Looking for a property finder? Check the full profile of all the property finders within our network.

6 essential reasons for loving your property finder in Spain

Are you familiar with the legal procedure in Spain? How to check the technical aspects of the property? It’s not about having experience in property purchasing but being familiar with how the process works in Spain. Every country is different.
Overall, even if the process might sound easy, believe it or not, you will have a lot of questions and doubts during your purchase process and you will need assistance.

Spain is different, and most Spanish service companies do not work the same way as what is expected from a service provider in other, specifically Northern European countries and the US. Expectations are simply higher. Having a personal shopper will first help you to get all the purchase process in a professional way.

At HowtobuyinSpain.com, our mission is to help foreigners to understand the Spanish real estate market and to find qualitative partners on the ground. Since our launch, we developed a network of professionals partners with local offices all over Spain and talking the languages of the buyers. We work with many local experts for the property hunting: Pierre, Raf, Wim, Bernard,… but as well many experts in legal and tax advice, Architects… Fill this form in order to be directly in contact with our local specialists.

It´s very hard to make an important judgment or decision. Buying a property is for most people the second biggest expense in their life, after their own house. People need someone they can trust to help them, to answers all their questions, and give them guarantees that things are all right or to stop them when things are not all right. Nobody wants to make a mistake when buying something, and certainly not when it is your dream and possibly the second biggest expense you ever made in your life.

Let’s have a look at the 6 reasons why you should take a personal real estate shopper

1. He knows the market

When you are not familiar with the market trends, prices, neighbourhoods, don´t speak the language and lack the experience in buying a property in Spain, you can lose a lot of time and money or simply end up giving up on your dream. This can stress you out. Your personal real estate shopper is there to assist you.

He knows:

• the market and the prevailing prices and the last deals traded,
• the neighbourhoods,
• the reliable partners,
• which properties are coming to the market before they are visible by others.

2. He will save money for you

Once you found your property, your personal real estate shopper knows if the price is correct or not, he will negotiate the best deal for you. This will save you a lot of money, and for many deals, you will recoup your personal shopper fee by itself!

3. He will save your time

Your personal shopper will search the market for you. He has is own contact in the industry and is doing this 7/7, 10hours per day. He is on the ground and can make many visits in one day… Surfing on the Internet in search of your ideal property, arranging meetings and visiting them will take a long time. It´s complicated. So, that’s really obvious!

4. He will protect your interests

What are the properties that buyers are searching for today? Which one suits your project the most? Which are the best neighbourhoods in the city? Where to start searching? Who to trust? When you don´t know the answers to these questions, property buying can turn into a very stressful process. The property hunter is not working for the seller as the real estate agents are. His goal is to protect your interests: the interests of the buyer.

5. He speaks Spanish and your language

Language could be a barrier which brings additional challenges. The search is mainly in Spanish, as most local real estate agents are only speaking Spanish. And of course, all the legal paperwork in Spain is Spanish. So, it will help the process a lot to have a local intermediary speaking Spanish and at the same time speaking your language or at least English.

6. He will find solutions after your purchase

Once you bought the property, the real work starts: Opening utility meters, get in contact with the property owners, pay taxes,…

Any renovation works? I guess you will need some local partners, no? Buying for investment, I guess you will need a property manager,…

How does a real estate personal Shopper work?

It is a 6 steps process:

1. Interview with the customer

Most of the property hunter will organize a call in order to understand what the customer is ideally looking for. The customer will as well give is budget expectations. The property hunter will clarify if he thinks that he can find the ideal property within budget or not and will explain how the Spanish residential market is in general and how the local market is in particular. The property hunter will help the customer to define the ideal location according to his criteria’s: specific requests, budget, but as well depending on the motivations of the buyer.

Two main motivations

In general, foreigners could have two main motivations for buying a property in Spain:

1. Holidays
2. Investment

And of course, some are looking to buy for both at the same time!

Buying a property in Spain has its own costs. Owning a property as well! So, it’s important to know where you are going from the start!

Read our reports if you want to know more on that subject.

2. Contract

Once the customer knows all about the personal shopper and he is confident that he is the good partner, the real estate personal shopper will send his contract to the customer with the detail of his mission and the financial terms. After signing the contract, usually, the customer will have to pay an initial down payment to cover the initial costs and start the mission. Once the mission is completed and successful, the customer will have to pay the remainder, the “success” fee. That’s another big advantage of working with a property hunter: he will get the big part of his commission, only if his mission is fully completed!

