Raymundo Larraín looks at Malaga’s highlights as a place to live, visit, and invest.
16th of September 2024
I continue today with my running series on top places to buy and live in Spain. You can find older entries on this series scrolling down below. These impromptu light-hearted guides are not meant to be exhaustive; they are just there as a lighthouse to shed light on an area’s main highlights and landmarks.
As a quick disclaimer, I need to disclose I was born in Malaga. Understandably, I’ll indulge in poetic licence in some sections.
Introduction
Malaka was founded in 770 BC as a Phoenician outpost by merchants originating from the fabled city of Tyre. Scholars think its name means ‘queen’, and it was dedicated to the Eastern deity Astarte (also known by the Babylonians as Ishtar, an Anunnaki Goddess of war and sexual love). The city was built on a bay, which offered natural shelter against the elements, making it an ideal spot to build a harbour and moor ships. The colony manufactured a popular fish sauce known as Garum (the ketchup of the ancient world) and minted coins dedicated to its goddess.
Centuries after, it would go on to be ruled by Carthage, and then by the Roman Republic in 218 BC which renamed it Malaca. After the fall of the Western Roman Empire, Visigoths took over. In the eighth century, Moors from across the strait invaded and M?laqah fell under Islamic rule over the next eight centuries. Malaga was ‘liberated’ in 1487 by the Catholic Kings forming part of the unified Kingdom of Spain until our present day.
Malaga is the second most populated city in Andalusia after Seville. It has become Andalusia’s economic powerhouse, and it is home to other well-known cities such as Marbella (Andalusia’s tourist flagship), Mijas, Fuengirola, Estepona, Ronda, Benahavis, Benalmadena, etc.
Malaga is the capital city of the region bearing its namesake and is the administrative centre of the Costa del Sol. Malagueños are popularly referred to as boquerones (a tiny fish).
Malaga, culture capital of the Costa del Sol
As can be surmised from the introduction, Malaga is an eclectic assortment of different Mediterranean cultures. Each of these civilisations left its unique footprint, building what they believed in, creating a vibrant city that exudes culture and inspires us all.
Its vast cultural heritage spans from the Picasso Museum, Pompidou Museum, Carmen Thyssen Museum, Saint Petersburg’s Russian Museum, the bullring to a slew of glam theatres, such as the trendy Teatro del Soho (run by Hollywood actor Antonio Banderas); all give it a lustre of a cosmopolitan city. But if we dig deeper into its historic roots, history buffs will get lost in its Roman and Carthaginian ruins, Augustus’ two-millennia-old open air amphitheatre, its imposing Moorish Citadel (Ciudadela) perched high atop the city walls with commanding views overlooking the bay and adjacent to sweetly scented gardens.
The magnificent architecture is spearheaded by its iconic lopsided cathedral (La Manquita), the only one in the world with only one tower. Malaga’s Town Hall and the Justice Palace are also worth noting for their beauty and magnificence. The scenic English merchant district (Paseo de Reding), with its elegant lavish nineteenth-century mansions and embellished doors, has been the mute witness of countless romances through time.
I’ve collated what I believe are the main museums, but there are in fact many more:
Inset photo: Caesar Augustus’ well-preserved two-thousand-year-old amphitheatre, possibly the greatest Roman Emperor
The first recorded tourist: Hans Christian Andersen
Its first-ever recorded tourist was romantic Danish writer Hans Christian Andersen, who arrived by boat in October 1862 and quickly fell in love with its Moorish mystique. But rather than read my boring drivel on his exploits, let’s hear it from him:
“The stars were beginning to shine, the crowd increased beneath; the promenaders went under the trees on the level ground; riders and persons driving kept the paved road. A band of musicians were playing airs from “Norma”; my thoughts turned into verse, on the sweet southern evening.”
To commemorate his visit, Malaga erected a statue in his honour that can now be visited at Plaza de la Marina, next to the beach. Andersen seems to be looking out towards the sea, mumbling something about a mermaid…
Say, is that a duckling poking out of Andersen’s briefcase?
Malaga, cradle of artists and intellectuals
During its twenty-eight hundred years of history, Malaga has been the birthplace of several renowned figures, ranging from artists to writers, and everything in between. I’ve greatly abridged the list to name the main ones.
