SpanishPropertyBuyer.com

If you live in Spain or are coming to Spain you may find this site of great use, it gives lots of information on a weekly news letter and tells you what is on and where in the Murcia region. You can subscribe to the weekly newsletter, it is FREE and gives much more information about places of interest, museums, ferias, fiestas, shows, concerts, entertainment and where to eat and drink .  You can advertise or list goods for sale.There is something new to be learnt every week. Great ideas to get the best out the region.

Go to:- http://www.simplynetworking.es/index.php

Admin: 03 September 2010

Britons who move abroad to live need to be able to show that they have made a “distinct break” with the UK if they wish to ensure that they cannot be treated as UK tax resident after leaving UK shores.  If you do not clearly sever ties with the UK, HM Revenue & Customs (HMRC) could argue that you are liable for tax in the UK, even though you live elsewhere.  The exception is if you leave the UK for full time employment abroad.

It has been suggested that employees leaving Britain will have to cut their ties with the UK like selling their home, and not set foot in the UK for at least a year to become non-UK resident, but this is not the case.

The recent judicial decision involving Robert Gaines-Cooper and UK residency reaffirmed that in order to become non-UK resident it is not necessary for an employee to do anything other than be employed overseas full time for at least a full UK tax year. 

Lord Justice Moses said: “It is not enough that the taxpayer has left the UK, he must have left to work full time.  Absence is not sufficient; it must be absence while engaged on a full-time employment for at least a whole tax year.  No more however is required.  The absence need be neither permanent nor indefinite.  Accordingly, … there is no requirement, for a taxpayer to demonstrate that he has severed family and social ties within the UK.”

The employment must be on a full time contract as an employee and not simply your own company set up to give you an employment. 

When Gaines-Cooper moved to the Seychelles in 1975 he did not take up full time employment there and had to rely on HM Revenue & Customs’ (HMRC) guidance in its booklet IR20 (now HMRC6) on residency and non-residency.  Under the heading “Leaving the UK permanently or indefinitely”, the booklet stated: “If you go abroad permanently, you will be treated as remaining resident and ordinarily resident if your visits to the UK average 91 days or more a year.”

Gaines-Cooper argued this meant that all he had to do was leave the UK and thereafter spend less than 91 days a year there.  The Court of Appeal referred to the words “permanently or indefinitely” in the heading:

“The adverbs “permanently or indefinitely” make, as a matter of construction, all the difference.  The extent to which a taxpayer retains social and family ties within the United Kingdom must have a significant and often dispositive impact on the question whether a taxpayer has left permanently or indefinitely.”

IR20 has since been replaced by HMRC 6 and HMRC is adamant that the information given is for guidance only. However, it is clear that if you are not an employee – eg, you are retired, even if below retirement age – and wish not to be treated as a UK tax resident after leaving the country you must demonstrate that you are leaving the UK “permanently or indefinitely”. 

 Ties to sever to establish UK non-residency

• Set up a new main home outside the UK. It is not strictly necessary to give up having a home in the UK altogether providing it is “consistent with” you moving abroad to live “permanently or indefinitely”.  So if you retain a UK home it would be prudent for your home abroad to be larger than the UK one.  However retention of a UK home available for your use is a factor that connects you to the UK, so to strengthen a claim to non-UK residence we would recommend you sell or rent it out to a third party.  

• Move personal effects, cars etc to your home abroad.

• Your spouse and any minor children should move abroad with you.  There is however no need to sever all family and social ties – it is not necessary for adult children or aged parents to move with you as has been suggested in the UK press.

• Resign membership of sporting and social clubs and cut all UK business connections.

• Notify your UK doctor and dentist that you have left the UK and register with different ones in your new country of residence.

• Dispose of UK investments and plan to re-invest abroad.       

• Close UK bank accounts and credit cards and open new ones in your new country.

Once you have made a ‘clear break’ with the UK, it is still possible to visit, providing you keep well within the 91 day limit – i.e. spend less than 91 days or nights there per UK tax year taken on average over four years.

