The local press reports that the Marina Alta region of the Valencian Community, which includes popular holiday and retirement destinations like Javea and Denia, has lost roughly a third of its foreign residents in five years, falling from 90,000 in 2010 to 60,000 today.
Some of this decline will be due to misguided Government policy like the Modelo 720 forcing residents to declare their worldwide assets. Whatever the causes, it’s bad for the local economy, and bad for Spain.
Is there a bit more insight available? Are these numbers coming from padron registers? 30,000 foreigners, who were counted as residents, have left. They could be now non-residents, staying 6 months instead of 12 and the ones who actually sold their properties likely did so to other foreigners who are also non-residents.
Numbers look scary and certainly a decline but not that tragic. A tax of 100% of zero is not much… Clever, very, very clever.
The source article was short, without much more information, but it did mention the padrón. As you say, many of those who were residents before may now be under the radar or part-time residents. Whatever the case, it’s bad for the local economy, and is the result of foolish political decisions.
“Foolish political decisions” R Us, as far as the Spanish way of governance goes, it seems to me. Then there’s the ‘baksheesh’, the black economy, the tedious, wasteful procedures of everyday, necessary dealings with bureaucracy …
Everything you need to know about property in Spain
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