Buying Property in Spain: The Ultimate Guide for Expats

Spain is an extremely popular destination with expats and it’s easy to see why. With its beautiful weather, gorgeous scenery, and delicious food, there are now over 360,000 UK residents living in Spain as of 2020. If you’re thinking of moving to Spain or making a property purchase there, there is a lot to plan and you might be feeling overwhelmed by the process.

Luckily, we’re here to help. In this guide, we’ve broken down the process of finding and purchasing your dream Spanish home, covering everything from choosing the right region, becoming a Spanish resident eventually if you wish, and step-by-step instructions on the buying process. Let’s get started.

Contents:

Some Key Facts About Spain
What is the Spanish Property Market Like?
Average Property Prices in Spain by City
Deciding Your Preferred Location and Property Type
Finding a Property in Spain
The Process of Buying a Property in Spain

Some Key Facts About Spain

Population in 2021:
46,779,874

Capital City:
Madrid

Time Zone:
GMT +1

Currency:
Euro (EUR)

Average national property price:
€223,380

Average Temperatures:
January 9°C, February 11°C, March 15°C,
April 18°C, May 21°C, June 27°C,
July 27°C, August 30°C, September 26°C
October 19°C, November 13°C, December 9°C

What is the Spanish Property Market Like?

Brits have traditionally made up the highest proportion of international property buyers in Spain. In fact, foreign investment in Spanish property was traditionally encouraged by the Spanish government. However, due to the uncertainty caused by Brexit and the Covid-19 pandemic, there has been a slight slowdown in the number of British homebuyers entering the market.

This can also be attributed to a combination of rising house prices in Spain and a weaker Pound sterling (GBP) (in large part due to Brexit) which has undoubtedly made buying a home in Spain a little more expensive for UK-based buyers. However, there are still bargains to be found if you look in the right places.

Mortgages are currently very affordable in Spain, yet another attraction for would-be property buyers. Golden Visas, which have proved popular for other European countries, such as neighbouring Portugal, are also now gathering momentum in Spain, with increasing interest from investors in non-EU countries such as China, Sweden and Russia, spending a minimum 500,000 Euros on a property in the country.

Can I Still Buy Property in Spain After Brexit?

You can still buy property in Spain as a non-EU citizen and the process should be largely the same, even though the UK has left the European Union. The costs of buying a property also remain the same whatever your nationality.

Should You Buy or Rent Property in Spain?

If you’re planning to move to Spain permanently, then you have the option to either buy or rent. If you have the money to buy a property and know which region you’d like to live in, then owning the property is usually a better investment. However, renting can be a good option if you’re in the country temporarily such as for work. You could also consider renting a property temporarily to get a better idea of what a region is like before buying there.

How Easy Is It for a Foreigner to Buy Property in Spain?

Despite Brexit, it is still a pretty straightforward process to buy a property in Spain as a foreign buyer. The good news is that there are not any special requirements or paperwork for foreigners looking to buy Spanish property. Providing that you have done sufficient research and have a good understanding of how the Spanish property market works, you shouldn’t have any issues navigating the Spanish property market.

To get a Spanish property as an expat, you’ll need a National Identification Number (NIE). You can get this by taking your passport into a Spanish police station. If you’re an EU citizen, you should receive this number the same day. For non-EU citizens, it can take a few weeks for this to be processed.

There is also a Golden Visa option for foreign property owners in Spain. With a Golden Visa, you become eligible for a residency visa if you invest more than £500,000 in Spanish properties.

The Cost of Buying a Property in Spain

The cost of buying a property in Spain will depend largely on the region or city you choose to live in. The Spanish property market has not yet experienced the drop in property prices that people had hoped for in 2021. According to Spain’s Property Appraisal Society, the average price of a new home in Spain is €223,380 (£191,683) in 2021. You can get a better idea of how much property prices vary across the country from the average property prices by square meter.

Can I Get a Mortgage from a Spanish Bank?

Unless you’re able to pay for the full property price upfront, you’ll need to apply for a mortgage. Some Spanish banks do offer mortgages on properties to overseas buyers. However, it might differ slightly from the mortgage you would be offered as a Spanish citizen. You might find that you can only borrow as a lower loan-to-value (LTV) rate than Spanish residents, which means that you’ll need to be able to afford a larger deposit. As a non-resident, you might be limited to 60-70% LTV, whilst Spanish residents can generally borrow up to 80% of the property’s total value. It’s a good idea to look around for mortgages before starting your property search. You could also consider using a broker to help you find the right mortgage. Having someone who understands the system already to provide professional advice can make things much easier.