If you have not made a ‘clear break’ with the UK, you may be treated as remaining UK resident, regardless of the number of days you spend in there each year.

A tax and wealth management firm like Blevins Franks can advise you on tax and residency issues in the UK and many other countries, including advice on how tax planning can reduce your tax liabilities, even if eventually you return to the UK to live.

 By David Franks, Chief Executive, Blevins Franks

www.blevinsfranks.com 

 

Many British expatriates arrive in Spain to live without fully understanding the local tax situation or any obligations that may remain to the UK taxman. There are quite a few myths around and unless you are properly informed you may get your tax planning wrong. This article looks at some of the common misconceptions and separates fact from fiction.

I am resident in Spain but complete a full tax return in the UK

►        You become resident for tax purposes in Spain if:

-       you spend more than 183 days in one calendar year in Spain (the days do not have to be consecutive), or

-       your “centre of economic interests” is in Spain, or 

-       your “centre of vital interests” is in Spain, or

-       your spouse is resident in Spain unless you can prove you are resident in another country.

►        As a resident of Spain you are liable for income and capital gains taxes on your worldwide income.

►        If you receive a gift or inheritance as a Spanish resident, you may be liable to Spanish succession tax.

►        You must complete a Spanish tax return in respect of your worldwide income.

►        A UK tax return only needs to be completed in respect of certain non-exempt income, such as rental income from UK property.

I am taxed at source on my UK assets and therefore I am not liable to tax in Spain on these assets

►        You are entitled to double tax relief if you have income subject to tax at source in the UK which is also taxed in Spain.

►        You can usually make arrangements for tax not to be deducted at source in the UK on certain types of income. This income would then be received gross and taxed solely in Spain.

I am taxed at source on my offshore bank accounts under the EU Savings Tax Directive and therefore am not liable to tax in Spain

►        Paying withholding tax on offshore interest payments does not mean that you have no further tax liabilities on the same income in Spain. 

►        You still must declare such earnings on your Spanish tax return. 

►        If you pay the withholding tax and declare the income in Spain you are unlikely to receive any tax credit in Spain and could pay tax twice.

I can withdraw 5% of my UK/offshore insurance bond per year for 20 years without any liability to Spanish tax

►        The 5% rule only applies to UK residents.

►        As a Spanish tax resident, your offshore insurance bond will be taxed according to the Spanish rules. 

There is no tax to pay if I have not taken withdrawals from my insurance bond

►        The taxation of insurance bonds in Spain depends on whether the bond is ‘qualifying’ (issued by an EU country and compliant with Spanish regulations) or ‘non-qualifying’.

►        Non-qualifying bonds are valued at 31^st December each year and any increase in value from 1^st January is taxed in full as income, even if there has been no withdrawal. The taxable income is taxed as savings income, so at 19% on the first €6,000 and 21% on any balance.  For example, if an investment bond increases in value by 10% from €200,000 to €220,000 in any one year, the tax payable in Spain is €4,080 (€6,000 x19% = €1,140, + €14,000 × 21% = €2,940).

►        Any fund located in a ‘tax haven’ (eg Isle of Man, Jersey, Guernsey) is non-qualifying and will receive this unfavourable tax treatment.

A withdrawal from a qualifying offshore bond will be taxed at 19% on the first €6,000 and 21% on any balance

►        There is no tax to pay until a withdrawal is made from qualifying bonds in Spain.

►        The taxation is very favourable because only the growth in value element is taxed, not the whole withdrawal. Using the above example, if you withdraw €20,000 you will only need to pay tax on roughly 10% of it.  The taxable income is therefore €2,000 and your tax liability (at 19%) is only €380.

UK investment bonds are tax free in the UK for Spanish residents

►        A UK investment bond is taxed at source in the UK.

►        The tax deducted can be set against your tax liability in Spain, so you do not pay tax twice on the same income.

