How we escaped Spain’s 100% holiday home tax: Benidorm-loving Brits reveal loophole that’s allowed them to snap up properties for as little as £30,000 – with bills just £30 a month

British house hunters in Spain are ditching apartments and villas for caravans in a bid to save tens of thousands of pounds in hidden costs and taxes.

Camping sites filled with mobile homes are popping up across the country to fulfil a growing demand for an affordable place in the sun, following years of price increases among more traditional homes.

It comes as the socialist government is pushing ahead with a 100 per cent tax on properties sold to non-residents – meaning a €200,000 home, for example, would end up costing British buyers €400,000, if the law is passed through parliament.

The legislation aims to ‘stop the speculation’ of the Spanish property market and increase the number of homes available to locals and residents.

Caravans will not be subject to the law and prices can start from as little as €35,000 for a two-bed, and there are no extra costs that are typical when buying a Spanish apartment or villa (usually at around 15 per cent of the asking price).

In many areas, mobile homes cost a fourth or even a fifth of the price of nearby apartments or villas.

Retired British expat couple Tracy Patterson, 63, and Clyde Wheelbarrow, 77, moved to Spain nine years ago, settling in an apartment in the city centre of Malaga.

However, around two years ago, the rent became too expensive and they were forced to live in a campervan.

Janet Maginn pictured outside her mobile home in Camping Valle Niza near Malaga. British house hunters in Spain are ditching apartments and villas for caravans

Janet Maginn pictured outside her mobile home in Camping Valle Niza near Malaga. British house hunters in Spain are ditching apartments and villas for caravans

Camping sites filled with mobile homes are popping up across the country to fulfil a growing demand for an affordable place in the sun (pictured: a home at Camping Valle Niza)

Camping sites filled with mobile homes are popping up across the country to fulfil a growing demand for an affordable place in the sun (pictured: a home at Camping Valle Niza)

Caravans will not be subject to new tax laws and prices can start from as little as €35,000 for a two-bed (pictured: a bedroom in a home at the park)

Caravans will not be subject to new tax laws and prices can start from as little as €35,000 for a two-bed (pictured: a bedroom in a home at the park)

There are no extra costs that are typical when buying a Spanish apartment or villa (usually at around 15 per cent of the asking price)

There are no extra costs that are typical when buying a Spanish apartment or villa (usually at around 15 per cent of the asking price)

They purchased a mobile home in Camping Valle Niza 18 months ago for €48,000.

The mobile home site is just metres from the beach and around 25 minutes by car from Nerja, one of the jewels of the Costa del Sol.

‘We were simply priced out,’ Tracy, a retired dental hygienist, told MailOnline from the decking of her mobile home.

‘But we love it here, it’s so relaxing and easy going, people just want to enjoy their lives and we have everything we need.’

Clyde is a musician who has worked as a producer and supporting act for some of the biggest stars in music, including Eric Clapton, Etta James and Jimmy Hendrix.

He said living in a mobile home offered an unbeatable level of affordability.

He added: ‘There is a bus stop just outside that takes us to Malaga or any of the nearby towns, and there’s so much to do nearby.

‘And when you compare the cost of some things to England it can be around 50 per cent less, including gin and tonics for €4.50.’

British expats Tracy Patterson and Clyde Wheelbarrow, pictured outside their mobile home, moved to Spain nine years ago but now live in a caravan after rent became too expensive

British expats Tracy Patterson and Clyde Wheelbarrow, pictured outside their mobile home, moved to Spain nine years ago but now live in a caravan after rent became too expensive

British expat Jojo, pictured, has been selling such properties along Spain's Mediterranean coast for years and manages Camping Valle Niza

British expat Jojo, pictured, has been selling such properties along Spain’s Mediterranean coast for years and manages Camping Valle Niza

Scottish part-time resident Eileen Tonner, pictured on her sun lounger, said the camp offers 'great friendship in a fantastic location'

Scottish part-time resident Eileen Tonner, pictured on her sun lounger, said the camp offers ‘great friendship in a fantastic location’

Part-time tradie Martin James, pictured painting his mobile home, has been living at Valle Niza for almost four years

Part-time tradie Martin James, pictured painting his mobile home, has been living at Valle Niza for almost four years

The couple bought their mobile home from fellow British expat Jojo, 54, who has been selling such properties along Spain’s Mediterranean coast for years.

She and her close friend Bambi, aka the Caravan Queens, set up their own company 11 months ago and have already sold close to 50 units.

The pair recently featured on Channel 5’s Bargain Loving Brits In The Sun.

‘The interest in caravan living from Brits is just growing and growing,’ Jojo told MailOnline this week from Camping Valle Niza, one of the parks she manages on the Costa del Sol.

‘We’ve had 7,000 enquiries for just one caravan this week.

‘I think a lot of people want to get away from England now. They are missing the feeling of community in the UK.

‘There’s so many pubs closing down, the old boys just want to go to their local and have a smoke without being harassed, but there are far fewer places than before Covid.’

Once someone has bought their mobile home in Valle Niza, they have to pay ground rent of €6,000 per year.