To name a few, and in no particular order:
Antonio Banderas (Hollywood actor, producer, businessman, and city benefactor), Carmen ‘Tita’ Cervera (Baroness Thyssen-Bornemisza, socialite, Patron of the Arts, and city benefactor), Francisco Manuel de la Torre Prados (arguably Malaga’s best major who transformed the city and its port, paving the way for the future), José Barea Tejeiro (eminent economist, economics university professor at Madrid’s UAM), María Barranco (actress), Millie Bobby Brown (Hollywood actress), Terelu Campos (journalist, tv presenter, and showwoman), Antonio Cánovas del Castillo (politician and historian who fostered Spain’s first democracy), Francisco de Paula de Cea Bermúdez y Buzo (politician and diplomat), Remedios Cervantes (model, actress, and businesswoman), Abu El-Ola (Al-Andalus governor), María Eloy-García (poet), Ibn Gabirol (philosopher), Bernardo de Gálvez y Madrid (career soldier who distinguished himself in the US War of Independence), Victoria Kent (outstanding Republican lawyer and politician), Antonio Molina (singer and patriarch of an artistic family saga which spawned several renowned artists), Dani Rovira (actor), María Barranco (actress), Pepa Flores (artistic name Marisol, child prodigy, singer and actress), Amparo Muñoz (model and actress), Antonio Cánovas del Castillo (politician and historian), María Zambrano (distinguished philosopher and writer), and Pablo Ruiz Picasso (artist).
Remedios Cervantes, Miss Spain
Malaga’s Port
Ironically for a port city, one of the newest areas in town, which has undergone extensive changes over the last two decades, is precisely its port which had been long neglected. As in Andersen’s fairy tale, The Ugly Duckling, the port transformed from ugly (a dark, dirty and gritty industrial hub) to a beautiful swan. It is now one of Malaga’s highlights.
The place now has two walkways full of open-air restaurants and colourful terraces to chill out al fresco in good company. Large cruise ships, that sail all over the Mediterranean Sea, dock here and its passengers walk the gorgeous port boulevard. It also hosts the George Pompidou Museum which always has modern art and monthly exhibitions on display. Beautiful views of the moored ships and yachts are guaranteed at dusk. Lads, if you want to impress a lass, this is the place; you’re welcome.
Moorish Citadel – Alcazaba of Málaga
Nestled high in the Gibralfaro hill, overlooking the open bay below and the dashing blue waters, lies the Alcazaba (AL-qasbah, in Arabic fortification in a walled town). It is an impressive Moorish fortress that protects the city. In the event of a city raid, the citizens would flock to it and the doors would be shut. It also served a dual purpose as the residence of the Moorish governor. It’s worth your while to take a short trek (40 minutes) up the hill to take in those gorgeous city views that await you (the best in town). You will not be disappointed.
La Manquita – Malaga’s cathedral
Its construction spanned from the 16th to the 18th century. To finance its outrageous cost, a levy was imposed on each ship which docked and unloaded its cargo for over three hundred years! The cathedral was designed to have two majestic towers. However, as mentioned above, it only features one, hence its Spanish nickname. The people of Malaga decided to gift the money towards the second tower to thirteen struggling colonies in their War for Independence against a mighty empire. A very clever and resourceful envoy, by the name of Benjamin, managed to smooth talk and convince our townsfolk that it was in their best interests to divert the tower funds to his colonial cause. And so, to this very day, the cathedral remains with only one tower in remembrance of the solidarity and friendship with those fledgling overseas colonies which, over time, grew and did very well for themselves. A pungent reminder that freedom and independence come at a price, lest we forget.
Easter Week
Easter Week, Semana Santa in Spanish, is one of the city’s major highlights in the calendar. Religious fervour floods its streets and takes grip over its inhabitants. Balconies and main roads are decked up in red, men and women dress up in gala, processions abound, drums beat with a rhythmic pattern, and the sweet smell of burning incense gently drifts through the air of its alleyways taking us back in time. Special mention should be made to the Costaleros. These are group of devoted men who train together and carry in synchronicity the religious thrones dedicated to the Virgin Mary and our Lord Jesus. These often weigh in excess of 4 tonnes. Depending on the weight of the thrones, groups vary from 60 to as much as 250 men. They are divided into different associations (cofradias) and compete to outdo one another in their religious fervour. Women dress up in elegant mantillas (a shawl that covers head and shoulders). It’s quite the sight.