3. Search the market and Visit properties

The real search is starting now. The personal shopper will first establish a list of the different criteria’s of his customer. Then he will get in touch with his contacts at many different real estate agents and he will search the market and the different portals. Once he has found a property, he will organize visits.

4. Feedback and exchanges with the customer

Once the personal shopper has found a property fitting the criteria’s, he will revert to the customer. Depending on the market, if there are a lot of possibilities on the market, he will even come back with many different properties fitting the criteria’s of the purchaser. Depending on the feedback from the customer, the personal shopper will continue is mission or not. In general, the customer will come as well on the ground, surely if his main motivation is a purchase for himself so that he can have a strong view on the different propositions and go ahead with any one of those.

5. Purchase of the property if agreement with the customer

Once there is an agreement on a property, the property hunter will begin to negotiate with the seller and will try to get the best price for his customer. At the same time, it’s the start of the purchase of the property which involves many different steps. Please read our Infographic on those: “The 8 Steps of buying your Spanish property”.

6. Assist the customer with formalities

Assist the customer with all the paperwork, the set up of utilities, the registration of the property with local authorities, with the community of owners…

But as well, help the customer to find local partners for renovation work or interior design. This part is as well important for foreigners as most of the time they don’t know reliable partners and don’t speak Spanish.

The best way to see what a property hunter does for you is as well to look at the real estate city trip to Valencia we organised in April 2018.

Have a look at the profile of our real estate personal shoppers in Madrid, Barcelona and Valencia.

Our property hunter in Madrid: Pierre and his team

Last Transaction in Madrid? Written on October 2017

They bought a one bedroom property for €361.115 tax included for investment purpose. This was financed by a mortgage of €161.115. The gross revenue on the property is €35.855 and the net revenue (before mortgage cost) is €22.971, i.e. a 6.4% net yield before tax.

How is the market in Madrid?

With “a growing economy, low financing costs, good potential for rental returns and capital appreciation” the Iberian Peninsula’s largest capital city, Madrid, ranks as the best European city for property investment.

Why is Madrid so attractive for property investors? First, Madrid’s housing market has recovered and is posting new gains. Foreclosures were down by more than 30% in 2016 and housing prices are expected to increase by 4% in 2017. Future increases are forecast to be even greater: 19% from year-end 2016 to 2021. Although prices are recovering, they are still some of the lowest in Europe, averaging 3,353€ per square meter.

Even more enticingly, Madrid has rental yields of 5.2%, the highest rental yields of any European capital city, and some of the highest in the world.

This combination of low real estate costs and rising rental prices in Madrid are big draws for property investors. To learn more reasons why the Madrid property market is so attractive, read our ealier paper: Madrid in the Top 3 European Cities for Property Investment.

Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions

A quick description of Pierre and his team

Pierre and his team are active on the market since more than 7 years, they served more than 800 clients and managed investments of more than 8.3m€ (nearly $10m).They help busy international professionals to find the perfect property: they provide property search, negotiation and property management services to help people from all around the world to buy in Madrid. They are an international multi-lingual team dedicated to helping international people just like you make their Madrid projects come true and without the stress and uncertainties. The average return that we get for our clients is 10.6% (includes capital appreciation and rental income – all after costs).

They speak in English, French and Spanish.

Check our most recent article of February 2018 on Madrid Property hunting: Madrid property investment: a Case study with the last update on the real estate market in Madrid.

Our property hunter in Barcelona: Raf and his team

Last Transaction in Barcelona? Written on October 2017

Signed on October 26th 2017 (it´s hard to be more hot-of-the-press). Two-bedroom apartment of 84m2 in the heart of the trendy area Gracia, in a beautiful classic building and containing historic elements like mosaic floors and vaulted ceilings that are typical for Barcelona. Who buys and why? A Belgian buyer, as an investment to rent out. We will fully renovate the apartment in order to create a lovely space and achieve attractive rental incomes and created added-value. Located in a traffic-free street, with plenty of sunlight (south-orientated) and with a common rooftop terrace, which is a unique asset in Barcelona. Purchase price: 258.000€. We negotiated a considerable discount for the buyer and more important to note is that the property was sold “pre-market”, we saw it first before hitting the market. This is the second investment property that this buyer purchases this year in Barcelona. Beside the buying process, INSPIRE will manage as well the renovation and renting out. Expected returns on own capital from the investment are 10%, not taking any potential property value increases into account.

