Spain

The fourth largest country in Europe, Spain is a gateway to the Mediterranean and one of the top tourist destinations in the world. Rich in history, coastline, culture and sunshine, Spain enjoys not only an excellent infrastructure, which includes healthcare and transport links, but also a favourable lifestyle and cost of living.

Spanish property prices have been steadily increasing year on year since 2015, but have yet to reach the peaks before the 2007-08 crash, where between 1996-2007 the national average house price had risen by 197%. Rental demand is rising too, helped by a shift towards remote working and the introduction of a Digital Nomad Visa scheme.

Check restrictions if planning to buy to let. Tourism Licenses for short lets are required in some areas, such as the Balearic Islands, for example.

The process of purchasing property in Spain is not overly complicated with completion possible within eight weeks of offer accepted. Deals are legally binding from early on so a lawyer is advisable from offer stage and get as much information as possible about the property in advance.

Buyers need a Spanish tax number (NIE) and typically, a bank account in Spain to pay ongoing rates, utilities and other charges such as mortgage if required. Allow an additional 8-14% on top for property taxes & fees. Figures can be checked in advance and will vary depending on location, resale or new. Ask your agent.

The sale process is officiated by an appointed Notary. It is possible to grant Power of Attorney to your legal adviser if it is not possible to be present at the completion signing.

The Spanish government has welcomed foreign buyers, supported by the ongoing Golden Visa scheme allowing residency for investment (subject to fees, terms & conditions). For the financially independent, Spain offers a Non-Lucrative Residence Visa to those outside the EU.

Post Brexit, our partners have noted Brits spending more on second homes rather than buying to relocate. You are considered tax resident if you stay longer than 183 days in the country. Non-residents will be liable for tax on any income generated in Spain. Those who own a home purely for private use are liable for annual imputed income tax, based on cadastral value. The tax rate is 19% for EU & EEA citizens and 24% for others, including UK.

The Spanish tax system is complex, so consult a specialist. There is a Wealth Tax applicable for assets €700,000 upwards, although the amount may vary according to region. Capital Gains Tax applies in Spain – and inheritance or gift tax.

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