Spain Courting Overseas Landlords

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The economic crisis in the Eurozone, for all its negative consequences, continues to produce economic investment opportunities. The Spanish government has changed its property rental laws, making them more pro-landlord, especially so if you are from overseas.

Bob Young, managing director of CHL Mortgages, commented on the change in a report for Mortgage Strategy. He explained this has produced opportunities for foreign buyers who want to collect a rental income from a property in Spain.

Mr Young remarked “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.”

The tax relief scheme allows landlords to keep 100% of the rental income created by their investments.

These changes combined with the news that Spanish property prices are still falling makes Spain an attractive investment. New numbers by the BNP Paribas Economy Research Department showed that the value of properties in Spain had dropped significantly. They were down by 9.3% in the third quarter of this year, compared to the same period in 2011.

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Denis Foynes

Denis Foynes was born in New York City to Irish parents in 1991. When he was 8, his family returned to Celtic Tiger Ireland. Denis has an International Politics degree from Aberystwyth University in Wales. After completing university, he decided to leave crisis Ireland and relocate to Panama.