Spanish Property Buying Guide: How to Buy Property in Spain
Spain is one of the most popular touristic destinations having shores to the Atlantic and the Mediterranean. Yearly there are 75 million tourists visit the country for cultural, historical, and vacation purposes. There are 6 million (country total 47.5 million) foreigners living in the country by real estate investment. Tourism and owning a property are correlated to each other. As Spain is one of the main touristic countries, it promises great potential for real estate investment.
Spain boasts the 4th largest economy in Europe and ranks 14th globally in terms of GDP. This robust economic standing, combined with the potential for good returns and stability, positions Spain as a lucrative investment hub.
If you intend to buy property in Spain, you would like to get more information about how the legal process works and its costs. Please read our step-by-step purchasing property page and property purchasing costs for detailed information.
The Real Estate Market in Spain
Spain, which has been a favorite of foreign buyers since the early 1960s, caught a rapid growth curve again after 2018. As of 2014, the share of foreign buyers in the Spanish real estate market is around 13%. In 2022, this figure reached a record high of 14.6%. Especially in the post-pandemic period, the number of foreign purchases and their weight in the market continues to increase rapidly. We see that the increase in the demands of buyers who prefer to live in Spain for a long time or who want to work remotely is also effective in this increase.
The demand for Spanish property increased significantly with the Golden Visa program since 2013. Digital Nomad Visa was declared just after the pandemic, and also drives high traffic to the country's real estate.
Why is Spain gaining such traction among foreign buyers? Here's a breakdown:
Affordability and Profitability
Compared to other European nations, real estate in Spain tends to be more affordable. This economic advantage, coupled with the potential for profit, makes Spain a preferred choice for many investors from abroad.
Vacation and Rental Income
For many people who go regularly for vacation, owning a home in Spain is in 2 ways valuable. Firstly, rather than spending a huge amount on hotels every year, buy a nice vacation home and save money. Secondly, this home can be rented out by property manager companies and generate high-yield rental income. Airbnb and Booking is a great business model.
Immigration Benefits through Property Investment
Spain has one of the most enticing immigration programs in Europe that directly links property investment to residency rights. This is called the Spanish Golden Visa program. By investing in Spanish property, foreigners can secure a Spanish residency which grants them the right to live, work, and study in Spain. This scheme has been instrumental in attracting a significant number of foreign investors to the country.
Besides offering a chance at Spanish residency, the Golden Visa also provides holders with a major travel advantage. They can journey visa-free across the Schengen Zone. This privilege isn't something to overlook and is one of the primary reasons why many non-EU citizens are investing in Spain's real estate market.
For those who want to buy a home, the appeal lies in the promise of a better quality of life. There are broadly two categories of foreign investors in the Spanish property market:
EU Citizens: Spain, with its sunny climate, boasting an average of 300 sunlit days a year, offers an attractive proposition for those desiring a relaxed and joyful lifestyle. Its healthy environment and affordable living conditions further add to its allure. It's worth noting that even without the need for a Golden Visa, many EU citizens prefer Spain as the location for their second homes.
Non-EU Citizens: These investors mainly seek a permanent residence permit in Spain. For them, investing in Spanish property isn't just about real estate but also about gaining access to the broader Schengen area through the Golden Visa.
Popular Destinations for Real Estate in Spain
If you're considering buying property in Spain, this comprehensive guide is here to assist you in making informed decisions. Purchasing real estate in a foreign country can be an exciting yet complex process, especially if you're unfamiliar with local laws and customs. This article will provide you with valuable insights and practical advice on buying property in Spain. Whether you're a first-time buyer or an experienced investor, our guide will help you navigate the Spanish real estate market with confidence.
Before diving into the process of purchasing a property in Spain, it's important to gain a general understanding of the Spanish real estate market. Spain offers a diverse range of properties, including apartments, villas, and rural houses, catering to various budgets and preferences. Different regions within Spain may have distinct property markets, so it's crucial to research and identify the areas that align with your needs.
