The recent news from Spain has tended to be gloomy as property values have continued to fall rapidly, trapping many Britons in homes they could not sell. Finally there is better news coming out of Spain as it seems the debt crisis has forced the government to reform its legal and economic structures which is something that has been long overdue.
The Spanish Prime Minister Jose Luis Zapatero has worked wonders in turning round the economy since the spectre of a Eurozone bailout was raised late last year. Zapatero was determined his country would not face the same fate as Ireland and Greece and has implemented many new reforms over the last few months which regulate the property and lending markets, and the labour market. In doing so he has managed to reduce the wages in the public sector, raise the retirement age and reduce the red tape surrounding many governmental procedures.
The property reforms are designed to reassure buyers that their purchase will be legal and secure. Councils will have to submit a document that makes clear the legal status of the property, eliminating the risk of the property being deemed illegal later on.
He also has ambitious plans to reduce the country's deficit to 6% of GDP by the end of 2011. It was previously 11% at the end of 2009, and this impressive decrease shows that the country can manage its finances better making it more attractive to investors. These factors combined with low property prices should be enough to tempt overseas buyers back into the market as the chances of getting a great deal are fantastic provided they are buying for the longer term.