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Are you planning to buy overseas property in Spain in 2019?
Good, then this guide is just for you. We quickly explain the legal requirements related to buying overseas property in Spain in 2019, as well as the things to watch out for. First, here are a few facts related to the Spanish property market.
State of the Overseas Property Market in Spain in 2019
Spain was hit badly by the global financial crisis from 2008 to around 2016. Property prices across the country had fallen by quite a bit. If you wanted to buy property in Spain, that was the perfect time for it. Since then the economy has been on an upswing and the property market has largely recovered.
What helps the Spanish real estate market is not only the overwhelming interest from overseas buyers – but also the bullishness of local buyers. Homeownership rates in Spain are among the highest in the world. It is a Spanish tradition to buy your first home as soon as you get a job. As a result, 80% of Spanish residents are homeowners.
The rental market in Spain is also very attractive. Rent prices increase by 15% to 20% a year in Spain; and much of this is because of the popularity of apps such as Airbnb. Every homeowner in Spain can now offer a room or a floor for rent on a short-term basis through Airbnb and earn a very good rental income. This combined with the fact that Spain is perhaps the #1 tourist destination in Europe means that any property purchase in that country is an excellent investment.
Can Foreigners Buy Overseas Property in Spain?
Absolutely; Spain has a very strong legal system which protects private property ownership. Foreigners who invest in overseas properties in Spain have the same right to property ownership as any local resident.
The Spanish government actively encourages foreign investment in their property market through schemes such as Golden Visa. That means anyone who invests up to €500,000 or more in Spanish overseas properties is automatically eligible for a Spanish residency visa. This is not exactly a work permit, that is different, but a Golden Visa allows you to reside in Spain and go and come as you please. It is targeted at high net worth individuals from emerging economies such as China, Brazil, India and Russia, who are looking for a way out from their home countries.
How to Buy Overseas Property in Spain?
It is very easy for foreign investors to buy overseas property in Spain. However, it is not advisable to do the whole thing by yourself, as there are certain risks involved. It’s better to hire an overseas property expert to find the right Spanish property for you.
Also, you should hire a local real estate lawyer who is well versed in both English and Spanish to arrange the paperwork and communicate with the local authorities on your behalf. They take care of the details and go through the fine print and make sure that everything is as it should be.