to invest in property, as it looks to get its stumbling economy back on track.
Although the economy is Europe’s fourth largest, it is struggling under the weight of enormous government and bank debt. The austerity measures and job losses that have followed have resulted in property prices dropping by 40 per cent and mortgage financing from banks has dried up.
In response, the government has concluded that outdated rental laws need to be revised to encourage more landlords to buy properties in the countryside and rent them out, the Daily Telegraph reports.
The major bonus for interested UK property investors is a proposed cut on rental income, which could be as much as 100 per cent in some cases. For anyone looking to purchase a Spanish holiday cottage for later life, this could present a great opportunity to buy at a low price and make some strong returns in the next few years.
Spain’s Ministry of Development has revealed that the number of properties bought by foreigners rose 12 per cent in the second quarter of the year compared to the same period in 2011, and Marc Pritchard, sales and marketing manager at UK-based housebuilder Taylor Wimpey España, told the Telegraph that Spain is still a popular choice with property buyers in Britain.
“For Brits the easy-to-reach reliable good weather plays a big part, swapping grey clouds for blue skies. And the strength of the pound against the euro means that visitors can get more for their money,” he said.