No VAT increase in Spain says Salgado

June 30, 2011 – 8:55 am

No VAT increase in Spain, Tenerife and the Canary Islands

The Government’s financial vice president, Elena Salgado, has responded to the suggestion of the Bank of Spain to raise VAT in order to generate more revenue, by saying that the Government “will not increase VAT, since it would have a negative effect on consumption”, as was argued at the European Commission. “To be clearer, the Government will not increase the VAT,” she added.

At a press conference to present the Ministry of Development’s advertising campaign on rehabilitation, Salgado said that “fiscal policy is the responsibility of the Government which then must be approved by Parliament”, to which she added that Government revenues are behaving as expected, and “it is not necessary to raise VAT to achieve fiscal consolidation.”

In the same vein, she praised Brussels’ decision to back down in its request to raise Spain’s tax as a counterweight to a reduction in social contributions, and stressed that the European Commission has been “sensitive” to the Government’s arguments. At this point, Salgado also rejected the possibility of reducing social security contributions, stating that “we should wait a bit before taking steps in that direction,” at least to see how the pension reforms progress.

On the other hand, asked about the proposal of the bank run by Miguel Angel Fernandez Ordonez to set expenditure ceilings in the Autonomous Communities , the Minister of Economy stated that “the regions themselves must decide” if they set an expenditure ceiling, given their “financial independence.”

Source: Kyero.com

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , | Comments (0)

Housing glut to shrink to manageable level by 2013 says Spain’s Ministry of Finance

May 5, 2011 – 10:13 am

Housing glut lasts in mainland Spain but improves in Tenerife and the islands

In a drive to reassure international money markets that Spain can deal with its real estate problems, the Ministry of Finance has claimed that Spain’s infamous housing-glut will shrink to a manageable level of 200,000 homes by 2013.

For that to happen Spain will have to sell 900,000 new homes between now and then (300,000 per year), whilst building around 175,000 new homes on average per year. In the chart above, the dotted line forecasts the new housing inventory in 2013.

Some experts have raised doubts that the market will be able to digest 300,000 new homes per year, bearing in mind that resale transactions must also be taken into account.

According to the latest figures from the Government (Fomento) and the property register, analysed in an article by El Confidencial, the net change in the number of new homes on the market over the latest 12 months was a decline of just 30,000, way below Government estimates for the next few years. If that rate continues it will take several years longer to digest the glut. The Government also produced an analysis of the relationship between price falls and the stock of new homes on the market in different areas.

 Madrid and coastal provinces of mainland Spain, where most holiday-homes are located, tend to have the largest gluts and price falls. However the islands such as Tenerife and Majorca have seen an upturn in prices this year

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , | Comments (0)

Spanish government property roadshow to tempt European investors

April 28, 2011 – 8:53 am

Jose Blanco unveils plans for European property roadshow to tempt investors back to Spain and Tenerife

The Spanish government will embark on a Europe-wide roadshow to convince  investors to come back to the nation’s property market, starting off with a press conference on the latest industry developments next week in London.

Minister of Public Works Jose Blanco and Housing Secretary Beatriz Corredor will brief UK property investors and media on the latest legal reforms and pricing activity in the Spanish property market, at a conference to be held at the Spanish Embassy next Wednesday.

They will then follow on with a consumer roadshow which will begin in Britain and continue to the Netherlands, France, Germany, Sweden and Russia.

“The Road Show will highlight the strengths of our economy, transparency and legal certainty of our planning legislation”, said Blanco in Madrid last week. “It is a good time to carry out this pioneering initiative because the markets that have the potential to invest in second homes are recovering and we must revive the holiday housing market to speed up the digestion of stock.” 

The Spanish property market is already showing small signs of having begun this ‘digestion’, with a 6.8% overall rise in home sales last year – the first positive figure since its real estate bubble burst in 2007.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , , | Comments (2)

Tourism rises in Spain during the first quarter

April 27, 2011 – 1:51 pm

Activity in Spain’s tourism sector jumped 2.4 percent in the first quarter of the year as sunseekers shunned rival resorts in Egypt and Tunisia because of anti-government uprisings there, a trade association said Wednesday.

The Canary Islands archipelago in the Atlantic Ocean and major cities on the mainland were the main beneficiares, thanks to the recovery of business tourism and to foreigners taking short breaks, the Exceltur umbrella tourism trade association said.