Mercado de Atarazanas
This market dates back to the 14th century. It’s one of the most important shopping centres (not a modern one!) where visitors come in every day looking for tapas and fresh “pescaíto” (typical small fried fish). Its iconic architecture is from the nineteenth century. Fresh produce is brought in every day from all surrounding villages.
Alameda Principal
Commonly known as La Alameda, is the main avenue that runs through Malaga City. The avenue is flanked on both sides by centuries-old trees, whose exotic seeds were brought by sailors over the eras from all the far-flung corners of the Spanish Empire. These majestic trees, dot Malaga’s sprawling avenue and parks, providing shade with a lush green canopy encompassed by the soothing chirping of birds.
Tapas, restaurants, and food
Honestly, I don’t really like giving publicity in these articles to privately owned businesses. However, as everyone always asks for a great and genuine place for tapas, I feel compelled to throw in some names. In no particular order, my favs would be El Pimpi, Picasso Bar Tapas, and Casa Lola. And for meat lovers, La Pampa grill.
Another place you should check out is the Casa del Turron 1880, which makes and sells turrones (a Spanish delicacy that is meant for Christmas).
Regarding drinking, given Malaga’s always warm temperatures, I recommend trying out local beers, such as Victoria and San Miguel. Your best allies against a sweltering heat.
And to close, you cannot leave town without trying homemade almendras garrapiñadas (impossible to pronounce, they are candied almonds), featured in the photo below. You can thank me later.
Calle Marqués de Larios
Named after the marquis that made it possible, it is the shopping street for excellence with trendy designer boutiques. The street is always bustling with wide-eyed tourists, locals and live street performers. The street also doubles for major events, such as in Easter Week, when they close it down and deck it up in red for processions. It also happens to be the location with the nicest coffee shop in town (Lepanto) and homemade ice cream (Casa Miras). I recommend visiting the old city quarter, which is adjacent to the cathedral. There you will find many interesting and picturesque shops and sights. Malaga is a very safe place to wander about.
Parque Tecnológico de Málaga (PTA)
To close, I have written extensively about the city’s past, but I also wanted to mention a line or two about the bright future that lies ahead for Malaga, resting upon the shoulders of its youth. A symbol of Malaga’s technological ingenuity is its PTA, which is an impressive technology hub that is home to over 3,000 technological start-ups. Malaga’s university curates the PTA, supplying its small caps with a steady stream of highly qualified engineers, programmers, and IT designers. Some of the companies are becoming so prominent, they have drawn the attention of international foreign venture capitalists. For example, Swedish EQT Group recently bought for €300mn a Malaga technological startup (Freepik) that had created – all by itself – a market of over 40mn consumers! Some would even argue that Malaga is poised to become the California of Southern Europe.
Conclusion
Malaga is a crucible of cultures, a conflux that laces Western and Eastern influences, offering a rich tapestry of history and arts that shaped it as we know it. Malaga’s vast cultural heritage, spanning millennia, is a legacy of commingled cultures that attracts millions of tourists every year
Unlike some of its glitzier neighbour cities up and down the coast, which focus primarily on beach and sun tourism, Malaga lives and breathes for culture, standing the test of time.
Albeit what ultimately defines Malaga best, and makes it truly unique, are its people. Malagueños are welcoming people with a passion for life.
In a recent poll, Malaga was voted by expats as the world’s second-best city to live & work.
Malaga, passion for life.
Málaga, tierra de pasión
Portrait of a young Picasso, arguably Spain’s most iconic artist
“La acción es la clave fundamental de todo éxito.” – Pablo Picasso.
Loosely translated as: “Action is the key to success“.
Pablo Ruiz Picasso (1881 – 1973). Málaga-born, he was a passionate Spanish painter, sculptor, printmaker, ceramicist, stage designer, poet, and playwright who spent most of his adult life in France. He was an outspoken Communist with strong political views who self-exiled to France as he did not want to live under the yoke of Franco’s dictatorship. Regarded as one of the most influential artists of the 20th century, he is credited for co-founding the Cubist movement. A child prodigy, Picasso was a multifaceted artist who achieved universal renown and immense fortune for his revolutionary artistic accomplishments, becoming one of the best-known figures in 20th-century art. He was a prolific artist who left behind thousands of works of art. Perhaps his most iconic piece was the 1937 Guernica painting which depicts the horrors of war and uncannily foreshadowed the dark days of WWII (exhibited in Madrid, Centro de Arte Reina Sofía). Picasso was one-of-a-kind; a towering artistic figure who cast a long shadow over every other artist that followed in his wake. Picasso is Malaga’s most universal son.
