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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