Would You Like to Buy Property in Spain? Here’s What You Need to Know Before Making a Decision!
Spain has long attracted investors and those looking for the perfect holiday home. Beautiful beaches, sunshine almost all year round, and a wonderful atmosphere make properties on the Iberian Peninsula highly sought after. However, before making a purchase, it is essential to be well-prepared—especially financially. Determine Your Budget – It’s Crucial!
Before viewing properties, the first step is to establish how much you are willing to spend. Remember that beyond the purchase price, there are additional costs that can amount to up to 10% of the property’s value!
For the secondary market, you must pay a transfer tax (ITP), which varies by region from 6% to 10%. If you are interested in the primary market, you will need to pay VAT (IVA) at 10%, plus a stamp duty (AJD) ranging from 1.2% to 1.5%. Additionally, notary fees, land registry fees, and other charges can add another 0.3% to 0.75% of the property’s value.
2. Define Your Purpose – Permanent Residence or Investment?
Before choosing a specific property, ask yourself a few key questions:
- Am I buying a home to spend the winter months escaping the cold and gray skies in Poland?
- Or is my main goal an investment, such as short-term rentals that generate income while I only use it for a few weeks per year?
- What return on investment (ROI) do I expect, and are my expectations realistic?
Answering these questions will help define your expectations and determine the best type of property for your needs.
3. Work with a Professional – Save Time and Reduce Stress
When searching for property in Spain, it is advisable to seek the help of a reputable real estate agent. A professional can find listings that best match your needs while eliminating those that do not meet your criteria. Based on experience, after carefully reviewing clients’ needs, only a handful of really good offers remain. Searching on your own can be time-consuming and frustrating. Many investors who try to browse thousands of listings soon realize that the most interesting offers are either no longer available or do not meet their expectations. With a professional, you save time and avoid unnecessary stress!
4. Plan Your Trip – How to Prepare?
Once you decide to buy, plan your trip to Spain. Flights, car rental, and accommodation should be arranged in advance to ensure a smooth journey. It is also important to schedule enough time for viewing properties, comparing different offers, and making a well-informed decision.
5. Be Realistic – Not Every Offer Is Worth Considering!
Although Spain still offers attractive property prices, many people fail to realize that real estate prices have risen significantly since 2021. Buyers often have unrealistic expectations regarding property prices in specific regions. Many rely on negotiating a significant discount, which is not always feasible.
6. Property Prices in Spain – How Much Do You Need?
As of October 2024, the average property prices in popular regions of Spain are:
- Alicante (Costa Blanca): Average price per m² is €2,388, and the average property price is €251,596.
- Malaga (Costa del Sol): Average price per m² is €3,865, and the average property price is €472,618.
To buy property in these regions, you should have at least 40-50% of the property value as a down payment. The rest can be financed with a mortgage based on Polish income, provided the monthly payment does not exceed 30% of your total monthly expenses.
7. Is This a Good Time to Invest?
If, after calculating all costs, you feel ready to buy, now may be a great time to become a property owner on Spain’s sunny coast. Remember, Spain offers not only stunning beaches and a great climate but also a stable real estate market that has attracted investors from around the world for years.
Summary
Buying property in Spain requires careful planning and financial calculations. Finding the right apartment, completing all formalities, and estimating expenses accurately are key elements that will make the buying process smooth and satisfying.
If you are unsure where to start, consult a professional real estate agent who will guide you through every step efficiently and safely.
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