Gecko Towers:
Stop Press 27.11.24 Given the massive amount of online and press interest in my proposition, here is a good piece from the people from AZBigMedia. It adds to the conclusion that those from the USA are seeing the Costa del Sol as the new “SoCal” with all of the attendant benefits and more! https://azbigmedia.com/real-estate/why-the-costa-del-sol-is-the-new-socal-a-real-estate-haven-for-u-s-investors/
Anyone who loves the books of F. Scott Fitzgerald, especially “Tender Is The Night”, will have concluded that the Americans who thrived on the French Côte d’Azur, just under a hundred years ago, generally contributed to its international development. The curiosity of their of fellow Americans, as to this pearl on the French coast, resulted in an influx of US visitors that continues to this day.
The fictional characters financial difficulties, infidelities and alcoholism aside, Fitzgerald, sparked an appreciation of the romanticism of the age, embraced the beauty of the region and prompted many to explore and frequently, settle.
Well, the conditions may be a little less prosaic, thank goodness, but various factors have coincided to cause the blessed Marbella region of the Costa del Sol to be the sharp focus of those living “across the Pond”.
We first noticed an enthusiasm for Malaga, when in 2022, I posted a report that the folks at United Airlines had announced that from April 2023 they were reestablishing (post Covid) direct flights from New York (Newark) to Malaga.
The response was amazing, as have subsequent observations on this route that has been reinstated annually since 2023. It is widely anticipated that it may become a year round service in coming years. Although I am reliably informed that the US to Lisbon route with TAP Airlines is equally good and significantly cheaper even when combined with costs of the Lisbon – Malaga leg.
There are also ongoing discussion about Málaga being serviced from other US hubs.
We have travelled to New York City on this route and the direct US to Malaga link is a breeze allowing you to arrive and be checked-in at your Marbella accommodation within, generally, ninety minutes of arrival at the airport, such a great way to start a vacation.
It may be dull to recite the often recited, but in this Marbella region, colloquially referred to as “the California of Europe” it may well be that the residents of Los Angeles may find another compelling reason to check their property holdings. The draconian “Mansion Tax” has hit LA and there has been a flurry of sales activity, stimulated as a result.
The tax statue known as Measure ULA, imposed, despite several court based attempts to invalidate it, a 4% transfer or sales tax – up from the previous 0.56% – on property sales in LA in excess of $5m and an incrementally higher tax of 5.5% on property sales that exceed $10m. This tax is payable – subject to certain exceptions – by the seller and is primarily intended to raise income to fund local affordable housing projects and to assist those at risk of homelessness.
The tax came into effect on 1st April 2023 and net over $82.1m within its first five months. Some suggestions have been made that the tax may be subject to repeal but it seems that Californian Supreme Court in June 2024, has now nixed this.
It’s also worth remembering that many US States have a very high percentage of Spanish speakers – both as first and second languages – suggesting that, for some, their integration into Spain may be even easier.
By way of demonstration that Marbella is fast becoming a viable alternative to a number of US cultures, including that enjoyed in the bubble that is Los Angeles, Eva Longoria, in this article from the BBC explains why she chose to relocate here. https://bbc.com/news/articles/cj6kw81n77go We also know of a variety of music artists, songwriters and business people who have seen the Marbella region as a viable location for recording studios and a climate that encourages creativity.
I am told that as part of the application process for non-EU nationals to apply for a so-called “Digital Nomad Visa” (DNV) that it is necessary to show, amongst a menu of other things, employment with a company that is older than a year and the employment must exceed the period of three months. Anecdotal evidence from those who have discussed this with us it that the DNV process is far from streamlined. Most, who have seen a glimmer of success, have worked with a Madrid based agency, who we know, to progress their application.
The New York Times, ran a piece – regrettably behind a paywall. It highlighted the zeal with which US families are considering whether a DNV may provide them with the perfect solution to their ambition to relocate to Spain. See here: https://www.nytimes.com/2024/11/08/travel/digital-nomad-visas-moving-abroad-election.html?smid=url-share
Now here’s a random thought. In our recent experience of the tech sector in the beautiful city of Malaga, I have been told that there is simply a lack of experience-qualified software engineers and technicians. Demand, we are told, for the right people is at an all time high. We have seen layoffs at the hands of, among others, Messrs Besos, Musk and Zuckerberg, there appears to be some obvious synergy here.
