Now there are more good reasons to buy property in Spain – The Capital Gains Tax has dropped from 35% on the net gain to 18% for foreign property buyers.

This means that your payable tax is now as low as a Spanish Citizen.

To add to this, withholding tax is also lowered from 5% to 3% for you as a property buyer.

Whatever the reason be for this reduction (EU pressure or others) you are now left with no second thoughts for buying property in Spain.

Spain is a contributing member of the European Union and it has adopted the Euro. It has improved its road network beyond appreciation. In addition, the health department is working well to sustain standard public health, and health related services are cheap but world-class. You can easily live a healthy, sunny and beautiful life more cheaply than the other European countries.

And now the changes in Tax rules and regulations, has made this beautiful country a premier choice of European people looking for property investment in Spain.

This has made real estate market experts in Spain optimistic for the near future, where the country is going to observe a steady growth in the market after last year’s minor set back.

A research conducted by The Royal Institute of Chartered Surveyors has found that the real estate market had been very competitive in 2006 but Spain has shown a steady growth with an overall 11% price rise. If this trend continues, as all estimations are predicting, Spanish property market is going to see a huge lift in the market price by this year.

Real estate market experts in Spain think that “the change will mark a paradigm shift” and will uphold nation’s “sense of equality for overseas investors”.

They also believe that the positive steps taken by the Spanish Government to tackle real estate crimes will prove beneficial for renewed faith among investors in near future.

The trend in the real estate market is indicating that the investors are looking for villas and townhouses for sale in Spain rather than going for regular apartments. It also shows that, luxury and holiday villas in Spain are gaining more priority than others for investment property in Spain.

However, professionals always recommend you to take an inspection trip and do proper investigation from reliable sources before investing in Spanish Properties.