In many areas, mobile homes cost a fourth or even a fifth of the price of nearby apartments or villas

In many areas, mobile homes cost a fourth or even a fifth of the price of nearby apartments or villas

The mobile home site is around 25 minutes by car from Nerja, one of the jewels of the Costa del Sol

The mobile home site is around 25 minutes by car from Nerja, one of the jewels of the Costa del Sol

Once someone has bought their mobile home in Valle Niza, they have to pay ground rent of €6,000 per year

Once someone has bought their mobile home in Valle Niza, they have to pay ground rent of €6,000 per year

The park is also just metres from the beach (pictured)

The park is also just metres from the beach (pictured)

The ground rent includes the use of the on-site swimming pool, pictured, for 365 days of the year. The pool is cleaned daily and the rubbish is also collected every day

The ground rent includes the use of the on-site swimming pool, pictured, for 365 days of the year. The pool is cleaned daily and the rubbish is also collected every day

This includes the use of the on-site swimming pool for 365 days of the year, free WiFi, a pool bar and restaurant, free weekly yoga and Spanish lessons, a gym and drinking water.

The pool is cleaned daily and the rubbish is also collected every day.

‘Bills here are basically around €35 per month, and when you think that a nearby flat is easily going to cost you €200,000 before extra costs, while community fees can be hundreds per month, there is simply no comparison,’ added Jojo.

Property prices grew by just over 10 per cent across Spain last year, but in holiday hotspots the growth was far greater. In the Balearic Islands for example, prices have risen by 60 per cent in just three years.

Meanwhile, socialist Prime Minister Pedro Sanchez announced in February that his government will effectively double the price of any property purchase made by non-residents – with Brits to be the most affected.

The law, which has yet to be voted on in the Spanish parliament, has been branded potentially catastrophic for real estate markets in hotspots like the Balearics, Costa Blanca and the Costa del Sol.

In Alicante, for example, latest figures show that almost half (44 per cent) of property sales are made to foreigners, and Brits remain the biggest group of non-Spanish buyers nationwide.

Amid the growing uncertainty of the traditional market, scores of Brits are opting for the simpler process of buying a caravan.

Janet, pictured with the groundsman, was able to purchase her home and the first year of ground rent for €43,000

Janet, pictured with the groundsman, was able to purchase her home and the first year of ground rent for €43,000

She told MailOnline: 'I had wanted to live in Spain for a long time but my budget was small'

She told MailOnline: ‘I had wanted to live in Spain for a long time but my budget was small’

JoJo said: 'There's so many pubs closing down, the old boys just want to go to their local and have a smoke without being harassed, but there are far fewer places than before Covid'

JoJo said: ‘There’s so many pubs closing down, the old boys just want to go to their local and have a smoke without being harassed, but there are far fewer places than before Covid’

Martin added: 'It's much more affordable and there's very little upkeep. I like this little community feel, everyone speaks to you in the morning and they actually care'

Martin added: ‘It’s much more affordable and there’s very little upkeep. I like this little community feel, everyone speaks to you in the morning and they actually care’

‘We’re growing parks all the time,’ Jojo added, ‘We have a new one in Fuengirola, two new ones in Almeria, another in Granada and one in Valencia.’

The homes typically range between €45,000 and €80,000, although there are deals to be made.

They are ‘sold as seen’ and people can remain in them for as long as they wish.

Single mother Janet Maginn, 56, from near Belfast, spent her life savings on her two-bed mobile home, also at Valle Niza.

She told MailOnline: ‘I had wanted to live in Spain for a long time but my budget was small.

‘I don’t drink or smoke, and although I love a party and karaoke, I want to be home by 10pm, so big cities like Alicante or Benidorm did not interest me at all.

‘When I saw this campsite I knew immediately that it was perfect.’

Janet was able to purchase her home and the first year of ground rent for €43,000.

Property prices grew by just over 10 per cent across Spain last year, but in holiday hotspots the growth was far greater

Property prices grew by just over 10 per cent across Spain last year, but in holiday hotspots the growth was far greater

Amid the growing uncertainty of the traditional market, scores of Brits are opting for the simpler process of buying a caravan

Amid the growing uncertainty of the traditional market, scores of Brits are opting for the simpler process of buying a caravan

The homes typically range between €45,000 and €80,000, although there are deals to be made

The homes typically range between €45,000 and €80,000, although there are deals to be made

‘It was a huge decision as it was all my savings but I haven’t looked back,’ she said.

‘I had a huge list of must haves and they were all met. I can get a supermarket to deliver my shopping for just an extra €4.50, there’s a village a few minutes’ walk away, there’s free drinking water, I have everything I need.

‘More importantly it’s a great community feeling, everyone is so friendly and you have friends nearby at all times.’

Scottish part-time resident Eileen Tonner, 67, agreed, saying the camp offers ‘great friendship in a fantastic location.’

‘I’ve got slight disabilities and it’s all on flat land and the bus is just outside,’ she told MailOnline from her pool lounger.

‘I don’t have a care in the world when I am here. And when I took ill last year and had to be hospitalised, the support from neighbours was just so overwhelming.

‘And the UK should take note of the quality of care I got in the hospital, it was fantastic.’

Part-time tradie Martin James, 54, from Bristol, has been living at Valle Niza for almost four years.

The mobile homes are 'sold as seen' and people can remain in them for as long as they wish

The mobile homes are ‘sold as seen’ and people can remain in them for as long as they wish

A bedroom at one of the mobile homes in Camping Valle Niza

A bedroom at one of the mobile homes in Camping Valle Niza

He told MailOnline: ‘It’s much more affordable and there’s very little upkeep. 

‘I like this little community feel, everyone speaks to you in the morning and they actually care.

‘Getting a flat would be quadruple the price and it’s also quite hard to get a mortgage.

‘We are going to see a lot more people living on camping sites, especially if the 100 per cent tax comes in.’

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