|
€100,000
|
10 Year
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12 Year
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14 Year
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16 Year
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18 Year
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20 Year
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|---|---|---|---|---|---|---|
| Rates | 120 months | 144 months | 168 months | 192 months | 216 months | 240 months |
| 1.50% | -€898 | -€759 | -€660 | -€586 | -€529 | -€483 |
| 2.00% | -€920 | -€782 | -€683 | -€609 | -€552 | -€506 |
| 2.50% | -€943 | -€805 | -€706 | -€632 | -€575 | -€530 |
| 3.00% | -€966 | -€828 | -€730 | -€656 | -€600 | -€555 |
| 3.50% | -€989 | -€851 | -€754 | -€681 | -€625 | -€580 |
| 4.00% | -€1,012 | -€876 | -€778 | -€706 | -€650 | -€606 |
The post What are the best Spanish mortgage rates? April 2025 update appeared first on How to buy in Spain.
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What are the best Spanish mortgage rates?
Here is our April 2025 update with the latest data available
Leveraging our expansive network of local partners, we secure Spain’s most favourable mortgage rates for those looking to finance their homes. Throughout much of 2022, we observed significant discounts on mortgage rates as inflation surged while long-term rates remained subdued, thanks to the European Central Bank’s (ECB) efforts. In early 2025, inflation is more controlled, at 2.2% as of March 2025, returning to the low end of the range over the past three years. It appears that economies are suffering from the ECB’s restrictive monetary policy. In this context, some market experts expect the central bank to lower rates. We can already see this impacting mortgage conditions and long-term rates.
To stay informed about the latest Spanish mortgage rate trends, it’s crucial to consult real-time data from the most recent mortgages issued in Spain. This insight allows you to understand the most competitive rates currently available. Foreigners must note that rates may vary since their assets are primarily overseas.
We’ve built the most extensive database to monitor fluctuations in this sector, allowing us to generate dynamic and engaging charts. The “Instituto Nacional de Estadísticas” (INE) has recently published mortgage statistics for Spain as of January 2025, providing a clear view of current market rates.
Thanks to our network of local partners, we get the best mortgage rates in Spain if you want to finance your home in Spain. Take 30 seconds to complete this quick form to get the best Spanish mortgage rates.
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Spanish mortgage rates: our 2-minute video
Would you like to watch this video in your language? Click on the bottom right of the video on “cc” to get subtitles in your language.
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What are the current mortgage rates in Spain?
Current market conditions
- The average mortgage has an interest rate of 3.08% (vs 3.25% end of December 2024)
- The lowest rate ever was 2.44% reached in September 2020.
- The average rate for variable-rate mortgages is 2.94% (vs 3.16% end of December 2024)
- The average rate for fixed-rate mortgages is 3.17% (vs 3.30% end of December 2024)
Check the evolution of the mortgage rates (average, fixed and variable ) over the last years on our interactive chart (browse with the mouse to check data)
What are the best mortgage rates for our customers?
As of September 2024, our partner can get perfect conditions for mortgages for our non-resident buyers:
- Fixed rates: from 2.85%
- Mixed solution: from 2.50% fixed for 5 years, after Euribor + 0.75%
- Variable rates: from 2.50% fixed for 1 year, after Euribor + 0.75%
And of course, they don’t stop with foreigners, our partner gets very competitive mortgage rates for Spaniards:
- Fixed rates: from 2.52% (if taking other products like insurance from the bank, for instance,…)
- Mixed solution: from 1.50% fixed for 5 years, after Euribor + 0.60%
- Variable rates: from 1.35% fixed for 1 year, after Euribor + 0.25%
So, don’t hesitate to fill out this quick form if you want a free quote from our partner. They specialise in working with foreigners looking for a mortgage in Spain. Please note that to get the best rates, banks add some conditions, as in your home country.
Essential information on Spanish Mortgages for non-residents
As a non-resident, you can take a mortgage to finance your second home or your investment. Of course, since your assets won’t be based in Spain, the bank will require warranties and generally won’t allow a loan-to-value ratio of more than 70%. The loan-to-value is the amount of mortgage you can get divided by the value of your property before tax, but this percentage is only for reasonable inquiry. Don’t hesitate to ask for a free quote from our mortgage broker; he knows exactly how it works and which Spanish banks are friendly to foreigners.
Don’t miss our new detailed article on that subject: Mortgage rates in Spain for non-residents: our detailed guide.
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Calculate the cost of your Spanish mortgage
Check our ultimate Spanish mortgage calculator.
To help you out, we’ve created an easy-to-use table showing the monthly repayments depending on the amount you want to borrow for a mortgage. If you want to go deeper into details, use our calculator to fine-tune your mortgage to your situation, and you will find out what your monthly payments, mortgage schedule, etc., would be.
What is the cost of a €100,000 mortgage over 10 years?
If you want to go into the details, here is a calculation example we did:
As you will see, if you take out a €100,000 mortgage for 10 years at a rate of 3.5%, your monthly payment to repay the mortgage will be €989.
Thanks to our Spanish mortgage rate calculator, you can change any number and calculate what your situation would be.
Summary table of your monthly reimbursements for a €100.000 Mortgage
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Buy to let in Spain?
If you are about to invest in Spain, it is always interesting to compare the financing conditions with your return prospects. Check our last article on that subject:
What return will you make on your Spanish Property investment? If you see your property investment in Spain as an investment, adding some financing (without being crazy) will increase your return and decrease your costs.
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Should I take a mortgage with fixed or variable rates?
Fixed-rate and variable-rate mortgages are the two main categories of mortgages you can choose from. Of course, there are many other possibilities between the two.
Why would you take a fixed-rate mortgage?
A fixed-rate mortgage has the advantage that, regardless of future market conditions, it will remain the same. To get that advantage, you will, on average, pay a higher rate than with a variable-rate mortgage. For instance, as of September 2024, mortgages with variable rates were issued at rates of 2.92%, while those with fixed rates were issued at 3.30% for an average length of 24 years.
Why would you take a mortgage with a variable rate?
It could be because it is less expensive than a mortgage with fixed rates (monthly instalments) because you don’t see inflation or rates going higher or because you are comfortable financially and can face higher rates in the future. Another reason variable rates cost less than fixed rates is that for the banks issuing them, it matches their sources of funds, such as savings accounts, and they take less risk by issuing them rather than fixed-rate mortgages.
To sum up, if you want safety, take a fixed-rate mortgage. If you see inflation spiking or interest rates going higher (in general due to a strong economy) you could as well go for a fixed-rate mortgage. Of course, the longer your mortgage is, the higher your risk will be.
Don’t hesitate to ask your Spanish mortgage broker for pricing with both and compare both offers.Inflation update since the start of 2023
After the big inflation spike of 2022 around the world and in Spain, inflation in Spain is finally moderating to +2.2% as of August 2024. We note that since 2022, the trend has changed clearly, and the majority of mortgages are issued with fixed rates. We kept telling you in 2022 to lock in those crazy long-term rate levels… remember our chart:
Maybe some people see a real risk of inflation staying high, which in turn should lead to higher variable rates. Since June 2023, we have still seen fixed-rate mortgage initiations, but we are moving back towards a 50/50 split between variable and fixed rates. As of mid-2024, with long-term rates decreasing and inflation declining, fixed rates are back at the top of the list. Check our interactive chart on that.
Check the evolution of the percentage of mortgages with fixed and variable rates, with the inflation rate
We wrote an entirely new article on that subject: “Fixed or Variable Mortgage for My Spanish Home?“
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How do you secure the best mortgage rates in Spain?
You are about to buy a lovely second home in Spain. Do you want to know how to get the best mortgage rates on your Spanish property? Even as a foreigner?
Check our detailed paper on this subject and follow the link or listen to our 2-minute video on how to apply for your mortgage up to the end and get all our tips to get the best rates:
You have to ask yourself: What is the ideal mortgage customer for a bank? The bank will take a risk, the risk of not being repaid. In this case, the bank will need to take legal action to control your property and sell it on the market afterwards. We saw what happened after the 2008 financial crisis: thousands of properties were handed over to banks as owners couldn’t pay their mortgages.
The ideal mortgage customer for a Spanish bank
- has a good professional profile: he is employed and has a stable, nice income stream,
- has a good credit report, he does not have too much debt vs. his income,
- can afford to have debts: his debt-to-income ratio is under 35%, which means that his monthly net income is three times bigger than his monthly debt repayments.
- The property has a good resale value:
- The property price is correct vs. the market
- There is demand in the market for such a property
- is coming from OECD countries. As you know, with anti-money laundering laws that have gone into effect across Europe, it is challenging for banks to lend to residents of certain countries. Of course, if you are a resident of the European Union, it will be the easiest.
How to get the best rates as a non-resident?
Get a free mortgage quote
At howtobuyinSpain.com, you’re in good hands. We work with a mortgage broker who gets the best mortgage prices from all Spanish banks. Depending on your profile, some banks will be more aggressive, while others won’t. Our mortgage partner knows that, and they will go to the best bank or will ask for quotes from many Spanish banks to get you the best quote. They work with all the biggest Spanish banks, including BBVA, Bankia, and Santander. Get a free mortgage quote from our partner.
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Spanish Mortgage Rates: Market Insights and Trends
423,761 mortgages issued in Spain in 2024
2022 was a record year for mortgage rates in Spain, with 464,000 credits issued. Even stronger than 2021, which was already strong. So, in 2024, with the rise of interest rates, the number of mortgages is back to a strong level and growing 11% vs previous year (which was itself a weak year with a decrease of 18%), while at the same time, the number of transactions increased by 7% to 636,909.
A healthy market: Only 67% of properties are bought with a mortgage (vs 64% in 2023). In our opinion, the market is not over-leveraged. Have a quick look at the table for statistics since 2015. Yes, we are far from the high-leverage situation we had in 2007.
Historical evolution of Spanish mortgage rates & useful information
- The average mortgage duration is 25 years
- Only 9% of issued mortgages in Spain are more significant than 80% of the property value.
- 36% have variable interest rates (vs 37% in December 2024)
- 64% have fixed interest rates (vs 63% in December 2024)
- The average amount issued per mortgage is €152,200.
Check the evolution of the average amount issued per mortgage over the last year in Spain in our interactive chart
- How much leverage is given by banks? What is the average Loan-to-Value in Spain? (If your property value is 100%, how big will your mortgage be?) The quick answer is 64%.
- 38,058 mortgages were issued +11% vs last year.
- € 5.8 billion of mortgages issued for housing in January 2025, +24% compared to 2024.
Last but not least, it is always interesting to know the long-term rates and the Euribor, as those are the rates at which Spanish banks get financed. As you can see, both short-term rates and long-term rates have been exploding since the start of 2022, but the good news is that Euribor short-term financing rates are decreasing again since the beginning of 2025, which is very good news for investors financing with variable rates.
- The average mortgage duration is 25 years
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Resources on Spanish mortgage rates
Discover the best new build projects in Spain
Check out our latest articles on Spanish mortgage rates
- Spanish Mortgages for Non-Residents: Our Detailed Guide.
- Mortgage rates comparison between all European countries, and why Spain as advantages…
- Your definitive guide to your Spanish mortgage
- Our ultimate mortgage calculator
- Is it easy to get a Spanish mortgage as a foreigner in a post-COVID-19 world?
- How do I choose between fixed and variable rates for a mortgage?
All our interactive charts in this article are available in a downloadable format
Loan to value given on mortgages in Spain
Spanish mortgages with the best mortgage rate in Spain and loan value higher than 80%.
Current financing rates for Spanish banks
Average Spanish Mortgage Sizes in 2024
Spanish mortgage rates for non-residents vs properties sold in Spain for each year
Spanish mortgage rates: comparison between variable and fixed rates
Best Spanish mortgage rates in March 2024
Average Spanish mortgage length in years.
FAQ Spanish mortgage rates
How much deposit do I need for a Spanish mortgage?
For your second residence and as a non-fiscal resident, a bank will finance no more than 70 % of the value of your property. This means that you would need to invest at least 45% of the property value from your assets.
What is the interest rate in Spain?
As of December 2024, the average mortgage has an interest rate of 3.14%. The lowest rate ever was 2.44%, very close to the current level! The average mortgage duration is 24 years 39% have variable interest rates 61% have fixed interest rates. The average rate for variable-rate mortgages is 2.92%, and The average rate for fixed-rate mortgages is 3.3%. Read our dedicated article on that subject for more recent data.
Can foreigners get a mortgage in Spain?
Yes, foreigners can get a mortgage up to 70% of the Value of a property.
Can I get a Spanish mortgage?
It is very easy to get a mortgage in Spain. What are the documents requested? Your Passport / ID for all the applicants Your NIE: “Número de identificación fiscal para extranjeros” or Foreign Resident’s Tax Number. How do you get your NIE in Spain? What do you need to get it? Why do you need it? Last 3 paychecks with the contract of employment Proof of income/Contract A view of your assets and debts If it’s a new building: the “Deed for the new building” The private sale-purchase contract If you have a mortgage at home, land registry information on the property and the mortgage If pensioners: Official proof of annual income.
Here are the statistics for earlier years:
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The Spanish mortgage rates situation for December 2021
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- Average mortgage has an interest rate of 2.53%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 32% have variable interest rates
- 68% have fixed interest rates
- The average rate for variable rate mortgages is 2.08%,
- The average rate for fixed-rate mortgages is 2.8%,
- The average amount issued per mortgage is €145,500: an increase of 1.9% vs last year.
- 32,905 mortgages were issued +23% vs last year.
- 4,8 € Bn of mortgages issued for housing in December 2021, +32% vs last year.
The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Aragon, +33% to 1.159 mortgages
- Extremadura, +29% to 683 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Balears, 211m€, +116%
- La Rioja, 19m€, +77%
- Aragon, 169m€, +70%
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The Spanish mortgage rates situation for October 2021
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- Average mortgage has an interest rate of 2.48%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 33% have variable interest rates
- 67% have fixed interest rates
- The average rate for variable rate mortgages is 2.11%,
- The average rate for fixed-rate mortgages is 2.7%,
- The average amount issued per mortgage is €137,900: an increase of 1.9% vs last year.
- 33,105 mortgages were issued +67% vs last year.
- 4,6 € Bn of mortgages issued for housing in August 2021, +70% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Navarra, +77% to 510 mortgages
- Murcia, +7% to 1,099 mortgages
- Andalusia, +2% to 6,589 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Madrid, 1.2bn€, +89%
- Andalusia, 793m€, +89%
- Catalonia, 863m€, +87%
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The Spanish mortgage rates situation for February 2021
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- Average mortgage has an interest rate of 2.49%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 47.3% have variable interest rates
- 52.7% have fixed interest rates
- The average rate for variable rate mortgages is 2.16%,
- The average rate for fixed-rate mortgages is 2.88%,
- The average amount issued per mortgage is €131,380: an decrease of 13.8% vs last year.
- 31,647 mortgages were issued -23.1% vs last year.
- 4,1 € Bn of mortgages issued for housing in February 2021, -29.9% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Murcia, +45% to 1007 mortgages
- La Rioja, +40% to 215 mortgages
- Valencian Community, +24% to 3600 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Navarra, 54m€, +19%
- La Rioja, 18m€, +16%
- Gallicia, 116m€, +13%
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The Spanish mortgage rates situation for January 2021
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- Average mortgage has an interest rate of 2.47%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 48.8% have variable interest rates
- 51.2% have fixed interest rates
- The average rate for variable rate mortgages is 2.17%,
- The average rate for fixed-rate mortgages is 2.81%,
- The average amount issued per mortgage is €129,003: an increase of 13.5% vs last year.
- 27,518 mortgages were issued -31.6% vs last year.
- 3,5 € Bn of mortgages issued for housing in January 2021, -22.4% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Navarra, +63% to 458 mortgages
- Balears, +27% to 643 mortgages
- La Rioja, +24.4% to 153 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Cantabria, 40m€, +0%
- Catalonia, 758m€, -7%
- Castilla y Leon, 126m€, -9%
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The Spanish mortgage rates situation for December 2020
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- Average mortgage has an interest rate of 2.53%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 51.6% have variable interest rates
- 48.4% have fixed interest rates
- The average rate for variable rate mortgages is 2.20%,
- The average rate for fixed-rate mortgages is 2.97%,
- The average amount issued per mortgage is €135,658: an increase of 9.2% vs last year.
- 26,128 mortgages were issued -14.8% vs last year.
- 3,5 € Bn of mortgages issued for housing in December 2020, -7% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Cantabria, +9.3% to 354 mortgages
- Extremadura, +4.8% to 551 mortgages
- Aragon, +0.2% to 862 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Aragon, 111m€, +62%
- Castilla y Leon, 118m€, + 38%
- Galicia, 123m€, +34%
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The Spanish mortgage rates situation for November 2020
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- Average mortgage has an interest rate of 2.45%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 24 years
- 52.6% have variable interest rates
- 47.4% have fixed interest rates
- The average rate for variable rate mortgages is 2.05%,
- The average rate for fixed-rate mortgages is 2.86%,
- The average amount issued per mortgage is €136,676: an increase of 5.5% vs last year.
- 28,756 mortgages were issued +2.4% vs last year.
- 3,9 € Bn of mortgages issued for housing inNovember 2020, +3% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Pais Vasco, +19% to 1729 mortgages
- Cantabria, +16% to 324 mortgages
- Catalonia, +15% to 4711 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Castilla – La Mancha, 115m€, +32%
- Aragon, 97m€, +31%
- Galicia, 104m€, +21%
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The Spanish mortgage rates situation for October 2020
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- Average mortgage has an interest rate of 2.47%
- The lowest rate ever was 2.44% reached in Nov 2020!
- The average mortgage duration is 25 years
- 51.1% have variable interest rates
- 48.9% have fixed interest rates
- The average rate for variable rate mortgages is 2.19%,
- The average rate for fixed-rate mortgages is 2.85%,
- The average amount issued per mortgage is €134,900: an increase of 4.6% vs last year.
- 28,248 mortgages were issued -5.9% vs last year.
- 3,8 € Bn of mortgages issued for housing in October 2020, -1.6% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued (Monthly):
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- Castilla y Leon, +28% to 1226 mortgages
- La Rioja, +26% to 179 mortgages
- Navarra, +21% to 332 mortgages
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The top region in terms of amounts of mortgages issued (Annual)
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- Extremadura, 40m€, +29%
- Aragon, 93m€, +23%
- Asturias, 46m€, +19%
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The Spanish mortgage rates situation for September 2020
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- Average mortgage has an interest rate of 2.44%
- The lowest rate ever was 2.44% reached in Nov 2019!
- The average mortgage duration is 24 years
- 51.5% have variable interest rates
- 48.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.12%,
- The average rate for fixed-rate mortgages is 2.84%,
- The average amount issued per mortgage is €135,035: a decrease of 1% vs last year.
