Pension changes may inspire new British invasion
23 November 2005, MADRID — Changes to pension rules in Britain may inspire a new housing boom on Spain's Costa del Sol, a report predicts.
23 November 2005
MADRID — Changes to pension rules in Britain may inspire a new housing boom on Spain's Costa del Sol, a report predicts.
Property consultancy Aguirre Newman said the changes, which come into effect from April 2006, will mean more Britons will buy second homes.
The report on the property market in Malaga said the changes on self-invested personal pensions will "benefit" the property market on the Costa del Sol.
Already up to ten of thousands are thought to own a homes in this party of Spain.
Aguirre Newman said property prices have risen 23 percent in the past year and are expected to go up 15 percent next year.
In April next year, new pension rules will do away with many of the existing restrictions on how pensions can be used.
If people want to be a member of a company pension scheme and save money in a personal pension at the same time, this will be permitted.
People will also be allowed to work and draw some of their pensions.
The limits on what people can put in and take out have also been simplified.
So people can invest up to 100 percent of earned income in any tax year, up to a ceiling of GBP 215,000.
But new Self-Invested Personal Pensions (SIPPs), will allow people to use their pensions to invest in residential property.
This is what may inspire many more Britons to buy that dream home on the Costa del Sol, the report says.
[Copyright EFE with Expatica]
Subject: Spanish news