Gecko Towers
Update 09.04.24: An announcement has been made by the leader of the Socialist Government in Spain, that his government plans to amend or repeal the “Golden Visa” legislation. Currently no timetable for these changes has been suggested and there is opposition to any revision. That said, this discourse, that started in May 2023, may result in some material changes. We will endeavour to keep you up to date with these as we are made aware of them and their precise impact.
It happens every year but you tend to forget; a bit like how much you really enjoy Christmas. Come the third week of August an almost instant transformation visits the Costa del Sol. Like a number of, on the face of it, holiday destinations, the Marbella region is a preferred staycation for many Spanish city dwellers, particularly those from Madrid and Seville who often have family properties in the area. Traditionally, their holidays happen in July and August, when their home city’s swelter.
Coming from London, I suspect when staying in Devon, Norfolk or Wales we used to import our city attitudes. Our pushiness and, albeit clearly wrong, our entitled sense of we are here, please indulge us. Regrettably, for the fine staff of local beach restaurants and Mercadona (other supermarkets are available), their usually good natured cheeriness, by middle August, has all but evaporated following batterings from relentless townies.
The glimmer of hope, which returns annually is the weekend of the Great Return, when those temporary visitors who having unloaded a hefty slice of their annual budget, to help keep the Coast funded for the year, have gone. No longer the grinding of brakes nor ignition of hazard lights in the Puerto Banus traffic grid lock. No further need to breeze-up your chosen rat runs around the traffic that you’ve honed to an art form. No remaining hassle of emerging from a parking place, in so many different locations, into traffic bearing down at speed trying to catch a red light before it changes.
Yes, its the third week of August and those who’ve borrowed the Costa del Sol for a few weeks are gone. Those favourite restaurants that we enjoy during the larger part of the year which were block-booked for the period are finally show signs of being available…….And breathe!
The Costa del Sol is returned, slightly marred by iced cream wrappers, pippa (the seeds of a the sun flower) shells and discarded cigarette butts, to those who are the custodians for the remaining eleven months of the year. The end of August into September tends to be one of the most splendid periods of the year. Much of the summer’s heat has reduced, although the high 20C’s is still usual and the humid stays high in August before falling in September.
The importance of this message is that those of us who remain re-acquire “our Costa del Sol” largely for our own use. This delivers the essence of a compelling lifestyle and provides families, retirees and digital-nomad-type entrepreneur relocaters with the excitement of the unfolding tableau of opportunities, unlimited by doubtful or disappointing weather.
Much has been written of the “pent-up demand” scheduled to hit the Costa del Sol in a frenzied whirlwind of of property acquisition from sun-starved Brits keen to realize a long held dream of owning a Marbella property.
We are sensing that Brits, for many years the largest property buying group by nationality in Marbella, are daunted by the adverse press that has sought to convey the inaccurate impression that Spain has erected post Brexit barriers to their entry into the market. Far from it, Spain recognizes the value of a Brit property buyer and is very welcoming.
Both at the point of acquisition of their property – the costs of buying are high with the lion’s share going to the Spanish Exchequer – see our previous piece here Marbella – the Costs of Buying – and during the ongoing nature of developing a life in Spain. The would be relocater may become part of the Spanish Social Security system or at the very least be responsible for paying any required Non-Resident taxes or annual property running costs similar to Local Authority Rates or Council Tax in the UK.
The conversations I seem to be having on a frequent basis with those keen to settle in Spain revolves, not so much around the acquisition of a property, but the collateral benefits of getting the right visa structure in Spain. Please see here our previous pieces on Visas – Golden Visas and Become an Expat
The Golden Visa is aimed at the property purchaser where the money introduced by the buyer exceeds €500,000. The Golden Visa vest in the holder a flexibility allowing for friction free travel within Schengen Group countries.
The Non-Lucrative Visa is clearly aimed at the retiree community. We understand from the post-Furlough statistics coming from the UK that a very large percentage of the previously working population is now retired with many in their early fifties with still a huge amount left to offer and to enjoy.
Finally, the draft “digital nomad” visa seemed squarely aimed at the young entrepreneur who has a key interest in their work/life balance and can chose to locate themselves where their interests in maximizing on a healthy lifestyle are best served.
I am now going to sound like an Estate Agent, which I am not at all – although I do know several with impeccable reputations. It seems that at the very high end in the property spectrum there is reducing stock where prices are key and offers often exceed asking, such is the competition for these assets. There is a decent and evolving supply of new build properties up and down the Coast with high specifications and often great views.
The third most defined element of the property offer are those properties slightly confusingly branded as “resales”. These can range from previously built town houses, villas or apartments that have been developed over, usually, the last thirty or so years and are being sold by an original or subsequently acquiring owner. The sellers of these properties may have greater flexibility on price as they have often held the property for a number of years.
A sub-division of these “resale’ properties are those that may have been built forty to sixty years ago. They tend to be substantial and more traditional/classical properties on reasonable sized plots in mature urbanizations. They lend themselves to complete demolition and rebuilding or a substantial remodeling, called a “reforma”. It is, of course, essential to ensure that your chosen Spanish lawyer (your Abogado) comprehensively analyses the title and configuration of any property you are interest in buying but those built pre-1990 do need particular attention to ensure their legality.
If you are looking to build equity in the Spanish market, and you would be wise to consider much of the Costa del Sol as a potentially live investment market, this buy to rebuild or remodel variant is potentially lucrative. We have seen several examples of a typical purchase of a tired villa at €400,000 with remodeling costs of up to €200,000, the resulting property being returned to the market with €1m plus price point. There will, of course be capital gains tax to be applied to profits but, we are told, that one is able to reduce the overall tax burden by reducing the gross by the costs of redevelopment.
The message that is coming from the market is that the stock of properties is not elastic and if you are interested, now is the time when you’d be best advised to identify the availability of your preferred home in the Marbella area. We are on hand to help you at every step of the way with transparency and independence. Is it now time for you to act?
Should you be interested in discussing the processes involved in buying a property in the Marbella region, we would be delighted to assist you. Our team of bi-lingual, highly experienced and wholly independent team of Abogados are ready to help you.
Please call me, Mark FR Wilkins, during usual business hours on +34 600 343 917 or, if you prefer, or e-mail me at mark@roslegal.es
Please note that our posts are for general interest. They is no substitute for proper legal 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 or financial advice.
© Mark FR Wilkins 2021. All rights reserved.