- 26,878 mortgages were issued 18.4% vs last year.
- 3,6 € Bn of mortgages issued for housing in September 2020, +17.2% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued:
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- Madrid, +66% to 5,077 mortgages
- Balearic Islands, +63% to 823 mortgages
- Catalonia, +42.4% to 3,968 mortgages
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The top region in terms of amounts of mortgages issued
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- Extremadura, 51m€, +220%
- La Rioja, 13m€, +106%
- Cantabria, 39m€, +106%
- Asturias, 55m€, +105%
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The Spanish mortgage rates situation for August 2020
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- Average mortgage has an interest rate of 2.49% (vs 2.54% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 24 years
- 50.6% have variable interest rates
- 49.4% have fixed interest rates
- The average rate for variable rate mortgages is 2.18%,
- The average rate for fixed-rate mortgages is 2.87%,
- The average amount issued per mortgage is €134,700: an increase of 4% vs last year.
- 19,825 mortgages were issued -3% vs last year.
- 3,7 € Bn of mortgages issued for housing in August 2020, +0.5% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued:
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- Navarra, +32% to 286 mortgages
- Castilla – La Mancha, +15% to 981 mortgages
- Cantabria, +12% to 279 mortgages
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The top region in terms of amounts of mortgages issued
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- La Rioja, 15m€, +145%
- Canarias, 126m€, +91%
- Castilla – La Mancha, 94m€, +49%
- Extremadura, 33m€, +34%
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The Spanish mortgage rates situation for July 2020
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- Average mortgage has an interest rate of 2.54% (vs 2.49% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 23 years
- 47.5% have variable interest rates
- 52.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.27%,
- The average rate for fixed-rate mortgages is 2.86%,
- The average amount issued per mortgage is €132,346: an increase of 8.9% vs last year.
- 26,014 mortgages were issued -23% vs last year.
- 3,4 € Bn of mortgages issued for housing in July 2020, -16% vs last year.
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The top 3 regions with the biggest increases for the number of mortgages issued:
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- La Rioja, +51% to 202 mortgages
- Canarias, +45% to 1,221 mortgages
- Valencian community, +31% to 3,341 mortgages
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The top region in terms of amounts of mortgages issued
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- Basque Country, 282m€, +33%
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The Spanish mortgage rates situation for June 2020
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- Average mortgage has an interest rate of 2.5% (vs 2.49% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 23 years
- 54% have variable interest rates
- 46% have fixed interest rates
- The average rate for variable rate mortgages is 2.11%,
- The average rate for fixed-rate mortgages is 2.96%,
- The average amount issued per mortgage is €131,670: an increase of 7.5% vs last year.
- 26,748 mortgages were issued -13% vs last year.
- 3,5 € Bn of mortgages issued for housing in June 2020, -6% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Basque Country, +129% to 2,811 mortgages
- Extremadura, +79% to 562 mortgages
- Murcia, +59% to 798 mortgages
-
-
-
-
-
-
-
The top regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Basque Country, 366m€, +95%
- Extremadura, 45m€, +85%
- Murcia, 68m€, +57%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in May 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.49% (vs 2.48% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 23 years
- 50.5% have variable interest rates
- 49.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.11%,
- The average rate for fixed-rate mortgages is 3%,
- The average amount issued per mortgage is €127,145: an increase of 3.2% vs last year.
- 25,538 mortgages were issued -27% vs last year.
- 3.2 € Bn of mortgages issued for housing in May 2020, -29% vs last year.
-
-
-
-
-
-
-
The top regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Andalusia, +6.8% to 5,580 mortgages
- Basque Country, +6.5% to 1,221 mortgages
- Galicia, +6.4% to 820 mortgages
-
-
-
-
-
-
-
The top region in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Murcia, 56.8 M€, +22%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in April 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.48% (vs 2.56% last month)
- The lowest rate ever was 2.47% reached in Nov 2019!
- The average mortgage duration is 24 years
- 48.4% have variable interest rates
- 51.6% have fixed interest rates
- The average rate for variable rate mortgages is 2.13%,
- The average rate for fixed-rate mortgages is 2.86%,
- The average amount issued per mortgage is €125,300: an decrease of 1.2% vs last year.
- 23,840 mortgages were issued -18% vs last year.
- 3 € Bn of mortgages issued for housing in April 2020, -19% vs last year.
-
-
-
-
-
-
-
The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Andalusia, +6.8% to 5,580 mortgages
- Basque Country, +6.5% to 1,221 mortgages
- Galicia, +6.4% to 820 mortgages
-
-
-
-
-
-
-
The top region in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Murcia, 56.8 M€, +22%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in March 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.56%
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 23 years
- 47% have variable interest rates
- 53% have fixed interest rates
- The average rate for variable rate mortgages is 2.21%,
- The average rate for fixed-rate mortgages is 2.92%,
- The average amount issued per mortgage is €127,888: an increase of 1.6% vs last year.
- 26,382 mortgages were issued -15% vs last year.
- 3.4 € Bn of mortgages issued for housing in March 2020, -13% vs last year.
-
-
-
-
-
-
-
The top region with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- La Rioja, +44% to 254 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Aragon, 93 M€, +48%
- Asturias, 57 M€, +24%
- Cantabria, 34M€, +8%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in February 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.64% (vs 2.55% last month)
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 23 years
- 62% have variable interest rates
- 37% have fixed interest rates
- The average rate for variable rate mortgages is 2.47%
- The average rate for fixed-rate mortgages is 3.02%
-
-
-
-
-
-
-
The 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Navarre, -45% to 373 mortgages
- Asturias, -38% to 694 mortgages
- Canary Islands, -31% to 1.035 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Catalonia, 2.378 M€, +200%
- Andalusia, 1.109 M€, +57%
- Aragon, +30%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in January 2020
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.55% (vs 2.53% last month)
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 22 years
- 58% have variable interest rates
- 42% have fixed interest rates
- The average rate for variable rate mortgages is 2.22%
- The average rate for fixed-rate mortgages is 3.05%
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Balearic Islands, +144% to 1.494 mortgages
- Asturias, +134% to 1.120 mortgages
- Castilla y Leon, +111% to 1.884 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- La Roja, 20 M€, +84%
- Navarre, 71 M€, +75%
- Balearic Islands, +74%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in December 2019
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.53% (vs 2.47% last month)
- The average mortgage rate decreased by 5% vs 1 year ago
- The lowest rate ever is 2.47% reached in November 2019!
- The average mortgage duration is 23 years
- 56% have variable interest rates
- 44% have fixed interest rates
- The average rate for variable rate mortgages is 2.2%, 9.1% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.06%, 2.6% more than 1 year ago
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Castilla – La Mancha, +97% to 1.952 mortgages
- Canary Islands, +55% to 1.824 mortgages
- Madrid, +23% to 6.787 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Castilla – La Mancha, 143 M€, +137%
- Madrid, 1.114 M€, +57%
- Canary Islands, +54%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in November 2019
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.47% (vs 2.5% last month)
- The average mortgage rate decreased by 6.1% vs 1 year ago
- The lowest rate ever is the current rate 2.47%!
- The average mortgage duration is 24 years
- 57.3% have variable interest rates
- 42.7% have fixed interest rates
- The average rate for variable rate mortgages is 2.15%, 12.1% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.01%, 0.3% more than 1 year ago
- The average amount issued per mortgage is €129,800: a decrease of 2.1% vs last year.
- 29,416 mortgages were issued -0.5% vs last year.
- 3.8 € Bn of mortgages issued for housing in October 2019, -0.9% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
All the regions noticed a month on month decrease
Here are the most noticeable regions:
-
-
-
-
-
-
-
-
- Extremadura, +26.4% to 526 mortgages
- Cantabria, +13.6% to 376 mortgages
- Valencia Community, +12.8% to 3614 mortgages
-
-
-
-
-
-
-
The top 3 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Extremadura, 48 M€, +72%
- Balearic Islands, 200 M€, +37%
- Cantabria, 43 M€, +36%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in October 2019
Best mortgage conditions in Spain?
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.50% (vs 2.51% last month)
- The average mortgage rate decreased by 5% vs 1 year ago
- The lowest rate ever is the current rate 2.50%!
- The average mortgage duration is 24 years
- 54.7% have variable interest rates
- 45.3% have fixed interest rates
- The average rate for variable rate mortgages is 2.09%, 11.2% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.02%, 1.4% less than 1 year ago
- The average amount issued per mortgage is €129,000: a decrease of 2.1% vs last year.
- 29,691 mortgages were issued -1.1% vs last year.
- 3.8 € Bn of mortgages issued for housing in September 2019, -1.1% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
All the regions noticed a month on month decrease
Here are the most noticeable regions:
-
-
-
-
-
-
-
-
- La Rioja, +127% to 186 mortgages
- Extremadura, +92% to 416 mortgages
- Cantabria, +80% to 331 mortgages
-
-
-
-
-
-
-
The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Madrid, 936 M€, -12%
- Catalonia, 788 M€, -12%
- Andalusia, 660 M€, +8%
- Valencia Community, 327 M€, +20%
- Basque Country, 235 M€, +20%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in September 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.51% (vs 2.55% last month)
- The average mortgage rate decreased by 3% vs 1 year ago
- The lowest rate ever is the current rate 2.51%!
- The average mortgage duration is 24 years
- 63.4% have variable interest rates
- 36.6% have fixed interest rates
- The average rate for variable rate mortgages is 2.13%, 9.3% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.16%, 2.5% less than 1 year ago
- The average amount issued per mortgage is €135,452: a increase of 5.3% vs last year.
- 22,488 mortgages were issued -29.9% vs last year.
- 3 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest increases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Navarre, +50% to 328 mortgages
- Madrid, +47% to 4,708 mortgages
- Castilla La Mancha, +26% to 897 mortgages
-
-
-
-
-
-
-
The top 5 regions in terms of amounts of mortgages issued are (change vs 1 year ago):
-
-
-
-
-
-
-
-
- Madrid, 936 M€, -27%
- Catalonia, 545 M€, -28%
- Andalusia, 463 M€, -29%
- Valencian Community, 255 M€, -29%
- Basque Country, 203 M€, -21%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in August 2019
-
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.55% (vs 2.56% last month)
- The average mortgage rate decreased by 3% vs 1 year ago
- The lowest rate ever is the current rate 2.55!
- The average mortgage duration is 23 years
- 60.7% have variable interest rates
- 39.3% have fixed interest rates
- The average rate for variable rate mortgages is 2.21%, 3.2% less than 1 year ago
- The average rate for fixed-rate mortgages is 3.18%, 1.5% more than 1 year ago
- 20,385 mortgages were issued -29.9% vs last year.
- The average amount issued per mortgage is €128,501: a increase of 5% vs last year.
- 2,6 € Bn of mortgages issued for housing in August 2019, -29.9% vs last year.
-
-
-
-
-
-
-
-
The top 3 regions with the biggest decreases for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- La Rioja, -72% to 74 mortgages
- Extremadura, -57% to 279 mortgages
- Castilla La Mancha, -53% to 714 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest decreases in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- La Rioja, -65% to 6m issued
- Extremadura, -56% to 23m issued
- Canariasa, -45% to 66m issued
-
-
-
-
-
-
-
The Spanish mortgage rates situation in July 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.56% (vs 2.57% last month)
- The average mortgage rate decreased by 1.2% vs 1 year ago
- The lowest rate ever is the current rate 2.56!
- The average mortgage duration is 23 years
- 58.1% have variable interest rates
- 41.9% have fixed interest rates
- The average rate for variable rate mortgages is 2.14%, 7.3% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.16%, 2.8% less than 1 year ago,
- The average amount issued per mortgage is €121,414: a decrease of 2,5% vs last year.
- 33,344 mortgages were issued +13.1% vs last year.
- 6,3 € Bn of mortgages issued for housing in July 2019, +15.2% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are
-
-
-
-
-
-
-
-
- La Rioja, +79.3% to 269 mortgages
- Castilla La Mancha, +44% to 1,508 mortgages
- Asturias, +37% to 671 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Extremadura, +45.9% to 652 mortgages
- Castilla La Mancha, +38% to 1,508 mortgages
- Castilla y Leon, +33.9% to 1,430 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in June 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
- The average mortgage rate decreased by 3% vs 1 year ago
- The lowest rate ever is 2.57!
- The average mortgage duration is 24 years
- 55.5% have variable interest rates
- 44.5% have fixed interest rates
- The average rate for variable rate mortgages is 2.29%, 6.1% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.01%, 1.3% less than 1 year ago,
- The average amount issued per mortgage is €119,964: a increase of 3,7% vs last year.
- 29,900 mortgages were issued -2.5% vs last year.
- 3,6 € Bn of mortgages issued for housing in May 2019, -6.1% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
For a first time since long, all the regions suffer a month on month negative growth. The one with the smallest decreases are
-
-
-
-
-
-
-
-
- Region of Murcia, -2.6% to 824 mortgages
- Community of Navarra, -4.5% to 383 mortgages
- Basque country, -5.2% to 1,703 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Community of Valencia, +16.9% to 3,748 mortgages
- Region of Murcia, +12% to 824 mortgages
- Basque country, +9.3% to 1,703 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in May 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.59% (same as last month)
- The average mortgage rate decreased by 2.9% vs 1 year ago
- The lowest rate ever is 2.57!
- The average mortgage duration is 24 years
- 56.8% have variable interest rates
- 43.2% have fixed interest rates (+6.7% vs last year)
- The average rate for variable rate mortgages is 2.3%, 5.1% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.09%, 1.8% less than 1 year ago,
- The average amount issued per mortgage is €124,700: a increase of 3.9% vs last year.
- 29,032 mortgages were issued -0.1% vs last year.
- 3.6 € Bn of mortgages issued for housing in April 2019, +0.6% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- Community of Navarra, +45.3% to 510 mortgages
- Aragon, +19.7% to 814 mortgages
- Asturias, +11.9% to 556 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in March 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.62% (same as last month)
- The average mortgage rate decreased by 2.3% vs 1 year ago
- The lowest rate ever is 2.57!
- The average mortgage duration is 24 years
- 58.1% have variable interest rates
- 41.9% have fixed interest rates (+24.5% vs last year)
- The average rate for variable rate mortgages is 2.34%, 2.7% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.11%, 1.6% more than 1 year ago,
- The average amount issued per mortgage is €125,341: a increase of 3.9% vs last year.
- 30,716 mortgages were issued + 9.2% vs last year.
- 3.8 € Bn of mortgages issued for housing in March 2019, +20.3% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
-
-
-
-
-
-
-
-
- The Balearic Islands, +47% to 1,159 mortgages
- Andalusia, +17% to 6,069 mortgages
- Extremadura, +14% to 503 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- The Balearic Islands, +49% to 1,159 mortgages
- Extremadura, +36% to 503 mortgages
- Murcia, +31% to 503 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in February 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.62% (vs 2.57% last month)
- The average mortgage rate decreased by 1.1% vs 1 year ago
- The current rate: 2.62% is close to the lowest rate ever of 2.57!
- The average mortgage duration is 23 years
- 58.2% have variable interest rates
- 41.8% have fixed interest rates (+17.4% vs last year)
- The average rate for variable rate mortgages is 2.37%, 4% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.05%, 0.4% more than 1 year ago,
- The average amount issued per mortgage is €123,911: a increase of 2.9% vs last year.
- 31.018 mortgages were issued + 9.2% vs last year.
- 3.8 € Bn of mortgages issued for housing in February 2019, +12.3% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
After a seasonally slower December, January looks even stronger vs December:
-
-
-
-
-
-
-
-
- Asturias, +24.9% to 728 mortgages
- Catalonia, +8.4% to 5.448 mortgages
- Pais Vasco, + 2.9% to 1.713 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Asturias, +56% to 728 mortgages
- Castilla – La Mancha, +43% to 1.321 mortgages
- La Rioja, + 39% to 241 mortgages
-
-
-
-
-
-
-
The 6 regions with the biggest growth on the full year 2018
-
-
-
-
-
-
-
-
- The Valencian Community, +15.7% to 38.004 mortgages
- The Community of Madrid, +14.9% to 65.503 mortgages
- Castilla – La Mancha, +14.8% to 12.501 mortgages
- La Rioja, +13.5% to 2.332 mortgages
- The Community of Navarre, +13.4% to 4.615 mortgages
- Catalonia, +13% to 57.477 mortgages
- Extremadura, +12.3% to 5.550 mortgages
-
-
-
-
-
-
-
The 4 most active regions in 2018
No surprises, we keep the same regions as the most active ones in terms of transactions:
-
-
-
-
-
-
-
-
- The Community of Madrid, 65.503 mortgages with a growth of 14.9%
- The Andalusia, 65.431 mortgages with a growth of 8.6%
- Catalonia, 57.477 mortgages with a growth of 14.9%
- The Valencian Community, 38.004 mortgages with a growth of 15.7%
-
-
-
-
-
-
-
The Spanish mortgage rates situation in January 2019
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.57% (vs 2.62% last month)
- The average mortgage rate decreased by 4.3% vs 1 year ago
- The current rate: 2.57% is the lowest rate ever!
- The average mortgage duration is 22 years
- 62.8% have variable interest rates
- 37.2% have fixed interest rates (+9.1% vs last year)
- The average rate for variable rate mortgages is 2.32%, 8% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.09%, 1.6% more than 1 year ago,
- The average amount issued per mortgage is €121,036: a decrease of -0.7% vs last year.
- 36.832 mortgages were issued + 22.5% vs last year.
- 4.4 € Bn of mortgages issued in January 2019, +21.6% vs last year.
-
-
-
-
-
-
-
The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
After a seasonally slower December, January looks even stronger vs December:
-
-
-
-
-
-
-
-
- Madrid Community, +168% to 10.478 mortgages
- Castilla – La Mancha, +101% to 1.485 mortgages
- Extremadura, + 76% to 542 mortgages
-
-
-
-
-
-
-
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
-
-
-
-
-
-
-
-
- Madrid Community, +105% to 10.478 mortgages
- Castilla – La Mancha, +25% to 1.485 mortgages
- Aragón, + 17% to 910 mortgages
-
-
-
-
-
-
-
The Spanish mortgage rates situation in December 2018
-
-
-
-
-
-
-
-
- Average mortgage has an interest rate of 2.62% (vs 2.61% last month)
- The average mortgage rate decreased by 3.9% vs 1 year ago
- The lowest rate ever is 2.57%!
- The average mortgage duration is 24 years
- 58.6% have variable interest rates
- 41.4% have fixed interest rates (+9.1% vs last year)
- The average rate for variable rate mortgages is 2.42%, 4.7% less than 1 year ago,
- The average rate for fixed-rate mortgages is 2.98%, 4.8% less than 1 year ago,
- The average amount issued per mortgage is €126,394: an increased of 9.4% vs last year.
