Spain has everything you could possibly wish in a retirement location – the warm sunny climate, large UK expat community, low cost of living, beautiful beaches, spectacular landscape, healthy outdoor lifestyle, less crime and significantly less stress.

In a survey of 400 people from the UK, Kyero found that 26% of them saw Spain as the ideal retirement location because of the “warmer climate, sociable atmosphere and reduced taxes”.

It’s no wonder then that “Britons invested £12 billion in Spanish property in 2004/05”. The average price they paid for properties a reported £160,000, according to Kyero. The typical type of investors is male between 40 and 60 years old.

It’s not just UK investors who have an interest in Spain. Kyero regularly get enquiries from the Portuguese, American, Dutch, Japanese, Canadian, Australian and Swedish. It appears that everyone wants a piece of the Iberian Peninsula.

Properties Type & location
When it comes to Spain, Britons are mostly looking for studio apartments. Two and three bedroom villas are also highly sought after. The majority of UK homebuyers are looking for a Spanish resale property.

On Gran Canaria (Canary Islands), there’s a big demand for one-bedroom apartments with a swimming pool.

In Alicante, on the eastern coast, three bedroom apartments are a popular choice and in Girona (Northern Spain) UK homebuyers are largely looking for three bedroom villas.

The survey revealed that on average, UK investors are willing to pay between €150,000 to €200,000 for property in Spain.

According to the survey, 97% of the respondents said location was one of the most important factors when choosing a property. The most popular parts of Spain with UK homebuyers are Alicante, Granada and Malaga.

Accessibility is also important. People need to be close to amenities. The most important ones being shops, the local hospital, bars and restaurants, chemists, public transport, the police station and the airport.

Finding the Right Property
The Internet is undoubtedly the most useful resource for anyone looking for properties abroad. It provides everything from property listings and local area information to mortgage advice and buyer’s guides. 71% of those surveyed said they were using it to find information.

For a comprehensive range of overseas investment property listings try the following link – Diasoleadoinvest.com

Brits Around the Globe
The past few years have seen growing numbers of UK residents emigrating abroad to sunnier, more exotic locations, in what looks like a mass exodus.

There are now over 40 nations with at least 10,000 permanent British residents, according to a recent survey by the Institute for Public Policy Research (IPPR).

Spain, France and Italy are still some of the most popular locations for UK investors and homebuyers but there also been a growing trend towards more far-flung destinations.

In the United Arab Emirates (including Dubai) there are 55,000 UK nationals, Pakistan is now home to 47,000, in Singapore there are 45,000, Thailand has 41,000 and China has 36,000.

With the increase in the numbers of budget airlines and more and more direct flight options, people are travelling now more so than ever before. The world appears to be getting smaller and smaller.

Overseas investors are thirsty for new destinations and opportunities. They’re eager to find new emerging markets or discover new areas in established markets. In order to maintain sales, estate agents and developers are having to adapt and cater to this more globally demanding investor.

They now need to be able to provide access to property listings and area information from as many locations as possible – everywhere from Cape Verde to Slovakia and way beyond.

Mark Stucklin (Sunday Times Home Section, 16 September 2007), points out – “Recent reports suggest that most holiday rentals in Spain are illegal without a licence, and can incur fines of €30,000 for unsuspecting owners.”

Frightening news for many Britons – especially those hoping to pay off the mortgage through renting. But is it all bad news? The whole issue seems to be surrounded by
speculation, confusion, half-truths and oftentimes just plain wrong information. It’s Spain remember – things are never as they seem…

The truth is that, for the moment, most property owners are completely unaffected by the licence situation. You’ll only really need a licence in certain parts of the country and in those areas the law is rarely enforced properly.

The laws in Spain
Spain is notorious for its laid-back “manana, manana” lifestyle. In some cases, the same attitude extends to legal procedures. Also, with so many “illegal” properties being rented out all the country, it’s almost impossible to effectively enforce these license laws.

Online there are literally thousands of properties advertised for rent in both Spain and on the Canary and Balearic Islands. A significant proportion of these are owned by British property owners who have no idea about licence laws and therefore, whether or not they are breaking these laws.

Even if people are aware of the rules and regulations concerning tourist rental licences, most of them have difficulty interpreting them, as they are so unclear.

It’s certainly confusing – as with a lot of things in Spain. The rules concerning tourist rental licences vary widely throughout the country.

In Murcia you have to register with the department of tourism if you want to rent out your property to tourists, whereas in most other parts of Spain all you have to do is tell the local government about your plans to rent it out.

Ultimately, the Spanish government probably just wants to keep tabs on who’s receiving money from holiday rentals so they can make sure the correct taxes are received.

Which parts of Spain actually need a license?
“I can categorically state that you don’t need a licence to rent out a private apartment or villa to holidaymakers on mainland Spain”, according to Lee Jones, head of OPI Property Management and Lettings.

Apparently they’ve had their specialist lawyers confirm this, pointing out that, “with 3,500 holiday rentals this season, we can’t afford to make a mistake.”

It’s a different story on the Balearic Islands though, Mallorca in particular. Here you’re not allowed rent out private residential apartments. “The only kind of residential property you can rent out is a detached villa, but only if you have a licence”, according to Isabel Loeffler, (head of Loeffler Legal Centre, on Mallorca).

It gets worse…

The tourist department on Palma are now saying that it’s not even possible to get a licence to rent out a detached property anymore.

Buy-to-let investors could always choose an “apartamento turistico”, which is a purpose built property, intended solely for renting out.

For homebuyers wanting to make a few quid renting out while they’re not there, they’re not really suitable. Apartamento Turisticos carry a lot of restrictions and potential extra costs.

So what can you do?
It still seems unclear. To be on the safe side, speak to a local Spanish lawyer who should know the specific licence situation in whatever part of Spain you’re considering investing in.