If you are looking to buy an apartment or villa in Spain, you couldn’t have picked a better time. Spain is by far the most promising overseas property destination in 2016. The Spanish property market has largely recovered from the global housing downturn, and property values are on their way up again. Buyers are definitely back in the Spanish housing market for sure.
Spain promises an amazing lifestyle and is actually quite cheap, compared to the UK. UK buyers can take advantage of the low prices, a strong pound and low mortgage rates to snap up the Spanish villa or apartment of their dreams.
If you are looking to buy a Spanish villa, you couldn’t possibly go wrong by buying one in Costa del Sol, Costa Blanca, the Canary Islands, Valencia or Majorca, where there is a huge expat community and prices are a lot lower than in Barcelona or Madrid. Conditions here are as great as ever and there are bargains available no matter where you look.
Properties in Spain are a big hit with international buyers. Apart from Brits, who are the traditional buyers in Spain, there’s a lot of interest from American, Chinese, Middle Eastern and Russian buyers as well.
International buyers are attracted by the Spanish Golden Visa which guarantees residency permits to anyone investing over 500,000 EUR in Spanish properties.
Buying Property in Spain – How It Works
Buying property in Spain is really simple if you are from a country that is a part of the Eurozone. In that case you will have the same rights as local Spaniards. If your nationality falls outside the European Union, there are certain restrictions on the time you can spend in Spain, but it’s nothing that cannot be overcome.
When buying property in Spain, you should be prepared to be 10 percent over the purchase price. So suppose the villa you’re buying costs 200,000 EUR, you will have, in all likelihood, spent 220,000 EUR on it by the time it comes under your possession. So be sure to set aside an extra 10% in addition to whatever you are willing to pay for a property in Spain.
Taxes in Spain are quite simple. 10% of the purchase price is required to be paid as transfer tax to the Spanish government. There are various notary fees and property registration fees that vary from one region to another and depend on the price of the property. Also keep in mind that the estate agents hired by you may ask for 3% of the purchase price as their commission. Solicitors in Spain charge 1% of the purchase price plus VAT of 21%.
Lastly, be sure to hire a proper solicitor when buying property in Spain. You cannot afford to chances, especially with how fast the laws are getting changed in Spain every year. Make sure to hire a lawyer who is well versed in Spanish law, is experienced at handling property deals involving international buyers and has a respectable command over English.
Spain Property Market Outlook in 2016
There is a lot of confusion in Spain over who will form the next government as the December 2015 general elections threw a fractured mandate, with three political parties getting 20% of the votes each and another getting 15%. There’s instability in the air, which means there might be a policy paralysis as far as the Spanish economy is concerned. This will probably prevent property prices in Spain from growing too fast. So for buyers, 2016 is a terrific time to buy an apartment or villa in Spain.
Contact us today with your Budget and we will source any type of property in any region of the country for you.