Is Spain property a good investment?
Spain’s amazing climate and quality of life make property investment one of the best in Europe. If done correctly, investing in property in Spain can be one of the most profitable and secure long-term investments. Buying property in Spain is a fantastic life investment. Not only can you benefit from a second home in one of Europe’s best and safest countries with the opportunity to get Spanish residency, but you can also get high returns on your investment due to the high demand of short-term rental property. Spain is the 2nd most visited Country in the world, with approx 80 million visitors per year.
This guide gives you useful insights on how to buy real estate in Spain.
Spain is a diverse country with a variety of regions and cities to choose from, each with its own unique character and lifestyle.
Some popular cities to live in include:
- Madrid: The capital and largest city of Spain, Madrid is a lively and vibrant city known for its rich culture, world-class museums, and delicious cuisine.
- Barcelona: Located on the Mediterranean coast, Barcelona is a popular tourist destination known for its iconic architecture, sandy beaches, and lively nightlife.
- Valencia: The third-largest city in Spain, Valencia is located on the east coast and is known for its mild climate and beautiful beaches.
- Seville: The capital of Andalusia, Seville is known for its rich history, vibrant culture, and delicious food.
- Malaga: Located on the southern coast of Spain, Malaga is a popular tourist destination known for its beautiful beaches and rich history.
- Bilbao: Located in the Basque Country in northern Spain, Bilbao is a thriving cultural and economic hub known for its world-class museums and delicious cuisine.
Ultimately, the best place to live in Spain will depend on your personal preferences and lifestyle. Consider factors such as the cost of living, job opportunities, cultural attractions, and proximity to amenities when deciding where to live.
Get residency by buying property in Spain
Buying property in Spain can give you the incredible opportunity to receive Spanish residency, and if the case, a Spanish passport. Launched in 2013, the Spain Golden Visa program allows investors and their families to receive Spanish residency in exchange for an investment in real estate of a minimum value of €500,000.
To learn more about the Spain Golden Visa and its different investment routes, have a look at our Spain Golden Visa guide.
If you are considering buying a house in Spain, there are a few things you should keep in mind:
- Budget: Determine how much you can afford to spend on a house and stick to your budget. Keep in mind that you will also need to budget for closing costs, such as taxes and fees.
- Location: Consider the location of the property carefully. Think about factors such as proximity to amenities, access to transportation, and the overall safety of the area.
- Legal issues: It is important to work with a lawyer who can help you navigate the legal process of buying a house in Spain. They can ensure that the property is legally owned by the seller and that there are no outstanding liens or debts attached to it.
- Financing: Consider your financing options carefully. You may be able to get a mortgage from a Spanish bank, or you may want to consider getting a mortgage from a lender in your home country.
- Inspections: Have the property inspected before you buy it. This can help you identify any potential problems that may need to be addressed before you complete the purchase.
- Insurance: Make sure you have adequate insurance coverage for your new property. This can protect you against potential risks such as fire, theft, and natural disasters.
The 20 steps of buying a house in Spain:
- Determine your budget and financing options: Determine how much you can afford to spend on a house and consider your financing options, including mortgages from Spanish banks or lenders in your home country.
- Find a real estate agent: Work with a local real estate agent who can help you find properties that meet your criteria.
- Search for properties: Look for properties that meet your needs and budget in the areas you are interested in.
- Make an offer: Once you have found a property you are interested in, make an offer through your real estate agent.
- Negotiate the terms of the sale: Work with your agent and the seller to negotiate the terms of the sale, including the price, closing costs, and any contingencies.
- Hire a lawyer: It is important to work with a lawyer who can help you navigate the legal process of buying a house in Spain.
- Get a mortgage: If you are financing the purchase with a mortgage, work with your lender to secure financing.
- Have the property inspected: Have the property inspected before you complete the purchase to identify any potential problems.
- Review the property’s title and other legal documents: Your lawyer will review the property’s title and other legal documents to ensure there are no outstanding liens or debts attached to the property.
- Obtain a certificate of habitability: In Spain, all properties must have a certificate of habitability, which certifies that the property meets certain standards of safety and habitability.
- Review the community’s bylaws and rules: If the property is part of a community, review the community’s bylaws and rules to understand any restrictions or obligations you will have as a member.
- Purchase insurance: Make sure you have adequate insurance coverage for your new property.
- Pay the deposit: Once the terms of the sale have been agreed upon, you will typically be required to pay a deposit to the seller.
- Sign the purchase contract: Once you have agreed on the terms of the sale, sign the purchase contract with the seller.
- Pay the balance of the purchase price: You will need to pay the balance of the purchase price to the seller before the sale can be completed.
- Register the property in your name: Your lawyer will help you register the property in your name at the property registry.
- Pay taxes and fees: You will need to pay taxes and fees associated with the sale of the property.
- Obtain utilities: Have the utilities connected in your name and set up any necessary service contracts.
- Change the locks: Change the locks on the property to ensure the security of your new home.
- Celebrate: Congratulations on your new home in Madrid! Take some time to celebrate and make it your own.
Remember, buying a property in Spain may be pretty chaotic, and yeah, in this type of transaction the mistakes can be pretty high too, so be sure to have an independent lawyer helping you with all the process. Feel free to CONTACT us, we will be happy to assist you with your new life in Spain.