Despite uncertainty caused by the European Commission's continued pressure on the Spanish Government to amend tax legislation, which discriminates against overseas investors, British interest in the Spanish housing market has remained strong.
The Spanish legislation in question, forces UK investors to pay 35% tax on profits from property sales, while locals only pay 15%. Recent figures from the Office of National Statistics have shown that Spain is still the favourite place to purchase property for British investors.
Around £23 billion was spent on property investment abroad last year, with 27% of the total going on Spanish property. The European Commission has referred Spain to the European Court of Justice because it believes that the tax difference goes against the commission's treaty. It had previously requested that the Spanish Government alter the legislation, but they have refused.
Our view
is one of the few UK financial advisers that are authorised to offer advice in Spain. We have researched the market over the last three years and found hundreds of cases where people have been mis-sold or indeed have mis-bought property, investments and more.
The Spanish tax and property system is different. Do not buy without taking advice first - you may regret it at huge cost. ' to clean up Costa's' .