Average property prices in Spain by city

Deciding your preferred location and propety type

Deciding Your Preferred Location and Property Type

Spain is divided into 17 regions, with 15 of these regions located on the mainland of Spain. The other two regions are island groups: the Balearic Islands lie off Spain’s eastern coast, while the Canary Islands are off the western coast of Morocco. Spain is one of the most decentralised countries in the world. Although the country is governed nationally by Parliament, each of the 17 autonomous regions also has its own president, government (gobierno or junta), administration, and Supreme Court. This is designed to give each region more responsibility for matters such as economic development, education, health, environment, police, public works, tourism, culture, the local language, and social security.

In Spain’s cities, you’ll find a mix of older properties and new-builds whilst in the coastal towns which are popular with retirees, there is also a mix of new apartment complexes and villas, as well as more traditional-style homes. Below, we have provided a brief summary of some of the most popular areas with overseas property buyers.

A Breakdown of 7 Popular Locations in Spain

Costa del Sol

Located on the southern coast of Spain, the Costa del Sol includes the popular resorts of Marbella, Malaga, Fuengirola and Puerto Banus. Historically one of Spain’s major tourist destinations, over the years, the Costa del Sol has become something of a Mecca for expats and foreign second-home seekers. It is home to several large expat communities, including the British Association of Marbella, which has been running for more than 20 years. As well as a warm year-round climate, the Costa del Sol offers something for everyone, including some of the country’s best golf resorts, renowned shopping centres, beaches aplenty and, for those with deep pockets, the opulence of Marbella.

Average property price: €827,916

Costa Brava

Located next to the French border in the northeast corner of Spain, with its southernmost point only around 40 miles north of Barcelona, the Costa Brava is an area that has traditionally appealed to wealthier expats. Although still popular with holidaymakers from Northern Europe, the Costa Brava remains an undeveloped region when compared to the commercialism of the more southern Costas. The region is best known for its wide beaches, sandy coves, Medieval villages, and numerous high-quality golf courses. Its location close to the Pyrenees Mountain range, which separates France and Spain, means that activities such as mountain climbing and skiing are popular pastimes for those who live in the Costa, while day trips into France and Andorra are also taken regularly.

Average property price: €575,000

Costa Calida

The Costa Calida occupies a 200-mile stretch of coastline in the province of Murcia. Not being a traditionally popular tourist location – aside from La Manga, one of Spain’s top sports resorts around which most development in the Costa has tended to focus – Costa Calida remains an attractive, rural area. In recent years, a combination of low-cost flights, low property prices and a great year-round climate (Costa Calida does not translate to the ‘warm coast’ for nothing!) have served to bring the region to the attention of a growing number of foreign visitors. This has led to some areas of the Costas becoming more popular with expats. For example, there are notable growing British expat populations in the inland towns of Lorca and Mula.

As much of the Costa Calida is still relatively untouched by tourists, those who do choose to live in the region will need a good grasp of Spanish to feel comfortable, as English, and other languages are unlikely to be widely spoken.

Costa Almeria

The major expat destination on the Costa Almeria is the eponymously named resort from which the Costa takes its name. The easternmost capital city in Andalusia, Almeria has long been a popular tourist, property and expat location. However, despite its popularity it retains a small-town charm, and is far from being overdeveloped like some resorts in other popular areas have been – particularly in the Costas del Sol and Blanca. Outside of Almeria itself, Huércal-Overa has become increasingly popular with expats in recent years, with people from Latin American and Northern Europe starting to lay down roots in the town. Located in the northern part of the region, close to Murcia, the town has a thriving commercial district, and fairly cheap living and property costs. Mojacar, Vera and Bedar are among some of the other more popular towns and resorts in Costa Almeria.

Average property price: €149,221

Costa de Luz

Located in the western part of Andalusia, the Costa de Luz is regarded as being one of the up-and-coming, trendier areas in the region. Bordering the Atlantic Ocean, the Costa de Luz extends from Tarifa in the south, along the coasts of the Province of Cádiz and the Province of Huelva, to the mouth of the Guadiana River. Traditionally, the Costa de Luz has been more popular with Spanish holidaymakers than it has with those from other countries, but over the past ten years, this has started to change, and as a result, more expats, especially from Germany and France, have started to occupy the region. Although not as warm all year round as some of the other Costas in Andalusia, temperatures in the summer are high and the overall tranquillity of the Costa is ideal for those seeking a laidback lifestyle in a more temperate climate to that available in other parts of Spain. Cadiz, Huevla, Tarifa and Ayamonte (Spain’s main crossing point into Portugal) are among the largest resorts in the region. As with some of the other less touristy areas, those who choose to live here will need a basic grasp of the Spanish language to function on a day-to-day basis.