Spain's coastline is divided into several regions known as "Costas." Each Costa has its unique charm, climate, and lifestyle. Here are some popular Costa regions:
Costa del Sol
Located in the region of Andalusia, Costa del Sol is renowned for its sunny weather, beautiful beaches, and vibrant nightlife. It is a popular choice among international buyers. British, Scandinavian, and German buyers are prevalent in this region due to its long-standing popularity and excellent infrastructure.
Situated in the province of Alicante, the Costa Blanca offers a blend of sandy beaches, charming towns, and golf resorts. British, Belgian, and Dutch buyers are prominent in this area, drawn by its affordability, amenities, and accessibility.
Nestled in the northeastern part of Spain, the Costa Brava is known for its picturesque landscapes, rugged cliffs, and historic towns. It appeals to both domestic and international buyers, with significant interest from French, German, and British purchasers.
Costa de la Luz
Stretching along the Atlantic coast in southwestern Spain, the Costa de la Luz boasts pristine beaches, natural beauty, and a relaxed lifestyle. Spanish buyers and those from neighboring Portugal have a strong presence in this region, along with British buyers seeking a more authentic Spanish experience.
Located in Catalonia, the Costa Dorada offers a mix of sandy beaches, lively resorts, and cultural attractions. It is popular among Spanish buyers and attracts interest from international buyers, especially from Russia and Northern Europe.
How to Buy Property in Spain
Finding the right estate agency is crucial when embarking on your journey of purchasing property abroad. A reputable and professional agency will simplify the process, guiding you from start to finish, and ensuring a smooth transition to your new life. TEKCE is a global professional real estate company dedicated to providing you with the best-matched properties at the correct price. Our team consists of local expert agents and experienced lawyers who work together to deliver exceptional service.
When you discover your dream home, the sales process with TEKCE follows a structured approach:
Our company lawyer will do the due diligence on the property, ensuring its accuracy and ownership info. Afterward, we proceeded with the reservation deposit payment. This deposit safeguards the property and demonstrates your commitment to the purchase. With the reservation deposit in place, we guide you through signing the purchase proposal. Our team ensures that all necessary legal documents are prepared accurately and comprehensively. As part of the process, we assist you in obtaining your NIE number, a Spanish tax identification number required for property transactions. Additionally, our team facilitates the smooth opening of a bank account.
Our lawyers coordinate the transfer of the title deed at the notary. At TEKCE, we understand the significance of each step in the property purchase process, and our dedicated team ensures that every detail is handled carefully. We strive to make your real estate buying experience in Spain an easy and enjoyable one.
To read more, please click the step-by-step property purchase process in Spain.
Legal Facts of Property Ownership and Registration
The majority of properties are freehold, known as "propiedad plena" or "propiedad absoluta." This means that the buyer owns both the property and the land it stands on. Freehold properties provide the highest level of ownership rights and security. Leasehold, on the other hand, is less common in Spain. Leasehold, known as "propiedad concesional" or "derecho de superficie," refers to properties where the buyer owns the building but leases the land from the landowner.
Property ownership in Spain is registered in the "Registro de la Propiedad" (Property Registry), a public record where all relevant information regarding a property's legal status and ownership is recorded. The Property Registry provides legal security and clarity for property transactions, ensuring transparency and protecting the rights of property owners.
The registration process involves submitting the necessary documents and information to the corresponding Property Registry office. These documents typically include the purchase contract, notarized deeds, and any relevant permits or licenses. The registration serves as proof of ownership and provides a clear title for the property. For foreign property buyers, it is crucial to work with a reputable estate agency like TEKCE ® who will guide them through the process and ensure that the property is correctly registered in their name. Our company lawyers will verify the property's legal status, conduct due diligence, and assist in preparing and submitting the required documentation.
Property Financing & Mortgage in Spain
Foreigners may get bank loans directly from Spanish banks. Documentation such as proof of income, employment contracts, and tax returns is generally required, along with a deposit of at least 20% of the property’s cost.
Mortgages for non-residents in Spain often entail larger down payments, ranging between 25% and 40%. Lenders also require proof of a stable income and a valid residence permit. Providers like Banco Santander, Unicaja, Banco de Sabadell and CaixaBank commonly offer mortgages to foreigners. You may apply online here, we will find you the best possible bank loan:
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