►        If you have either a non-qualifying insurance bond or a UK investment bond it will be advantageous to transfer it to a qualifying, non-UK, bond.

I am a UK national and not liable to Spanish succession tax (SST)

►        SST is payable if the inheritor or recipient of a gift is resident in Spain, or the asset being gifted or passed on death is situated in Spain.

►        The tax rate can be as high as 34% for inheritances or gifts within the immediate family or higher for more distantly related recipients.

►        Depending on which region you live in, there are usually deductions available according to the closeness in relationship between the recipient and the deceased, and other exemptions may be available.  

►        SST can often be avoided through use of an offshore trust.

Contact an experienced international tax and wealth management adviser like Blevins Franks for advice on tax mitigation strategies in Spain. 

Note that the tax treatment(s) detailed above are current at the time of writing and may change in the future.

By Bill Blevins, Managing Director, Blevins Franks

 www.blevinsfranks.com

From the 1^st July, 2 of the 3 categories of Spanish VAT will rise.

 16% to 18%

   7% to   8%

   4% (is to remain the same).

What does this mean for the Spanish Property market which is already struggling to survive the current climate?

It will certainly increase  the cost of buying and selling property and obtaining a mortgage in an already crippled market.

What is the government thinking?

Of course it will generate income for them but may push the market further backwards and no doubt they are hoping that prices will fall still further and generate increased interest from buyers and steady the industry but at what cost? More likely it will force more builders, promoters and agencies out of business with knock on job losses. The banks will come under further pressure and there will be many owners caught in the trap of having mortgages far greater than the value of their property causing an increase in repossessions as people struggle with their own economic crisis, losing jobs and putting more people on the bread-line.

Then there is the knock on effect for furniture and electrical companies and many other suppliers with steady drops in sales already recorded.

Buyers and Investors

No doubt there are people watching the situation with interest and for the general buyer now is the time to buy a property before the IVA increases and with so many properties available at low prices.

For the investor, they will probably sit it out and wait for rock bottom distressed sales and then pounce as the drop in price will by far outweigh the increase in purchase costs.

With the pound rising against the euro, buying a property is looking even more attractive.

Mortgages

As the banks continue to come under pressure they will negotiate on distressed properties in order to clear their overflowing books and are currently making mortgage offers which pre crisis would be unheard of.

If you have the money now is the time to buy Spanish Property.

Admin: 5 May 2010

More wealthy people are expected to leave the UK to reside abroad and escape the new 50% tax rate for higher earners. Now the UK tax authority has warned that it will dig deeper to determine non-resident status and look closely at people’s lifestyles – and not only how many days a year they spend in the UK, to assess their tax liability.

Wealthy or not, many people who live outside the UK may think that they are UK non-resident and therefore not liable to pay UK taxes, but under the scrutinising eyes of the taxman they could be found to have UK tax status because of the connections they retain with the UK. It would be wise to be wary of the taxman – for what you believe to be the tax rules regarding residency may be rather different from HM Revenue & Customs’ view.

Many people go by the 91 day rule when calculating their tax residence, which is to spend less than 91 days in the UK on average, calculated over a period of up to four UK tax years. But this is a guideline rather than a law and could be ignored if other factors give weight to UK residency. Retaining a strong association with the UK such as maintaining a UK property, especially for family members; visiting the UK on a regular basis for work and keeping strong social ties such as club membership could go against you when HMRC determines your tax status.

It is advisable not to keep a house in the UK after moving overseas but to sell it and avoid buying a smaller property such as a flat for occasional visits. If it is not possible to sell your property because of a weak residential market, it should be let to a third party – not to a friend or a relative. If you do retain a home in the UK then HMRC could argue that your property overseas is more of a holiday home than a permanent residence.

HMRC has not yet revealed full details although it indicated in April that new guidelines covering the strength of your association with Britain could mean that you will be deemed a UK taxpayer even if you abide by the 91 day rule.