Madrid

Spain’s capital and largest city, Madrid, combines the feel of any modern international city with one that is still unmistakably Spanish. A lively city though it may be, Madrid retains a laid-back charm, which few cosmopolitan Western European capital cities are able to match. While the capital is unlikely to appeal to what you may describe as the stereotypical Spanish expat – in other words, one who covets solely sun, sea, and sand – as the country’s economic and cultural hub, this city is most suited to those looking for employment. The good news for those who prefer city living to beach dwelling is that Madrid is nowhere near as expensive in which to live as cities like London and Paris. The flip side to that, though, is that average salaries tend to be much lower. As with most major cities, Madrid is well equipped to deal with expats. International schools can be found throughout the city and English – along with many other languages – is widely spoken.

Average property price: €1,037,540

Barcelona

With a pleasantly warm (if not blisteringly hot) year-round climate, some of the country’s finest Modernista architecture and a renowned high-quality lifestyle, it’s little surprise that Barcelona has long been one of the most popular places in Spain for expats to settle. Expat communities in Barcelona are huge; there are more than 300.000 foreigners living in Barcelona, which represents over 170 nationalities in the city. Barcelona has a wealth of amazing culture to immerse yourself in, including architecture and galleries, incredible food, and music. Rest assured, you’ll never run out of things to do and see. Barcelona offers a beautiful and varied landscape of both mountains and beaches, making it perfect for year-round outdoor activities. Residents can enjoy kayaking and sailing during the hot summer months, and scenic hikes during winter. There are also thousands of different biking and hiking routes and tons of day trips and excursions to enjoy. After Madrid, the city is the best place to find employment, with many multinational businesses based there.

Average property price: €976,714

Finding a Property in Spain

Estate Agent (Inmobiliaria)

If you already know the area of Spain that you want to buy in, you can find a property through a real estate agent or ‘inmobiliaria,’ as it’s called in Spanish. The main benefit of using an estate agent is that they will have a wealth of information about your chosen region. Most estate agents in Spain are bilingual too and will be experienced at dealing with overseas buyers. One thing to be aware of is that regulation of estate agents in Spain is low, so you should be careful and wary of anything that seems fraudulent. One indicator of this is an estate agent who asks for payment upfront or suggests cutting corners in the buying process. Also remember that you can choose your own notary and mortgage provider, and do not need to go with what is suggested by the estate agent.

Property Websites

Using property websites to find a Spanish home is also popular with overseas buyers. Some British real estate websites also list Spanish properties e.g. Rightmove, however, these are mostly holiday homes, so you might prefer to use a Spanish property site instead. These websites can be a great starting point in the research process when you want to get a better idea of what the different Spanish regions are like. Some popular property websites include: Idealista, Servihabitat, Fotocasa.es, and Kyero. Make sure to go and view any property that you are interested in before placing an offer.

The Process of Buying a Property in Spain

Placing an Offer

Once you’ve found your dream property in the right region, you’ll be ready to place an offer. You can make an offer on a property through the seller’s estate agent. Remember, you can negotiate on the price like in other countries. You will need to sign a ‘contrato de reserva’ which is a reservation contract that expresses intent to purchase and takes the property off the market. You will usually need to pay a holding fee of between €3000-6000. This fee will be held for 14-21 days in escrow. During this period, you’ll have time to do checks on the property and a purchase contract will be drawn up.

Hiring a Solicitor or Notary

Although it’s not a legal requirement to have a notary in a property sale, they are very important in the property buying process so it’s advisable to have one. The notary prepares all the contracts for signing and makes sure that they comply with local laws. As a buyer, you’ll also be responsible for registering the property. Your notary may be able to do this for you in exchange for a fee.

As well as a notary, you’ll also need a property lawyer to help with other aspects of the sale such as checking that there are no existing debts attached to the property you’re buying. This is important in Spain, because any debts associated with the property such as outstanding mortgage payments will be transferred to the new ownership.

Having a property lawyer to complete the due diligence is not only highly advisable but is also a requirement from most mortgage lenders. Your lawyer should be registered with the local bar association or ‘Colegio de Abogados.’ You can request to see their registration number or verify with the bar association to check.

Arranging a Property Survey

It isn’t mandatory to have a property survey on your own property however it’s advisable. Some houses, particularly those that are over fifteen years old can have hidden structural issues that are costly to repair. A survey will flag up any serious issues and ensures that there are no serious defects with the property that could end up being very costly down the line. There are two main types of surveys available to you: a valuation report and a binding survey. A valuation report is a briefer survey that breaks down the property’s market value. A building survey is a more in-depth report that covers the structural condition of the property. A building survey is a more expensive option however it’s also a more comprehensive guide.

