"The problem our solicitors failed to notice was neither our home or the the others on the complex had planning permission.
Esteban Gonzalez Pons, Director of Housing for the Generalitat Valenciana regional government body, warned: "The homes built on protected land inside El Hondo Nature Reserve will all be demolished. "Some Irish homeowners may not even know that they are not tax-compliant, due to language barriers and unfamiliarity with Spanish legal and tax systems. Mr Cox added that setting up a personal pension in Spain is unlikely to be wise at this point, as they are uncertain of how the business will progress and of their future employment income. But overseas house hunters and pensioners often overlook the cost of sending money abroad. It is also probing the alleged falsification of property certificates. Sometimes, Ms Higgins said, it can take three or four years before these bills are sent to new properties.
Buying abroad is easier than ever, and the strong pound and soaring UK house prices make it increasingly affordable. But across Spain, thousands of foreign buyers have fallen foul of cowboy builders who build without permission and dodgy estate agents suspected of buying the silence of corrupt town hall officials.
Mr Cox said: "If they want to maintain a high exposure to property they could invest in a property fund.
Our team in the UK and in Spain guide homebuyers through the entire process, from the lifestyle visit to view the properties, through to helping customers settle in to their new home. It is also probing the alleged falsification of property certificates. The authorities are far more concerned with the issue of Inheritance Tax, another area that we intend to tackle in a future article.
Gregorio Mayayo, president of the AHE, is convinced that Spain is not facing a crisis in the real estate sector.
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Today, construction companies are much stronger and can handle waiting up to a year for properties to be sold.
Most modern cave homes have a number of rooms that are excavated from the surrounding hillside, often bedrooms, with a conventional part of the house built onto the front. If they choose to sell, Mr Fry added they should take local advice on potential tax liabilities. Because of the dry climatic conditions and the type of rock in which they are built they are dry and it is very rare to find any form of dampness within the cave rooms.
guide Buying Property Abroad, says even if your property looks cheap, it will still be a major financial commitment. Look for a property convenient for the local airport and attractions such as beaches and golf courses.
But Stephen Ludlow, director of estate agent Ludlow Thompson, warns of a growing number of schemes in Turkey, Bulgaria and Dubai that guarantee rents for the first year or two.
"The local town hall are now threatening to demolish the lot, leaving us to try to recoup our losses from the solicitor or the builder. We face financial ruin.
Thousands of homes in the area are also threatened with demolition. If buying in the eurozone, you could get lower rates by going to the overseas lending arm of a UK bank. A cave house is a home that is constructed either partly or wholly underground. Catral mayor Jose Manuel Rodriguez Leal has criticised the operation against his town hall as "politically motivated.
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Foreign exchange is not a regulated industry, so check you are dealing with a reputable, well-established broker before parting with any money. Mrs Singleton said: ""We used a foreign exchange broker, Currencies Direct, for our house purchase.