There was “a notable increase of 2.4 percent of tourism GDP in the first quarter, the biggest increase of all the sectors of the economy,” it said.

“The strong and unexpected surge in activity is mainly due to the current redirection of overseas demand from Egypt and Tunisia, which has benefited the Canaries almost exclusively.”

Source: The Independent

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather, Web Cams in Tenerife | Tagged , , , , , , , , , | Comments (0)

Aid not needed in Spain. A vote of confidence?

April 13, 2011 – 12:25 pm

“I don’t believe that the Spanish government needs any type of financial aid,” Strauss-Kahn said in an interview with the Spanish newspaper El Pais.

The comments will be seen as a vote of confidence that austerity measures imposed by Madrid could be working. The IMF is a key body monitoring Europe’s debt-laden economies.

“We have not received any request for help from the Spanish government,” Mr Strauss-Kahn said.

“I believe that the policies that the Spanish government has implemented, as much on the fiscal side as in the reform of pensions, the labour market or in banking, are the correct policies,” he continued.

Source: BBC

By Angela | Posted in Economy, General, Inspirational, Property, Tenerife, Things to Do | Tagged , , , , , | Comments (0)

Spain’s economy is showing signs of recovery.

April 8, 2011 – 9:08 am

Spain’s central bank Governor Miguel Angel Fernandez Ordonez predicts the economy in Spain and Tenerife will improve

Despite the government’s best efforts, Spain’s economy is only giving signs of a very moderate recovery, and remains hindered by recent falling property prices. A significant rebound would only come with an upward movement in activity in the real estate sector which is still in its infancy.

In a welcome bout of openness, Spain’s central bank Governor Miguel Angel Fernandez Ordonez said Tuesday the reform of Spain’s savings banks, saddled with bad property loans like no other, should have taken place sooner.  The damage from Spain’s property problem  has left savings banks, which account for close to half of Spain’s banking business, unable to provide credit to the economy. That, combined with soaring unemployment tied to builders being left with nothing to build, has left Spain’s economy as key European underperformer. According to data released Tuesday, the purchase managers’ index for Spain’s services sector dipped back to negative territory in March, to 48.7, from 50.8 in February, indicating a decline in activity. That compares with a rise in the overall services PMI for the euro zone, to 57.2 from 56.8 in February.

Source: Wall Street Journal

By Angela | Posted in General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Weather | Tagged , , , , , , , , , , , , , , , | Comments (0)

Notary fees cheaper in Spain after government cuts

June 5, 2010 – 5:20 pm
A reduction in notary fees on property purchases in Spain and Tenerife

A reduction in notary fees on property purchases in Spain and Tenerife

The government has announced a 5% reduction in notary and registry fees on property deeds as part of a package of measures to reduce the deficit and stimulate the economy. Notaries and Registrars are upset at this attack on their earnings, whilst house buyers will hardly notice the difference the savings are so small.

How big a saving will that 5% reduction in notary and registry fees give the average home buyer in Spain? Between €35 for a property costing €150,000, and €45 for a home costing €300,000, according to calculations done by Idealista.es, a Spanish property portal. Almost insignificant really.

Notaries and registrars are upset as the latter’s fees are already down by 50% thanks to the slump in property transactions.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , | Comments (0)

Knocking down British expats houses hurting Spain’s economy

May 22, 2010 – 5:36 pm

Knocking down expats homes is damaging the Spanish economy

Knocking down expats homes is damaging the Spanish economy

A Foreign Office minister warned Spain on Sunday that knocking down British expatriates’ houses was hurting its economy.

Chris Bryant, Minister for Europe, said that the country was undermining efforts to create a recovery in its beleaguered housing market. He was speaking yesterday during a visit to south-eastern Spain to meet British expatriates who have been told that their homes will be bulldozed after Spanish authorities declared their construction illegal. The authorities there have been waging a campaign against former officials accused of allowing overdevelopment of coastal regions. Local governments issued building licences for the properties, but these were later nullified following court action instigated by a higher regional government.

Mr Bryant cautioned: “The housing market in Spain is not going to recover quickly if pictures of bulldozers knocking down expats’ homes are appearing in British newspapers. Everyone I’ve spoken to in Spain says they want to find a solution but wanting a solution and getting one are two different things.”

