Wealth Tax has just been abolished in Andalucía and there are new laws being passed that will put a smile on the faces of both homeowners and prospective buyers. Marbella has consolidated its position as a world-class residential destination.
Two years ago, we wrote about the sharp increase in sales of high-end properties in the Marbella area, and according to the latest official figures, there has been no slowdown in this respect. The luxury property market is healthier than it ever was, notwithstanding the recent pandemic, or more likely, because of it.
That’s the good news, but there’s more. Taxes in Andalucía are being lowered, and in some cases, abolished, and new laws are being introduced to encourage more and better home construction and the protection of homeowners.
High-density housing is a thing of the past, infrastructure has improved dramatically, and quality of life has risen sharply with the best schools, hospitals and sporting and leisure facilities in Southern Europe. There is now no low season, and significant changes in the law with regard to taxation and home protection have been made over recent weeks.
Marbella property market data 2022
According to the Marbella Property Market Report 2022, published by Panorama, Marbella’s longest established real estate agency, more than 2,000 additional companies have been established in Marbella since 2019, which is the highest figure for any non-capital city in Spain. Marbella has the lowest unemployment figures in Andalucía and the greatest number of opening licenses granted to businesses in 2020 and 2021.
The market area in question is the so-called Golden Triangle of Estepona/Benahavís/Marbella, and property sales in this area are at an all-time high, with an increase in demand of more than 30 percent over the pre-pandemic year of 2019. More and more people, it seems, are becoming aware of the tremendous advantages of living in such a beautiful part of the world.
The Panorama report, written by Christopher Clover, managing director of the company, says the following: “It is in great part due to property developers’ confidence in producing world-class homes that the market for properties over €4,000,000 has exploded since the prepandemic years. We estimated that in 2018 there were at least 65 properties sold at or above this price, growing to over 120 from mid-2020 to mid-2021. However, in the last year this figure increased further to reach in the area of 150 properties sold at or above this price category. Sales of properties over €4,000,000 are now commonplace, including many sales over €10,000,000. This is one more indication of the strength of the market and the appeal of this special area of Europe to the most affluent buyers.” The full report is available on the Panorama website.
Investing in the sunshine
Property purchase as investment in the area, quite naturally, is on the up and up too, apparently regardless of inflation and the sharply rising construction costs seen all over the world. This is especially true of the luxury end of the market, which tends to be largely independent of interest rate fluctuation, and the Marbella Town Hall is focussing on this end, granting licenses more readily as demand increases. Most of this demand is from British buyers, in spite of Brexit (or once again, perhaps because of it), and a leading UK portal reports a 36 percent increase in purchase enquiries for properties in Spain in April of this year, compared to the same time last year.
The Marbella Brand
The Junta de Andalucía has allocated ten million euros over the next four years to improve the Marbella brand, with specific investment in culture and heritage as well as sporting facilities, the congress market, beaches and marketing. Marbella’s own Public Works department is splashing out seven million euros on green zones, parks and gardens, improving the quality of life for all its residents.
Abolition of Wealth Tax
A tax-friendly environment attracts investment, and the Junta are making great strides in this area. Its President, Juanma Morena, said in a recent newspaper interview that Andalucía is the autonomous community with the third lowest taxation rate in the country (after Madrid and the Basque Country), due to the abolition of the Impuesto sobre el Patrimonio (Wealth Tax) in Andalucía, on 21st September, 2022.
“This tax was slowing investment,” he said, adding that there would be “few repercussions insofar as tax revenue is concerned, because there will be an increase in the total number of income tax payers and other taxes.”
This is the sixth lowering of taxes in the Community, he added, mainly aimed at helping the middle and working classes and small businesses as a means of mitigating the effects of global price rises.
New laws helping property owners
More good news for property owners in Andalucía is a new Junta de Andalucía law obliging all municipalities of 5,000 or more inhabitants to have their own Local Police force with at least five officers, increasing coordination between different forces and encouraging smaller municipalities to share Local Police services. Town Halls should also have at least two officers on patrol at any time, according to the new law.
A new Land Law is also on its way through the Andalucian parliament to improve access for young people to the housing market. It aims to promote the building of affordable housing to buy or rent, the renovation of existing housing, the establishment of minimum quality regulations, lower energy consumption and the installation of solar panels in family homes. Homeowners will gain more protection from squatters and have more rational rent rights in the future, with incentives for renovation of existing properties.
All in all, this will put a smile on the faces of both homeowners in the area and prospective buyers, given the obvious merits of private and state investment in the sector, coupled with the fact that property in the Marbella area is still competitively priced in comparison with other top European resorts. But there is now little doubt that Marbella is universally recognised as the highest quality resort destination of its type in Europe.
BRIGHT is currently developing Vista Lago Residences – 18 luxury, sustainable villas in the hills overlooking Marbella. For more information on this boutique residential community please visit our information page, or call the Sales Team to reserve your villa: (+34) 682 105 002 or email: info@by-bright.com
