andogo's blog

It seems the debt crisis has one silver lining the falling prices for vacation homes in Greece, Spain, Portugal and even Italy. Due to the debt crisis in Europe, countries as Spain, Portugal, Greece and Italy have seen as the prices of second homes have fallen 15% to 30% in recent months and even in some places have fallen 50% off what they were two years ago.

But although  the prices are lower, the risks following grown and exist fear of a revalued euro, or even the extremely unlikely possibility of some countries losing their membership in the euro zone. Moreover the mortgage financing, the taxes and requirements had increased, for this reason theses countries mencioned demand due to the circumstances one list laws and duties with the order to get fresh rescue aid.

PORTUGAL:

According to the general consensus among real-estate agents, Portugal currently offers the best value of the four countries for second-home buyers. Rules for foreign property buyers are fairly straight forward, a purchase requires a local representative and a local tax number. There’s a 6% flat tax for properties over €550,000 ($795,000) and a sliding scale below that and some legal fees can run about $4,000 in lawyer for to testify the inscription in the property.

GREECE:

Exist the risk of buying in euro and to sell in drachmas, due to Greece is the most likely candidate to be kicked out of the euro zone. Foreign buyers are required to appoint a lawyer and a public notary, all of whom charge percentage fees based on the value of the property furthermore of to pay a series of taxes, in all, these fees can add up to as much as 16% of the property’s price.

SPAIN:

Spain has suffered the bursting of its housing bubble. The speculation long-suffering in this country provides that build too much, too quickly. It produces one situation filled with uncertainty. Some requirements for foreign owners: all of which add up to a total of about 10% of the purchase price of the property.

• Obtaining an identification number
• Transfer taxes (7% to 8% depending on whether it is new)
• Notary fees and deed fees

ITALY:

Prices in Italy have been more stable than those of any of the other countries mired in the debt crisis. In Italy for buying one property is necessary execute some bureaucratic steps as: Getting the necessary tax identification number can take as long as six months for non-EU foreigners, stamp duties (10% for nonresidents), local fees and national fees, including a biannual property tax and both buyer and seller pay agency fees in Italy, and typical purchase costs are about 10% on top of the purchase price and can go as high as 12%.

http://fores.blogs.uv.es/2011/10/03/04-europe-on-sale/