Why should I buy a property in Spain?

Spain is considered one of the most attractive countries for real estate investment in the entire European continent. Its location, security, historical and cultural richness, the large number of tourists it receives each year and the expanding market create positive conditions for investment. Unlike other countries, investments here are protected by one of the most important members of the European Union.

Spain is located in a privileged geographical position, it is the European country with the easiest access from the American Continent. Also three Spanish airports are part of the top ten most busiest airports in Europe. In addition, Spain has direct links with countries such as France and Portugal and it is a gateway to the Mediterranean Sea and North Africa.

Spain’s transportation infrastructure, with first-class airports, extensive high-speed rail and metro networks in addition to thousands of kilometers of roads and highways makes it a great place to invest. Real estate needs a good infrastructure so that its value can grow and the capital appreciation can be better. We can also see high quality in medical infrastructure, communications, etc.

Spain has registered a rental demand of more than 10% in recent years. Fortunately for investors, the number of properties available for rent is still insufficient. For example, 12% of the apartments for rent can be booked in less than 48 hours. More and more people are deciding to move to Spain to improve their quality of life, and also it has become a common practice that tourists like Spain so much that they never return home. This is very beneficial as the demand for rental apartments tends to increase. The permanent tourist sector tends to look for accommodation in premium areas, close to tourist attractions and with luxury services. On the other hand, those who come to Spain in search of work, for example, tend to prefer cheaper properties.

Without a question, Spain offers some of the best educational opportunities in the world, which explains why an increasing number of students are relocating to the nation’s cities for school. The low requirements are one of several justifications for investing in housing for Spanish students (a small apartment or a loft). Additionally, there is frequently a significant need for housing, swift hiring, and fixed-term contracts.

In summary, the return on real estate investment in Spain is in a very attractive position in comparison with other countries, this in addition to the excellent quality of life makes Spain one of the most attractive countries to buy a property in.

What is the process to buy a property in Spain?

You can read more about the process of buying a property in Spain and all the legal requirements related to it in our article here.

Taxes

In Spain, there are no predetermined rates for estate brokers or attorneys; everything is negotiable. Additionally, other expenses like registration fees and legal fees vary from region to region.

The majority of the cots are your responsibility as the buyer.

These consist of:

• The Property transfer tax: This stands at 6%-10% for existing properties. In Catalonia or Madrid normally you need to pay 10% tax, however there are discounted rates applicable to young buyers or low income buyers.
• VAT or IVA: This stands at 10% for new properties.
• Notary costs, land registration fee, and title deed tax: These normally stand at 1%-2.5% of the purchase price.
• Legal fees: These are 1%-2% percent of the purchase price including VAT.

Obtain a Golden Visa by purchasing a property in Spain

Foreigners, who are not EU citizens, that invest €500,000 euros or more in real estate in Spain become candidates to obtain the Golden Visa. This would allow you to live and work in Spain and it’s a really good means to later obtain residency and even a Spanish passport. Some other benefits are:

• Fast-track procedure (10 working days for visas and 20 working days for residence permits).
  Possibility to apply for your residency in Spain without leaving the country.
• Golden Visas issued for 1 year, residence permits for 2 years, and renewals of the residence permits for 5 years.
• Possibility to travel anywhere in the Schengen area.

If you’re interested you can read more about the Golden Visa Programme or watch this video in which we explain How to get a Golden Visa in Spain. Also, you can contact us at Klev&Vera to book an appointment.