Now in the music industry when there were job cuts in the 1990’s post the first dot.com boom, it delivered growth in what was called the “independent sector”. When those with experience, contacts and some money in their back pockets, headed off to form their own start-ups which in turn supplied the more major businesses with proven talent and new business models.
What’s stopping those needing a fresh start to investigate the opportunity to live and work in the fabulous Malaga region of the south of Spain? To head off any cultural hiccups you don’t need to speak Spanish to work in the Malaga tech sector but it will enrich your experience if you do.
I hear you asking, how difficult is it for a US or Canadian citizen to buy and settle in the Marbella region? The easy answer, I am advised, and its practically identical to any UK or other non-EU purchaser. You and we are not residents of the European Union nor the European Economic Area so we will need to look at the mechanics of how we can legitimately settle in Spain. This will include obtaining the all important NIE identification number (Número de identidad de extranjero) that each party, that comprises the owner of a Spanish property, is obliged to hold.
Focusing briefly on discussions of formal residency in Spain – which don’t impinge on your right to buy a property as a US national – the Golden Visa solution, requiring the purchase of a property with a qualifying value may be an excellent solution for those US nationals requiring multi-access to Schengen Area, subject to getting their tax status managed. The Golden Visa may also be advantages for your dependent family. The result being that you receive a Visa that allows you to enjoy your Spanish property the year round, if that works for your tax planning. The bad news is that the Golden Visa is on the way out in January 2025, though I believe still available and you’d need to act quickly to avail yourself of this solution.
Some general notes about the Gold Visa process are in an earlier blog – see here – Golden Visa blog
If you stay for 183 days or more (cumulative) I am told that you become a Spanish Tax Resident. As a result you are obliged to file a tax return and pay tax on your worldwide income. Residency for a total period of less than 183 days, my Associate Network colleagues andvise, and you remain free to manage your own tax planning.
For others, it may be worth checking to see if there is the chance of securing a Passport from another European nation – Dutch, Irish, Italian, German etc. Many US nationals are first generation and there may be the opportunity of securing an EU passport by parenthood. This would sidestep many barriers to permanent residency (other than Spanish tax residency) that afflict those with a non-EU residency status. Would an EU Passport assist your Marbella property journey?
We have had confirmation from our trusted bank sources that they have several mortgage products available to assist in settling the purchase price for US and Canadian residents. Equally, our currency transfer specialists can offer great rates for US or Canadian dollars.
The allure of this area along the Mediterranean coast is proving to be a magnet for our friends from the US and Canada and I wanted to share a recent piece from Forbes Magazine that extols – and I must agree with – the virtues of a kind of old-school romance that Marbella has by the bucket load but specifically at venues like the Puente Romano. The Timeless Luxury Beach Resort
If, while visiting, our US friends need to recapture perhaps an essence familiarity, a couple of years ago a branch of the London born, US initiated and owned Hard Rock Cafe franchise opened the Hard Rock Hotel in Nueva Andalucia. A brilliantly vibrant space with a beautiful pool terrace, delicious cocktails and great food.
So, if what you are looking for is an enviable combination of country, beachside or more metropolitan living in the relative safety of the Marbella coast, catch a flight and come and see for yourselves. Many North Americans who came over here over the last forty years, some of whom have established successful businesses here, now vow that they are unlikely to ever return to the US. Oh and, of course, you’ll certainly warmly embrace the vibrant cultural and gastronomical opportunities of this precious region.
Should you be interested in discussing the process involved in buying a property in the Marbella region, we would be delighted to assist you. Please contact me to discuss your precise requirements.
We have an experience-qualified and best of breed Associates Network comprising professionals focused on the Marbella region’s property market. Their services include property search, mortgage funding, legal and tax services, visas, surveying, insurance and currency brokerage. We have done the leg work, testing the quality of our Associates and now feel confident in recommending their services to you.
Please note that our posts are for general interest. There is no substitute for proper advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law.
Nothing contained in this article should be seen or taken as the writer or the publisher providing legal, tax or financial advice. All details have been reasonably fact-checked and all efforts have been taken to ensure that facts are accurate as at the date of publication.
My details: Mark FR Wilkins, during usual business hours on +34 600 343 917 or e-mail me at mark@therightsgroup.com
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