During the past few months at Inspire we have closed purchases for a total value of 3M euro and we are currently working with a total investment budget of 10 million euro across our different clients, of which about 75% are international buyers.

How is the market in Barcelona?

Barcelona is a market where we see every year an increase of approximately 15% in international buyers. Also the total number of buying transactions is going up year after year, as well as the prices do. Barcelona´s lifestyle is hard to beat and in terms of properties, the city plays in the global real estate champions league. Barcelona is a city that is a magnet and that´s not only because of it´s attractive property market. People love the city, the lifestyle, the climate, the ease of cheap travel options to come to Barcelona, the good food, … in other words a real cosmopolitan vibrant city at the Mediterranean sea.

A quick description of Raf and his team

We are passion, effort, high performance, an answer to a deep need. We are enthusiasm and focus. We are a Barcelona based company offering innovative buyer-focused Property Finder services. We do not sell houses but help you find and buy your dream place by exclusively defending your interests and guiding your through the process from A-Z, till you have the keys in your hands, including full legal advise, technical and financial help. Buying made easy.

They speak in Dutch, English, French, German, Russian, Spanish and Catalan.

Check our most recent article of May 2018 on Barcelona Property hunting: Barcelona property investment: a Case study with the last update on the real estate market in Barcelona.

Our property hunter in Malaga:

Last Transaction in the Costa del Sol? Written on October 2017

Between Malaga and Marbella, we bought for a couple in their 40s, a very beautiful and spacious 2-bed/2-bath apartment in a well maintained community. The apartment has 90 sp meters and was listed between €200.000 and €250.000. The couple was looking for a mixture of personal use and occasional renting. It’s location is perfect as it is 20 minutes from the airport and is within walking distance to the sea. Ideal!

How is the market in the Costa del Sol?

In spite of fears that uncertainty over Brexit was going to depress the recovering market, we have seen good and consistent demand over the last months from a variety of Northern European countries, in particular Belgium. Stylish new developments are also reappearing in many places along the Costa del Sol. As long as they are in prime locations and of high quality, they should be able to find buyers. We don’t see heavy leveraging (debt financing) or speculative attitudes (buy to sell) among buyers, which is a sign that the market is healthy and will remain so for the coming years.

Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions

Our property hunter in Valencia: Bernard and his team

Last Transaction in Valencia? Written in October 2017

How is the market in Valencia?

The market is down in the Valencian community, -4% compared to the overall growth of 3% in Spain. The price for Castellon, Valencia and Alicante are on average at 1,386 eur/m² with important variations between the coast and the interior. Sales continue to grow and the interests on those markets is increasing.
The Valencian community has 19,657 real estate companies (INE 2017). That is why it is very important to choose a reliable partner as your real estate agency. Should your motivation be an investment or a holiday home it’s important to benefit from reliable and independent services.

Read our full report on the real estate market for the 20 biggest Spanish Cities: All you ever wanted to know about the top 20 Spanish Cities real estate markets – including price evolutions

A quick description of Bernard and his team

Bernard fell in love with Valencia during his Architect studies in 2000. He is working as an Architect in Valencia and Alicante since 2005. He is working with his team on Architect missions or as a property finder.

They speak in German, English, French and Spanish.

Check the feedback from our real estate citytrip we organised in Valencia in April 2018 with our local property hunter, Bernard.

In conclusion, a real estate personal shopper will make it quicker, easier and cheaper!

Check the list of our partners active as real estate personal shoppers in Spain. We can’t list all our partners in this section so don’t hesitate to ask us directly if you have a request by filling this quick form.

1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check

Looking for an expert in Spain? Ask our network of local partners directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post 6 essential reasons for loving your property finder in Spain appeared first on How to buy in Spain.

Get our best ideas for planning your holidays in Spain!

Before starting with all our top ideas, remember why you need holidays:

Here are a few ideas to help you organise your stay in Spain:

• Summer Edition: Our Top 5 UNESCO World Heritage Sites in Spain
• Summer Edition: Top Golf Courses in Spain
• Summer Edition: Our selection of the Top parks for children in Spain
• Summer Edition: Where will you find the top Beaches in Spain?
• The best Spanish shopping experience you will find in Alicante, Barcelona, Madrid and Malaga!

