Spanish Tax Authorities to Probe Real Estate Fraud

Spanish tax authorities have started inspecting 82,000 real estate developments for signs of fraud, reported the Spanish daily El Pais.

If prices declared for the sale of properties are about the same or lower than the costs incurred by developers, that could indicate fraud, the newspaper said, citing Luis Pedroche, director of Spain's tax agency.

Northern Portuguese Villas

Is the Algarve property investment market about to burst or already bursting despite the well polished real estate sales industry's best efforts? Portugal as a whole is widely cited as being the best property investment country in western Europe, however conditions for the Algarve are looking a little shaky. Minho Villas is a sales site for one of the most prestigious "quinta" villas on the northern border with Spain and offers a very different real estate investment opportunity to the Algarve.

Spain is not in economic crisis

The 47-year-old prime minister says his Socialist government long predicted a housing market correction and is not to blame for economic fallout from the United States.
"We have a slowdown because of the real estate sector, this is well known, it has problems," said Zapatero. "In all other sectors the economy has absolute strength to absorb and continue absorbing these job losses."

Dubai Investor Eyes Spain's Colonial

Colonial is Spain's second-largest real-estate company by assets and has been hit hard by tightening financial conditions and sharply slowing new home sales. The company's low share price has fueled interest in a possible takeover of the company. It lost 62% of its value last year amid growing fears of a sector slowdown. In the face of a declining share price, banks in late December started unloading shares. The shares have retreated 12% this year.