- 20.933 mortgages were issued + 0.9% vs last year.
- 2.6 € Bn of mortgages issued in December 2018, +10.4% vs last year.
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The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
All the regions had a negative growth. Of course December is well known for being less busy all over the world.
The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- The Basque Country, +20.1% to 1.333 mortgages
- The Valencian Community, +17.3% to 2.456 mortgages
- Catalonia, +12% to 3.390 mortgages
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The Spanish mortgage rates situation in November 2018
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- Average mortgage has an interest rate of 2.61% (vs 2.57% last month)
- The average mortgage rate decreased by 5.7% vs 1 year ago
- The lowest rate ever is 2.57%!
- The average mortgage duration is 23 years
- 64% have variable interest rates
- 36% have fixed interest rates (+25.9% vs last year)
- The average rate for variable rate mortgages is 2.42%, 0.7% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.07%, 14.1% less than 1 year ago,
- The average amount issued per mortgage is €130,651: an increased of 5.5% vs last year.
- 28.835 mortgages were issued + 14.2% vs last year.
- 5.6 € Bn of mortgages issued in November 2018, +13.7% vs last year.
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The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
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- The Canary Islands, +39.4% to 1.299 mortgages
- The Balearic Islands, +17.8% to 899 mortgages
- Asturies, +4.7% to 532 mortgages
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The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- The Canary Islands, +28.6% to 1.299 mortgages
- Catalonia, +25% to 5.363 mortgages
- The Valencian Community, +24.4% to 3.178 mortgages
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The Spanish mortgage rates situation in October 2018
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- Average mortgage has an interest rate of 2.57% (vs 2.59% last month)
- The average mortgage rate decreased by 4.3% vs 1 year ago
- The lowest rate ever is 2.57%! YES, the current rate!
- The average mortgage duration is 24 years
- 60.4% have variable interest rates
- 39.6% have fixed interest rates (+25.9% vs last year)
- The average rate for variable rate mortgages is 2.43%, 2.9% less than 1 year ago,
- The average rate for fixed-rate mortgages is 2.99%, 3.7% less than 1 year ago,
- The average amount issued per mortgage is €126,926: an increased of 4.6% vs last year.
- 30.356 mortgages were issued + 20.4% vs last year.
- 5.8 € Bn of mortgages issued in October 2018, +13.9% vs last year.
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The top 3 regions with the biggest growth for the number of mortgages issued are (monthly changes):
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- Navarra Community, +21.6% to 472 mortgages
- Catalonia, +10.7% to 5.808 mortgages
- Castilla y Leon, +4.8% to 1.153 mortgages
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The top 3 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- Navarra Community, +53.7% to 472 mortgages
- Catalonia, +40.7% to 5.808 mortgages
- Aragon, +36.8% to 729 mortgages
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The Spanish mortgage rates situation in September 2018
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- Average mortgage has an interest rate of 2.59% (vs 2.62% last month)
- The average mortgage rate decreased by 8.3% vs 1 year ago
- The lowest rate ever is 2.59%!
- The average mortgage duration is 24 years
- 59.9% have variable interest rates
- 40.1% have fixed interest rates (+16.7% vs last year)
- The average rate for variable rate mortgages is 2.36%, 10.8% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.02%, 5.9% less than 1 year ago,
- The average amount issued per mortgage is €127,732: an increased of 4.1% vs last year.
- 32.457 mortgages were issued + 9.5% vs last year.
- 6.6 € Bn of mortgages issued in September 2018, +10% vs last year.
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The top 4 regions with the biggest growth for the number of mortgages issued are (monthly changes):
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- Valencian Community, +32.5% to 3.863 mortgages
- Madrid, +30.6% to 6.530 mortgages
- Murcia, +21.5% to 866 mortgages
- Catalonia, +18.4% to 5.246 mortgages
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The top 4 regions with the biggest growth in terms of amounts of mortgages issued are (yearly change):
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- La Rioja, +123%
- Extremadura, +54%
- The community of Navarre, +37%
- Madrid, +28%
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The Spanish mortgage rates situation in August 2018
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- Average mortgage has an interest rate of 2.62% (vs 2.59% last month)
- The average mortgage rate decreased by 4.3% vs 1 year ago
- The lowest rate ever is 2.59%!
- The average mortgage duration is 24 years
- 59.8% have variable interest rates
- 40.2% have fixed interest rates
- The average rate for variable rate mortgages is 2.43%, 5.5% less than 1 year ago,
- The average rate for fixed-rate mortgages is 2.99%, 3.1% less than 1 year ago,
- The average amount issued per mortgage stands at €122,424, an increased of 9.8% vs last year.
- 28.755 mortgages were issued + 6.8% vs last year.
- 5.4 € Bn of mortgages issued in August 2018, +11% vs last year.
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The top 4 regions with the biggest growth for the number of mortgages issued are:
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- Extremadura, +31% to 604 mortgages
- The Canary Islands, +19,6% to 1.396 mortgages
- Cantabria, +16,4% to 326 mortgages
- Madrid, +13,9% to 5.000 mortgages
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The top 4 regions with the biggest growth in terms of amounts of mortgages issued are:
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- Extremadura, +61%
- Madrid, +29%
- Andalusia, +28%
- Basque country, +24%
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The Spanish mortgage rates situation in July 2018
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- Average mortgage has an interest rate of 2.59% (vs 2.63% last month)
- Average mortgage rate decreased by 6.3% vs 1 year ago
- The lowest rate ever is 2.59%! YES, the current rate reached this month!
- Mortgage duration is 22 years
- 62.3% have variable interest rates
- 37.7% have fixed interest rates
- The average rate for variable rate mortgages is 2.32%, 7.3% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.07%, 5.7% less than 1 year ago,
- The average amount issued per mortgage stands at €125,120, an increased of 2.1% vs last year.
- 29.287 mortgages were issued + 14.6% vs last year.
- 3.6 € Bn of mortgages issued in July 2018, +17% vs last year.
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The top 4 regions with the biggest growth for the number of mortgages issued:
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- Extremadura, +38.9% to 457 mortgages.
- The Valencian Community, +28.1% to 3.276 mortgages
- La Rioja, +28.1% to 283 mortgages
- Madrid, +27,5% to 5.713 mortgages
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The top 4 regions with the biggest growth in terms of amounts of mortgages issued:
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- La Rioja, +77.3%
- The region of Murcia, +43%
- Cantabria, +39.8%
- The Valencian Community, +39%
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The Spanish mortgage rates situation in June 2018
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- Average mortgage has an interest rate of 2.63%
- Average mortgage rate decreased by 6.8% vs 1 year ago
- The lowest rate ever is 2.62% reached in March 2018
- Mortgage duration is 23 years
- 62.9% have variable interest rates
- 37.1% have fixed interest rates
- The average rate for variable rate mortgages is 2.19%, 11.3% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.25%, 0.5% more than 1 year ago,
- The average amount issued per mortgage stands at €123,896, an increased of 5.1% vs last year.
- 30.600 mortgages were issued + 3.9% vs last year.
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The top 3 regions with the biggest mortgages growth:
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- Madrid, +23,2% to 6.399 mortgages,
- Aragon, +10.6% to 957 mortgages,
- Extremadura, +18.4% to 616 mortgages.
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The Spanish mortgage rates situation in May 2018
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- Average mortgage has an interest rate of 2.63%
- Average mortgage rate decreased by 4.3% vs 1 year ago
- The lowest rate ever was 2.62% in March 2018
- Mortgage duration is 22 years
- 61.9% have variable interest rates
- 38.1% have fixed interest rates
- The average rate for variable rate mortgages is 2.4%, 9.8% less than 1 year ago,
- The average rate for fixed-rate mortgages is 3.12%, 6.6% more than 1 year ago,
- The average amount issued per mortgage stands at €117,044, an increased of 2.8% vs last year.
- 31.166 mortgages were issued + 7.3% vs last year.
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While the top 4 regions in terms of annual growth were:
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- The Canary Islands, +70,9% to 1.984 mortgages,
- Extremadura, +18.5% to 570 mortgages,
- Pais Vasco, +18.4% to 1.783 mortgages,
- Navarra, +17.3% to 441 mortgages
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Check the Spanish report from the INE.
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The post What are the best Spanish mortgage rates? April 2025 update appeared first on How to buy in Spain.
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The post Your Ultimate 2025 Guide to Obtaining a Spanish NIE Number – NIE Spain appeared first on How to buy in Spain.
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Your ultimate guide to your Spanish NIE number
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What is the Spanish NIE?
NIE is the abbreviation for “Número de Identificación de Extranjero”, it is a tax ID for foreigners in Spain. You shouldn’t compare it to the Spanish Golden Visa as the Golden Visa allows foreigners to get a residency if they invest in Spain.
Check our one-minute videos on that:
And here is our first Youtube video we did on the same content, you can watch both but the content is the same.
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Why do I need the Spanish NIE number?
- Open a bank account
- Buy a property or insure it
- Get a mortgage
- Sign an internet or a phone contract
- Open a utility contract
- Buy a car or get a driving license
- Sign a work contract and get Social security
- Setup a company
- … and pay taxes
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What do I need to get my Spanish NIE number as a European citizen?
Step 1: Fill in THREE forms in BLOCK CAPITALS “EX – 15 Solicitud de Numero de Identidad de Extranjero NIE y Cert“, per person requiring the NIE. You have to fill it in this Spanish version! But here is a very useful Version where you will find everything translated into English with precise instructions.
Step 2: Fill in ONE Form 790 in BLOCK CAPITALS, here is the electronic version, and here is the Pdf version of the form 790 pre-filled, per person requiring the NIE. This is the document regarding payment instructions to get the NIE.
Step 3: Make a copy of all the pages of your Passport
Step 4: Two recent Passport pictures
Step 5: Document proving why you need a Spanish NIE number, which differs depending on your intentions. In most cases it is one of those:
-going to buy a property in Spain
-job contract from the Spanish company
-self-employed: a company ownership certificate
-students: an acceptance letter from the school
Step 6: Your future address in Spain and proof of health insurance if you are going to live in Spain
Step 7: NIE application fee, less than 15€ (you could need to pay it to the nearest bank in cash)
All those documents must be brought to the nearest Spanish Embassy or Consulate after taking an appointment or the General police office in Spain, read further “How do I get my Spanish NIE number?”
Step 8: For a non-European citizen, proof of legal entry into Spain, like a landing ticket.
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How do I get my Spanish NIE number?
There are two easy ways to get your Spanish NIE: either in your home country at the Spanish consulate or embassy, or in Spain. You can get it and do all the steps alone if you are not in a hurry or you can get it done by a third party if you are busy or in a hurry.
At the Spanish consulate in your own country
We found the most demanded Spanish embassies and consulates here below but if you don’t find your country, here is the main site to find any Spanish embassy or consulate in the world.
Here are the addresses of some Spanish consulates and their Instructions for the NIE:
- Spanish consulates in the United Kingdom and here are the instructions written by the consulate to get the Spanish NIE in the United Kingdom
- Spanish consulates in France and here are the instructions written by the consulate to get the Spanish NIE in France.
- Spanish consulates in Belgium and here are the instructions written by the consulate to get the Spanish NIE in Belgium.
- Spanish consulates in the United States and here are the instructions written by the consulate to get the Spanish NIE in the United States
- Spanish consulates in Canada and here are the instructions written by the consulate to get the Spanish NIE in Canada.
In Spain, at the Directorate-General offices of the Police,
- Check the list of the Directorate General offices of the Police in Spain to get your NIE number
- make sure you don’t need to register online before showing up, it’s the case in Barcelona for instance. Here is the link to book your meeting online (Spanish).
There are some conditions to get it:
the foreigner’s identity number, NIE, must be granted by the Directorate General of the Police if those foreigners are not in Spain in an irregular situation.
Foreign nationals who are related to Spain due to their economic, professional, or social interests may apply personally for the NIE from the Directorate General of the Police, either directly or through the Foreign Nationals’ Offices or Police Stations. In the event that the foreigner is not in Spanish territory at the time of the application, he/she will request the assignment of the NIE from the General Police Headquarters for Foreign Nationals and Borders, through the Spanish Consular Offices abroad. More on that in Spanish on the website of the Spanish police.
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Who can get the NIE Spain number?
- Yourself
- A duly mandated representative
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How long does it take to get my Spanish NIE number?
Between one hour to up to 2 months depending on the way you do it. So plan accordingly!
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How long is it valid?
More than five years ago, the NIE was valid for only a few years but now, your NIE number remains valid forever. So, once you did the work, you can buy a property (if this was the reason why you needed one), even if it is in 5 years.
Take our advice: get your NIE right away!
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Download and print our infographics!
NIE Spain number, everything you need to know
Further reading on the subject
Looking for a qualitative new build property? Check our listings from reliable developers.
Discover the best new build projects in Spain available right now
If you want to invest in the Spanish real estate market in Spain, don’t hesitate to read our special report with the 10+ reasons why you should have a look at the Spanish property market.
If you are about to buy in Spain, have a keep look at our useful article: The most loved Spanish regions for foreigners’ properties: British, French, German,…
FAQ on Spanish NIE number
How do I get an NIE number in Spain?
To get a NIE, it's easy, fill the forms and get a meeting at your Spanish consulate. If you are not available, someone else can go do it for you. Read our step by step guide for more.
How long does a Spanish NIE number last?
NIE numbers are valid forever. So, don't wait, ask it now as it could take between 1 and 2 months.
How much is an NIE number in Spain?
The actual cost is less than 15€. Pay attention, you need to pay this in Cash at some consulates.
What documents do I need for NIE in Spain?
We have listed all the documents you need in our article: you need to fill 2 forms (the first one 3 times), you need a copy of your passport, two recent pictures, and a document proving why you need it,... Check our full list on our site
Looking for a property lawyer in Spain? Follow the link and get one of our local lawyers.
Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Ask us directly one of our 100+ local partners!
The post Your Ultimate 2025 Guide to Obtaining a Spanish NIE Number – NIE Spain appeared first on How to buy in Spain.
]]>The post What is the real cost of buying a Property in Spain in 2025? appeared first on How to buy in Spain.
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Congratulations, you found your Spanish dream property!
What is the cost of buying a property in Spain?
First question is:
- Is it a new-build property?
- Is it a resale?
Depending on your answer the cost will be slightly different but a good rule of thumb is 14%.
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The cost of buying a New-build property in Spain: +/- 14%
- VAT =10%
- Property registration fees = 1.5%
- Lawyer between 1 and 2%:
- Other costs: Notary, stamps,…
The cost of buying a new build property in Spain
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The cost of buying a Resale property in Spain: will be between 10 and 14%
- Transfer Tax = 6 to 10% at the general tax rate (but you have reduced rates in certain cases). This amount depends on which Spanish region this property is located.
- Property registration fees = 1.5%
- Lawyer between 1 and 2%
- Other costs: Notary, stamps,…
The cost of buying a resale property in Spain
Don’t miss What is the legal due diligence for your Spanish property?
Do you need a property lawyer or a tax advisor to assist you in Spain? Find a Spanish property lawyer in our network.
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Other costs to take into account
- Banking costs: Usually a percentage of the amount wired + cost of holding an account
- This could be very important if you don’t have a Euro account and need to convert your currency like Pound, Dolar, Yuan, Shekel, Ruble,… up to 3%
- Our Tip: You have companies specialized in wiring funds internationally working with segregated accounts at the major international banks:
1. You can lock a currency level
=> you will know the commission BEFORE wiring the money
=> you will know the level at which you will convert your currency in Euros BEFORE wiring the money
=> you will know the exact amount you need to wire in your local currency BEFORE wiring the funds
2. You wire the money in your currency
3. The company will wire the money in Euros in Spain on your Spanish account (Don’t forget your NIE, read our earlier paper on that) , your lawyer account,…
- Mortgage costs:
- Bank valuation of the property = +/- 750€
- Mortgage deed = +/- 750€
- Banking costs: Usually a percentage of the amount wired + cost of holding an account
If you want to check the monthly cost of your mortgage, or what is your purchasing power for a Spanish property, check our ultimate mortgage calculator!
Related Your definitive guide to your Spanish mortgage. How to get the best rates?
Do you want to find the best Spanish mortgage rates? Fill this quick form and ask our partner for a quote
- Real Estate agent fee: Here is the good news you were waiting for: the seller is paying this one 😉 in general.
Before buying, you want to know what is the annual cost of owning a property in Spain? Read our paper on this subject.
All those information are from reliable sources. We advise you to check those with your fiscal and legal agent in order to get all those costs up to date and adjusted to your specific situation.
Is the cost of living in Spain higher than in your home country?
Have a look at our detailed article and study on the subject.
If you are living in UK, here is our dedicated article: Cost of living in Spain vs UK.
Have a look at our detailed property buyers guides custom made for any nationality
Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain: Click on your country flag, you will find your pdf report at the end of each article. Get most of our tips there.
Do you want to start searching immediately?
Discover the best new build projects in Spain available right now
Don’t know where to buy? Start with our general article: Everything you ever wanted to know about the top 20 Spanish real estate markets
1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check
Get your insights right to your mailbox? Register for our newsletter!
Our Tip: Don’t forget all our checklists before buying your property:
Finally, if you want more, check our very useful infographic: The 9 legal steps to your Spanish property
FAQ on the Cost of buying a property in Spain
Is buying property in Spain a good idea?
Spain is the number one country in Europe for holidays. It is 10% cheaper than Europe. Of course real estate is cheap as well and you have 320 days of sun. Read our article: 10+ reasons for buying a property in Spain.
How much is property purchase tax in Spain?
The cost of buying a property in Spain is between 10 and 15% depending on if it is a resale or a new build and where the property is located. Read our article for more on that.
Can I get residency in Spain if I buy a house?
In order to get residency in Spain, there are certain conditions attached to it (income, activity, nationality,...) So if you want to live in Spain and work in Spain, check with a lawyer. The Golden Visa could be the way to go as well. Read our article on that.
Do I need a Spanish bank account to buy a property in Spain?
The obvious answer is yes. You want to finance a property in Spain, you will have taxes, utilities, ... Get it right away. In order to open your bank account, you will need a NIE, see our news on that.
Looking for a property lawyer in Spain? Follow the link and get one of our local lawyer.
Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Ask us directly one of our 100+ local partner!
Senior analyst and strategist at HTBIS
Check the full HTBIS team here
The post What is the real cost of buying a Property in Spain in 2025? appeared first on How to buy in Spain.
]]>The post Our ultimate 2025 guide to buying your property in Spain appeared first on How to buy in Spain.
