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Tips on Buying Property in Spain as a Foreigner

With a high standard of living, delicious food, and sunny weather, Spain has long been the top choice for property investors from Britain. 


Alicante Mediterranean Homes, Alicante, Spain

 

For the most part, buying property in Spain is a straightforward affair. However, it’s always best to do your research and know which parts of Spain are most likely to come to fruition when it comes to investing.

It’s no wonder that Spain is an incredibly popular destination amongst ex-pats. It offers a gorgeous climate, high standard of living, vibrant culture, and not to mention delicious cuisine.

While renting in Spain is certainly an option, many ex-pats choose to buy property if they’re looking to stay for the long term. About 75% of people in Spain own their own homes, with large ex-pat communities found throughout the country, and so a high percentage of real estate is already foreign-owned.

Having continued in spite of Brexit-related changes, British ex-pats remain the largest single group to invest in Spanish property. In 2020 it was recorded that 13% of foreign-owned property in Spain belonged to Brits.

The good news is that even though the UK has left the EU, British ex-pats still have the right to buy property in Spain. If you’re interested in joining the many British ex-pats already savouring the Spanish life, then read on.

However please note that this article is not meant to substitute legal or fiscal advice. Always consult an independent lawyer when purchasing property in Spain.

 


Jávea, Spain

How to Find Property in Spain

The best way to start is by asking yourself whether you’re looking for a house beside the sea with a coastal view, a historic property, or a rural Finca? Make a list of all your needs, and then separate the “must-haves” from the pleasantries. An example of this would be, 2 bathrooms is a must, while a terrace with a view would be nice to have, but also not a necessity.

There are a number of popular online portals available:

 

Villamartín, Spain

 

How much does it cost to buy property in Spain?

The price that you end up paying will depend enormously on the location that you choose. The most expensive properties are found in Barcelona and Madrid. If you choose to live in either of these cities on a budget, there’s always the option of looking around the suburbs instead of the city centre.

In the coastal regions, there’s a wide range of different housing on offer, which means you’re sure to find something to fit your budget.

Here’s a quick breakdown of how much it costs roughly per square metre in different parts of the country:

 

Location Property price per sq.m
Malaga €2091
Santa Cruz de Tenerife €1527
Santander €1868
Bilbao €3073
Barcelona €4009
Madrid €3682
Valencia €1824
Palma de Mallorca €2897

 

 

What’s the Spanish Market Like? 

According to 2019 statistics, figures showed that average house prices in major cities such as Barcelona and Madrid rose by 5%, amounting to €1,649 per square metre. Barcelona, Madrid, and San Sebastian are the most expensive cities to buy in, with prices ranging from €3,000 to €3,600 per sqm.

Madrid was the most expensive place to buy land in Spain, with prices of €338 per square meter. The Canary Islands (€245), Catalunya (€184), Andalucia (€171) and Valencia (€158) made the top five. Castilla y Leon is the cheapest place to buy, with average land prices of €66 per square metre.

 

Deposits and Mortgages 

Banks are approving fewer mortgages since the 2008 credit crisis in Spain, meaning that banks gave been heavily restricted with significant international involvement by the EU and the IMF.

Another point to be aware of is that the value that banks place on a property may be very different from its actual value, and for a rural property, you’ll only be able to get a mortgage for 50% of the bank’s valuation of the property, so it’s highly important that you speak to a bank first before putting down a deposit.

We recommend that you start shopping around for mortgages, and use a Spanish speaking broker who really understands the system, and can help you find the correct mortgage plan.

To pay for your house in Spain, you’ll need a Spanish bank account. There are several bank options that provide a bank account specifically for ex-pats, where you can open an account with just your passport and your N.I.E, such as Banc Sabadell and Banco Santander.

 

Buy or Sell Your Property with Orange Villas

Based in Costa Blanca, Orange Villas estate agents is a leading agency in the centre of Moraira. With over 20 years of experience in the business, you can feel confident and reassured that Orange Villas will help you find your dream home.

With a fully qualified, multilingual team of real estate experts with both local and international knowledge of the market, what better place to go to for property advice. Whether you’re buying or selling a property, Orange Villas will take care of you from start to finish.

When searching for a property, you can feel at ease that Orange Villas will stop at nothing to find you your perfect home. At your consultation, they will thoroughly brief themselves on what it is you’re looking for in terms of location, views, number of beds and bathrooms, and budget.

When it comes to selling your property, the agency will be able to give you a free evaluation, based on extensive knowledge and experience in the field. Orange Villas will also arrange for a professional photographer to take photos, with drones, which will look up to par, and appeal to potential buyers.

If you’re interested in going down the route of building a property, Orange Villas can also provide you with their professional expertise and are specialized in luxury modern design villas in Moraira, Benissa, Benitachell, Javea and Calpe.

 

Homes by Orange Villas Estate Agents

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