Since opening the first of two Open Door offices in Spain, in Alicante and Valencia and surroundings, we’ve had enquiries from people from all over the world who are thinking about buying a property in Spain, as well as from people looking to sell a Spanish property that they may have owned for some time.
We’ve, therefore, decided to do a short series of blogs on the challenges and opportunities of buying and selling overseas, discussing how to overcome the pitfalls and maximise your chances of success. We hope it's useful!
Before we think about HOW you should buy in Spain, we wanted to talk about WHY you should buy in Spain.
The 2008 financial crisis had a big impact on the Spanish economy, where a price drop of as much as 30% was not uncommon. A decade on, the market is now finally, and firmly, in recovery: prices rose by 4% nationwide in 2017, and statistics show that the number of sales increased by 16% in the same year. The Spanish bank BBVA has predicted that property prices, and rental incomes, will rise by 5% over the course of 2018.
That makes the Spanish market an interesting one to invest in, whether you're interested in a second residency, looking for a ROI opportunity, moving abroad or simply willing to enjoy life under the Spanish sun.
Property ownership in Spain is high and almost 80% of Spanish residents own their own home, many outright with no mortgage. A large expat community means that a high percentage of property is foreign-owned, and more and more estate agents, sollicitors and other third parties are accustomed to working with overseas buyers. Especially in the areas where our offices are based, Valencia and Alicante, we see a significant growth in not only property prices but as well in the international development.
Transaction costs are moderate (around 12-15% of a property’s value) and there are no restrictions on foreigners owning property; in fact an investment of over €500,000 entitles property owners to a 'golden visa' allowing residency.
But isn’t it very complicated?
The property-buying process is certainly different to the UK, the Netherlands and several other European countries, so it’s important to do your research in advance. That said, the system is relatively straightforward once explained.
In the next few blogs, we’ll be walking you through the best approach to buying a property in Spain; the challenges and pitfalls which you could face; what you can do from the UK or overseas; when you should visit in person; and our top tips for choosing your perfect property.
If you’d like to talk in more detail, why not drop our Spanish team a line? They’re fluent in English, Dutch and Spanish and experts in helping people through every step of the process.