]]>Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
Our ultimate 2025 guide to buying your property in Spain
Since we started investing in the Spanish real estate market in 2012, we have built a network of local real estate experts and become the one-stop-shop solution for foreigners looking for help buying a property in Spain.
As foreigners, we built this network first to find the solution for ourselves… then to share our network and our experience with other foreigners.
In six years, our readership grew to more than 800,000 worldwide!
To assist you even better, we launched this new series of four articles so that you get all your answers and all our tips before going after your dream property. We will cover the subject with four main articles:
- How should you start your Spanish property search?
- Where are the best places to buy a property in Spain?
- The best search tips for buying your Spanish property (if you are too busy, start here)
- The 18 things to do as a new property owner in Spain (or anywhere)
Too busy? Here is our quick-read summary:
The ultimate guide to buying your Spanish property – Our key insights.
- The article is the introduction guide for foreigners buying property in Spain, leveraging the authors’ expertise and network.
- It outlines the process for starting a property search, including setting objectives, budget, and home criteria.
- It lists the criteria you should use to compare the potential properties and avoid an emotional decision.
- Criteria differ for a first home, a second home or an investment property.
- Don’t miss our dedicated PDFs with our exhaustive lists of criteria for each case in our third article: The best search tips for buying your Spanish property
- It recommends working with local experts, such as property hunters and technical advisors, and obtaining an NIE (local tax number).
- To avoid pitfalls, the guide suggests hiring a real estate lawyer for legal aspects.
Our ultimate guide to buying your Spanish property, our 2 minutes video
Would you like to watch this video in your language? Click at the bottom right of the video on “cc” to get subtitles in your language.
But before going into more details about your property search in Spain, let’s answer some typical questions asked by our readers:
Is buying property in Spain a good idea?
Spain is one of the top destinations for property investment. It has 320 days of sun per year, a high quality of life, and low property prices compared to other European countries. Here are more than 10 reasons to buy a property in Spain.
Is it a good time to buy property in Spain in 2023?
Property prices were very strong before the financial crisis in 2008. They fell from 2013 to 2014, and since 2014, we have seen a nice rebound in terms of prices and activity. Have a look at our Spanish real estate outlook for 2023, and don’t miss our quarterly report on Spanish real estate prices for more on that.
What do I need to know about buying a property in Spain?
You can buy a property with good experts without being physically in Spain. We strongly advise you to work with a property hunter; a technical survey of the property could also be interesting. You also need an NIE (local tax number) and a bank account to buy your Spanish property. Read more on the NIE here: Your ultimate guide to your Spanish NIE number.
What are the pitfalls of buying property in Spain?
Buying a property in Spain isn’t expensive and easy if you are assisted by local experts speaking your language. To avoid any legal or technical risks, we strongly advise you to hire a real estate lawyer to ensure that all the legal aspects of the property are as expected. If you have doubts about the structure or technical aspects of the property, you can ask for a technical survey of the property. Last, a property hunter will help you avoid pitfalls and make the process easier, quicker, and even less expensive.
If you want to read more on that subject, Why do you need independent legal and tax partners for your property acquisition in Spain? and The 7 pitfalls of buying a property in Spain.
Now that the introduction is done let’s start with our first article on your search for Spanish property.
Here is the content we will cover:
How should you start your Spanish property search?
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Why would you buy a property in Spain?
Buying a property abroad usually starts with one of two objectives: either enjoying a better quality of life (buying for yourself) or diversifying assets (investing). People looking to enjoy the Spanish lifestyle will either buy a second home, relocate, or retire in Spain. Don’t miss our article on working remotely from Spain.
We will first assume that you purchased your property to enjoy a better quality of life. We will then review the pure investment case for diversifying assets. -
What are your objectives?
To be efficient in your property search, don’t hesitate to list your objectives: most of the time, you are not alone in sharing this new dream and listing your goals is essential to finding the property fitting most criteria of all persons involved in the project. Is it a second home? Is it a first home? Is it a house or an apartment? Do you want it close to the beach? Do you want a pool? Do you want a garden? Do you want a terrace?… Each person involved in this project should list his objectives so you can draw a list of all the people involved.
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What is your budget?
Of course, your budget will be the first thing to consider before searching for a property: how much can you spend? So, the first step before searching is valuing your assets. After that, you will check with your local banker to see if they can give you a mortgage for a property in Spain, and you will check if you can get a mortgage from a Spanish bank. Read our guide for more on this: Your ultimate guide to your Spanish mortgage. Most of the time, you don’t need a mortgage, but it could be wise for two reasons: better diversifying your assets, and it could diminish your taxes if you rent your property.
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The perfect criteria for your future dream home
Buying for yourself?
Second home or First home?
Foreigners looking to buy a property in Spain usually purchase a Spanish second home to enjoy the sun 320 days per year for the quality of life and the beaches. Spain has a lot to offer. Spain is, for instance, ranked as the healthiest country in the world, in front of Italy and Iceland. There are many reasons for this, to give a few: higher life expectancy at birth, better health care system, Mediterranean diet, and better work-life balance,…
Property criteria
Criteria important for second-home buyers could be split into two main categories: location criteria and property criteria.
Location criteria
- Beach proximity
- Airport proximity
- Golf proximity
- Discover the best new build projects located on a golf resort
- …
Property criteria
- Number of sleeping rooms
- Pool
- Terrace
- Specifics about the property
- …
First home Criteria
If it is a first home, of course, your criteria will be different than if it is a second home.
- Proximity to shopping is more important
- Access to public transportation
- An active neighbourhood 12 months per year and not only in the summer
- School proximity could be important for families
- Proximity to hospitals and other medical facilities could be important for people retiring
Even if you buy your Spanish property as a second or first home and not as an investment property (to rent it), we would advise you to read the next section as a lot of foreigners forget that one day, they will need to sell their property. So, it is important to understand if the property would fit the local market or not.
Buying as a real estate investment?
Buy your property as an investment. Your criteria will be different than if you buy the property for yourself: your goal will be to secure a net return on your investment over your holding period.
Investment criteria
- Amount to invest: Make fair estimates of the cost to be invested in the property, including the property itself, renovation costs, furniture (if any), etc.
- Mortgage costs. Read more on that in our detailed article: Find the best Spanish mortgage rates
- Yearly costs related to the property: maintenance costs,
- Costs associated with the management of your property: Many third parties are involved: access, cleaning, etc.
- Fees related to the rental of your property: rental websites, local partners,…
- Regulations: Rental regulations vary depending on the local regulations of local Spanish authorities. Short-term rentals are not always allowed. Read more on that: Tourist rental in Spain: What is it? Is it legal?
- Taxes related to your property: most of the time you have to pay taxes locally and in your home country. Read more on that: What taxes must you pay on your Spanish property?
- Don’t forget that you will need to sell your property later on: try to buy a property that is in demand on the market where you buy: Not too big, not too small, 2 bedrooms, with outside space like a garden or a terrace (even more since Corona), in a not too bad neighbourhood,…
Have a look at one of our earlier articles on that subject: What return will you make on your Spanish property?
The criteria for searching for your investment property in Spain will be different from those for your own property: if you buy a property for yourself, you will look for a property with specific characteristics: sea view, pool, etc. When you look for an investment property, other location and property criteria could come to mind.
Location criteria
As your goal will be either to rent your property to people living in the city or to tourists, some specific criteria will be important
- Close to local transportation
- Close to economic activities (Companies, universities, research centres, etc.)
- Close to tourist activities in the case of tourist rental
Property criteria
- Go for a standard size
- Try to buy a sound property
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How much does it cost to buy a property in Spain?
The cost will vary depending on whether you are buying a resale or a new build, but a good rule of thumb is 14%. Read more in our detailed article: The cost of buying a Spanish property.
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How much does it cost to own a property in Spain?
A good estimate is 0.7%, as we wrote in our detailed article: The cost of owning a Spanish property.
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How do our partners help you with those first steps?
- We have a local mortgage broker dedicated to getting mortgages for foreigners. Ask for a free mortgage quote.
- Our property hunters are there to assist you in finding the perfect property. More on that in the third article, “How should you search for your dream property?”
With our team of more than +100 local real estate partners, HowtobuyinSpain helps foreigners to buy real estate in Spain.
The experts from our network are active in all the fields you need:
- Property finders
- B&B
- Spanish property lawyers
- Spanish tax advisors
- Architects
- Money Transfer
- Mortgage
- Holiday rental management
- Ensure your Spanish property
- Property survey
- Renovation
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Are you looking for a property lawyer in Spain? Follow the link and get one of our local lawyers. Looking for another real estate expert in Spain: Mortgage, Insurance, Survey of property, Property hunting, …? Contact one of our 100+ local partners!
Stéphane Senior analyst and strategist at HTBIS
Stéphane, with over 20 years of experience in real estate, finance, and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector, combined with strong analytical skills and a problem-solving mentality, has fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.
The post Our ultimate 2025 guide to buying your property in Spain appeared first on How to buy in Spain.
]]>The post Buying your holiday home in Spain? Our 40 tips appeared first on How to buy in Spain.
]]>Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
How to find the perfect holiday home in Spain?
Our definitive guide to finding the perfect property matching your expectations
In this article, we give you the best tips on how to search for your ideal Spanish holiday home. If you want to read further on the subject, it came from our detailed series:
Our ultimate 2021 guide to buying your property in Spain and more specifically the third article The best searching tips for buying your Spanish property.
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5 easy steps to start your Spanish holiday home search
Step 1 (optional) Hire a local property hunter from our network to save money and time and make the process smooth.
Step 2 Hire a local Spanish property lawyer speaking your language from our network.
Step 3 Define your budget: How much own funds available? Should be at least 45% of the property value, ideally 70%. If you need a mortgage, have a quick look at our paper: our ultimate guide to your Spanish mortgage.
Step 4 Define the property use: Second home, first home, home to retire in Spain or investment property. Here it is a second home, a holiday home but don’t forget it could change in the future. If it will change, your set of criteria for the ideal property will change as well.
Step 5 List your criteria for your ideal property: create a list of the best location criteria: Where should your property be in Spain? After that, create a list of your ideal property criteria. To assist you, we give you hints for those two lists in the next two sections.
In section 5, you will find our easy to use downloadable pdf allowing you to compare different holiday homes in Spain with a preset list of criteria that you will need to adjust with your own criteria to make it yours. When you will complete this easy to follow process, you will know for sure, which property is your ideal holiday home.
Holiday means more pleasure, time to enjoy your family and doing things for yourself. Chill out… Doing nothing… As you will notice, most of our top location criteria will have this meaning.
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The top 13 location criteria for your Spanish second home
- Within 45 minutes of the Airport by car. We all know it: we only need 3 hours to fly to Spain but yes, the quicker, the better. When leaving at the end of your stay, being close to the airport could be an asset and even more for early flights.
- Is the weather as you want when you will spend time at your holiday home in Spain (winter months?)? If you love to spend time in Spain in January, for instance, and you love hot weather, there is only one place to go: Canary Islands. Check our monthly weather statistics for the top 20 Spanish cities and you will know in advance if you are searching in the proper Spanish region.
- Is the beach close to the property? 90% of foreigners buying a property in Spain want to be close to the beach. The Spanish countryside is very nice as well and it real estate is much cheaper. If you are on a tight budget, don’t hesitate to check it. Read our famous article on that: Which are the top 10 Spanish cities where foreigners are buying properties?
- If you play golf, are golf courses within 20 minutes by car?
- Discover the best new build projects located on a golf resort
- Are restaurants close to the property?
- Most of the time you want to relax with your family, so recreational and family activities for all ages should be available in the region.
- Is the neighbourhood nice, do you like it? Neighbourhood in Spain could vary a lot (as anywhere in the world actually) so it is very useful to spend some time where you plan to buy your property at different time of the day and ideally of the year.
- Is the cost of life of the city fitting with your desires and your wallet? Have a quick read at our detailed paper: Which are the cheapest places to live in Spain?
- What about the transport network? Are you living in the middle of nowhere? Road network is the first transport of course, but what about busses, rail, biking network,…
- Do you have many shops in the neighbourhood? Are most of those within walking distance? Are the supermarkets within 20 minutes by car?
- It is your holiday home so, you will love a nice and peaceful neighbourhood filled with green areas.
- On holiday, you will want to be active and practise some sport, make sure you have all the sports infrastructures close at no more than 20 minutes by car.
- Most of the time we don’t need it but when you need it, you will be happy to enjoy the quality and the proximity of hospitals and medical infrastructure in Spain.
This is our top 13 criteria, make this list yours and adjust this list with your location criteria for your ideal Spanish holiday home. Have a look at our downloadable pdf available at section 5 for an exhaustive list of criteria and our ranking system for your future holiday homes.
If you don’t know where to start searching for your Spanish holiday home, don’t miss our detailed article on that: Where are the best places to buy a property in Spain?
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The top 18 property criteria for your ideal Spanish second home
- Your personal feeling
- Is the number of sleeping rooms & bathrooms corresponding to your expectations? Take it big enough as you will always have friends visiting ;).
- Are the outdoor spaces corresponding to what you want? Garden, Terrace,… You will be 90% of your time outside.
- Buying within a community? Check how your spaces are fitted? Concierge, pool, garden, terrace, dog park, picnic area, children area, Fitness space, indoor workspace,…
- If you want a pool, yes the pool is important to refresh during hot summers. Is the size as you want?
- Is the quality of construction correct? How old is the property?
- Is the layout of the property sound? Natural light correct?
- Is the size of the property as you want? Build space and plot if a villa.
- May I rent the property short term? Is it legal?
- Is the property price aggressive vs the market? Real estate agents in Spain love foreigners… That’s why a property hunter will get you better prices.
- Yearly maintenance costs, property average maintenance time /week.
- Yearly taxes.
- Yearly community costs.
- Security: fence and/or entrance gate, alarm?
- Any fire alarm?
- Air conditioning? Could seem normal, but it is not always the case in Spain.
- Eco friendly? Insulation, Solar panels, Water.
- Garage or parking space large enough.
If you plan to buy a new build property, we wrote this specific list that will guide you to your ideal new build holiday home in Spain. Don’t forget to add those criteria to your list.
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The top 9 property criteria for your ideal new build Spanish holiday home
- The reputation of the builder. Have you checked other projects realized by the same builder?
- Design & standard set of specifications
- Possibility to personalize to my taste
- Bank warranty
- Advanced technologies, fire alarm, security
- Delivery date
- Payment schedule
- Detailed plans for the property
- Community spaces finishes
Read more on that subject: What are the advantages of buying a new build property in Spain?
Discover the best new build projects in Spain, direct from our partners with a €5,000 discount!
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Download our exclusive PDF form and compare your holiday homes
Now that you wrote your own list of location and property criteria, it is time to download our form so that you can rank and compare each property.
Print it as many times as needed: one per property, one per partner.
Fill the forms:
How to fill this table? How to compare different Spanish holiday homes?
1. List (location & property) criteria for the ideal Spanish holiday home with all the persons involved
2. Give a WEIGHT for each criterion between 1 and 10. (10= important, 1= not important)
3. Print a list for each person involved in the project
4. Visit the potential properties and each person involved give RATINGS between 1 and 10 for all the criteria. (10= criteria met perfectly, 1 = bad)
5. Compare the total scores for each property, rank them and compare them with the results of other persons involved in the project.
Criteria WEIGHTS (1) are the same for all the properties while Criteria RATINGS (2) are specific for each property.If you want to read more on how to use this ranking system, please go to section 9 of our detailed article
Follow this link to get the downloadable pdf for ranking your different Spanish holiday homes.
How to compare two Spanish holiday homes?
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How much does it cost to buy a property in Spain?
Depending on the fact that you are buying a resale or a new build, the cost will be different but a good rule of thumb is 14%. Read more on that in our detailed article: The cost of buying a Spanish property.
-
How much does it cost to own a property in Spain?
A good estimate is 0.7% as we wrote in our detailed article: The cost of owning a Spanish property.
-
How do our partners help you with those first steps?
- We have a local mortgage broker dedicated to getting mortgages for foreigners. Ask for a free mortgage quote.
- Our property hunters are there to assist you to find the perfect property more on that in the 3rd article: “How should you search for your dream property?”
With our team of more than +100 local real estate partners, HowtobuyinSpain helps foreigners to buy real estate in Spain.
The experts from our network are active in all the fields you need:
- Property finders
- B&B
- Lawyers
- Tax
- Architects
- Money Transfer
- Mortgage
- Holiday rental management
- Insure your Spanish property
- Property survey
- Renovation
Would you like to read further?
Last year we wrote detailed property buyers guides custom made for any nationality. Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain: Click on your country flag, you will find your pdf report at the end of each article.
Looking for an expert in Spain? Ask us directly!
Senior analyst and strategist at HTBIS
Check the full HTBIS team here
The post Buying your holiday home in Spain? Our 40 tips appeared first on How to buy in Spain.
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Is it expensive to live in Spain?
Which are the least expensive Spanish cities?
How do they compare with the city you are living in now?
In this article, with the data available from 2023, you will understand everything about the cost of living in Spain: purchasing power, rent, cost of daily items such as groceries and restaurants, comparison of all the sectors’ prices vs other European countries,… We will explain to you why Spain is a very cost-effective place to live vs all the major economies in the world and which Spanish cities are the best to work or relax with a small budget or we will tell you which Spanish cities are the most expensive ones.
You could think this article is long, but don’t hesitate to read the table of contents just below to find direct answers to your questions.
Yes, Spain is one of the cheapest countries in the world, and it is even more interesting if you consider the quality of life and the economic activity!
Enjoy your reading, you just landed on one of our most-read articles!
If you want to compare the cost of living between the United Kingdom and Spain, we wrote a dedicated article on that: The cost of living in Spain vs UK.
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The Cost of living in Spain is 8% lower than in the rest of Europe!
Of course, you will tell us that you want to go to Spain for the sun or to the beaches…
There are plenty of other good reasons as well, but when you look at finding a place to live, we think that the cost of living is a very important criterion!
We did the work with the help of the Statistics from Eurostat to compare Spain’s cost of life vs any other European country so that you could compare your current lifestyle with the one you could have in Spain.
Here are the results:
If you compare Spain on this chart in Orange colour with Europe in Blue colour, you will notice that Spain is more expensive in only one area: “Communication” by 12%. All the other sectors are cheaper in Spain than in the rest of Europe!
Let’s have a look at the data:
Cost of Goods & Services Europe-19 Spain Spain vs Europe Transport services 106 88 83% Restaurants and hotels 103 89 87% Alcoholic beverages and tobacco 105 91 87% Clothing 101 90 89% Consumption price index 106 97 92% Food and non-alcoholic beverages 105 97 93% Transport equipment 101 96 95% Household appliances 102 99 97% Footwear 101 100 99% Electricity, gas and fuels 108 107 99% Consumer electronics 101 100 100% Furniture and furnishings 102 102 100% Communication 109 123 112% Source: Eurostat 2020
If you prefer a chart, here is our interactive chart:
So, next time you visit Spain, enjoy the sun, the beaches, the cultural treasures and of course the quality of life… and for sure, the excellent Mediterranean food and tapas!
