The eternal question of how to buy a house in Spain and whether this is the right time seems complicated but it is not.
At Golden Partners we wanted to offer you a series of reasons why it is good to buy Real Estate in Spain at this time, the cities with the highest profitability to invest in order to live or rent and some of the most popular benefits such as obtaining the Golden Visa.
Is buying a holiday home in Spain a good investment?
According to the Real Estate experts at Golden Partners, “the data from the first of this year 2024 show a slightly more dynamic demand than we initially expected”, something that in their opinion, “may be due to the growth of the Spanish economy above than expected”.
What is more, according to National Accounting data published last Tuesday by the Spanish National Statistics Institute, the Spanish economy accelerated its year-on-year growth in the first quarter of the year, increasing four tenths to 2.5%, that is; exceeding the forecasts by one tenth. An official data that reverberates positively in the Spanish Real Estate market, whose forecast is always for growth for the summer.
In the specific case of a holiday house, the profitability of Real Estate in Spain is currently at 15%, a profitability much higher than almost any other type of investment, considering the great security of its collection as it is a temporary rental. That is why, now more than ever, buying a holiday house in Spain is a good investment.
Where to buy a holiday home in Spain in 2024
The best place to buy a holiday home in Spain does not exist given the wide demand. However, our experts can advise you on some of the most profitable locations when deciding where to buy a holiday home in Spain in 2024. How to buy a home in Spain is a question that before answering, we have to decide where to buy. For this reason, our experts list below some of the most popular cities to invest in Real Estate and their reasons:
Marbella
Located on the idyllic Spanish Costa del Sol, Marbella continues to be the preferred destination of large investors who come to Golden Partners in search of a place that combines good weather all year round, a lifestyle of calm and luxury in their entire way of life and architecture of their buildings. Some areas of luxury villas, such as Golden Hills, are among the most in-demand Real Estate.
Madrid
The capital of Spain is increasingly in demand by Latin American investors eager to obtain a high profitability in the rental of their real estate, but also in converting the town into their next place of residence thanks to the opportunities that the Golden Visa offers to them. and their families and which we explain later in this article.
Baleares
The tourist offer offered by the Balearic Islands makes the archipelago the favorite destination not of traditional German tourism, but increasingly, of foreigners from all over the world attracted by islands such as the Balearic Islands, Mallorca or Ibiza.
Barcelona
The wide cultural offer and the Mediterranean Sea make the capital of the Spanish region of Catalonia another of the favorite destinations for tourists throughout the year and, therefore, a great opportunity to invest in Barcelona Real Estate.
How to buy a home in Spain?
To answer properly how to buy a home in Spain and being already aware of the best destinations to invest, it is time to list some of the main requirements to be able to invest in Real Estate in Spain:
- NIE: The primary requirement for investors wishing to purchase property in Spain is obtaining the NIE (from Spanish, ‘Número de Identificación del Extranjero’). This unique identification number is mandatory for all transactions in Spain. Although not compulsory, having a bank account in Spain simplifies the process, facilitating payments and potentially saving on commissions. People without tax residence in Spain, better known as non-residents, must appoint a tax representative in Spain once they own property.
- Tax and Budget Planning: It is also necessary for a Real Estate expert to analyze all the taxes and bureaucratic procedures applicable to the region where the property you want to buy is located. Among others, costs usually include: property transfer tax (ITP), VAT (10% for newly properties), notary costs, property title tax, registration fee and other legal fees.
- Visit Each Property: Taking into account the approximate cost of the region where the desired real estate is located, a visit to the property is recommended to rule out any possible hidden defects or construction defects. Real estate agencies usually charge a commission to do it for you or you can leave it in the hands of law firms that, like Golden Partners, offer to assist you with the entire process to avoid so many interlocutors.
- Reserve the Purchase with a Contract of Arras: Once the purchase and sale agreement is formalized, a type of advance must be paid, which in Spain is called “earnest money contract” by which both parties are bound to the purchase and sale for an agreed period, normally between 3 to 4 months.
- Sign the Purchase at the Notary: You or a legal representative in your place go to the notary to formalize the sale and, finally, the real estate must be registered in the Property Registry.
Obtain a Golden Visa in Spain
Although some foreigners wonder how to move to Spain without a Golden Visa, the truth is that if you invest more than half a million euros in Real Estate you can obtain it and it is something that can be very beneficial for both you and your family:
- Legal right to work and reside in Spain: for an initial period of two years, without requiring permanence in Spanish territory to obtain it.
- Freedom of movement through the countries of the Schengen area: the Golden Visa offers the possibility of traveling through up to 29 European countries. In addition, it is not necessary to comply with long periods of stay or to establish yourself as a tax resident in Spain, just continue meeting the requirement initial investment.
- Extension to spouse and children under 18 years of age: this residence permit can also be requested by the applicant’s spouse and children under 18 years of age or over 18 years of age can be credited with financial dependence.
- Application for Spanish nationality: if you are a citizen of an Ibero-American nation, such as Peru, Chile o Mexico among others, you can apply for Spanish nationality after obtaining the Residence Authorization and residing in Spanish territory for a minimum of two years.
- Access to tax benefits for impatriates: if the foreigner had resided outside of Spain during the previous 10 years, he, his spouse, and minor or adult children with disabilities could opt to pay tax on a tax rate lower than the marginal one in your Income Tax, that is; access the famous impatriate regime (learn more about the well-known Beckham Law here).
Hire an expert Real Estate lawyer
In the process of how to buy a house in Spain, many interlocutors and procedures, both bureaucratic and purely legal, intervene. This is why it is recommended to leave the process to an expert Real Estate lawyer to be sure that the entire process will be carried out in accordance with both European and Spanish legislation.
At Golden Partners, we can assist you with the entire process of acquiring the real estate you want, whether you are in the market inspection phase or if you have already started the procedures for your purchase.
Rest easy by trusting the purchase of your home in Spain with Golden Partners. We can assist you in English, French or Spanish. We remain at your entire disposal through our contact form.
