Following the re-election of the Spanish Socialist Party, Partido Socialista Obrero Espanol (PSOE), led by Jose Luis Rodriguez Zapatero, on March 9th, investers planning to buy property in Spain can look forward to a simpler, more buyer-friendly process.

As part of the pre-election promises, the PSOE vowed to mke life easier for buy-to-let investors by allocating funding to better regulate the Spanish property market.

Zapatero intends to encourage the purchase of properties for rental through mortgages, while improving security and guarantees for landlords and simultaneously boosting protection for tenants.

The Association of International Property Professionals (AIPP) 2007 market report recently revealed that Spain was still the favourite destination among Brits looking to buy a second home in 2007. In order to sustain this popularity, Zapatero has promised to regulate the property market, a move that will include a shake up of both estate agents and property administrators.

Equally as important, the PSOE has promised to eliminate wealth tax. In addition, an increase in the tax-free allowance for Inheritance Tax of up to €60,000 will mean that approximately 80 per cent of beneficiaries will now pay nothing plus an exemption for main homes.

Commenting on the manifesto, Peter Esders, partner at The International Law Partnership says, “Although there has been no change in leadership, the proposals should prove very encouraging to potential investors and current owners of property. Regulation of the property market is long overdue and proceedings to action this will make trading in this market safer and thus improve confidence in the Spanish property market on a worldwide level.”

Esders continues, “Spain has long been a favourite among British people buying a second home, indeed, the favourable lifestyle together with the great food, beautiful scenery and stable political climate will always make this destination a winner. The positive aspects of the manifesto, as detailed above should strengthen the decision to buy amongst those who are still in consideration.”

Full story from www.homesworldwide.co.uk