As you can see on this table with the General Index: Spain is on average 8% cheaper than the rest of Europe! -
Spain is cheaper than Europe for 7 products and services…
Spain is cheap for :
- Transport services, -17%
- Restaurants and Hotels, -13%
- Alcoholic beverages and tobacco, -13%, I guess you all noticed? ,
- Clothing, -11%
- Food and non-alcoholic beverages, -7%
- Transport equipment, -5%,
- Household appliances, -3%
- Summer 2022 update: Utilities are much cheaper in Spain than in European countries.
So keep enjoying the beers and the Tapas.
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Spain is more expensive for 1 thing … 🙂
Communication, +12%
Check the detailed comparison of electricity prices made by Eurostat.
The good news: Europe voted laws for cheaper communications within EU!
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Cost of living in Spain vs the World
Numbeo, is a website comparing the cost of living in many different countries and cities all over the world. According to them, in January 2022, Spain is the 46th most expensive country in the world with an average cost of life of 53.88 (vs 100 for New York). Spain is cheaper than Greece, for instance, and has the same cost of life as Estonia. Not bad if you want to enjoy the sun! If you look at the top 21 countries in the world in terms of GDP, Spain is the 12th country in terms of the cost of living.
How does Numbeo create its indexes?
Numbeo takes NYC as a reference: these indices are relative to New York City (NYC). This means that for any city with the same cost of living as New York City, it will have a value of 100. If another city has, for example, a rent index of 120, it means that, on average, in that city, rents are 20% more expensive than in New York City. If a city has a rent index of 70, that means that city rents are on average 30% less expensive than in New York City.
Let’s dig deeper into the worldwide ranking made by Numbeo on the cost of living (with rent) ranking (fourth column):
RankCountryCost of Living IndexRent IndexCost of Living Plus Rent IndexGroceries IndexRestaurant Price IndexLocal Purchasing Power Index1 Bermuda 146.04 98.58 123.80 148.66 159.17 81.07 2 Switzerland 123.35 53.54 90.62 128.13 122.09 118.44 3 Norway 100.90 34.68 69.86 97.31 105.49 83.11 4 Iceland 94.86 41.93 70.05 90.22 99.42 77.06 5 Barbados 92.37 21.99 59.38 87.81 78.18 32.08 6 Jersey 92.02 65.33 79.51 76.88 94.65 79.14 7 Israel 88.05 33.94 62.69 76.72 95.31 75.58 8 Denmark 84.12 33.23 60.26 68.60 98.75 99.45 9 Bahamas 84.00 35.34 61.19 70.59 89.09 45.07 10 Singapore 83.98 66.43 75.75 77.08 61.17 91.34 11 Guernsey 83.59 54.02 69.73 76.76 89.98 71.57 12 Hong Kong 80.71 74.57 77.83 84.72 58.58 65.74 13 Luxembourg 80.50 60.09 70.93 74.75 88.79 98.84 14 Australia 77.75 36.84 58.57 77.44 72.95 104.63 15 Japan 77.03 25.86 53.04 81.31 45.40 87.11 16 Ireland 76.05 42.08 60.13 62.10 80.40 82.27 17 Netherlands 75.66 36.06 57.10 65.49 76.35 87.99 18 New Zealand 74.52 34.44 55.73 72.04 70.05 83.63 19 France 74.13 25.33 51.26 73.64 71.84 85.41 20 South Korea 73.22 20.02 48.28 91.95 42.10 76.85 21 Finland 73.20 25.95 51.05 65.16 77.65 91.02 22 Belgium 72.61 25.79 50.67 63.32 78.63 79.72 23 Sweden 71.74 25.86 50.23 65.78 72.61 98.14 24 Austria 71.04 27.13 50.46 65.88 66.03 77.25 25 Canada 70.22 34.33 53.40 70.01 67.86 87.98 26 United States 70.13 42.07 56.98 70.37 70.07 106.34 27 United Kingdom 69.65 31.84 51.93 56.58 76.79 88.78 28 Lebanon 69.62 24.81 48.61 66.83 54.25 35.12 29 Malta 67.84 29.72 49.97 59.59 72.42 44.18 30 Macao 66.81 43.00 55.65 67.90 51.32 69.27 31 Puerto Rico 66.53 18.40 43.97 69.60 55.60 72.78 32 Italy 66.47 20.55 44.95 57.95 70.58 61.74 33 Seychelles 65.93 32.35 50.19 61.55 77.01 19.43 34 Germany 65.58 27.62 47.78 52.31 60.91 103.08 35 Qatar 62.81 48.20 55.96 54.97 63.01 93.67 36 Taiwan 62.35 17.69 41.42 76.19 29.42 58.35 37 Cyprus 59.03 22.36 41.84 49.20 61.15 57.31 38 United Arab Emirates 58.33 43.28 51.28 46.67 61.53 92.17 39 Palestine 58.11 11.01 36.03 51.23 44.58 39.84 40 Maldives 57.66 30.20 44.78 56.60 34.72 28.59 41 Greece 56.22 12.68 35.81 44.73 52.19 39.73 42 Cuba 55.00 15.23 36.36 47.93 33.54 1.45 43 Trinidad And Tobago 54.88 15.97 36.64 53.96 53.74 38.47 44 Bahrain 54.77 29.22 42.79 44.59 48.94 61.41 45 Slovenia 53.88 17.90 37.01 47.71 46.74 59.48 46 Spain 53.88 21.25 38.58 45.69 53.96 70.04 47 Estonia 53.68 16.37 36.19 42.29 56.43 63.46 48 Yemen 53.14 6.71 31.38 67.12 24.74 14.41 49 Uruguay 52.07 13.93 34.19 44.01 49.39 30.07 50 Suriname 51.78 9.71 32.06 45.92 79.61 13.44 51 Panama 51.43 21.75 37.51 52.16 43.38 33.09 52 Belize 51.30 11.64 32.71 48.76 36.60 45.73 53 Saudi Arabia 50.41 11.67 32.25 42.57 35.50 91.85 54 Senegal 50.25 22.97 37.46 42.17 46.22 23.45 55 Jamaica 49.67 15.10 33.46 53.41 35.04 30.25 56 Oman 49.42 16.77 34.11 46.51 43.24 84.24 57 Jordan 49.19 9.23 30.46 40.81 41.16 31.34 58 Cambodia 49.11 15.68 33.44 50.61 22.90 13.32 59 Croatia 48.94 13.38 32.27 41.98 41.29 47.55 60 Kuwait 48.68 31.31 40.54 35.63 47.48 78.57 61 Latvia 48.45 11.77 31.26 38.37 42.10 51.65 62 Libya 48.35 12.89 31.73 54.03 34.10 33.25 63 Czech Republic 48.24 18.40 34.25 42.76 36.72 66.47 64 Portugal 47.94 20.73 35.19 39.01 40.26 46.80 65 Ethiopia 47.49 16.88 33.14 36.68 18.03 10.15 66 Ivory Coast 47.03 17.68 33.27 40.22 31.99 6.92 67 Costa Rica 47.01 14.70 31.87 45.54 41.69 39.88 68 Zimbabwe 45.68 8.75 28.37 39.88 38.13 19.07 69 Lithuania 45.65 15.01 31.29 36.18 46.64 58.74 70 Slovakia 44.68 16.11 31.29 39.74 36.08 54.70 71 El Salvador 44.37 13.19 29.75 44.32 35.47 21.17 72 Mauritius 44.08 10.95 28.55 45.61 33.44 29.62 73 Chile 43.90 13.51 29.66 38.87 43.26 33.27 74 Guatemala 43.49 15.60 30.42 41.92 32.59 26.35 75 Thailand 43.21 14.69 29.84 45.15 22.59 31.56 76 Venezuela 43.20 9.99 27.63 37.34 46.23 15.41 77 Fiji 43.16 17.76 31.26 48.06 37.42 35.87 78 South Africa 42.09 16.60 30.14 34.78 41.33 78.36 79 Dominican Republic 41.77 9.59 26.68 38.45 34.30 21.07 80 China 41.77 16.53 29.93 46.01 28.37 59.99 81 Hungary 40.66 11.91 27.18 35.19 32.82 51.98 82 Honduras 40.46 10.28 26.31 34.73 28.67 32.09 83 Botswana 40.17 10.21 26.12 35.16 42.50 62.63 84 Nicaragua 39.64 8.68 25.13 38.13 27.51 17.63 85 Cameroon 39.48 6.91 24.22 40.41 26.33 15.37 86 Poland 38.95 14.45 27.46 32.42 33.52 59.95 87 Montenegro 38.95 12.87 26.72 31.76 33.22 34.19 88 Bulgaria 38.38 9.07 24.64 34.02 32.44 45.96 89 Vietnam 37.48 13.22 26.11 38.70 19.98 29.38 90 Iran 37.39 17.05 27.85 29.46 25.18 17.98 91 Ecuador 37.34 11.28 25.12 34.49 28.55 31.76 92 Philippines 37.06 9.59 24.18 37.84 20.61 21.47 93 Malaysia 37.02 9.87 24.29 39.45 20.84 55.30 94 Serbia 36.21 8.73 23.33 28.18 29.24 37.83 95 Ghana 36.20 19.31 28.28 37.53 30.06 16.82 96 Bosnia And Herzegovina 36.12 6.82 22.39 31.14 25.34 44.10 97 Indonesia 35.85 9.82 23.65 38.29 17.74 21.07 98 Myanmar 35.67 21.18 28.87 37.63 20.00 13.84 99 Albania 35.50 8.47 22.83 29.32 25.82 30.19 100 Mexico 35.35 12.55 24.66 34.82 32.67 38.62 101 Russia 35.26 13.09 24.87 29.86 34.56 37.41 102 Romania 35.24 10.17 23.49 31.38 30.02 48.12 103 Bolivia 34.77 10.18 23.24 31.26 24.97 36.04 104 Mongolia 34.74 11.22 23.72 36.14 22.80 24.34 105 Argentina 34.69 7.71 22.04 28.17 33.32 30.72 106 Somalia 34.58 5.16 20.79 39.39 26.65 29.40 107 Iraq 34.47 10.63 23.29 30.46 28.31 40.92 108 Kenya 33.92 8.73 22.11 31.27 28.82 32.18 109 Armenia 33.89 11.61 23.45 27.59 30.55 28.86 110 Morocco 33.83 8.98 22.18 30.63 24.52 34.36 111 Uganda 33.50 9.19 22.10 31.00 24.85 11.41 112 Brazil 33.24 8.27 21.54 28.16 25.24 27.85 113 Bangladesh 33.13 4.42 19.67 30.41 21.70 25.30 114 Zambia 33.04 9.26 21.90 31.53 22.46 40.33 115 Tanzania 32.81 12.36 23.23 30.04 24.86 15.97 116 Peru 32.53 11.22 22.54 30.71 21.53 28.17 117 Rwanda 31.62 15.90 24.25 27.71 27.99 26.82 118 North Macedonia 31.38 6.06 19.51 26.95 21.02 35.44 119 Sri Lanka 31.29 8.23 20.48 37.67 17.27 19.27 120 Belarus 30.89 9.81 21.01 27.24 31.64 31.78 121 Ukraine 30.71 10.57 21.27 26.30 25.75 37.22 122 Nigeria 30.49 35.99 33.07 33.65 20.92 9.34 123 Moldova 30.35 8.70 20.20 24.96 27.10 33.43 124 Paraguay 30.20 10.04 20.75 25.45 24.19 26.08 125 Georgia 30.18 9.26 20.37 26.44 27.88 31.15 126 Azerbaijan 29.73 7.86 19.48 26.57 26.73 27.26 127 Egypt 29.52 5.82 18.41 27.42 23.42 21.54 128 Syria 28.75 5.17 17.70 29.34 22.81 6.59 129 Kazakhstan 28.68 9.44 19.66 25.35 27.24 32.23 130 Turkey 28.31 6.63 18.15 22.64 18.40 32.88 131 Nepal 28.29 3.96 16.89 26.45 20.41 22.96 132 Tunisia 27.87 5.32 17.30 27.36 15.96 27.83 133 Uzbekistan 27.31 9.29 18.86 26.83 24.22 22.37 134 Kosovo (Disputed Territory) 27.05 8.04 18.14 24.84 19.53 43.86 135 Algeria 26.87 4.59 16.43 28.82 14.48 24.63 136 Colombia 26.72 8.18 18.03 23.47 19.44 28.85 137 India 24.43 5.30 15.47 26.43 17.56 49.72 Now that we saw that the cost of living in Spain vs the rest of the world is ranking well, it is time to check which Spanish cities are expensive or cheap. So at least you will know it before moving there.
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Cost of living in Spanish cities
Here is the January 2022 ranking of all the main Spanish cities vs their cost of living according to Numbeo:
RankCityCost of Living IndexRent IndexCost of Living Plus Rent IndexGroceries IndexRestaurant Price IndexLocal Purchasing Power Index1 Bilbao 63.62 26.53 46.06 56.67 63.19 66.70 2 Barcelona 60.70 30.79 46.54 48.52 62.42 70.07 3 Madrid 59.19 31.10 45.89 48.87 62.32 75.06 4 Palma de Mallorca 58.30 27.34 43.65 47.79 59.64 63.61 5 Zaragoza (Saragossa) 54.60 18.24 37.39 47.85 54.95 69.42 6 Seville (Sevilla) 53.47 20.55 37.89 48.76 48.90 71.73 7 Vigo 52.85 17.16 35.95 42.75 54.95 75.98 8 Valencia 52.65 21.84 38.06 44.43 55.27 70.33 9 Las Palmas de Gran Canaria 52.00 22.08 37.84 48.07 48.92 55.22 10 Granada 51.75 15.65 34.66 43.71 46.84 87.46 11 Malaga 51.65 25.51 39.28 43.07 51.32 67.07 12 Murcia 51.32 15.65 34.44 43.30 51.62 77.45 13 Alicante 51.21 19.85 36.37 42.39 52.07 80.29 14 Santa Cruz de Tenerife 50.65 19.13 35.73 42.17 53.40 64.54 Those numbers rely on members updating data, so they should be taken with a grain of salt.
If you want to compare the evolution over the last year, here was the ranking made last year:
RankCityCost of Living IndexRent IndexCost of Living Plus Rent IndexGroceries IndexRestaurant Price IndexLocal Purchasing Power Index1 Bilbao 64.85 26.11 45.98 55.47 60.44 68.06 2 Barcelona 61.71 30.52 46.52 49.28 60.72 60.44 3 Madrid 61.15 33.16 47.52 48.88 61.55 67.17 4 Zaragoza – Saragossa 60.20 18.06 39.68 51.93 54.82 68.68 5 Palma de Mallorca 58.66 27.64 43.56 46.22 62.75 56.87 6 Granada 57.09 17.10 37.61 45.38 48.84 61.84 7 Alicante 53.56 17.70 36.10 42.54 53.44 79.61 8 Valencia 53.44 21.92 38.09 42.83 50.94 73.81 9 Santa Cruz de Tenerife 53.37 18.31 36.30 44.14 52.01 60.48 10 Seville – Sevilla 52.97 20.06 36.95 46.42 43.62 68.59 11 Malaga 52.89 22.85 38.26 42.32 50.59 69.48 12 Las Palmas de Gran Canaria 50.52 22.00 36.63 43.40 49.89 60.29 Source: Numbeo.com : June 2020Click on any of those cities hyperlink to find the latest number of any of those cities.
The impacts of the Coronavirus on the Spanish Real Estate
How should you understand those numbers?
These indices are relative to New York City (NYC). This means that for New York City, each index should be 100(%). If another city has, for example, rent index of 120, it means that on average in that city rents are 20% more expensive than in New York City. If a city has a rent index of 70, that means that city rents are 30% less expensive for that city than for New York City. Numbeo calculates different indicators:
- Cost of Living Index (Excl. Rent) is a relative indicator of consumer goods prices, including groceries, restaurants, transportation and utilities. The cost of Living Index doesn’t include accommodation expenses such as rent or mortgage. If a city has a Cost of Living Index of 120, it means Numbeo estimates it is 20% more expensive than New York (excluding rent).
- Rent Index is an estimation of the prices of renting apartments in the city compared to New York City.
- Groceries Index is an estimation of grocery prices in the city compared to New York City.
- Restaurants Index is a comparison of prices of meals and drinks in restaurants and bars compared to NYC.
- Cost of Living Plus Rent Index is an estimation of consumer goods prices including rent compared to New York City.
- Local Purchasing Power shows relative purchasing power in buying goods and services in a given city for the average wage in that city. If domestic purchasing power is 40, this means that the inhabitants of that city with the average salary can afford to buy on an average 60% fewer goods and services than New York City residents with an average salary.
For more information about used weights (actual formula) please visit Numbeo Motivation and Methodology.
