The current data on the Spanish real estate market indicates that there has been a significant “boom” in foreign property purchases in Spain: Since 2009, foreign buyers of homes in Spain have increased significantly. Spain is a top destination for moving abroad and many foreigners are actively looking for their dream house in Spain, so the demand is constant.
The reason for the boom is clear: Spain has many excellent benefits for expats and second-home buyers. The country offers safe communities, affordable cost of living, incredible culture and food, and wonderful weather.
Now, the process of buying a house in Spain as a foreigner may seem lengthy and complicated, but it shouldn’t be. Knowing the right steps to take is crucial to a successful purchase. In this guide, we list all the important steps involved in buying property in Spain without hassle.
Spain real estate: An overview of the market
Spain was one of the nations that suffered the most from the global financial crisis of 2008. About 30% of the value of homes was lost. However, property values in Spain have steadily increased since then. In 2022, prices for homes in Spain reached well above their historical average. As of 2023, the average price of a house in Spain is about $400,000.
Now, the most recent data indicate that, except for metropolitan areas, the price growth of Spain real estate is beginning to gradually slow down everywhere.
The Balearic and Canary Islands, along the Mediterranean coast, have experienced the greatest price dynamics slowdown. This is great news for those looking to buy property. It is recommended to keep an eye on the market as prices may change in the near future.
Buying property in Spain as a foreigner
In Spain, the process to buy a house in Spain is fairly straightforward. In order to make sure you don’t miss anything, we’ll answer your questions about how to buy property in Spain as a foreigner in this section.
What is the process of buying a house in Spain?
- Step 1: Finding a Home and Making an Offer
When you’ve found a home you like, you should make an offer. This is typically done through the seller’s real estate agent.
- Step 2: Paying the Deposit and Signing the Preliminary Contract
After you and the seller have agreed on the price, you will sign the private preliminary contract of purchase. The deposit, which is typically 10% of the property’s value, is due next.
- Step 3: Arranging a Mortgage
Property ownership is required to obtain a mortgage agreement in Spain. Before purchasing the property, you should talk to your mortgage provider about your requirements. However, you won’t be able to finish the process until you’ve signed the preliminary contract and paid the deposit.
- Step 4: Contract Signing
After determining your mortgage, you must sign the final contract of sale (contrato privado de compravento). Remember that you should sign this in front of a notary.
What documents do I need to buy a house in Spain?
In terms of the law, the only thing you need to buy a house in Spain as a foreigner is the NIE (Número de Identificación del extranjero). Every individual needs this number to conduct business in Spain. You must have it before signing the deed because it must be on all documents you sign or receive in Spain. Although obtaining the NIE is not difficult, it sometimes takes a long time. If you want to get the NIE as quickly as possible, ask your real estate agent to assist you.
In addition, even though it is not required, having a bank account in Spain will make all of the formalities simpler, expedite payments, and possibly save you commissions.
What experts/specialists will I need to buy a house in Spain?
When buying real estate in Spain, one of the most important things to know is that the bureaucracy and language barrier can be slightly overwhelming for people who have never lived in Southern Europe before. As a result, it is advised to hire the following specialists:
- A lawyer
In Spain, it is best to employ the services of a lawyer. They can assist you in verifying the purchase contract and other sale-related legal documents.
- A buyer’s agent
The buyer’s agent’s job is to negotiate a fair price and locate the ideal property that meets your needs.
- A tax representative
If you do not have a residence in Spain but own a property in Spain, you are required to appoint a tax representative.
- A translator
The services of a translator can be extremely beneficial for agreements and contracts that are written in Spanish.
Should I negotiate the price?
Try to offer a little less than the seller asked for unless the price is extremely appealing. However, you shouldn’t go too low or the seller might be offended. It is preferable to have the agreement in writing after you have verbally negotiated the price and come to an agreement. A notary is always a good idea for this reason.
Can I get a mortgage in Spain?
Non-resident buyers in Spain generally have access to the same mortgage terms as Spanish citizens, with coverage of up to 80% for the first home and 60 to 70% for the second.
This means that you must have a down payment of at least 20% of the property’s price, plus an extra 15% to cover things like taxes, legal fees, notary fees, etc. In addition, your debt should not be more than 30 to 35% of your income.
Another important point to remember is that mortgages are typically taken out for a minimum of five years and a maximum of thirty, with a maximum age of 75 for completion.
Are there any restrictions for foreigners?
Non-citizens are free to purchase property in Spain. All that is required is to translate your documents and submit them to the Notary, Land Registry, and Bank. To close deals, you must also obtain an NIE (personal identification number). The good news is that if you spend €500,000 on one or more houses, you can apply for residence status.
How to find houses for sale in Spain
The Spanish real estate market is fully prepared for foreign buyers. As a result, there are estate agents and websites available in almost every language. Let’s explore some of the most popular ways to find homes for sale in Spain:
- Websites
The following websites offer the most available properties to buy in Spain:
- ThinkSpain
- Idealista.com
- Servihabitat
- Kyero
- Agents
Most real estate agents in Spain are bilingual, have extensive local knowledge, and frequently work with international buyers. Some of the most popular real estate agencies offering houses for sale in Spain include:
- Solar Group
- Rusol Prime
- Alegria
- Gilmar Real Estate
- Estate Barcelona
- Newspapers
Most local newspapers list advertisements from private property sellers in Spain. It can be useful to buy a few newspapers from different areas when you visit the country to browse available property for sale in Spain.
- Visiting towns and villages
If you’re living in Spain or visiting the country on holiday, it’s a great idea to simply drive to different towns and villages to see what is available out there. This way, you can also get an idea of the communities in the area.
Finding the right property in Spain
If you’re considering moving to Spain, taking your time is essential to a successful real estate purchase. You can buy a home from a distance and move right there. But it is recommended to take your time, inspect the property, and determine whether everything complies with standards. Following the right steps and processes, you can find the property of your dreams.
