If you want to buy a house in Spain as a foreigner, you will have to sort out some bureaucracy before you can buy a property.
The Spanish property market has many peculiarities, and it is worth doing some research before buying a house in Spain.
Factors to consider when buying a property in Spain include property scams, high capital gains tax and the fluctuations of the Spanish property market.
The steps involved in buying a property are not always intuitive. In addition, it is necessary to have clear which taxes and expenses you will have to pay in order to purchase the property.
This series of articles is a guide to help those looking for a property in the coast of Spain or in a big city such as Madrid or Barcelona.
The Spanish property market and house prices
Spain suffered greatly during the global financial crisis and the subsequent collapse of the property market. House prices fell by up to 30%, but in recent years the market has stabilised.
Prices in Spain have risen steadily since 2016, and although the COVID-19 outbreak affected the market in 2020, official figures show that average prices grew during the second quarter of the year. Sales prices rose by 2.1% year-on-year, with new-build house prices increasing by 4.2% and second-hand by 1.8%.
The full economic effects of COVID-19 on the Spanish property market remain to be seen. Real estate experts predict that the value of house prices could fall by 5-10% in the short term.
The latest statistics showed that the average house price in the main cities reached 1,649 euros per square metre, while properties in the Balearic and Canary Islands experienced an increase to 1,604 euros per square metre.
The most expensive places to buy in Spain are San Sebastian, Barcelona and Madrid. Prices in all three areas range between 3,000 and 3,600 euros per square metre.
The Community of Madrid is the most expensive place to buy land in Spain, with prices of 338 euros per square metre. The Canary Islands (245 euros), Catalonia (184 euros), Andalusia (171 euros) and the Community of Valencia (158 euros) occupy the top five places. Castilla y León is the cheapest place to buy, with an average land price of 66 euros per square metre.
Levels of home ownership in Spain are high, with around 80% of residents owning their home, and many do so without a mortgage.
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