Could your pension be the key to owning a Spanish home? New rules giving people flexibility to spend their pension pots on whatever they want mean more British retirees could buy a home in Spain next year.
Changes announced in the UK’s March Budget mean from April 2015 pension-holders will no longer be bound by current restrictions to buy an income-generating annuity with their pension pot. This means that buying a property in Spain will become a real and affordable option for anyone over the age of 55 who has cash tied up in a private pension scheme (as opposed to a final-salary scheme). People should note that the first 25 per cent of cash withdrawn from a pension pot will be tax free, the remaining 75 per cent subject to income tax, so withdrawing funds should be done with caution.
Property prices in Spain, including the Costa Blanca, remain at seven-year lows and by comparison with much of the UK, where prices have risen steeply in recent years, are very affordable. In parts of the southern Costa Blanca, such as Torrevieja, Villamartín, Cabo Roig and Punta Prima, apartments are available for less than £50,000 and townhouses from £50,000.
Search here for more properties in the South Costa Blanca region or here for more properties in the North Costa Blanca region.