Other entries in this running series:
Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.
2.024 © Raymundo Larraín Nesbitt. All Rights Reserved.
... Read moreMarbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Back in 2021, in the midst of the global COVID pandemic, when many panicked and saw the market as lost, I saw an opportunity and published an article (Malaga, Europe's Southern California) where I ventured that after the pandemic a strong property boom would follow that would last several years. Particularly in the region of Malaga, we would witness a strong growth for all the reasons I collated in my article.
Four years on, we’ve witnessed an outstanding rise in property prices due to an unabated demand. Real estate is appreciating by two digits a year in major Spanish cities and selected coastal areas, such as Malaga.
In today’s El Mundo newspaper, we read an article featuring Spain’s ongoing property boom 4 years on.
At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience. We assist clients buying, selling, or renting properties in Spain. We are specialized in visas and residency permits. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.
Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author will result in criminal prosecution. Ní neart go cur le chéile. VOV.
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2024 © Raymundo Larraín Nesbitt. All Rights Reserved.
Lawyer Raymundo Larrain analyses the main points of Spain's new Housing Law.
Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Copyrighted © 2024. Plagiarism will be criminally prosecuted.
31st of July 2024
This guide has been greatly abridged, collating only what I deem are the major changes and improvements upon existing housing regulations. I have purposely left out minor changes whose impact is negligible.
Several legal and financial concepts are assumed to be known by the reader, in the wake of previous rental and housing regulations dating back several decades.
It should be noted that several of the below changes heavily impact - and even reshape – our understanding of private property and a free market economy.
As multiple articles and blog posts explain, the Spanish government relentlessly pursues a lofty goal (reduce rental prices and increase the number of properties on offer to keep inflation in check). This self-declared goal pervades all housing and rental policies.
However, it does this at the expense of other people’s private property.
This point takes for granted the reader fully understands the mechanics of silent renewals in long-term rental contracts.
Amendments to the IRPF (IRNR) and Corporate Tax (IS).
Town halls are now empowered to apply ‘tax incentives’ (read coercion) on owners to foster the rental of empty housing. This is done to alleviate the sharp increase in rental prices. It is hoped that on increasing the housing stock, it will bring down rental prices.
In plain English, it’s a stick-and-carrot housing policy; if you rent, you have nice tax allowances, if you do not, you get slapped with additional tax.
Before, certain properties were earmarked as social housing (viviendas de protección official, or VPO). The procedure to remove this protected status - so they could be sold as freehold property after a number of years had elapsed - was winded and protracted (basically because a legal change to freehold translated into a great appreciation in value fuelling property speculation).
Going forward, this law bans the legal re-classification of subsidised property (meaning they will remain as social housing indefinitely) and in other specific cases, raises the protection up to 30 years. Spain’s stock of social housing is significantly under par (1.6%) by rapport to other neighbouring EU Member States (10%). The government wants to maintain, and even gradually increase, the stock of available public housing.
At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.
Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author will result in criminal prosecution. Ní neart go cur le chéile. VOV.
Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.
Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Copyrighted © 2024. Plagiarism will be criminally prosecuted.
15th of July 2024
IDEALISTA reports on its latest metrics that rentals on offer in Barcelona have plummeted by 14%. The same story applies to the remainder of the region of Catalonia.
We have repeatedly been warning since 2021, that the approval of Spain’s new Housing Law of 2023 was going to have the opposite effect that was sought by the Spanish government.
Instead of sharp falls in rental prices, landlords – afraid of the interventionism in the new housing law – massively pulled out their properties from the rental market causing a sharp spike in rental prices (fewer offers available and an ever-increasing demand results in higher rental prices).
This is exactly the opposite effect that was desired by lawmakers when they enacted the new Housing Act.
Unfortunately, as explained in multiple of our articles and blog posts, this was highly foreseeable.
