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Is the Algarve Finished?

It would be nice to be able to start my letter from the Algarve with some good news, but week after week the news continues to be bad. It is confirmed from the chief of the CID here that all those in the previous government who were involved in shady deals with companies to rip off the tax payer will not be prosecuted despite the fact that they are now getting rather fine payoffs at the tax payer's expense.

To add insult to injury the poor tax payer is being asked to cough up even more money. The increase in council tax on properties is now to go up in one steep jump instead of being phased in over three years. Some folks are reporting increases of 500%. I dont know what my figure will be, no-one has bothered to tell me, but if it rises by only half that I shall be paying more in rates than the average person's wage in this part of the world. Despite that they only service I get from the local town hall is the weekly emptying of the village dustbins. So that job, which must take no more then ten minutes, probably less, costs the council all of  about €5 euros a week, and the service is shared by a dozen households. In short I cost the local council about €20 euros a year. I dont get a road to my house, it is a dirt track which we all maintain. I get no pavements or street lights. I dont use the schools. The police dont assist us in any way when we report a crime. I cant think of a thing they provide for me, yet my tax bill is set to explode to over €10,000 a year.

One further thing which concerns me, and that is the fact that in Portugal one tax payer supports five non-tax payers. That is ridiculous. It is a totally unsustainable situation.

The government should be setting up enterprise zones, cutting down on waste, cutting out corruption which drains vast sums of money from the tax pool, and encouraging more people into work. All they are doing is making sure that people stop work, move away, sign on, and batten down the hatches. In a couple of years time this country will be an economic waste land.

I think we are now heading towards a situation similar to that in Greece. Either there is a complete change of tack within the next year or so or this place is finished.

Some of you ask me whether moving to Lisbon to start a business is a good idea. If you want it straight from the shoulder, the answer is No! Dont do it. Stay away. Coming here to start a business is pure madness. And dont even think of buying a house here. You will need a massive income to support it. House prices will halve from present levels over the next three years. And that isn't the worst of it. There isn't a market for most of the properties here. If you've bought a flat you're stuck with it. If you paid more than €100,000 for anything you will be losing money big time. There simply isn't a market for most properties.

Faro town hall set up an auction last year of several of its properties. No-one turned up. They are going to have another go next month. I cant see there being any change of heart. They wont be selling anything this time round either. Heck, they only want to raise €14 million. You'd think forty or so properties would do that easily. No chance.

Meanwhile some folks who are still obviously living in dreamland have two-bed cottages up for sale in the wilds of the west coast for a quarter of a million euros. They are seriously out of step with reality. In Sicily, which has a similar climate, a more robust economy than the Algarve, likes foreigners, and has a warmer sea, you can buy ruins for €20,000, and habitable homes for €50,000, and the taxes and cost of living are much lower than here. Why pay five times those prices for living in the back of beyond with no services, no work, and crippling taxes?

I'm sorry, but this place is finished.
John


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