Guide to buying property in Spain as a foreigner
Guide to buying property in Spain as a foreigner
Welcome to Spain
Spain is one of the 27 countries that make up the European Union, and one of the 19 that make up the Eurozone. With a territory covering 505,370 square kilometers, Spain is the fourth largest country on the European continent as well as one of the most mountainous, with a median altitude of 650 meters above sea level. The country is divided into the Spanish mainland, the Balearic Islands (in the Mediterranean Sea), the Canary Islands (in the Atlantic Ocean), and Ceuta and Melilla (in northern Africa). The territory is organized into a total of 17 autonomous communities, 50 provinces, two autonomous cities (Ceuta and Melilla), and contains a total population of almost 46.5 million inhabitants, according to the 2016 census.
Which area of Spain would you choose to buy a property?
To the outside world, the two most attractive features of Spain are its beaches and the amount of sun it receives each year. The country has more than 4,900 kilometers of coastline, more than 2,500 hours of sun each year, and a mild climate for most of the year. The only places in Spain to experience less than 2,000 hours of sun each year - as well as greater rainfall than the rest of the country - are the Cantabrian coast and the mountainous regions. After France and the US, Spain is the third most visited country in the world, having received 75.6 million tourists in 2016, according to data from the World Tourism Organization. Tourism constitutes an important part of the Spanish GDP (16%) as well as of the construction industry (5.6%).
Hot cities in Spain
Barcelona is an ideal city to invest to. As the Spanish real estate market shows excellent potential for profitability, investors are attracted to Barcelona’s low interest rates and solid economy. New homes are the most popular investment and are expected to continue to represent at least 50% of the transactions in the first quarter of 2018. Invest in Barcelona real estate
When buying a house in Málaga, you can choose between fabulous villas on the coast, beachfront apartments or older apartments 'isn the old town. It's a good time to buy property in Spain. After the real estate crisis prices fell enormously and are just now beginning to rise again, thus offering interesting investment opportunities - use them to get your return on investment asap. How to buy in Málaga
Alicante is a Mediterranean city that offers a magnificent quality of life due to its warm and sunny climate, its affordable prices, its gastronomy, and its network of shops. With both a port and a beach, it is a very attractive destination for foreigners and investors looking for good buying opportunities. Alicante is currently the fourth most profitable city in Spain. How to buy in Alicante
The Capital of Spain
When talking about Spain we mostly think about Barcelona, Marbella or Alicante as the hottest tourist destinations. However there are more locations worth while considering for relocation or property purchase, like Madrid. Madrid is located in the heart of Spain with no direct access to the sea, however it has a lot to offer both to tourists and working expats. Madrid is the eighth financial center of Europe (after London, Frankfurt, Luxembourg, Paris, Hamburg, Dublin and Munich). And they say there is a possibility to make it the main European Financial Center after Brexit. Also Madrid is cheaper than Barcelona, San Sebastián and Vitoria and has real gems both in living and real estate. Consumer prices in Madrid are 3,33% lower than in Barcelona, and there are 17 Michelin starred restaurants in Madrid in 2018. As for property purchase opportunities in Madrid, we would recommended to take a look at newly constructed houses (new constructions have ~28% increase in recent years) - it’s getting really affordable to buy a house in Madrid.
Frequently asked questions about property purchase in Spain
|Can I buy property in Spain as a foreigner? Are there any limits and what is required?|
|There are no limits for non-citizens to buy property in Spain. You just need to have all the documents translated to provide to Notary, Land Registry and bank. Additionally you need to get a NIE (personal identification number) to close the deals. Good news is that you can get a residence status if you buy a house or several houses for 500K€.|
|Is it possible to buy a house within 50 000 euro budget? In which regions would it be possible?|
|You can find small apartments in touristic areas, but check everything twice to make sure you get what you pay for. Since house prices in Barcelona are quite high you can look for other coastal cities like Almeria, some areas of Alicante and Murcia, Castile or Aragon. Cheaper houses can be found in inland like Toledo, Albacete or Cáceres.|
|I am buying a house for my kids to go to tennis school, which area should I consider?|
|The Levante area is famous for its tennis schools, as well as Barcelona, Valencia and the Balearic Islands. There are numerous academies and facilities to practice. In case of looking for a house with access to tennis courts there are also multiple options. But we would recommend to visit the regions and check those schools first before buying a house.|
|Is it true that property debts are transferred to the new owner?|
|That's true, debts are associated with property thus it is crucial to consult the Land Registry prior to signing the sale contract to make sure you don't get any debts from the previous house owner. For appr. 20-30€ you can do a land registry search and get details about any legal issues of the house. Or you can hire a lawyer to handle all issues.|