Check our city trip ePostcards we wrote on Alicante, Malaga, Barcelone and Madrid:

Check all our infographics (with pdf downloadable version) on the Spanish Costas with all the top activities for your holidays

Here is one of the Costa del Sol as an example:

Find everything on the Costa del Sol: its Airports, its AVE stations, its Cities and villages, its shopping places: Traditional & Flea markets, Outlets and shopping malls. What should you visit? The Unesco sites, the parks for kids, the green parks, the golf courses, the universities and last but not least the top beaches. Check our infographic.

We have created those infographics for all the Spanish costas: Costa Brava, Costa Barcelona, Costa Daurada, Costa de Azahar, Costa de Valencia, Costa Blanca, Costa Calida, Costa de Almería, Costa Tropical, Costa del Sol, Costa de la Luz, Balearic Islands, Canary Islands.

A few other papers that could be of interest:

• What are the most favourite tourist destinations in Europe?
• Where are the tourists coming from to visit Spain?
• The most loved Spanish regions for the foreigners’ properties: British, French, German,…
• Who are the foreigners buying properties in Spain? Our detailed analysis
• What are the hottest tourists destinations in Spain – Winter months?
• Who are the foreigners living in Spain?
• Are you buying real estate in Spain?… Join our 36.000 readers … from 169 countries in the world!!!
• The top 10 Spanish cities where foreigners love to buy properties!
• What are the nationalities of the passengers flying to/from Spanish airports ?
• Which are the most active airline companies in Spain?
• What are the biggest airports in Spain?
• Give us your country of origin… we will tell you how much you love Spain!

Finally, if you want to know more about any top Spanish Cities (not only about the real estate market) find all our City papers here:

Everything you ever wanted to know about the top 20 Spanish Cities real estate markets

Of course, check our weather infographics with the monthly statistics of the top 20 cities in Spain.

Monthly Weather Statistics on top Spanish Cities

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

The post Our best ideas for planning your holidays in Spain! appeared first on How to buy in Spain.

Where are foreigners buying properties in Spain in 2022?

Which nationalities are active? Are they residents or not? Which nationalities are buying Real Estate in Spain? What price do they pay?

Europeans are buying properties in Spain as never: 137,000 properties bought by foreigners. Of course, we see many Europeans active as usual and the United Kingdom is still the first country to buy properties in Spain. A new trend is that we see foreigners coming from further: Latin America with Argentina and Venezuela, America and China are there too. Americans are benefitting from a steep discount: the euro is cheaper by 20% in 2022 vs the dollar.

A quick reminder before starting this interesting subject, please remember that if you want to buy a property in Spain, you need an NIE number, read our detailed article for more information: Your ultimate guide to your Spain NIE number – NIE Spain. Another interesting article we would recommend: How to buy a property in Spain as a foreigner? At Howtobuyinspain.com we have the best experts in our network to assist you everywhere in Spain. As you will see in this article, we have the best tools and database to know where the market is and what are the trends. Thanks to that, we help our customers to make the best deals in Spain.

As for all our articles, in this article, you will find interactive charts showing detailed data with a mouse click on it and we have static charts available for download. Please note that our interactive charts have always the most recent data as they are linked to our databases. Of course, our static charts are regularly updated.

1. Which nationalities are buying properties in Spain?

The Statistical Information Center of Notaries in Spain has just released its last report on Foreigners’ activity in the property market.

What was the activity in the Spanish real estate market up to June 2022?

• 703,331 property transactions for the last 12 months: +18% yearly growth
• property activity by Spaniards increased by 13% year-on-year to 562,956
• property activity by foreign buyers increased by 47% year-on-year to 136,921
• This equals 19% of all the property transactions that occurred in Spain.
• 45% of the transactions were carried out by non-resident foreigners and 55% by foreigners living in Spain!

Spaniards and Foreigners are very active: both are buying the most since 2008:

Quarterly statistics of the “Ministerio de Fomento”.

Which are the most active nationalities within the EU buying properties in Spain?