He said: “Obviously it’s not for the British Government to tell the Spanish what to do. But I’m pushing the message hard at all government levels that I meet here that they have got to put political willpower into these problems, whether it’s an amnesty, whether it’s a change in the law, whatever the solution is that is needed. That is the point I am pushing. I have to say also that there is an enormous difference between the Britons who just make a cursory legal deal – that is always ill advised – and those who have done everything they should or could have done but still find themselves in deep trouble.”

By Angela | Posted in Economy, General, Health, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , | Comments (0)

Clock ticking on Expats’ tax refunds

May 21, 2010 – 4:35 pm
Owners in Tenerife need to hurry to reclaim tax

Owners in Tenerife need to hurry to reclaim tax

Expats who paid out too much tax on their Spanish property sale may be entitled to a rebate amounting to thousands of euros.

The potential capital gains windfall for British expats who sold property in Spain before 2007 comes after the scrapping of a discriminatory Spanish tax law.

The  pound   is now  weak against the euro, and the clock ticking on  refunds, all claims must be filed by 21st November this year. With a weakening pound and a steady euro, this welcome tax refund can be maximised by British expats who can make a claim and exchange their money as soon as possible. When yearly interest is taken into consideration on property sold as long ago as 1997,  considerable sums of money can be returned and saved.

It will be great for expats to get their cash back, but even better if they can use the current exchange rate to their advantage and get the most from their unexpected windfall.

Capital gains tax paid by British expats who sold Spanish property before 31st December 2006 was charged at a ‘non-residents’ rate of 35 per cent, compared to just 15 per cent for Spanish residents.

The Spanish government changed the law in 2007, after the EU declared it discriminatory, but an estimated ten thousand British expats had already overpaid. Now they are entitled to a refund.

The claims deadline for those who sold property between 1st Jan 1997 and 31st December 2006 has been set for 21st November 2010, under a one year statute of limitation.

Dimas Cuesta from Lexland, a law firm that has already secured rebates for British expats, added: “The legal process requires expert advice, which is fundamentally important to the chances of a successful claim. British expats looking to be reimbursed should act now, before the claims deadline.” Expats who think they have paid too much tax on their Spanish property sale should  see how much they may be owed as soon as possible.

By Angela | Posted in Economy, General, Holiday, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , , , , , | Comments (0)

Weak economic growth in Spain

March 6, 2010 – 12:42 pm
Weak economic growth in Spain and Tenerife

Weak economic growth in Spain and Tenerife

Credit ratings agency Standard & Poor’s warned Spain that its weak economic growth prospects could undermine its plan to rein in its budget deficit, making a debt downgrade even more likely. Investors are increasingly worried about Spain’s budget deficit – and skeptical about the government’s ability to push through sharp cutbacks to right the situation.

The government has announced both tax rises and spending cuts – not all yet specified – to reduce its deficit back towards the 3 percent limit that euro rules prescribe.

In a statement, S&P said Spain’s deficit would likely remain above 5 percent of the country’s gross domestic product through to 2013 against the government forecast of 3 percent, and that as a result the debt burden could rise to above 80 percent of GDP by 2012.

S&P said it also expects much weaker economic growth than the Spanish government and that there was a “significant implementation risk” with regard to the current plan to reduce the deficit, which is estimated at 11.4 percent of GDP in 2009. Spain, which has still to get out of recession, is expected to grow by an average annual rate of 0.6 percent between 2010-13, according to S&P, way down on the Spanish government’s forecast of 1.5 percent.

S&P said it saw downside risks relating to the government’s revenue collection assumptions in particular, largely because Spain’s tax base is “highly sensitive” to domestic demand and has been sensitive to the real estate sector, which has collapsed over the last couple of years. “Neither of these sources is likely to be a strong contributor to revenue growth over the next several years,” S&P said.

S&P said it was maintaining its negative outlook on Spain’s double A+ rating, which it assigned in December, in the absence of “more aggressive and tangible actions” by the authorities to tackle Spain’s economic and fiscal problems.

“Any deterioration over and above our current expectations could put further downward pressure on the ratings,” S&P said.

By Angela | Posted in Economy, General, Health, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized | Tagged , , , , , , , , | Comments (0)