Private client partner at City law firm, Wedlake Bell, Emma Loveday, told The Sunday Times: “Merely counting days is just not enough to maintain non-residency status. HMRC will be considering many other factors and it will be trying to assess what the intention of the individual is when applying for non-residency and whether their lifestyle indicates that they have left the UK and become non-resident.”

“There is currently no statutory definition that sets out clearly and concisely what activities make an individual a non-resident,” Loveday said. However, other factors that could go against UK residency is sending a child to a British boarding school, remaining on an electoral roll, remaining registered with a UK doctor or dentist, keeping a car in the UK and having post sent to your UK address.

HMRC may well send you a letter requesting answers to questions giving evidence that you have left the UK for a settled purpose and that you have clearly separated yourself from UK residence.

Questions include:

• Your full current postal address in your new country of residence.

• Date of departure from the UK.

• Precise dates of when you visited the UK from that date and the reason for each visit.

• Where you stayed on each visit.

• Documentary evidence to support these dates in the form of bank/credit card statements covering the period which indicates where you were at the time of the transactions.

• Copies of utility bills, itemised phone bills, building and contents insurance, property/Council tax bills for your property in the UK and overseas.

• Particulars of arrangements to transfer your furniture and personal belongings to your overseas residence.

• Details of all property transactions during the period.

• A schedule of all bank, building society and credit card accounts during the period.

• Documentation that you are a registered taxpayer in your new country.

Anyone who moves abroad to live needs to be careful to ensure that they have indeed left the UK permanently to avoid being deemed as a UK tax resident. It is not enough to rely on the time based rules, i.e. spending less that 183 days in the UK during a UK tax year or not more than 91 days in the UK averaged over four tax years, but to cut all ties with their homeland as well.

The 91 day rule is not actually law in the UK, as some people who believed they had spent less than 91 days in the UK each year have found to their cost. UK case law is littered with stories of people who claimed they had left the UK and spent less than 91 days there, but were found by UK Courts to have remained UK tax resident.

From 6th April 2009, HMRC’s new publication HMRC6 entitled “Residence, Domicile and the Remittance Basis” replaces the publication IR20 on the tax liabilities of residents and non-residents. HMRC stresses that HMRC6 is for guidance only and does not have legal effect.

Under note 1.5.22 it states:

“The number of days you are present in the country is only one of the factors to take into account when deciding your residence position…

“You should always look at the pattern of your lifestyle when deciding whether you are resident in the UK. Things you should consider would include what connections you have to the UK such as family, property, business and social connections. Just because you leave the UK to live or work abroad does not necessarily prove that you are no longer resident here if, for example, you keep connections in the UK such as property, economic interests, available accommodation, and social activities or if you have children in education here.

“For example, if you are someone who comes to the UK on a regular basis and have a settled lifestyle pattern connecting you to this country, you are likely to be resident here.”

Anyone who has concerns about their UK residency status can take professional advice from financial experts Blevins Franks and receive guidance on how to legally minimise their tax liability both in the UK and their country of residence.

Credit:- By David Franks, Chief Executive, Blevins Franks

www.blevinsfranks.com

The new year will see increases that greatly exceed inflation.

o Electricity will rise by 2.6% but gas prices will freeze
o High-speed and long-distance train tickets will go up by 4%, while commuter-train tickets will rise by 6%
o The minimum salary will rise 1.5% and pensions by 1%

Electricity
For most users electricity will go up by 2.6%, as oppose to an increase of 0.3% in inflation, which means that average consumer will pay 89 cents more a month.

Gas
However, not all the prices are going up in 2010. The cost of some services, such as gas, remains stable.

Butane gas
This fuel will rise by 3.4% to 11.05 euros. This means that a 12.5 kilo bottle will cost 36 cents more, a rise which will affect between eight to ten million people in Spain.

Trains
Renfe is putting up the price of tickets for high-speed and long-distance trains (Alvis, Alaris and Altaria, among others) by 4% in 2010.

