Andalucia, which includes Spain’s popular Costa del Sol, has scrapped a “wealth tax” paid by second homeowners in the region. The move is likely to offer substantial benefits to British expats in Andalucia.
The “el impuesto de patrimonio” wealth tax applied to residents and non-residents with a net worth of over 700,000 euros (£624,000).
The tax has now been scrapped in a huge boost for British expats who own property in the region.
Andalucia has hopes that the decision will attract more investment and high-paying taxpayers to the region.
A statement on the Junta de Andalucia website states: “Andalucia has to be competitive and measure itself against the best.”
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The regional president, Juanma Moreno, tweeted: “In 2023 alone, (the wealth tax cut) alone will leave 360,000million euros (£321m) in the pockets of Andalusians.”
According to government statistics, wealth tax only accounted for 0.6 percent of the region’s annual income.
However, the regional government felt that it deterred rich investors from settling in the Spanish hotspot.
Andalucia is one of Spain’s most popular expat regions and many Britons have chosen to make their home there.
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Almost 90,000 Britons live in the region which includes Marbella, Malaga, Granada and Cadiz.
British expats are often part of vibrant British communities and are able to get by without speaking Spanish.
Since Brexit, expats have had to follow some new rules and will need Spanish residency to live in Spain.
Britons without residency will need to make their application from within the UK and may have to provide a lot of documentation.
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It is still possible for Britons to own second homes on the Costa del Sol, although they will need to follow some rules if they want to remain British citizens.
Britons can visit the EU for 90 out of every 180 days and must get their passport stamped on entry and exit.
British citizens could be detained, fined or even banned from entering the EU if they overstay the limit.
Passport stamps will prove when a British citizen entered and left the EU, although plane tickets can also be used as evidence.
According to property experts at idealista Spain, house prices in the Costa del Sol are generally cheaper than the rest of the country.
However, it is a more expensive area to buy property than the Costa Blanca, which includes Benidorm and Alicante.
The cheapest areas to buy a home in the Costa del Sol are Casares, Estepona and Manilva.
Prices in the marina town of Manilva are under 2,000 euros per square metre, making it a more affordable option for British expats.
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