In effect, Spain’s new Housing Law has devastated the rental market, driving rental prices sharply up to all-new highs to the detriment of weak social collectives that (desperately) crave protection from Authorities against unabating rental prices.
The road to hell is paved with good intentions.
Available services from LNA:
At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form to book an appointment.
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2024 © Raymundo Larraín Nesbitt. All Rights Reserved.
Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Copyrighted © 2024. Plagiarism will be criminally prosecuted.
1st July 2024
Summer has arrived, and with it the holiday season is at its peak.
Scammers are also at their peak, as a new rental season is upon us to fleece unsuspecting punters.
The best way to avoid falling for a scam is to be aware of it.
I have collated below eight tips that may help you avoid being scammed on renting a holiday home in Spain.
Available services from LNA:
At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form to book an appointment.
Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.
Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Copyrighted © 2024. Plagiarism will be criminally prosecuted.
21st June 2024
Earlier this year - without prior warning - the Spanish Tax Office changed the tax rules for non-residents.
Non-residents, on renting their Spanish property, used to file a tax return every tax quarter. This is no longer the case.
Going forward, all non-residents who rent their property out will need to file only one tax return a year, on the first two weeks of January. This matches what tax residents need to do on submitting their tax once a year.
So, for example, if a non-resident rented out during 2024, they would now have to file a tax return on their rental income on the first two weeks of 2025.
We offer the following tax service:
Available services from LNA:
At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form to book an appointment.
Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.
Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Copyrighted © 2024. Plagiarism will be criminally prosecuted.
Available services from LNA:
At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form to book an appointment.
Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.
Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Copyrighted © 2024. Plagiarism will be criminally prosecuted.
8th of June 2024
By Raymundo Larrain
At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form to book an appointment.
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2024 © Raymundo Larraín Nesbitt. All Rights Reserved.
PODEMOS, Spain’s junior communist government coalition partner, proposes to increase rentals to 10 years and cut down rental prices by 15%
Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.
Copyrighted © 2024. Plagiarism will be criminally prosecuted.
21st of May 2024
By Raymundo Larrain
In previous articles and blog posts, I had (heavily) criticised Spain’s social-communist government’s housing and rentals policies.
Spain’s housing policy is non-existent. Despite being in power for over 6 years, and declaring housing as a national emergency and a priority, the fact is this administration in office has not built a single social home for aspiring homeowners who find it challenging to get hold of the first rung of the property ladder. House prices in Spain have reached an all-time high. There are vulnerable collectives that urgently need the government to address Spain’s housing problem. This government speaks a lot and does nothing. By contrast some regional governments (i.e. Madrid), which are not even ideologically aligned with the government, have built thousands of social housing destined for youth and other struggling social collectives. Classic case of much ado about nothing.
Regarding the rentals policy, the government has indeed proactively intervened approving a set of laws with a declared lofty goal of reducing rental prices. In multiple articles and blog posts, I had analysed these proposed policies and changes (which are now in force) and I concluded they would be counterproductive, even driving rental prices sharply up as in effect they would curtail the housing offer (landlords would withdraw from the market their properties). Unfortunately, I have been proven right time and again.
After enacting the new Housing Act, as was foreseeable, what happened next was that over 30% of landlords withdrew their properties from the market. Following the laws of demand and supply, the result was that rental prices skyrocketed, affecting gravely precisely those vulnerable collectives this new law sought to protect, further marginalizing them and pushing them to the edge. In most Spanish cities, rental prices have increased by over two digits in the last year alone. This sharp increase can be mostly attributed to our social-communist clumsy housing policies. The road to hell is paved with good intentions.
Not happy with such a devastating result, PODEMOS announced today it plans to push legislation to force long-term rentals to 10 years (12 years if the landlord is a legal person) AND reduce rental prices by 15%. Read like this quickly, without a second thought, it may sound (very) good on paper. Cheaper and longer rentals, whose not up for it?
However, this comes at the expense of other people's private property. When you analise the new proposal, it's in fact a very bad idea and even counterproductive.
You don’t need to be an industry insider, or even an economist, to figure out that if these proposed changes are passed as law they will translate into landlords massively withdrawing their properties from the rental market. A drastic shortage in rentals offered will drive rental prices to new historic highs.
