Spain is home to some of the coolest beaches, a Mediterranean climate, affordable housing options, and a thriving environment for business. Millions of tourists visit Spain, and many end up yearning to shift there permanently by buying a property or comfortable housing, either in bustling Barcelona or laid-back Valencia, to enjoy a purposeful and balanced life.
Spain understands people’s interests! Therefore, the government and other stakeholders have made it a bit easier to buy property in Spain as an American or any other foreigner. They offer several perks like tax relaxation to attract potential investment. They also provide a world-class health care system, education system, and a conducive environment for digital nomads.
In this piece, we will dive into the process of buying property in Spain as a foreigner and explore the best cities to live in.
There are many ways to live in Spain legally. You can get a house under Spanish inheritance laws (if your deceased parents had assets there) or purchase property through the following processes.
1. Direct Purchase:
You can purchase the property directly as a foreigner in Spain. For that, you must have proper information on how it works.
The process is straightforward. You search for the best suitable house according to your requirements, complete the necessary paperwork, understand the legalities, negotiate the price, and complete the purchase.
2. Golden Visa Program:
It is the most preferred method by foreigners to buy a home in Spain because it leads to permanent residency. It is also called an investor visa, which can be obtained for people who invest at least €500,000. The golden visa holders can access the public health care and education systems. Not only that, it also gives you the liberty to apply for citizenship in Spain after 2 years.
3. Retirement Visa
Spain is also the most peaceful place to spend your old age. Retiring in Spain gives you access to a world-class healthcare system with several other social and economic benefits. The Spain retirement visa for US citizens allows you to live in Spain for a year with your spouse and children. If you renew it for 2 years 2 times and spend 5 years in the country, you will be eligible to get permanent residency.
How To Buy A House In Spain As A Foreigner? Step-By-Step Guide
These are the general steps you need to follow whatever route you are taking to purchase property in Spain.
1. Define the Purpose of Buying a Property & Financial Framework
First of all, you must have a well-defined purpose and the type of Spanish residency you want to buy. There are different types of residences, from luxury villas to townhouses and small apartments. You, as an expat, might want to buy these properties to upgrade your lifestyle, invest to earn profits, or have a vacation home on another continent.
The Spanish banks are open to accommodate non-residents and provide them with mortgage products to finance the purchase of houses in Spain. The only thing is that they have some strict laws and rules for foreign buyers. The buyers have to pay 20 to 30 percent as a down payment when finalizing the purchase.
2. Get NIE (Foreign Identity Number)
If you want to engage in any type of economic activity in Spain, you need a dedicated document of NIE (Numero de Identidad de Extranjero). It is a unique Foreign Identity Number given to expats who want to do business, invest, job, or do any social activity in Spain.
This document is necessary if you are a Spanish bank account, renting or buying property. You can get it from your home country’s consulate (USA consulate if you are applying from there) or in Spain as well. In both cases, your physical presence with relevant documents is necessary.
3. Open A Bank Account In Spain (Not Necessary But Highly Recommended)
You have to open a Spanish bank account if you want to make smooth money transactions. From transferring down payments to compiling taxes, everything becomes easy when you have a personal bank account in Spain. The benefit is that you do not have to be physically present in Spain to create this account. You can open it via power of attorney. However, this facility is available for citizens of certain European countries only.
4. Research What Property You Want To Buy
The real estate market of Spain is continuously growing and attracting thousands of investors from all over the world. Therefore, there is an increase in real estate prices in famous cities in Spain. According to statistics, the market value of residential real estate is expected to dominate the market and reach a volume of $5.44tn.
To research the best housing, you have two major ways. You can either go online and browse the listing available on Idealista, Fotocasa, and Kyero. Or you can take the real estate agents on board to find the most suitable property.
5. Survey The Property And Conduct Checks
Next, it is necessary to check the property before making any payments. You can either do it yourself or hire professional companies to do it for you. They will inspect the condition and paperwork of the house and other important information related to the process.
Another option is to hire property lawyers. They will run several checks to ensure that the property is legally cleared.
6. Make An Offer To The Seller
After finding the best property, you have to draft an offer in Spanish stating the price and the potential reason for that price. It is advised to hire a real estate lawyer to craft a professional document. After negotiating the price and paying the deposit fee, you sign the reservation contract to cement the agreement.
7. Complete The Purchase
Sign the document “Escritura de compraventa” and pay the amount set earlier to complete the purchase.
Where To Buy Property In Spain? Best Cities To Live For The Americans In Spain
Following are some of the most viable cities for Americans to live in Spain.
| City | Price per sqm (average) | Pros | Cons |
| Barcelona | €4,000 – €6,000 | Low crime rate, perfect socio-economic conditions for investment, and a wide community of foreigners. | The highest prices among other cities, and various taxes, language barrier. |
| Madrid | €1,000 – €5,500 | Biggest expat community, accessibility to travel the entire Eurpose easily, great work-life balance. | Property scams can be faced sometimes. |
| San Sebastian | €3,304 – €7,368 | Safe city with a rich culture and an efficient public transport system. | High cost of living, frequent rainfall, limited job opportunities. |
| Valencia | €1,552 – €3,481 | Vibrant culture and nightlife, beach, high salaries in jobs | High cost of living |
| Seville | €1,000 – €4,000 | Fun social life, delicious cuisines, and strong culture. | Unemployment and extreme summers. |
| Cataluña | €2,517 | High per capita income, young population, lowest unemployment. | Housing prices can be high. |
| Andalucia | €3,714 | Extremely low taxes, recreational spaces in homes, and the availability of modern utilities. | Cannot rebuild property on the rural side of the city. |
Conclusion
To buy a house in Spain, you have to research the properties and find the one that matches your requirements. Then comes the financing and calculating taxes on the house. For all the paperwork and understanding of legalities, it is recommended to hire a real estate lawyer or professional company to help you out.