Ronaldo + Kaká and Spanish Taxes

Real Madrid have stunned the World of football, or soccer, by announcing a series of transfer coups. Their signings of Kak’a for 70 million Euros followed by Ronaldo for 95 million Euros give or take a million and depending on the exchange rate, is supposed to send a message out about the brand.

The question to be asked is how do Real Madrid manage to get the money to do this? There is one reason that is obvious, a reelected megalomaniac chairman who refuses to see his mistakes of the past. The main reason though is the “Beckham Law” whatever Ronaldo insists about dream to play for Madrid etc…

You need to know what the Beckham Law is then? Well check out the Wikipedia description for Beckham Law. This means that the set tax rate of 25% can be applied for up to six years avoiding the higher tax rates in the UK and Italy. Tax rates are now at 50% in the UK after the recent rise, so expect a lot of players to move very soon saying that they have always wanted to move and play in Spain and they have always supported the team they are moving to… This is evidently a lie. Tax is the reason simply put. By earning the same they can be up to 50% better of than in the UK.

How can this effect you? Well if you come to work in Spain earning a high salary with a Spanish company then you can opt into the Beckham Tax Rates for up to six years. You are required to spend over half the year in Spain which is not too great a cost. This of course means setting up a company before you come to Spain and then giving yourself a contract in the company.

Then of course you need to buy a property with the amazing amount of saved tax to give yourself a good investment. Spain’s first 30 million Euro property has just been designed and started in Mallorca suggesting that prices at the super-rich level are standing up to the World economic crisis. For more information on tax, Spanish property sales and much much more get in touch with houses for sale in Spain. You can save an absolute fortune on your Spanish property purchase.

Houses for Sale in Spain

Quality houses for sale in Spain should be bought now because excellent offers are available due to a multitude of factors. Here are the facts as they are known.

1) Sterling’s fall against the Euro coupled with high interest rates last year has placed a lot of British sellers into a position where they can accept, indeed in many cases need to accept, lower offer prices. Examples include an initial investment of 200,000 Pounds converting to 290-300,000 Euros. To recoup that 200000 Pounds the sale price could now be around 210-220000 Euros. Therefore look for properties for sale in Spain from British sellers who can take advantage of this currency gain as they are selling for far lower than residents of the Eurozone.

2) Interest rates have now fallen dramatically so if you buy a property in Spain then you can get a great deal on the mortgage, if you are a decent client. Taking on a current mortgage is also less expensive than getting a new one and the interest rates offered will be better.

3) The bottom of a cycle is always the best guarantee when buying but who knows when the bottom of the cycle will arrive? It may have already done so in quite a few areas. My personal opinion is that you allow some other buyer to wait for the absolute bottom of the cycle because if discounts are already factored in by British sellers using the currency advantage and they realise that to compete they must be keen on price then they are prices to sell very well. The best deals to be had are from British sellers who will convert their Euros to Pounds although other sellers may eventually drop their prices.

4) The better the quality of the property as regards the house itself, the area, the economy etc… the smaller the chance of it remaining on the market for too long. Jump into the market now if the house is in a good area at a great price on a good property because as the bargains get mopped up only the excess least attractive properties will be available.

So if you are sitting on the fence due to currency fluctuations, worries about the economy, the uncertainty of interest rates etc… then have a bit of confidence and you can get the best deal you will have seen in a long time. Valencia Property have excellent properties at really low prices because the money paid out by the sellers some years ago when buying was often well below market values in Pounds. Prices range from 90000-240000 Euros and all are from British sellers and therefore you are guaranteed much lower prices than from Eurozone sellers.

An increase in signings has been reported by notaries in Valencia recently especially since the Banco de Santander opened up the floodgates just a little. Where Santander goes the rest of the financial institutions follow in Spain. Prices are holding up quite well in the areas where overbuilding and development didn’t happen. Of course they may get some of the effects of the ripples that move out from elsewhere but they will avoid the worst case scenario.

Another example is Sagunto, north of Valencia. Not the most beautiful place in the World but that’s just my opinion. It does have its charms though including the Jewish quarter and the Roman Fort and Amphitheatre that overlook the town which are beautiful. They are starting work on the largest freeport in the Mediterranean expecting to create between 40 and 70000 jobs. This will being people into the area and price drops will be minimal from now as demand will outstrip supply. The prices have already dropped here but by less than other areas and are currently holding up well.

Spain will always be a favourite for Brits as it is a home from home and you can get satellite TV, football at the right times and be back in Blighty for important things very quickly. The young professionals that can work from anywhere due to the internet will still look to bring up their families with bilingual children in sunnier climes and less perceived crime. Fuel bills are cheaper and generally the lifestyle here is cheaper, not so much as in previous years but enough to make a difference and therefore people will continue to want to retire here.

And just to rock certain peoples boat, if somebody offers nothing to the country is there a problem that they are forced to leave if things get a little tricky for them. These are the same people who spend all day in the UK deriding excessive immigration and those immigrants coming over here to take our jobs etc etc… Come to Spain, learn the language, bring a profession, add something to the mix and mix with the Spanish, they are extremely friendly.

Spain will work for you if your life plan and your productive work are done well

Living and Working in Spain

If you have ever had that thought that sometimes remains unspoken about what it would be like to live abroad, maybe this article will help you. This article applies mostly to Spain but the principles can be applied to other countries.

For a Brit, or any northern European, living in Spain is quite often a dream scenario. From very young I knew that my long term destination was here. Why though? Most people fall in love with the idea of moving to live in another country on a holiday, I am no different. My first experience was on the Costa Brava North of Barcelona. I was surprised at the ease of life, the speed at which things happened, or didn’t sometimes and the joy in the faces of the people. On visiting Barcelona for the first time I was hooked. Obviously, I had previously wondered about what it would be like to live here and this cemented the desire.

From that point the question was how to achieve the dream, a plan of sorts. I would say it is necessary to learn the language, visit beforehand to get the lay of the land, read about the country and get a good idea of which part of Spain you want to be in.

Once that is decided you need to know what you are going to do here. If you come without qualifications and language skills life will be hard, after all why should anyone employ you before a local of foreigner with the ability to speak the language.

There are many things you should know about local habits and your life can be very different, lots of those here are taken aback constantly by shop closing times, how late people eat and not being able to find their favourite things. Nevertheless, these are all teething troubles.

So what is life really like here;

1) Expect that your family life will have to fit around your long hours. People do.
2) Expect to take time to adjust whilst you learn the language and get yourself into the community. It is very unlikely that most people will speak English unless you live in a coastal area
3) You should expect to have fun and laugh. Life is easier here but bureaucracy is like a maze. Take everything with a pinch of salt and laugh about it because in future it becomes an anecdote
4) Read my blog regularly as it details loads of aspects of life here in Spain, the funny and the tragic, usually involving utility companies this bit, and the quite often bizarre.

Once you have done that and have your preparation off to a tee then you can find out what  it is like to live here and you will be ready. Only then should you start thinking about buying a house for sale in Spain. If you come unprepared then expect to return home after a couple of years with tail firmly between legs. If you fail to prepare then prepare to fail. Following this advice will help you out in succeeding better.