It is blatant for all to see that the ill-advised rental policies followed by Spain's Government have greatly contributed to a huge spike in rental prices nationwide as in effect they are driving landlords out of the market (understandably afraid of these measures), reducing the number of homes on offer.
This administration has proven itself most apt at polarising society, fanning the flames of discontent and capitalising on it politically. This irresponsible attitude has even spilled over to Spain's foreign affairs, by continuously creating smoke screens with other countries (Algeria, Argentina, Israel, Russia, etc) to deflect from burning domestic political issues i.e. daily corruption scandals.
Leaders - great political leaders - strive to create unity, to bring down divisive walls.
Foreseeably, if we reach this critical point of eyewatering rentals, the government will be pushed by society to expropriate the use of empty homes and put them up for social rent at a rental price deemed ‘reasonable’ by our social-communist Overlords. In effect, a planned economy.
I understand that most career politicians are self-serving, but the proposed changes cross a red line. Such changes would unleash hell in Spain's rental market and would seriously marginalize vulnerable collectives (youngsters, elderly tenants, single mothers) forcing the government’s hand to intervene.
So, if the government (surely) knows by now that the populist laws it has been approving, one after the other, are driving rental prices sharply upwards, why on earth is it still doing it then? In short, for political gain. The larger the social discontent it sows, the more votes they garner on polling day, securing their power.
Playing the devil’s advocate, I can only surmise that this is in fact the government’s ulterior motive; to actively intervene and expropriate people's private property amidst a thundering applause of the general (misinformed) public which will wholeheartedly welcome these communist measures of 'mobilizing' (read expropriating) empty property for the 'greater good.' These clumsy set of rental laws are railroading us down a dark path which can only lead to mass expropriations. As I've written several times before, this hard-left wing government carries out social policies at the expense of other people's private property with total disregard for their constitutional rights. We've already seen how this ends in other countries (Cuba, Venezuela, etc).
It falls on the government to build and subsidize social housing, for sale or for rental, to assist ailing social collectives. Taking away from others, who've worked hard all their lives to save money and invest, is not the solution.
Should this new proposal become law, Spain’s socialist-communist government will create a (major) problem with one hand (prohibitive rental prices no one can afford) and then offer a plausible solution with the other (expropriations), which in effect will limit citizens’ rights and liberties (seriously curtailing the right to private property), gaining even more power and control over society in the process. In Maduro's playbook, win-win.
TLDR; To sum it all up, the new proposed rental changes by PODEMOS, besides being downright stupid, will prove detrimental to vulnerable collectives, driving rental prices up the roof to new highs. This will ‘force’ the government’s hand, which will be all too eager to decisively intervene in the rental market by expropriating (or heavily taxing) empty properties.
So much for democracy and a market economy. And this is how democracy dies, amid roaring applause.
“Those who would give up essential liberty, to purchase a little temporary safety, deserve neither liberty nor safety.” – Benjamin Franklin
Benjamin Franklin (1706 – 1790). Founding Father of the United States. Exceptionally gifted statesman, scientist, inventor, diplomat, writer, printer, postmaster, and political theorist. He campaigned from early on for colonial unity, initially as an author and spokesman in London for several colonies. He was tasked to raise funds in Europe for the War of Independence. Malaga’s cathedral only has one tower (known as ‘La Manquita’), as the funds were gifted to 13 struggling colonies in their War for Independence against a mighty overseas empire. He was one of the drafters and signers of the Declaration of Independence of the 4th July 1776. Appointed as the first United States ambassador to France, he exemplified the ingenuity and prowess of a young emerging American nation.
Ben was a politician in his spare time; nobody’s perfect.
At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form to book an appointment.
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1st of May 2024
By Raymundo Larrain
On buying property in Spain, you should be mindful the title is clean. It is fairly common the previous owner is in arrears. In Spain, debts follow the property not the debtor. Meaning, when you take over the ownership, you also take on all the existing debts from the previous owner. This is why you should hire a conveyance law firm - like us - to carry out a thorough due diligence on the property ensuring everything is above board.
I have only listed the basic six, but you should be aware there are far more points to look out for. Which is why we strongly urge you to contact an experienced law firm like ours on buying property in Spain.
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At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88, or by completing our contact form to book an appointment.
Larraín Nesbitt Abogados, small on fees, BIG on service.
2023 © Raymundo Larraín Nesbitt. All Rights Reserved.
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