Tolls
However 2010 is not just about price increases, some prices are going down. This is the case for motorways run by the General State Administration, where tolls will fall slightly from between 0.05% to 0.48%, starting from Friday.
Landline telephony
With regard to telecommunications, the Telecommunications Market Commission (CMT) has decided to freeze Telefonica’s monthly fee of 13.97 euros (plus VAT), charged for maintaining a landline, for the second year running, which will help reduce price differences with respect to the European average.

Mail
A price rise of 6.25% means that sending a letter inside Spain will cost two cents more. Letters and postcards weighing up to 20 grams will need a 34 cent stamp instead of a 32 cent stamp. Mail weighing between 20 to 50 grams will also go up by two cents, to 45 cents.
International mail tariffs will not change, except for those with a European destination. In this case the price will go up by two cents both for ordinary mail (to 64 cents) and also registered mail (to 2.88 euros).

Pensions and minimum salary
The new year will also include a pensions adjustment, whereby contributory pensions will rise by 1%, and minimum pensions from 2% to 4.87%.
The minimum guaranteed inter-professional salary will be fixed at 633.30 gross euros a month, an increase of 1.5% on this year.

Credit: http://www.spainsolicitors.com/

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It is impossible to know everything about your property, your vendor, your builder and you cannot predict the future.

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The global economic downturn has fast-forwarded the annihilation of banking secrecy, forcing the world of offshore banking to change from concealment to transparency. It is now impossible to hide money away from the taxman without a very high risk of being found out. For those who feel that they are caught in a trap by the international tax crackdown, lifelines are being offered. There are also legitimate arrangements whereby you may be able to pay less tax than the withholding tax being applied by the Isle of Man, Channel Islands, Switzerland etc.

The attack on offshore banking has gathered momentum and is coming to a head. The notorious tax haven of Liechtenstein has toed the line in an historic signing of a Tax Information Exchange Agreement (TIEA) with the UK. Anyone who has not declared income from funds in Liechtenstein as required by the UK authorities will have to come clean now to avoid punitive consequences. Liechtenstein has already agreed TIEAs with the US and Germany and experts predict that Monaco and Andorra will quickly follow Liechtenstein’s example.

TIEAs are being signed at a fast rate of knots since leaders at the April G20 Summit declared that the “era of banking secrecy is over”. The UK and France were keen to blacklist tax havens and impose sanctions on those countries which did not comply with the Organisation for Economic Co-operation and Development’s (OECD) tax standard on exchange of information.

Renowned tax havens are signalling their willingness to comply. Liechtenstein, Andorra and Monaco were the last remaining jurisdictions on the OECD’s blacklist of “uncooperative tax havens” but all three were removed in May for their “commitments to implement the OECD standards of transparency”.

Offshore financial centres need to sign at least 12 TIEAs to receive favour from the OECD and be white listed as having “substantially implemented” its standard on the exchange of information. Many have already done so, including Jersey, Guernsey and the Isle of Man. Switzerland also agreed to relax its banking secrecy laws and is aiming for 12 TIEAs by the end of the year. So far this year over 90 TIEAs have been signed compared to 45 between 2000 and 2008.

In June, the Isle of Man called an end to banking privacy for EU residents using its banks. Under the Savings Tax Directive it will start to automatically exchange information on all accounts held by EU residents with the tax authority where they live. From 1st July 2011 the withholding tax option will be scrapped. All interest will be paid gross and personal information on the account holder and details of the interest earnings sent to the owner’s home tax authority each year. Guernsey is also considering dropping the withholding tax.

Bear in mind that irrespective of the withholding tax, residents of the UK, Spain, France, Portugal, Cyprus and many other countries are already legally obliged to declare and pay tax on their worldwide income.