To discover real current pricing for any city, of course, always good to double-check later, click on any city on our table to discover the details published by Numbeo:
Here is an example of the current pricing of cost of living for Barcelona calculated by Numbeo as of January 2022
Data collected over the last year
RestaurantsRange Meal, Inexpensive Restaurant 12.00 € Meal for 2 People, Mid-range Restaurant, Three-course 50.00 € McMeal at McDonalds (or Equivalent Combo Meal) 8.50 € Domestic Beer (0.5 liter draught) 3.00 € Imported Beer (0.33 liter bottle) 3.50 € Cappuccino (regular) 1.97 € Coke/Pepsi (0.33 liter bottle) 1.98 € Water (0.33 liter bottle) 1.24 € 
MarketsMilk (regular), (1 liter) 0.88 € Loaf of Fresh White Bread (500g) 1.20 € Rice (white), (1kg) 1.09 € Eggs (regular) (12) 2.16 € Local Cheese (1kg) 9.98 € Chicken Fillets (1kg) 6.19 € Beef Round (1kg) (or Equivalent Back Leg Red Meat) 12.06 € Apples (1kg) 1.71 € Banana (1kg) 1.66 € Oranges (1kg) 1.71 € Tomato (1kg) 1.85 € Potato (1kg) 1.26 € Onion (1kg) 1.23 € Lettuce (1 head) 1.00 € Water (1.5 liter bottle) 0.71 € Bottle of Wine (Mid-Range) 5.00 € Domestic Beer (0.5 liter bottle) 1.06 € Imported Beer (0.33 liter bottle) 1.80 € Cigarettes 20 Pack (Marlboro) 5.00 € 
TransportationOne-way Ticket (Local Transport) 2.38 € Monthly Pass (Regular Price) 40.00 € Taxi Start (Normal Tariff) 3.00 € Taxi 1km (Normal Tariff) 1.20 € Taxi 1hour Waiting (Normal Tariff) 22.10 € Gasoline (1 liter) 1.39 € Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car) 22,000.00 € Toyota Corolla Sedan 1.6l 97kW Comfort (Or Equivalent New Car) 24,137.00 € 
Utilities (Monthly)Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment 152.66 € 1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.16 € Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) 39.11 € 
Sports And LeisureFitness Club, Monthly Fee for 1 Adult 43.20 € Tennis Court Rent (1 Hour on Weekend) 24.59 € Cinema, International Release, 1 Seat 9.00 € 
ChildcarePreschool (or Kindergarten), Full Day, Private, Monthly for 1 Child 482.11 € International Primary School, Yearly for 1 Child 10,460.00 € 
Clothing And Shoes1 Pair of Jeans (Levis 501 Or Similar) 71.45 € 1 Summer Dress in a Chain Store (Zara, H&M, …) 31.70 € 1 Pair of Nike Running Shoes (Mid-Range) 71.59 € 1 Pair of Men Leather Business Shoes 96.05 € Rent Per MonthApartment (1 bedroom) in City Centre 913.24 € Apartment (1 bedroom) Outside of Centre 714.06 € Apartment (3 bedrooms) in City Centre 1,537.84 € Apartment (3 bedrooms) Outside of Centre 1,109.38 € 
Buy Apartment PricePrice per Square Meter to Buy Apartment in City Centre 4,796.96 € Price per Square Meter to Buy Apartment Outside of Centre 3,045.59 € 
Salaries And FinancingAverage Monthly Net Salary (After Tax) 1,703.29 € Mortgage Interest Rate in Percentages (%), Yearly, for 20 Years Fixed-Rate 1.84 This city had 1947 entries in the past 12 months by 249 different contributors.
Last update: February 2022 -
The 3 most expensive Spanish cities
Bilbao, Barcelona and Madrid are in the top 3.
- Bilbao
- Our article on Bilbao: Bilbao, the new awakening of the city
- Check the monthly weather statistics for Bilbao
- Check some of our experts in our local network in Bilbao: Real estate Lawyers in Bilbao, Property hunters in Bilbao, Architects in Bilbao, How to find a mortgage in Bilbao all assisting you in your language
- Barcelona
- Our article on Bilbao: Bilbao, the new awakening of the city
- Check the monthly weather statistics for Bilbao
- Check some of our experts in our local network in Bilbao: Real estate Lawyers in Bilbao, Property hunters in Bilbao, Architects in Bilbao, How to find a mortgage in Bilbao all assisting you in your language
- Madrid
- Our articles on Madrid: Real estate foreign investors are discovering Madrid, Madrid on the top 3 list of European Cities to invest in
- Check the monthly weather statistics for Madrid
- Check our Citytrip ePostcards on Madrid
Here is the cost of living ranking of all the major Spanish cities if you want to get more than the top 3.
- Bilbao
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The 3 cheapest Spanish cities
The 3 cheapest Spanish cities are: Las Palmas de Gran Canaria, Malaga and Sevilla.
- Las Palmas de Gran Canaria
- Our article on Las Palmas de Gran Canaria: Gran Canaria, the tropical gem of Spain
- Our article on the Canary Islands: Everything you ever wanted to know about the Canary Islands
- Check the monthly weather statistics for Las Palmas de Gran Canaria
- Malaga
- Our articles on Málaga: Malaga: an emerging city to buy second homes, Malaga is always a place for your dream house
- Our article on the Costa del Sol: Everything you ever wanted to know about the Costa del Sol.
- Check the monthly weather statistics for Málaga
- Check our Citytrip ePostcards on Málaga
- Discover the best new build projects in Andalusia available right now
- Seville
- Our article on Sevilla: Discover the charm of the south and invest in Seville
- Check our infographic on the Costa de la Luz with all the activities there.
- Check the monthly weather statistics for Seville
- Check some of our experts in our local network in Seville: Real estate Lawyers in Seville, Property hunters in Seville, Architects in Seville, How to find a mortgage in Seville all assisting you in your language
- Find your local experts in Seville within our network, it’s free!
Here is the cost of living to rank of all the major Spanish cities if you want to get more than the top 3.
- Las Palmas de Gran Canaria
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The most expensive cities in Spain for real estate are
End September 2021, Sorted by price, second column
City / Region Price Yr Price Evolution Qtr Price Evolution Number of Transactions Transaction Evolution Gipuzkoa 2 736 € 3,0% -0,6% 7 171 15% Madrid (Comunidad de) 2 685 € 2,9% 0,9% 83 173 25% Balears (Illes) 2 496 € 4,8% 2,1% 14 322 15% País Vasco 2 421 € 3,3% -0,4% 22 366 18% Barcelona 2 396 € 1,3% -0,4% 60 555 19% Bizkaia 2 364 € 3,9% 0,0% 12 036 17% Cataluña 2 038 € 1,9% -0,2% 93 862 24% Araba/Alava 1 975 € 2,8% -1,7% 3 159 25% Málaga 1 924 € 7,6% 3,9% 32 109 25% Ceuta 1 798 € -0,5% 0,1% 711 34% Ceuta y Melilla 1 738 € 0,1% 0,3% 1 464 47% Melilla 1 699 € 0,9% 0,6% 753 63% TOTAL NACIONAL 1 662 € 2,6% 0,8% 611 093 28% with the National Spanish Average: 1,662 €/m²
Read more and get the last updated prices on the Spanish property market. -
The cheapest cities in Spain for real estate are
End September 2021, Sorted by price, second column
City / Region Price Yr Price Evolution Qtr Price Evolution Number of Transactions Transaction Evolution Ciudad Real 712 € -1,0% 0,1% 5 446 43% Teruel 752 € 2,2% -0,8% 1 733 30% Cuenca 766 € -1,1% -2,6% 2 346 48% Jaén 786 € 1,6% 1,1% 6 400 31% Zamora 792 € -3,9% -1,4% 1 871 54% Cáceres 837 € -0,3% 1,7% 3 823 25% Ávila 844 € 4,5% 3,3% 2 516 35% Extremadura 857 € 1,4% 1,5% 10 666 37% León 860 € -0,9% 2,7% 4 657 33% Toledo 868 € 3,5% 2,0% 10 775 39% Badajoz 871 € 2,7% 1,3% 6 843 45% Lugo 881 € 3,1% 0,5% 3 601 57% Castilla-La Mancha 887 € 1,3% 0,5% 27 431 40% Ourense 891 € -2,7% -0,1% 2 451 42% Albacete 904 € 0,2% -1,8% 3 919 39% Soria 914 € -2,3% 3,7% 1 311 53% Palencia 930 € -1,4% 2,9% 1 956 48% Segovia 985 € -0,1% 2,3% 2 418 52% Murcia (Región de) 986 € 2,9% -1,4% 22 074 32% Lleida 995 € 0,8% -3,2% 5 661 45% with the National Spanish Average: 1.662 €/m²
Read more on and get the last updated prices on the Spanish property market. -
Spanish cities with the highest rents
Rent Index is an estimation of prices for renting apartments in the city compared to New York City. If Rent index is 80, Numbeo estimates that the price of rents in that city is on an average 20% less than the price in New York.
- Madrid is in the most expensive cities in Spain for rent with a rent index of 31.1.
- Barcelona is in the most expensive cities in Spain for rent with a rent index of 30.8.
- Palma de Mallorca is in the most expensive cities in Spain for rent with a rent index of 27.3.
Have a look at our chart comparing the different rental levels in Spain.
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Spanish cities with the lowest rents
Rent Index is an estimation of prices for renting apartments in the city compared to New York City. If Rent index is 80, Numbeo estimates that the price of rents in that city is on an average 20% less than the price in New York.
- Santa Cruz de Tenerife is in the cheapest cities in Spain for rent with a rent index of 19.13
- Zaragoza (Saragossa) is in the cheapest cities in Spain for rent with a rent index of 18.24
- Vigo is in the cheapest cities in Spain for rent with a rent index of 17.16
- Granada is in the cheapest cities in Spain for rent with a rent index of 15.65
- Murcia is in the cheapest cities in Spain for rent with a rent index of 15.65
Have a look at our chart comparing the different rental levels in Spain.
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Spanish cities with the least expensive restaurants?
- Las Palmas de Gran Canaria is in the cheapest cities in Spain for restaurants with an index of 48.92
- Seville (Sevilla) is in the cheapest cities in Spain for restaurants with an index of 48.9
- Granada is in the cheapest cities in Spain for restaurants with an index of 46.84
Have a look at our chart comparing the different restaurants pricing levels for many cities in Spain.
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Spanish cities with the most expensive restaurants?
- Bilbao is in the most expensive cities in Spain for restaurants with an index of 63.19
- Barcelona is in the most expensive cities in Spain for restaurants with an index of 62.42
- Madrid is in the most expensive cities in Spain for restaurants with an index of 62.32
Have a look at our chart comparing the different restaurants pricing levels for many cities in Spain.
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Cheapest Spanish cities for groceries?
Groceries Index is an estimation of grocery prices in the city compared to New York City. To calculate this section, Numbeo uses weights of items in the “Markets” section for each city.
- Valencia is in the cheapest cities in Spain for buying groceries with a Groceries index of 44.43
- Granada is in the cheapest cities in Spain for buying groceries with a Groceries index of 43.71
- Murcia is in the cheapest cities in Spain for buying groceries with a Groceries index of 43.3
- Malaga is in the cheapest cities in Spain for buying groceries with a Groceries index of 43.07
- Vigo is in the cheapest cities in Spain for buying groceries with a Groceries index of 42.75
- Alicante is in the cheapest cities in Spain for buying groceries with a Groceries index of 42.39
- Santa Cruz de Tenerife is in the cheapest cities in Spain for buying groceries with a Groceries index of 42.17
Have a look at our chart comparing the different Groceries indexes for many cities in Spain.
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Most expensive Spanish cities for groceries?
Groceries Index is an estimation of grocery prices in the city compared to New York City. To calculate this section, Numbeo uses weights of items in the “Markets” section for each city.
- Bilbao is in the most expensive cities in Spain for buying groceries with a Groceries index of 56.67
- Madrid is in the most expensive cities in Spain for buying groceries with a Groceries index of 48.87
- Seville (Sevilla) is in the most expensive cities in Spain for buying groceries with a Groceries index of 48.76
Have a look at our chart comparing the different Groceries indexes for many cities in Spain.
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Spanish cities with the best purchasing power?
Local Purchasing Power is an indicator calculated by Numbeo that shows relative purchasing power in buying goods and services in a given city for the average wage in that city. If domestic purchasing power is 40, this means that the inhabitants of that city with the average salary can afford to buy on an average 60% fewer goods and services than New York City residents with an average salary.
- Granada is in the Spanish cities with the biggest purchasing power and has a Purchasing power index of 87.46
- Alicante is in the Spanish cities with the biggest purchasing power and has a Purchasing power index of 80.29
- Murcia is in the Spanish cities with the biggest purchasing power and has a Purchasing power index of 77.45
- Vigo is in the Spanish cities with the biggest purchasing power and has a Purchasing power index of 75.98
- Madrid is in the Spanish cities with the biggest purchasing power and has a Purchasing power index of 75.06
Have a look at our chart comparing the different purchasing power for many cities in Spain.
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Spanish cities with the smallest purchasing power?
Local Purchasing Power is an indicator calculated by Numbeo and it shows relative purchasing power in buying goods and services in a given city for the average wage in that city. If domestic purchasing power is 40, this means that the inhabitants of that city with the average salary can afford to buy on an average 60% fewer goods and services than New York City residents with an average salary.
- Santa Cruz de Tenerife is in the Spanish cities with the smallest purchasing power and has a Purchasing power index of 64.54
- Palma de Mallorca is in the Spanish cities with the smallest purchasing power and has a Purchasing power index of 63.61
- Las Palmas de Gran Canaria is in the Spanish cities with the smallest purchasing power and has a Purchasing power index of 55.22
Have a look at our chart comparing the different purchasing power for many cities in Spain.
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Why should you relocate to Spain?
If you take the last column of the table of Numbeo, you earn on average 69 to 85% of what you would earn if you lived in New York but at the same time, the cost of life plus rent index (third data column) is between 33 to 47%. So, that’s one of the main reasons why Spain is one of the best countries in the world for relocating & for working remotely?
Discover all our detailed reviews of the beautiful Spanish Costas.
Of course, that’s why Spain is as well such a nice place to retire or enjoy holidays
If in addition to that, you take into account that Spain is the healthiest country in the world to live in as we wrote in our last article and Spain has so many experiences to enjoy, that’s why it is the number one holiday destination in Europe.
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Compare the cost of living of two cities in the world
And you will see quickly how much you will save, even if you are there on holiday. That’s one of the best-kept secrets of Spain.
Have a look at our chart comparing the different purchasing power of the biggest cities in the world with many Spanish cities.
Compare two cities with Numbeo, here we took Valencia and Malaga
Check the city comparator of Flying Yack
If you want to find out quickly which is the cheapest city in any region in the world, don’t forget to check the colour maps of Numbeo.
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How do we help you?
As you may have read on our homepage howtobuyinspain.com, Buying a property in Spain is cheap and looks easy, but there are some pitfalls. That is why we have built over the years a network of 100+ local partners dedicated to assisting you: Lawyers, Mortgage brokers (financing and refinancing at lower rates), Insurance brokers, Tax advisors, Surveyors, Property hunters, Renovation, NIE specialists… So don’t miss our homepage howtobuyinspain.com, it is where you should continue for your property search in Spain.
Further reading: 10 reasons why you should buy a property in Spain.
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Don’t miss our downloadable charts
FAQ Why is it so cheap to live in Spain?
What is the cheapest city in Spain to fly into?
Of course, Madrid has the most flights towards Spain and is followed by Barcelona. That makes those two airports the cheapest way to Spain. The other most active airports in Spain are: 3. Gran Canaria airport 4. Malaga airport 5. Tenerife South airport 6. Palma airport 7. Alicante airport 8. Lanzarote airport 9. Valencia airport 10. Fuerte ventura airport
Where is the cheapest place in Spain to holiday?
1. Santa Cruz de Tenerife 2. Malaga 3. Las Palmas de Gran Canaria. Of course, many smaller cities are cheaper, compare other cities with those main cities in our article
What is the best city to live in Spain?
Expats love Barcelona and Madrid for sure. If you compare those two cities with other international cities, they are on top of it. Expats love as well many smaller cities like Valencia, Seville, Bilbao, Malaga, Marbella... Discover those cities with the articles we wrote on each one
Is Spain a cheap place to visit?
Spain is on average 11% much cheaper than Europe.
Spain is very cheap for Transport Services, Restaurants and Hotels, Alcoholic Beverages and Tobacco, Transport Equipment, Clothing and yes the list doesn’t stop here… Spain is cheap for Food and Drinks. So keep enjoying the beers and the Tapas.
Looking for an expert in Spain? Ask us directly!
Senior analyst and strategist at HTBIS
Check the full HTBIS team here
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]]>Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten
How to find the ideal Spanish property?
Discover our exhaustive and exclusive steps to find the perfect property matching your expectations.
Since we started to invest in the Spanish real estate market in 2012, we have built a network of local real estate experts in Spain and became the one-stop-shop solution for foreigners looking for help to buy a property in Spain. We launched this new series of four articles so that you get all your answers and all our tips before going after your dream property.
With our first article: How should you start your Spanish property search? we gave you answers on many specific issues related to the purchase of a property in Spain: Why would you buy a property in Spain? What are your objectives? The perfect criteria for your future dream home?
With our second article, we helped you to find the perfect location for your property in Spain: Sea view or countryside? When will you visit Spain? Is the cost of life important? Will you relocate or retire in Spain? Will you look for a second home or an investment property? What are your ideal location criteria? We concluded that article with an overview of the different Spanish Costas.
Now, that you know why you want to buy a property in Spain, how you should do it and in which part of Spain, it is time to move on and search for your Spanish dream property. Finding a cheap property in Spain is easy, finding your property that will match your expectations is another step.
Our customers have different objectives when they buy a property in Spain: finding a holiday home, relocate, retire or invest in real estate. All those objectives mean different expectations about an ideal property.
With our help, we want you to make this property acquisition a success.
Here is how we will help you out with this property search:
The best searching tips for your Spanish property
As you learned in our previous articles, it is not difficult to buy a property in Spain. It is even quite cheap if you compare it to other European countries. How can you find your ideal Spanish property?
There are two main avenues: either you go on your own for your property search or you enjoy the precious help of a Spanish-based property finder who knows his market and will negotiate the price for you. Worst case, he will tell you: “You should pay the requested price because this is a bargain and it won’t stay on the market for too long”. Of course, as you will read, the main advantage of a local property hunter is that he is on the ground and you are abroad. So, he will speed up the process.
Whatever the avenue you take, that is why we recommend searching for legal advice and hire a real estate lawyer. Why? It is well known that, in Spain, issues could arise from a property sale. Actually, notaries duties are lighter than in other European countries. So you can make it without a lawyer but it is a safety net we think is a must as we talk of big investments.
The best place for your future dream property is always the place that you will love. So, take time, visit properties, discover neighbourhoods and nice villages and enjoy yourself first. All the steps we will describe here are the same with or without a property hunter apart from the first two steps that describe why you should take a property hunter and how he works. If you want to search for your Spanish holiday home on your own, you can skip the first two points.
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The six reasons why a local property hunter is a nice-to-have
He knows the market, He will save your money and make this property a savvy investment, He will save your time, He will protect your interests, He speaks Spanish and your language, He will find solutions after your purchase. So, of course, you can search the property by yourself but as you live abroad, it is not easy, it is time consuming and last but not least you don’t have a clue about the real property market price, that’s why usually he will save a lot of money by working for you. To summarize, working with a local property hunter speaking your language will speed up the process, make it much more smooth and will save you time and money as you won’t need to travel for visiting the 10 properties not corresponding to your taste. Follow this link to read our detailed article on the subject.
Check the accomplished missions of our property hunters everywhere in Spain
- A countryside villa close to Barcelona and Tossa de Mar: Costa Brava property investment
- A mountain-view detached villa in Calonge: Costa Brava property investment
- Costa Brava property investment: A sea-view apartment with pool in Platja d’Aro
- Costa Blanca property investment: a holiday home in Calpe – Alicante
- Murcia property hunting: 3 case studies
- Barcelona property hunting: an apartment in Barcelona got a quick refresh for €15,000
- Costa Blanca property hunting: a property investment and a renovation in Altea
- Costa de la Luz property hunting: Our property finder in the Costa de la Luz last transaction
- Tarragona property hunting: a Case study of a property for sale in the Costa Dorada
- Tenerife property hunting: a Case study of property for sale in Tenerife
- Barcelona property hunting: a Case study
- Madrid property hunting: a Case study
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How does a Spanish property finder work?
