Posts tagged with "buying property in moraira"

Community of Owners new law

Back in March (Spain’s new rental laws in 2019), a new law was approved which brought a raft of changes. In today’s blog post we will focus on the two changes which affect holiday lettings. Community of Owners have been greatly empowered to rule on them going forward. All changes effective as from 6th of March 2019.


  1. Community of owners may now ban holiday lettings outright

Spain’s Horizontal Act has now been amended allowing Community of Owners to vote by a simple majority of 3/5 (or 60%) to ban outright holiday rentals within a community.

I had already pointed out in a blog post in 2017 that this step was necessary, as the Horizontal Property Act at the time required unanimity to ban them, which logically was never going to happen because landlords would vote against it because of their vested interest.

This change has no retroactive effects.

  1. Community of owners may now increase the community fees of all those owners who market their properties as holiday lets through holiday platforms

Spain’s Horizontal Act has been amended allowing Community of Owners to increase the communal quota assigned to a landlord of the overall community budget.

In plain English, communities of owners may now vote to increase the community quota of a property owner who uses his property for holiday lettings. They can vote to increase it by as much as 20%.

This change has no retroactive effects.

By Raymundo Larraín Nesbitt
Larraín Nesbitt Lawyers is a law firm specialised in taxation, inheritance, conveyancing, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail atinfo@larrainnesbittabogados.com, by telephone on 952 19 22 88 or by completing our contact form.

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Posted by on 06/15/2019 10:57:00

Brexit update Feb 2018

Recent figures show that the number of sales involving foreign buyers grew 15.6%, compared to the same period in 2016. The figure is even more prominent when you consider the number of British buyers for Spanish property dropped by 23.6% year-on-year.

Notary figures reveal that during 2017 cash buyers are still in the majority at 55%. It is interesting to note that the regions with the highest proportion of cash buyers are also the regions with the largest number of foreign buyers. Local buyers are more likely to use a mortgage. According to the Ministry of Public Works in Spain, Alicante province has the highest percentage of foreign buyers in Spain at 48.25% in Q1 2017

Overall the Spanish property market increased by 14.4% in the first three months of 2017 with domestic demand for property up by 14.2%. This is reassuring news. However, the European Union is currently addressing its greatest challenge to date, Brexit.

When you consider Brexit and the fall in the value of sterling, you might be surprised to learn that British investment in Spanish property for 2017/Q1 was still the biggest group of foreign investors at 14.74% with France second at 10% and Germany close behind on 8%. It will be interesting to see whether this mix fluctuates after the Brexit negotiations have been concluded, because there is no doubt that this issue has had a significant impact on UK buyers when you consider the year on year figures.

Brexit has left the pound significantly weaker against the euro and has created
uncertainty particularly for those looking to permanently relocate to Spain. For people
wanting to buy a holiday home or investment property, the situation is largely the same
as before.

If you are considering purchasing a property please contact us for advice. Contact Us

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Posted by on 02/17/2018 11:22:00

Spanish Property Sales update Q1-Q2 2015

Statistics from the National Statistics Institute.

Property investment in Spain continues to grow, increasing by 5.1% for Q2, helping to expand the Spanish economy by 3.1% during Q2 year on year. Employment in the sector has risen significantly by 9.2%. Job creation is rising at its fastest pace so far this century!
The total amount of wealth created in the sector has also been on the rise and was up by 5.8% in Q2. This is the largest increase since 2001. Driven by greater demand for properties together with increased employment in the sector.

Property prices are up by 5.1% year on year for Q2, having registered a 2.65% increase overall year on year. The correction in prices during the crisis topped out at an average decrease of 30% but this is now 29% signalling the market has already bottomed out on average.

Property sales so far for 2015 are up a massive 11.12% year on year. The increased sales were mainly due to the increase of resales up by a substantial 43.56% whilst new builds decreased by 39.61%.

The Valencia Community were one of the best performers in property sales taking a 10.1% slice. According to the Spanish land registry, foreign buyers made up 12.82% of all property purchases made in Spain during Q1. Sales have been primarily driven by the increase of British buyers, up a massive 37.3% year on year. This means British buyers made up 19.85% of all foreign purchases, meaning one in five buyers are Brits!

All this positive news means property stock has been selling well, especially in the Valencia Community. In Javea and Moraira which has become extremely popular with the more discerning buyer, well priced quality property stock has been pretty much stripped out up to 350,000 euros. Most of what is left behind are projects in need of modernisation. This is leaving property agents with a major problem because it is not being replaced at the same pace! Current demand in this price band has overtaken supply, consequently you see nearly every agent advertising for more stock with clients waiting! All in all well priced property is getting very hard to find but fortunately, we have our finger on the pulse!

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Posted by on 10/11/2015 09:16:00