The UK’s New Disclosure Opportunity began on 1st September, with the aim of persuading all those with undeclared accounts and assets offshore (as well as onshore) to disclose them to the taxman. The carrot is a reduced penalty of 10% for all those who were not contacted under the last “amnesty”. Prior to the 2007 Offshore Disclosure Facility HM Revenue & Customs (HMRC) obtained information from five high street banks on their clients’ offshore accounts. If the account owners chose not to take up the last offer, this time their penalty is 20%.

HMRC insists this is the “final opportunity” to come clean. Those who still do not come forward will be “relentlessly pursued” and attract a penalty of between 30% and 100% and in severe cases, a criminal prosecution. A couple of weeks before it started the Tax Chamber of the First-tier Tribunal ordered 308 UK and foreign banks to disclose all information on offshore accounts to HMRC. Targeted banks are believed to be UK institutions with offshore branches plus foreign banks with UK customers, including several UK institutions with operations in Switzerland. HMRC will use this information to pursue those who continue to flout its tax laws.

France has a voluntary disclosure programme in place and is compelling all French banks to disclose information regarding their activities in tax havens. At the end of August, the French government announced that it had obtained a list of 3,000 suspected tax evaders holding around €3 billion in Swiss bank accounts.

Italy is working on its third “tax amnesty”. Italian Minister for the Economy, Giulio Tremonti, said that the government’s objective was to put an end to tax havens, rather than merely to combat tax evasion.

In the US, wealthy taxpayers have flocked to own up under the Internal Revenue Service’s disclosure facility which offers tax evaders the possibility of facing civil charges rather than criminal charges for volunteering to come clean. The US has taken legal action to force Swiss bank UBS to disclose the identities of some 4,450 secret account holders – a significant turning point for Swiss banking secrecy. UBS and Credit Suisse are closing bank accounts owned by US nationals and other countries such as Monaco are thought to be moving accounts to the taxpayer’s country of residence.

The days of tax evasion through tax havens, wherever they are in the world, are well and truly numbered. In the end, no one will be able to escape the intense crackdown in progress. Anyone with undeclared offshore accounts is at risk of being discovered by their tax authority and suffering crippling consequences. You need to wipe the slate clean and get your finances in order. Even if you are prepared to take the risk, what will happen when your family inherits your assets?

In any case, there are legitimate methods of lowering your tax bill which are more effective than using an offshore bank account. Blevins Franks, a reputable and experienced international financial adviser, can advise you on setting up legitimate tax efficient investment structures.

Credit: Bill Blevins, Managing Director, Blevins Franks/ www.blevinsfranks.com

 21 August updated 15 Sept 2009

Two of the nicest areas of Spain in which to buy a Spanish property for retirement, permanent living or a holiday home are the Costa Blanca south, Alicante region, from Alicante down to El Mojon (which means border and is the dividing point between the Alicante and Murcia regions) and the Costa Calida north from San Pedro down to Cartagena which incorporates the Mar Menor in the Murcia region. These areas in the south east of Spain on the Mediterranean sea boast beautiful beaches, numerous golf courses, museums, historical sites, hundreds of fiestas in all areas both inland and by the coast, restaurants, tapas bars, water sports, sailing clubs at the many local ports, horse riding, local markets and the salt lakes (which provide Spain with one of the biggest industries in Europe harvesting salt) where you can watch the birds which congregate in the lakes. People come from far and wide to see the flamingos, egrets, cranes and cormorants being a few of the many species to be seen, or to bathe in the healing mineral mud baths. These areas are the summer holiday regions for Spanish nationals who come from all over Spain to their holiday homes and stay between June and September with their families to enjoy the long, hot summer break. There are lively areas but also quieter spots to relax and enjoy on average 315 days of sunshine a year.

When buying a property in Spain your first thought should be location. The idea should be to buy a property that you can afford in an area you like that has most, if not all of the amenities that you want and is re-saleable.

Think about the future and don’t get carried away with the purchase or you may end up making a bad decision causing unnecessary stress and loss of money. Take a Spanish holiday and get to know Spain first. We have been in the property business for over 10 years and help our clients find the right property, price and location to suit them. The aim is to make buying a property easy and the leave “our new friends” happy in their new Spanish home.

