Resident real estate expert, Mathew Wood from Hola Properties – headquartered in Lanjarón – explains the regional property market, trends…
THIS month, some major headlines are stirring conversation among buyers and sellers alike. From the rumored new purchase tax, to development plans in Motril, and changes in tourist rental licenses, there’s plenty of news.
Non-Resident Property Tax – reality verus media hype
One of the biggest talking points in January was the proposed tax increase for non-resident, non-EU buyers. Spanish Prime Minister Pedro Sánchez mentioned, in passing, the idea of a 100% increase in purchase tax for this group as part of a wider long-term plan. The media – especially in the UK and the US – ran ab bit wild with the story, creating panic among potential buyers.
In reality, this was a brief mention involving a long-term plan, not an official policy. Most regional governments have already dismissed the idea.
Even international business leaders at the Davos forum pointed out that such a tax would hurt investment in Spain and is unlikely to pass.
My take? Don’t panic. Nothing is set in stone. The Spanish property market remains stable and open to international buyers. Updates will be forthcoming on any real developments.
Looking local: big Plans for Motril’s tourism growth
Motril, a key hub on the Costa Tropical, has announced a new long-term development project, including four new sustainable four-star hotels. Unlike the over-development seen on the Costa del Sol, this project is focused on responsible tourism and job creation.
This matters to buyers and sellers because increased tourism brings greater property demand in surrounding areas, including Lecrin Valley and Salobreña.
Expansion of the cruise ship port and transport links could drive higher rental demand.
If you’re thinking of selling, now is a great time, as the area’s visibility is set to grow.
This development could be a game-changer for the region, attracting new investors and homebuyers looking for holiday homes and long-term residences.
Tourist Rental Licenses – what’s changing?
Tourist rental regulations are tightening across Spain, and January saw further restrictions announced. These include that Malaga has paused issuing new tourist licenses in 43 neighborhoods for three years. Granada has completely stopped issuing new licenses and has permanently banned them in certain historic areas, including the Albaicín.
For buyers, this means that properties with existing tourist licenses are more valuable than ever. We’re likely to see stricter requirements in the future, such as needing a First Occupation License.
If you’re looking to buy for short-term rentals, get expert guidance on the latest legal landscape.
Sellers with tourist-licensed properties should highlight this in their listings—demand is rising!
Surge in US and UK buyers – what’s driving demand?
We’ve seen a significant increase in buyers from the US and UK, particularly in the first few weeks of the year. What’s behind the trend?
Firstly, the end of Spain’s Golden Visa. Buyers looking to secure residency are rushing to finalise purchases before the scheme closes in April 2025.
Non-lucrative visas are now more popular for those who don’t meet the Golden Visa threshold.
Many Americans are looking for European property investments because of political and economic shifts back home.
Sellers can benefit from listing their properties now, in February. Waiting until spring means more competition. Right now, demand is high, and supply is still limited.
A final take-out
January 2025 has started with a lot of market activity. The key takeaway is that there’s no reason to be alarmed. Spain remains a fantastic place to invest.
Whether you’re buying or selling, the market is full of opportunity. Stay informed and make your property decisions based on facts – not media hype. Consult a property professional and don’t rely on misleading headlines, advice from social media, or what people are saying in the village bar.
You can watch a video on the property market here.