Paying Your Deposit & Signing the Forms

If the offer is accepted, then the buyer and seller sign a preliminary contract, also called the ‘contrato privado de compravento’, and the buyer will pay the deposit which is usually 10% of the purchase price. You will then need to finalise your mortgage with your mortgage provider. Then, it’s time to sign the contract of sale or ‘escritura de compravento’, which is signed in front of the notary. Once this form is signed, the full sale price, taxes, and other costs of purchasing the property must then be paid.

Taxes and Fees

Don’t forget that there will be some property taxes and fees attached to the overall cost of your Spanish property so it’s important to factor these into your overall budget. Property taxes vary depending on whether you’re buying a new property or a resale property. When you are looking at a property, it’s a good idea to ask the estate agent what the quoted price includes. Any prices displayed on an estate agent’s window should include the estate agent fees, however, it’s best to double check. Some fees you might have to pay include:

Property transfer tax (usually 6-10% of the purchase price)
Notary fees, land registration fee, and title deed tax (usually 1-2.5% of the purchase price
Legal fees (usually 1-2% of the purchase price, including VAT)
Estate agent fees (usually 3% of the property price)
Property registry fee

How Do I Pay for My Spanish Property from Abroad?

Many overseas property buyers assume using your local bank to send money abroad is often better. but in fact, using a bank is often more expensive. High street banks typically charge a money transfer fee, and these can soon mount up. Instead, working with an FX Specialist such as Halo Financial to send money to Spain to pay for your Spanish property from the UK, can help you save time and money.

As Foreign Exchange Specialists, our team can help you implement simple and effective risk management strategies that will provide quick and effective payment execution, so that you can get on with living your brand-new life in Spain.

To find out more about how Halo Financial can help you to get the best exchange rate when buying a property abroad, get in touch via 020 7350 5474. Or, register with us to start the process of transferring money overseas today.

Buying Property in Spain – FAQs

What are the pitfalls of buying property in Spain?

Some common pitfalls you might face when buying property in Spain not accounting for additional fees and taxes in your budget, not having the correct registrations (NIE number or Número de Identificación de Extranjeros and a Spanish bank account), insufficient property research, and not understanding your contract before signing.

Can you buy property in Spain without being a resident?

Yes, you can buy commercial and residential property in Spain as a non-resident. In fact, foreign investment in Spanish property is encouraged by the government.

How easy is it to buy property in Spain?

There are no special requirements or paperwork to buy property in Spain as a non-resident. The process is actually very similar for non-residents as it is for residents.

Is it safe to buy property in Spain now?

The uncertainty of Covid-19 has caused a drop in British property buyers in Spain. However, with travel restrictions lifting, you can now travel over to Spain safely for holidays. The property prices in Spain are also due to stabilise in 2022, so this could be a great time to invest in Spanish property.

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Buying Property in Spain: The Ultimate Guide for Expats

Some Key Facts About Spain

What is the Spanish Property Market Like?

Can I Still Buy Property in Spain After Brexit?

Should You Buy or Rent Property in Spain?

How Easy Is It for a Foreigner to Buy Property in Spain?

The Cost of Buying a Property in Spain

Can I Get a Mortgage from a Spanish Bank?

Deciding Your Preferred Location and Property Type

A Breakdown of 7 Popular Locations in Spain

Finding a Property in Spain

Estate Agent (Inmobiliaria)

Property Websites

The Process of Buying a Property in Spain

Placing an Offer

Hiring a Solicitor or Notary

Arranging a Property Survey

Paying Your Deposit & Signing the Forms

Taxes and Fees

How Do I Pay for My Spanish Property from Abroad?

Buying Property in Spain – FAQs

Request a call back

For individuals

For business

Affiliates

About Us

Buying Property in Spain: The Ultimate Guide for Expats

Some Key Facts About Spain

What is the Spanish Property Market Like?

Can I Still Buy Property in Spain After Brexit?

Should You Buy or Rent Property in Spain?

How Easy Is It for a Foreigner to Buy Property in Spain?

The Cost of Buying a Property in Spain

Can I Get a Mortgage from a Spanish Bank?

Deciding Your Preferred Location and Property Type

A Breakdown of 7 Popular Locations in Spain

Finding a Property in Spain

Estate Agent (Inmobiliaria)

Property Websites

The Process of Buying a Property in Spain

Placing an Offer

Hiring a Solicitor or Notary

Arranging a Property Survey

Paying Your Deposit & Signing the Forms

Taxes and Fees

How Do I Pay for My Spanish Property from Abroad?

Buying Property in Spain – FAQs

Request a call back

For individuals

For business

Affiliates

About Us

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