The Spanish government has amended laws regarding the country’s private rental sector, making the market more appealing to landlords, particularly those from overseas.
Managing Director of CHL Mortgages, Bob Young, explains that this change has created opportunities for foreign buyers who wish to make rental returns from property in Spain.
He states that the tax relief scheme will ensure landlords receive 100% of the rental income made from their investments.
He says: “There may be more legwork involved for British landlords considering adding foreign properties to their portfolios, but with a lack of supply in the domestic market and opportunities overseas, it may make sense to make hay while the sun shines.”1
Buyers will also be attracted to the country’s low property prices.
Last week, the BNP Paribas Economy Research Department revealed that the value of Spanish homes has dropped by 9.3% in the third quarter (Q3) of this year, compared with Q3 2011.
If you are interested, ensure you have the correct overseas property insurance.