There are six main steps: 1.Interview with the customer, 2. The contract, 3.The property search and visit of properties, 4.Feedback and exchange of views with the customer, 5.Purchase of the property, 6.The real estate personal shopper will assist his customer with formalities. Follow this link if you want to read more about what a Spanish-based property finder will do for you. With the same link, you can have a look at some property searches realised by our property hunters in different Spanish Costas and of course, you can search for your local property hunter in your favourite Spanish region.
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A real estate lawyer is your must-have AND the first step to your Spanish home
You can search for your property alone, but in Spain, a Spanish property lawyer is a clear must. For many reasons:
Buying real estate in Spain is very easy: what is not, is knowing what you buy. As one of our legal partners summarize:
“ it is in this context that the role of the lawyer is essential, not only to collect the documents that will allow you to sign and obtain the registration of the property at your name in the property registry (management procedures) but especially to obtain the documents to which the law does not give you obligatorily access before the sale but whose study is essential to know the ins and outs of your purchase (audit procedures).”
Have a quick look at our two articles on the subject if you want to read more:
Why do you need a property lawyer for buying real estate in Spain?
What is the legal due diligence for your Spanish property?
If you want to find a good local Spanish property lawyer, you should follow the link and take one from our network.
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Each person involved with this project should list his objectives
Remember that, as you saw in our past articles from this series: your objectives will differ depending on the function of the property: Second home, first home, home to retire or investment property.
Here is a quick example of objective: I want a second home for living there 3 months per year (summer months + 3 holiday weeks), I want it close to the airport, within walking distance of the beach and allowing me to receive all my family (4 bedrooms). As I am a golfer, I want it close to golf courses. My wife wants it close to shopping areas as she does not drive.
Don’t hesitate to go further into details, the more you go into details, the easier it will be to know if you found the perfect property.
Don’t worry if you can’t find too many ideas, our criteria lists available in this article will make sure that you have the main criteria.
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Looking for a Resale in Spain
The Spanish real estate market is very interesting for either a resale or a new build property. Of course, you can buy an existing property with its past or you can go for the comfort of a new build property. Both are possible in Spain. Both are very competitive in terms of price, of course, the price of your property will be driven mainly by its location and its size. It will be less dependent on the fact that it is a resale or a new build. Of course, resale could even be more expensive if you take into account the renovation works that will come with it, 90% of the time. Buying a resale in Spain could have a lot of charm and with some renovation works you can give it as much modern touch as you want. Even if renovation works are not expensive in Spain, it could come more expensive than a new build property when you check it at the end of the project.
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Looking for a new build property in Spain?
Buying a new build property in Spain has many advantages:
- Impressive standards specifications: designed for modern living:
- Personalize your property to your taste
- New build prices in Spain are very competitive vs resale + renovation costs
- Fewer uncertainties:
- 3-year warranty on the building works
- 10-year warranty on design faults by the architect
- 10-year warranty on structural defects by the builder
Read more on that: What are the advantages of buying a new build property in Spain?
Discover the best new build projects in Spain, direct from our partners with a €5,000 discount!
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List your location criteria
Get back to our second article ” Where are the best places for your Spanish property? ” and make sure all your location criteria are listed
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List your property criteria
Of course, you will have the usual suspects as the size of the property, the number of bedrooms, sea view or not, pool or no pool, terrace or garden?… Here are some other useful property criteria: Position of the property vs its environment, Quality of the property, access to amenities, Layout of the property, Neighbours, Outdoor Spaces (Garden, Terrace, Pools,…), Natural light, Eco friendly?, Community fees, Yearly maintenance costs, taxes
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Use our ranking system for comparing your future Spanish homes
Ranking your property according to criteria will allow you three main objectives
- remove emotions
- help you to compare properties
- allow you to discuss and compare properties with your partner
It is quite useful and easy to make.
In this chapter, you will learn how to do the ranking, so we will explain the general method here while in the next 4 chapters, you will get specific data related to each specific Spanish property purchase: a second home, a first home to relocate, a home to retire in Spain, an investment property.
Whenever you understand how our ranking system works, you can switch directly to the specific chapter corresponding to your situation, they will have quick guides as well. In those chapters, you will find a downloadable form with an example of how to rank your next property. You will just need to adjust it with your own criteria list and give them weights and ratings.The idea is simple: to create a weighted matrix containing the physical characteristics (pragmatic, rational) of the house, we will call them the Criteria and you will give each of them an importance level (personal, irrational) or Weights. Each person involved with the project should do the same.
By listing those location and property CRITERIA in a table, it will help you for comparing the different properties visited by giving them a global score.
The CRITERIA are rational and shouldn’t take into account your personal feelings (unless for one – see pdf for example). They are listed beforehand by all the parties involved in the form of an exhaustive list of each of their criteria.
For each of those criteria, you will give them
- WEIGHTS, indicating the importance of the criteria for the persons involved in the property search. – ranging from 1 to 10 (best). They are specified on the worksheet before visiting the property and are the same for all your potential properties.
- RATINGS, which is your view on whether the criteria are fully met or not by this specific property – ranging from 1 to 10 (best). The ratings will be completed after visiting each property. The ratings are specific to each property.
By multiplying WEIGHTS (1) and RATINGS (2), CRITERIA will get a personal score. By adding all these values, we will get an overall score for the property. This score has two subscores: a location score and a property score.
To sum it up, here is the step by step guide to your ideal Spanish property:
- List criteria for the ideal Spanish holiday home with all the persons involved
- Give a WEIGHT for each criterion between 1 and 10. (10= important, 1= not important)
- Visit the potential properties and each person involved give RATINGS between 1 and 10 for all the criteria. (10= criteria met perfectly, 1 = bad)
- Compare the total scores for each property, rank them and compare with results of other persons involved in the project.
This process will help you to rationalise your property purchase and will remove some of the emotions involved. This is important as buying a second home in Spain is a big investment.
For further reading on this subject, read the very interesting article written by our B&B expert, Patrick: How to compare and select the perfect B&B in Spain?
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Compare your Spanish holiday homes – download pdf form
Now that you know how to proceed, we did the work and created a downloadable pdf easy to use allowing you to compare your different Spanish holiday homes. Once you have visited potential second homes, you can compare your ranking with the ranking of your partner. Start discussing your top three properties with your partner and make a choice. If you can’t, that’s because you are not convinced up to now, so, continue searching.
The top 6 location criteria for your Spanish second home
- Within 45 minutes of the Airport by car
- Is the weather as you want when you will go (winter months?)? Check our monthly weather statistics for the top 20 Spanish cities
- Is the beach close to the property?
- If you play golf, are golf courses within 20 minutes by car?
- Discover the best new build projects located on a golf resort
- Are restaurants close to the property?
- Most of the time you want to relax with your family, so recreational and family activities should be available in the region.
You will need to adjust this list with your location criteria for your ideal Spanish holiday home. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future holiday homes.
The top 7 property criteria for your ideal Spanish second home
- Your personal feeling
- Is the number of sleeping rooms & bathrooms corresponding to your expectations? Take it big enough as you will always have friends visiting ;).
- Are the outdoor spaces corresponding to what you want? Garden, Terrace,… You will be 90% of your time outside.
- If you want a pool, yes the pool is important to refresh during hot summers.
- Are the quality of construction and the layout of the property fine?
- Is the size of the property as you want?
- May I rent the property short term? Is it legal?
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential holiday homes.
Our downloadable pdf form for ranking your different Spanish holiday homes.
How to compare two Spanish second homes?Read our complete article on that subject: How to find the perfect holiday home in Spain?
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Compare investment properties in Spain – download pdf form
Now that you know how to rank properties (see bullet 9), here are our top criteria for finding the perfect investment property in Spain. You will find the downloadable pdf easy to use allowing you to compare your different Spanish investment properties. Once you have visited potential investments properties, you can compare the ranking of each property. To compare investment properties, we have added a series of criteria: “investment criteria”.
The top 7 investment criteria for investing in real estate in Spain:
- Own funds needed to invest
- Rental Yield
- Potential for value-adding creation
- Renovation costs
- Easiness to sell in the future
- The uniqueness of the property
- Property Management costs
The top 7 location criteria for your Spanish investment property
- Close to economic activities: city centre, companies,…
- Good public transport network, surely within 10 min on foot
- Close to universities and research centres
- A lot of restaurants in the neighbourhood
- Shops in the neighbourhood
- Close to tourist places (important if tourist rental)
- Strong demand for short term rentals (if legal)
You will need to adjust this list with your location criteria for your ideal Spanish investment property. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future Spanish investment properties.
The top 7 property criteria for your Spanish investment property
- Property price is aggressive vs market
- The size of the property is standard (not too big), i.e. +/-80m², which means that it will be easy to resell and rent
- Outdoor Spaces: Garden, Terrace,… As the weather is nice 320 days per year in Spain, people are living outside
- Quality of construction / Layout of the property
- Personal feeling
- Yearly maintenance costs and taxes
- May I rent my property short term? It is not always legal to rent a property short term in Spain
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential investment properties.
Read our complete article on that subject: How to find the perfect investment property in Spain?
Our downloadable pdf form for ranking your different Spanish investment properties.
How to compare two Spanish investment properties?-
Compare homes to relocate to Spain – download pdf form
Now that you know how to rank and compare properties (see bullet 9), here are our top criteria for finding the perfect home to relocate to Spain. You will find the downloadable pdf easy to use allowing you to compare your different homes. Once you have visited potential investments properties, you can compare the ranking of each property.
The top 7 location criteria for your Spanish first home
- A lively neighbourhood 12 months per year. It should be active during the winter months.
- Commuting time to work and Schools is less than 40 minutes
- Plenty of shops within 10 minutes on foot
- Close to a good public transport network
- Is the cost of life of your Spanish city fitting with your desires?
- Is the weather as you want 320 days per year? We all know why we want to live in Spain!
- Beach within 20 minutes reach by car. Let’s enjoy the weekends.
You will need to adjust this list with your location criteria for your ideal first home. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future Spanish first home.
The top 7 property criteria for your Spanish first home
- Your personal feeling
- Is the number of sleeping rooms & bathrooms corresponding to your expectations? Take it big enough as you will always have friends visiting ;).
- If you want a pool, yes the pool is important to refresh during hot summers.
- Are the outdoor spaces corresponding to what you want? Garden, Terrace,… You will be 90% of your time outside.
- Is the size of the property as you want?
- Are the quality of construction and the layout of the property fine?
- Property price in line with the market
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential first homes in Spain.
Our downloadable pdf form for ranking your new Spanish first home
How to compare two Spanish First homes- relocate to SpainRead our complete articles on that subject: Why and how to relocate to Spain? How to find the perfect home to relocate to Spain?
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Compare homes to retire to Spain – download pdf form
Now that you know how to rank properties (see bullet 9), here are our top criteria for finding the perfect home to retire to Spain. You will find the downloadable pdf easy to use allowing you to compare your different Spanish homes. Once you have visited potential properties, you can compare the ranking of each property with other ones.
The top 7 location criteria for your home to retire to Spain
- A secure Neighbourhood
- Close to family members
- A lively neighbourhood 12 months per year
- Shops are close and less than 10 minutes on foot
- Proximity to excellent Hospital & care facilities
- Is the cost of life of the city fitting with your desires?
- Recreational and social activities around?
You will need to adjust this list with your location criteria for your ideal home to retire to Spain. Have a look at our downloadable pdf available at the end of this section for an exhaustive list of criteria and our ranking system for your future Spanish home.
The top 7 property criteria for your home to retire to Spain
- Personal feeling, it is time to think about yourself no?
- Security: fence and/or entrance gate, advanced technologies, fire alarm
- Outdoor Spaces: Garden, Terrace,… You are living more at home, so, get it as you want it!
- Swimming pool (size,…) Sport, social life and good eating habits are the best way to keep good health.
- Size of the property corresponding to your taste. You got it, not too small, not too big.
- Natural light
- Size of Sleeping rooms
Have a look at our detailed ranking form in pdf and start now the ranking of all your potential homes for retiring to Spain.
Read our complete article on that subject: How to find the perfect home to retire to Spain?
Our downloadable pdf form for ranking your home to retire to Spain
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Is it legal to rent your property on short term leases?
Most of the times, if you bought your Spanish holiday home, you buy it for yourself. But yes, we have to admit it, there are costs associated with a second home. That’s why many of our customers, after a few years rent their properties. The regulation is different in each region of Spain, that is why it is strongly advised to check it with a local legal adviser. Don’t hesitate to check our network for real estate lawyers in Spain.
Another point is that if you want to rent your property, you need a property management company to assist you. We will cover this subject in detail in our next article.
Have a quick look at the different articles we wrote on that subject:
Tourist rental in Spain: What is it? Is it legal?
An update on the short term rental regulation in Andalusia
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Visit properties at different time of day
Ideally at different times of the year as well but this one is more difficult. What we mean by that is that some villages are active only during the summer months and are dead in the winter months. That’s why, if you want to retire there, it’s better that you know in advance that you won’t find an open restaurant in November.
The same idea is to visit your property at different times of the day and the week. We all know those calm pedestrian streets in the old city centres. In the morning, it’s calm… From time to time it’s calm even in the afternoon and in the evening. But, for the same price, you get a lot of activity in the evening as bars open their doors for the evening.
So, check it, it doesn’t cost a lot.
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A technical survey of your Spanish property could be a nice-to-have
This is surely the case if you work on your own, without a property hunter. You don’t have a technical background, you don’t know anything about renovation, this could be a very wise decision before pouring all your savings into that dream property. Our partner developed a network of Surveyors covering all Spain, don’t hesitate to ask for a survey.
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How do our partners help you with those first steps?
We have a local mortgage broker dedicated to getting mortgages for foreigners. Ask for a free mortgage quote.
Our property hunters are there to assist you to find the perfect property more on that in the 3rd article: “How should you search for your dream property?”
With our team of more than +100 local real estate partners, HowtobuyinSpain helps foreigners to buy real estate in Spain.The experts from our network are active in all the fields you need:- Property finders
- B&B
- Lawyers
- Tax
- Architects
- Money Transfer
- Mortgage
- Holiday rental management
- Insure your Spanish property
- Property survey
- Renovation
Would you like to read further?Last year we wrote detailed property buyers guides custom made for any nationality. Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain: Click on your country flag, you will find your pdf report at the end of each article.
This was the third article of our new series “Our complete guide to buying your property in Spain” in the final article, we will cover what you need to know as a real estate owner in Spain.Looking for an expert in Spain? Ask us directly!Stéphane Senior analyst and strategist at HTBISCheck the full HTBIS team here
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Murcia property investment: our 3 case studies
Our two local property finders, Katerin and Caroline, are proud to share with you their last property searches.
Some of our last missions
A “retirement home” in the countryside of Murcia
- Buyer: a couple from Hampshire, England
- Property: This is a semi-detached property with great views of the surrounding countryside.
A desirable family home with beautiful palm trees, a well-built property, which was a classic farmhouse.
It has 3Bed, 1 Bath and one Pool
It is set in a plot of 3,500 m2 which has many orchards: almond, olive, lemon and orange, trees and also large palm trees.
- Neighbourhood: A few more km to the large town of Fuente Alamo and 20 minutes to the beaches of Mazarron, Isla Plan and Azohia., 30 minutes to the towns of Cartagena and Murcia and 20 minutes to the international airport of Corvera.
- Goal: retirement home in the countryside of Murcia.
- Budget: € 67,000
A “retirement home” in the countryside of Mazarrón
- Buyer: a couple resident in Spain bought a larger house with land to cater for their dogs.
- Property: A detached farmhouse fully walled and fenced with 300 m2 built set in a plot of 1500 m2,
3bed, 2bath (one ensuit), annex, pool
- Neighbourhood: It is in a great location with views of mountains, Countryside and Almond groves.
It is 20 min to the Corvera international airport, 15 min from the nearest golf course 5 min from Local village with shops bars medical center. 20 min to the sandy beaches of Mazarron.
- Goal: retirement home in the countryside of Murcia.
- Budget: € 90,000
A “beach home” in the Region of Murcia
- Buyer: a couple resident in Spain moving from the countryside to the beach
- Property: A large corner detached house in Bolnuevo, Mazarrón
The house, built with passion, by a French architect, for its own use, taking into account all safety measures and services.
4 bedrooms, 2 baths, private garage & storage
- Neighbourhood: in an amazing location a walk away from the coast and beaches with views of the Mediterranean and mountains from the master bedroom and from the sitting room.
What could be more idyllic than waking up and having breakfast in your balcony while you enjoy breath taking sea and mountains views!
- Goal: Enjoy life
- Budget: € 189,000
Discover the must do activities of the Costa Calida
This article is written by Katerin and Caroline, our property finders in Murcia.
If you want to read more on Murcia, here are two interesting articles:
Check the full profile of Katerin and Caroline, our Property hunter in Murcia
Find a property finder anywhere else in Spain within our network
Looking for a property hunter, a lawyer, an architect,… a local expert in Spain? Ask us directly!
Check the full team of HTBIS here
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]]>The post Are bank repossessions in Spain an attractive investment opportunity? appeared first on How to buy in Spain.
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Is it too late to invest in bank repossessions properties in Spain?
Less hassle and a nice return?
Many of our readers told us that, yes, you get a return with “buy to let” properties in Spain but you have to manage your property and all the issues going with it, so they asked us: are you aware of any product to get “smart exposure” to the real estate market in Spain? Many others asked us, how can I invest in bank-repossessed properties in Spain?
We found a fund investing only in bank-repossessed properties in Spain and checked it for ourselves so that’s why we wanted to share the results of our work with you.
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Why did we like the fund and this opportunity?
- The management team has 10 years of experience and a track record
- Competitive edge: Thanks to their huge geolocalized database of prices’ history with properties’ characteristics: the ones they bought and sold, all the bank properties sold for the last years, all the properties sitting on the market… They have a very accurate idea of what is the “fair” price of any property when bidding for a portfolio. Appraisal work and an on-site visit will do the rest of the job.
- The Spanish legal system: “creates” this situation and doesn’t give a lot of choices to the Spanish banks for managing their repossessed properties while keeping a good image.
- It is very costly for banks to hold properties on their balance sheet: both in terms of solvency ratio and yearly costs (tax, insurance, community costs, maintenance costs,…)
- Opportunity should stay for many years: there are not enough players to dry up properties from the Spanish banks’ balance sheets. Do you remember, it all started in 2008!
- Clear investment process: this is a very data-driven and systematic investment approach with many verification steps.
