Spanish Government Needs to Rejuvenate Economy

24-11-2011     Author: Chris Anderson

Overseas property investors are hopeful that the new Spanish government will end the period of uncertainty in the markets.

It is currently hoped that there will be new tax cuts, along with tourism initiatives and economic stimulus. Investors are also hoping that, following the general elections, there will be a large-scale sell off by the government in order to encourage growth in the property market.

Colin Guarania, the founding partner of Bonnin Sanso, an agency in Menorca, believes the government need to “dramatically reduce taxes for the building and housing sector including the property sales tax.”

He added: “A major stimulus package for the tourist industry in an effort to boost tourist numbers [is needed]. We have already seen this at a Balearic level with government and private industry partnerships collaborating and coordinating their efforts on marketing and promotion.”

It has also been reported that investors, with an interest in Holiday Home Insurance, are hoping the government will push a PR campaign to encourage further property investments in Spain. Chris Mercer, of Mercers, has said: “Spain still has arguably the best weather in Europe, is easy to get to and property is relatively cheap. So why are there not hundreds of thousands of Northern European property buyers flocking to snap up bargain properties?”

He went on to add: “Just some of the reasons that have put many people off Spain are the scare stories of houses been demolished, land grab, corrupt town halls, and illegal building. What is needed is a major PR campaign to win back the doubters, which needs to show real figures for what is happening on the ground. Spain has to go out there and sell itself.”

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