For the last 12 months to the end of June 2022, the most active nationalities were :

• the British with 11.2% of the property purchased by foreigners in Spain,
• the Germans with 10.3% of the property purchased by foreigners in Spain,
• the French with 8% of the property purchased by foreigners in Spain,
• the Romanians with 6.7% of the property purchased by foreigners in Spain,
• the Italians with 5.9% of the property purchased by foreigners in Spain,
• the Belgians with 5.2% of the property purchased by foreigners in Spain,
• the Dutch with 4.9% of the property purchased by foreigners in Spain,
• and the Swedish with 4.2% of the property purchased by foreigners in Spain,

Check our foreigners’ profiles and buyers guides: What are the ideal Spanish properties for Belgians Chinese Dutch English French Germans Italians Moroccans
Romanians Russians Swedish?

Discover the best new build projects in Spain available right now

Most active nationalities outside the EU buying real estate in Spain

The proportion of purchases was also high by foreigners outside the EU:

such as Morocco (7.7%), China (2.6%) or Russia (2%), America (1.6%) and other countries outside the EU 11.2%

If you want to live in Spain, have a quick check at our interesting article on the Golden Visa: Golden Visa in Spain: Your ultimate guide!

Don’t forget to hedge your currency smartly if you are buying from outside the European zone.

Here you go, a quick check of all the nationalities:

Here is the same info reproduced with a pie chart:

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are buying more properties during the last 12 months to June 2022?

Of course, Europeans are very active in the property market in Spain. Most Europeans come from northern countries. A more recent trend we noticed at howtobuyinSpain in 2022 with many new customers flowing in: Americans are buying actively everywhere in Spain, thanks to the weak Euro vs Dollar. Yes, the Euro lost 20% this year, not bad for Americans looking for bargains. Have a look at our paper written by our property hunter in Madrid for more on that: Americans are buying properties in Madrid.

Here are the countries increasing the most their property purchases in Spain in 2022 vs 2021 (last 12 months to June):

• Netherlands +101%
• Germany +81%
• Ireland +95%
• Norway +72%
• Denmark +70%
• USA +69%
• Sweden +66%
• Switzerland +62%
• Argentina +45%
• France +41%
• Belgium +36%
• UK +36%
• China +31%

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are less active during the last 12 months to June 2022?

All countries have a positive growth

Here is the evolution of the purchases done by each nationality since 2008

This was the situation end of 2016 when we wrote this article for the first time: we keep the same top 3 nations.

Foreigners living in Spain are more active

• Foreigners living in Spain recorded 74,643 operations, 26% more than one year before.
• Non-resident foreigners bought 62,278 properties, an increase of 84% year-on-year.

This is quite a strong vote of confidence by foreigners living in Spain! Of course, they work there and it is easier for them to buy than non-resident foreigners. Covid had its impacts: people wanted to remote work from a nice place if they could: Spain is a nice option. Others wanted to enjoy a better quality of life: more space, more sun, a better quality of life… while of course, the cost of living in Spain is much lower than in many places in the world and in Europe. For more on that, read our articles: Which are the cheapest cities to live in Spain? The cost of living in Spain vs the UK, Relocate to Spain? Spain is one of the best countries in the world for relocating and for working remotely.

1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check

Check our chart analyzing who is more active in the Spanish property market: Foreigners or Spaniards with the evolution since 2007 (the year before the crisis):

2. Where are foreigners buying properties in Spain?

What are the main regions in Spain where foreigners are buying real estate?

Same info in a downloadable format:

Source: Centro de Información Estadística del Notariado de Espana

What is the evolution of each region in Spain during the last 12 months to June 2022?

Check the property transaction growth for each region in Red (right scale) with the number of transactions in Blue (left scale)

Most active regions – The biggest activity of foreigners vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the Autonomous Communities with a greater weight of foreigners’ transactions vs Spaniards in the fourth quarter of 2021 are

• The Balearic Islands with 39% of all transactions,
• The Canary Islands with 26% of all transactions,
• The Valencian Community with 24% of all transactions,
• Murcia with 17% of all transactions,
• and Andalusia with 13% of all transactions.

Check our interactive chart on that:

Most active cities where foreigners are buying the most real estate in Spain vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the cities where foreigners are the most active (vs Spaniards) in the fourth quarter of 2021 are:

• Alicante
• The Balearic Islands
• Malaga
• Tenerife
• Girona
• Murcia
• Almeria
• Las Palmas
• Castellon
• Tarragona
• Barcelona
• Lleida
• Valencia

Check our interactive chart on that:

Source

Which Spanish regions are the most popular for which nationalities?

We did the ranking for the 12 most active countries in Spain.

Check the evolution of the foreigners’ activity per region since 2007:

Remember the infographic we did on the subject last year, it remains nearly the same in 2018!