- Allows to buy real estate on the Spanish market “at a discount”. As all properties are bought with a big discount, the risk (if any) to the real estate market prices is much lower than any real estate investment: whenever a property is sold, the discount is ‘locked” for the investor which reduces his future risk even more, should the real estate market go down at any time in the future.
- Last but not least, no hassle as you would have with any direct real estate investment anywhere in the world.
Of course, as it is a fund, investors should check their tax situation for any investment.
As you could guess, this kind of fund is for well-informed (and wealthy) investors able to manage and diversify their risks. This is not a recommendation to invest or any advice regarding this investment opportunity. That is why we don’t advertise the name of the company managing this fund but if you want to go further with your due diligence, you can contact them by filling out the form at the end of the report.
Here is what we found out:
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A fund buying bank repossessions directly from Spanish banks
The fund pursues a unique investment strategy of recurrently:
- Acquiring,
- repossessing and
- reselling residential properties in well-populated Spanish regions.
The properties may be subject to adverse possession or “Squatters”, which is resolved by reaching an amicable financial settlement with the occupant. If this doesn’t work, the fund will start a legal procedure and this will take a maximum of 3 years to get full ownership. 90% of the time the fund will get an agreement with the current squatters.
The Fund will cherry-pick properties among portfolios of occupied residential assets offered by financial institutions.
Example of a Bank repossession in Spain in the portfolio
An institutional manager based in Madrid
The fund manager is active for more than 10 years in this market.
Of course, as the fund manager is well known in Spain, they get portfolios all the time from the biggest banks in Spain.
The assets are only offered to a select group of reputable buyers, like the institutional manager managing the fund, due to the complex nature of solving potential adverse possession situations.
They told us that unique sourcing and strict discipline enables the Fund to buy at very deep discounts vs the current market price as they have to get the property back to the market (before tax expenses), but yes that’s why there is a nice margin left for the buyer, not bad!
The Fund Manager will partner with the leading Spanish-occupied real estate specialist which employs a socially responsible repossession procedure based on mutual agreement Ethical conduct, compliance and strict adherence to legislation are essential.
Financial settlement occupants are offered financial compensation in return for vacating the property voluntarily.
The Luxembourg fund will reinvest in new properties continuously
The fund has an open-ended structure, which means that it will stay open as long as the opportunity is present for the fund manager, and is full AIFM regulated and registered in Luxembourg as a “Reserved Alternative Investment Fund” (RAIF) which allows the fund to invest directly in real estate.
The proceeds from sales will be redeployed to buy new portfolios.
The average holding period of a property is 18 months.
Win-win for all the parties involved:
- banks can offload risk assets sooner,
- occupants agree with the manager to relocate thanks to a mutual agreement.
Target Net Return
The open-ended fund was launched in 2021 and targets annual net returns of 8.5% to 11% without leverage in a stagnating housing market. Over time the fund may use limited leverage for enhancing returns to 11% -14%.
The fund manager based in Madrid has been running these strategies since 2011, which is why they could give return targets.
High-demand area’s
The fund will exclusively focus on well-populated area’s which have sufficient transaction volume i.e. no rural area’s. A majority of assets will be located in major cities focused on Spanish citizens, not tourists.
Buffers against capital losses
The fund is buying at very deep discounts, so even after accounting for all costs and taxes, post-COVID real estate prices would have to decline by more than 12% to make a small capital loss, according to the manager. In addition, the Fund is spreading asset purchases over time making it less sensitive to price shocks compared to closed-end real estate funds.
Unique proprietary technology
Each property is appraised by a proprietary big data valuation software, which tracks key features (e.g. price, location, surface, floor, amenities,…) of 25mm references gathered over many years. Each appraisal is also supported by a dedicated team of analysts. In addition, a third party will be appointed to verify the value of the holdings.
Strategy with a track record
The fund manager told us that they did successfully repossessed and resold over 2,500 assets since 2011. Over 90% of historical property portfolios were eventually sold at a profit that was in line with or above the Fund’s target return.
Ethical & socially responsible procedures
Based on reaching a voluntary agreement with occupant(s). No occupant is ever threatened or evicted by any other means except those explicitly approved by banks and the law.
High barriers to entry
This is a niche strategy that is difficult to copy, banks are only willing to sell large portfolios to a legitimate buyer with national coverage who uphold strong compliance standards.
Limited correlation to financial markets
They described this strategy as an alternative investment strategy focused on existing residential real estate (no development).
A specific opportunity existing only in Spain
Due to inertia of legal procedures, the culture of ‘occupants’ and the recovery of a major real estate crisis.
Since the Global Financial Crisis and the ensuing real estate crisis in Spain, the national and regional lenders have unwillingly become large real estate owners.
Unfavourable impact on bank balances sheets
Not only do banks lack the expertise and staff to properly manage real estate, but the assets also have an unfavourable impact on their minimum capital requirements.
Many properties have sat idle on banks balance sheets for years, and in the meantime have become occupied by people that have gained unlawful entry to the property and now live in it for free.
In Spain, it may take years for owners to obtain court approval to evict unauthorised occupants. In 2018 it became possible for natural persons to pursue an “express judicial procedure”, a procedure which can still take months to evict occupants out of their own homes, but this is not the case for owners that are legal entities as banks real estate funds. Despite being very slow, the Spanish judicial system eventually favours the rightful owner.
Spanish banks are still offloading legacy real estate portfolios from the 2008 crisis, as well as annually foreclosing over 25 000 assets based on police data, at least 87 000 homes are subject to adverse possession, although some consultants estimate the real number closer to 100 000.
Another example of a Spanish bank repossessed property
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What is the investment process?
There are 4 steps:
1. Appraisal
The local partner, thanks to reputation and network, has the opportunity to bid on and cherry-pick from hundreds of assets per week from different institutional sellers.
Each asset is appraised by proprietary software that sources data from 20 million assets This value is the market value or minimum selling target, under normal conditions.
Each appraisal is verified by a team of professionals.
2. Acquisition
Next, they apply a strong discount on top of accounting for fees for acquisition, repossession and sale, which leaves a substantial profit margin to the fund.
The local partner is bidding on assets all year round, negotiations with banks may take many months due to aggressive bidding (only a small share of bids are ever accepted). The Fund will never acquire portfolio’s below its ROI threshold In addition we may order a third party appraisal of all the individual assets in a portfolio.
3. Repossession
Each occupied asset is visited by a trained in-house staff member. After identifying the occupant(s), the staff member starts the negotiation.
The selling bank has already initiated a legal eviction process, so the occupant is often more inclined to accept vacating the property rather than risk contact with law enforcement.
If the negotiation doesn’t work (ca 10% of cases) the fund will pursue judicial track
4. Sale
The asset is cleaned, and secured (new lock, fortified doors, alarm) as well as lightly refurbished where necessary.
The fund hires a network of local real estate agents to sell and promote the repossessed assets.
Some assets will already be sold 4 months after purchase, 50 within 16 months and 80 within 2 years
Another building of a Spanish bank repossession from the portfolio
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More on Bank Repossessions in Spain
90% of adverse possession occupancies are resolved through mutual agreement (outside of court)
1. Legal procedure
Usually, a legal eviction procedure is initiated before the acquisition (by banks). In Spain however, this can be a very cumbersome process, taking up to several years. This track is nevertheless pursued to have some leverage in the negotiation process. All processes strictly comply with legal regulations and are approved by the sellers
2. Visit Property
Once the judicial procedure has been initiated, the occupant is notified and visited to explain the situation. Not used to this personal approach, some occupants may already leave. Most leave after negotiating compensation for foregoing a few months of rent (as they know they will otherwise be evicted at some point).
3. Negotiate repossession
More than 90 of the assets are repossessed through mutual agreement, the rest via legal procedures. Banks and funds are unable to pursue this strategy due to the risk of attracting even more occupants to all their empty assets.
Hundred of the negotiators are proprietary staff (none outsourced), specialized in repossessing occupied assets in Spain.
4. Security and refurbishment
Once the property is vacated, it is professionally cleaned, and a fortified door, new lock and alarm system are put in place (to avoid people reoccupying) If needed, some basic painting refurbishment is done, however, the apartments are typically sold in their existing condition (at small discounts compared to fully refurbished or new apartments)
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Attractive economics
Thanks to their sourcing and in-depth experience the Fund expects to perform above average compared to most real estate funds out there.
- The Fund’s asset manager has developed a proprietary underwriting software including over 26 million Spanish real estate references and can make 50 000 daily valuations Parameters for valuation include surface, price, m² geolocation, cadastral reference, building, elevator/garage, time in the market, etc
- AI algorithms are implemented in the decision-making process, however, all valuations are corroborated by at least 2 in-house analysts.
- Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
- Purchase price incl taxes and origination fees typically 35% to 40% below the target market price to account for costs and base case profit margin (per portfolio) of 25%.
- Expected costs include annual property taxes, community fees, repossession charges, refurbishment, alarm, lock and intermediaries (real estate agents).
- ‘Base case’ profit margin is expected to earn 25% to 27% base case on the total investment (cost transfer tax/stamp duty) at SPV level over 2 to 3 years.
- Target market price as calculated by in-house software valuation analysts The asset is compared to similar assets (based on the above parameters) on the market and sold within the last months, in a small radius.
- Excess margin the asset is usually put on the market for 150 of the target price (or 230 of investment) and lowered every 2 to 4 weeks.
- Historically 90 of all portfolios repossessed by the Fund’s asset manager were sold above base case ROIs (and aggregated target prices).
Of course, don’t underestimate potential risks for any (real estate) investment.
Most of the time, even if bank repossessions are occupied in Spain, they are in a good state.
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Here are some of the risks we identified with the fund strategy
- Liquidity: Repossessing some assets in the portfolio may take longer than expected, thereby depressing IRR’s.
- COVID 19 fallout (or further crisis): Increasing public debt and unemployment may negatively impact demand for low-income housing.
- Valuation risk: Risk of overpaying for certain portfolio assets or the condition of the asset appears to be worse than assumed.
- Reputation: Repossessing assets subject to adverse possession is a delicate matter Unfair evictions may lead to reputational damage for anyone involved.
- Refurbishment: Although the assets are expected to be in subpar condition, some assets may be in a poorer state than expected.
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Do you want to know more?
Ask for more due diligence from the manager by sending your contact details directly to the manager. As you understood our disclaimer at the start of this article, every investor is responsible for his own risks and HTBIS does not promote or advise to invest in any specific product. We accept to put you in direct contact with the fund manager by filling this form so we don’t make any advertising for the company. Don’t hesitate to tell them that you read it on HTBIS, they will surely answer your questions with even more details as they did with us. That is how we create value for our readers.
If you want to find a bank property, here is where you should start: Register to our exclusive Spanish bank properties listings and read: Where are the Spanish bank properties for sale?
Remember, the risks are higher if you buy a bank property from a bank. In Spain, furthermore, we would always advise you to work with a lawyer when you buy a property. He will make sure everything is fine. We developed privileged relationships with local lawyers very active with foreigners, don’t hesitate to ask us for a real estate lawyer anywhere in Spain from our network in a specific region. A technical survey of your Spanish property is strongly advised as it is a bank property.
Before buying in any region, have a quick look at all our research on the top 20 Spanish Cities: Everything you ever wanted to know about the top 20 Spanish Cities real estate markets
Looking for an expert in Spain: Lawyer, Architect, Property Hunter, Mortgage? Ask us directly!
Senior Analyst and Strategist at HTBIS
Check the full HTBIS team here
Our FAQ on Bank repossessions in Spain
Is it safe to buy a bank repossession in Spain?
Buying a bank repossession in Spain is difficult as it requires some expertise: valuation, legal, and most of the time the property is occupied by squatters.
How long does it take to repossess a house in Spain?
The law in Spain protects squatters and even more if the owner is a Spanish company.
Can you buy a repossessed house from the bank?
Yes, of course anyone can buy a bank property but pay attention, it is not that easy.
How does bank repossession work?
In Spain, it is a very cumbersome process that takes up to several years. But 3 years should be a maximum.
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Spanish real estate terms explained in plain English
Buying a property in Spain is easy. But remember, your first step will be to find a reliable independent lawyer who is specialized in Spanish land and property law. Unless you speak fluent Spanish, you should find a lawyer speaking your mother tongue in Spain.
More on that here: What is the legal due diligence for your Spanish property?
Looking for a property lawyer in Spain? Check all our partners here!
Disclaimer: This glossary’s goal is to explain the meanings of words and it is not to give advice. Any issue should be reviewed by a tax or legal adviser.
Cedula de Habitabilidad
The Cedula de Habitabilidad or Licencia de ocupación is an administrative document that certifies that a dwelling complies with the minimum conditions of habitability provided for in current regulations and is suitable for use as a residence for people.
Read more on Cedula de Habitabilidad: What is the legal due diligence for your Spanish property?
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Contrato de Arras
The Contrato de Arras is the private purchase contract called as well Contrato Privado de Compraventa.
It takes place after the Contrato de Reserva. You will need to pay your deposit: 10% of the property within 10 days (including your Contrato de Reserva deposit).
As soon as the necessary legal checks have taken place, you will be required to sign the private purchase contract which will state the full price of the property.
Why is it important? Once you signed it, you are committed to purchasing the property or lose the full 10% if you change your mind.
Read more on Contrato de Arras: The 9 steps to your Spanish Property
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Contrato Privado de Compraventa
The Contrato Privado de Compraventa is the same as the Contrato de Arras: it is the private purchase contract of the property. Please read Contrato de Arras for more.
Read more on Contrato Privado de Compraventa: The 9 steps to your Spanish Property
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Contrato de Reserva
The Contrato de Reserva expresses your intent to purchase a property. It removes the property from the market, it is the reservation contract.
In general, you will need to pay a holding fee of €3000 to 6000. Funds are held in escrow for 14 to 21 days and you have the time to do checks on the property during that period. At the same time, a purchase contract will be drawn up and legal checks carried out.
Why is it important? This contract is very important, don’t sign without including provisions so you can exit the contract and get your funds back
The cash ideally held by a reliable third party
Read more on Contrato de Reserva: The 9 steps to your Spanish Property
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Impuesto sobre Bienes Inmuebles (IBI)
Impuesto sobre Bienes Inmuebles or in short IBI is a local tax any owner has to pay on any Spanish property.
Who has to pay for it? Any owner of a Spanish property, local or foreigner.
How do you know? You’ll get a letter after June of any year but some local authorities don’t send it. You owe this tax
Who is the beneficiary? The tax is payable to your local Town Hall. Those are for infrastructure, waste collection,…
Where can I pay for it? Your local Town Hall, a few of them are available online.
How is the Tax Calculated? The IBI is based on the Valor Catastral. The Valor Catastral can be legally adjusted if needed by any Town Hall.
Our tip: by working with a Spanish real estate lawyer, he will make sure that the previous owner paid for it, if it is not the case, you’ll have to pay for him!
What if your property is empty? You owe the tax!
Read more and find all our tips on Impuesto sobre Bienes Inmuebles: The cost of owning your Spanish property, What taxes do you have to pay on your Spanish property?
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Inspección Técnica de Edificios (ITE)
Inspección Técnica de Edificios or in short ITE is an obligation to carry out a Technical Inspection of Buildings if they are old. It falls on the owners. To facilitate this, some City Councils prepare a register of buildings subject to inspection, which is made publicly available for a period of 30 days in the last quarter of the year preceding the start of the corresponding term.
These reports must specifically cover:
- The condition of the structure and foundation.
- The condition of interior and exterior facades, party walls, and other elements, particularly those that could pose a danger to people, such as cornices, projections, overhangs, or decorative elements, among others.
- The state of conservation of roofs and terraces.
- The condition of the building’s general plumbing and sanitation networks.
- The state of existing accessibility elements in the building.
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Licencia de obra menor
The licencia de obra menor is a license that you need from the local authorities if you are doing some small renovation works. So, you will never modify the structure of the property with your reforms.
When do you need a licencia de obra menor? Here are a few examples: changing tiles, renovating the plumbing and electrical installation or changing doors or windows are a few examples.
The licencia de obra menor could be required by the local Spanish administration or “ayuntamiento” to undertake these and other projects. Depending on the size of the intervention, we can distinguish between a minor building permit and a major building permit. It is always better to check with your entrepreneur so you won’t have any issues with our neighbours.
How much does a minor building permit cost? Each local authority will decide the value of the building permits. It may be free as some administrations have abolished it.
If you are looking for a renovation team anywhere in Spain, first, check our network of local renovation experts anywhere in Spain.
In the case of this renovation, a licencia de obra menor was needed: A full kitchen renovation in Barcelona.
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Licencia de ocupación
The Licencia de ocupación or the Cedula de Habitabilidad is an administrative document that certifies that a dwelling complies with the minimum conditions of habitability provided for in current regulations and is suitable for use as a residence for people.
Read more on Licencia de ocupación: What is the legal due diligence for your Spanish property?
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Modelo 210
The Modelo 210 is the form that you will have to fill to pay your national tax that you owe to the Spanish state as an owner of Spanish property as a non resident. In short, it is the Non-Resident Income Tax without permanent establishment or Form 210.
You are renting out your apartment => Quarterly filling, before the 20th of the month following the end of the quarter.
Our Tip: you have items that could reduce this amount, check with your Spanish real estate advisor.
Your apartment is not rented => Yearly filling, before the end of the following year.
Read more and find all our tips on modelo 210: The cost of owning your Spanish property, What taxes do you have to pay on your Spanish property?
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Número de Identificación de Extranjeros
The Número de Identificación de Extranjeros or in short NIE is a unique tax identification number in Spain for anyone who isn’t a Spanish citizen. You will need your own NIE number to purchase property and pay necessary taxes! So it’s wise to apply for this as soon as you start looking for properties. You can get it in person in Spain or via a Spanish Consulate if you don’t have time to apply when you are over there. For your spouse as well if you buy together.
Read more on NIE: Your ultimate guide to your NIE number, The 9 steps to your Spanish Property
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Registro de la Propriedad
It is the official land registry of Spain.
Read more on Registro de la Propriedad: The 9 steps to your Spanish Property
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Valor Catastral
It the official value of a property given by the tax authorities in Spain. National Taxes (Modelo 210) and local taxes (IBI) are calculated with that value.
Read more on Valor Catastral: The 9 steps to your Spanish Property
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Need more help?
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Your first step will be to find a reliable independent lawyer who is specialized in Spanish land and property law. Unless you speak fluent Spanish, you should find a lawyer speaking your mother tongue in Spain. Check on HowtobuyinSpain.com. More on that here: What is the legal due diligence for your Spanish property?
Looking for a property lawyer in Spain? Check all our partners here!
The post An A-Z of Spanish Real Estate terms you should need to know appeared first on How to buy in Spain.
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