Decide where you would like your property to be, in the countryside, a short drive inland near a Spanish village but still fairly near the sea or on the coast with either a slightly longer walk or short drive to the sea or by the sea.

What is the property going to be used for, retirement, a new life in Spain, holidays or investment? Choose carefully, if retirement you want peace from lively holiday makers and make sure there are year round resident neighbours, if a new life make sure you live in a good working area, if holidays check out the social amenities, if investment make sure you profit from it, as it will probably be part of a long term investment portfolio, if not make sure it is re-saleable in the short term.

Who is buying the property, are you alone or with a partner? Discuss what you would do in case of accident, illness or death, they are as important as the decision to move and that decision must be unanimous or one or both of you could be unhappy and longing for home, having utilised a major part of your savings for a dream that never was! In saying that, many people have moved to Spain and lost loved ones but remain as an integral part of their community with many friends that they help or who help them to continue their lives.  Always get to know your neighbours no matter where you are or who they are, you learn a lot and just saying “Good morning” brightens most people’s day. You may rely on them one day.

What amenities does the area provide and what do you want? Do you like city or large town services, or prefer a quiet area? Are there local services, transport, doctors, dentist, bars, restaurants, supermarkets etc? Is there enough for you to do or will you be bored?

Finance is an important factor. Do not exceed your budget or you may create a miserable environment with a debt you cannot manage.  

Do you want an urbanisation with a communal pool or non urbanisation meaning no community of owners? There are more choices of property and designs, and usually a livelier social scene. You may choose a golf resort but beware the financial costs of golf complexes the community fees are generally very high. If a holiday home then the urbanisation areas provide a lot for you to do and give great rental potential and of course there are neighbours about to help with things like cleaning, key holding and general information. Easy to get to and fine for a relaxing holiday with everything to hand. Prices vary but you will find something for every budget and currently many discounted properties.

If you are adventurous and confident to choose the countryside, remember that you may not have large town facilities nearby and it is usually necessary to drive, so what happens if you cannot drive. Many people buy in the country and become lonely or just take on too big a property or more land than they can manage. None of us stay young forever! Peace and quiet is idyllic but may leave you longing for a move back to civilisation. Choose this option wisely and after long hard thought. The scenery may be fantastic, you may find a big property with plenty of land but will it wane in the short or long term and will the sale of a big property be easy or desirable, you may end up taking a loss just to move.

How many times do you hear people wanting to “Live the Dream”, for them moving to Spain means living in a local Spanish village or small town, learning the language, eating in Spanish bars and generally blending into the easier slow paced traditional Spanish way of life. Many fit into their communities well and do adapt to the Spanish culture and ways but many cannot and find the change too hard, things do not work out as they expected and their new life crumbles. If you want this life, commit to it by interacting with your neighbours, adopt their culture and they will help your transition into a new life. There are many new properties nestling into Spanish town, at reasonable prices.

Another dream is a villa over looking the sea with a private pool, well we all dream don’t we but in reality the cost is prohibitive. Land by the sea is expensive and as such house prices are higher, this is common throughout the world. Construction of holiday homes by the sea has seen the over build on the Costa’s for numerous years and recently the government and autonomous regional authorities have begun to limit new building. Most people love to live by the sea, daily walks, fresh sea breeze and a generally entertaining life style. There are busy areas which some like and also quieter towns but the summer sees a giant influx of holiday makers so make sure where you choose to live is residential too, the summer nights are hot and long but we all need sleep. The cost of a home will be more but there are still bargains to be had due to the current financial crisis but you may get a smaller property for your money. However, some of the beautiful coastal areas more than make up for it.

By owning a Spanish property buyers become a vital part of Spain and central to the Spanish economy. They feel a sense of independence by fitting into their community, integrating with their neighbours and most of all enjoy adapting to the Spanish way of life.

Editor: Spanish Property Buyer: 25 September 2009