3. What price do foreigners pay to buy a property in Spain?

Check the evolution of the price paid for each Spanish region since 2007 by foreigners:

The average price per square meter of properties bought in Spain by foreigners increased by 2% year-on-year to June 2022. The acceleration of real estate prices was recorded both among property transactions done by non-residents and by residents, although the former paid higher prices than the second ones, € 2,522/ m² against € 1,622 / m², respectively (with an average of € 2,062/ m²)

This price discrepancy between foreigners living in Spain and not living in Spain could come from many factors:

• Non-residents are buying top-notch second homes in more expensive locations: expensive cities and premium areas with sea views and large terraces for instance. They are going for the best properties on the market.
• Non-residents who are buying a second home in Spain are wealthy and have a higher budget from start.
• Non-residents are buying newbuild properties in Spain and newbuild properties are more expensive than resale,
• Some new “resident foreigners” relocate to Spain because of the high quality of life in Spain and the low cost of real estate in Spain. So they are looking to start a new life they can afford and will go for low-cost properties inland. Read more on that in our article: Which are the most expensive and cheapest cities to live in Spain?

You can check the evolution of the price per square m paid by foreigners (resident or not in Spain) and Spaniards (resident or not in Spain) since December 2007 (the year before the crisis) on this chart:

In terms of levels, the average price per square meter paid by foreigners continued to register strong differences between each region. End of June 2022, it was below the national average
of € 1,741 in 12 of the 17 Regions. Please note that the average paid per square meter by foreigners is € 2,062.

Regions under €1,000:

Extremadura, Castilla-La Mancha, La Rioja, Castilla y León, Aragón and Galicia.

Regions between € 1,000 and the national average paid by foreigners for real estate €1,741

Murcia, Asturias, Navarra, Cantabria and the Valencian Community

Regions above the national average for properties in Spain € 1,741

• The Canary Islands €2,195,
• Catalonia €2,249,
• Basque Country €2,230,
• Madrid €2,893,
• and Baleares €3,894.

Interestingly, all those regions are areas of interest to foreigners apart from the Basque Country, a region much appreciated by the French.

Let’s have a closer look at current property prices (value written in Blue on the chart) and at the price evolution (left scale) for each Spanish region for one year. The regions are Alphabetically sorted.

As you can see from the chart we just showed: prices are increasing everywhere.

Spanish regions with the fastest increasing prices over the last year to June 2022

Spanish regions with decreasing prices over the last year

• None

If you want to read more on the subject and you missed our paper of last semester: Which are the top 10 Spanish cities where foreigners are buying properties NOW? And don’t miss our property buyers guide written for any foreign country.

Source: Read the full paper in Spanish here.

Who are the foreigners paying the most in Spain for their properties?

As of June 2022, here is our alphabetical ranking of real estate prices paid by foreigners in Spain:

• People from Argentina pay on average 1759 € per square meter for their properties in Spain.
• People from Belgium pay on average 2104 € per square meter for their properties in Spain.
• People from China pay on average 1741 € per square meter for their properties in Spain.
• People from Denmark pay on average 2870 € per square meter for their properties in Spain.
• People from Ecuador pay on average 1198 € per square meter for their properties in Spain.
• People from France pay on average 2149 € per square meter for their properties in Spain.
• People from Germany pay on average 2657 € per square meter for their properties in Spain.
• People from Ireland pay on average 2092 € per square meter for their properties in Spain.
• People from Italy pay on average 2103 € per square meter for their properties in Spain.
• People from Morocco pay on average 694 € per square meter for their properties in Spain.
• People from the Netherlands pay on average 2252 € per square meter for their properties in Spain.
• People from Norway pay on average 2701 € per square meter for their properties in Spain.
• People from other countries in EU pay on average 2148 € per square meter for their properties in Spain.
• People from other countries in the world (outside EU) pay on average 2015 € per square meter for their properties in Spain.
• People from Portugal pay on average 1782 € per square meter for their properties in Spain.
• People from Romania pay on average 1097 € per square meter for their properties in Spain.
• People from Russia pay on average 1989 € per square meter for their properties in Spain.
• People from Sweden pay on average 2701 € per square meter for their properties in Spain.
• People from Switzerland pay on average 2567 € per square meter for their properties in Spain.
• People from the UK pay on average 2003 € per square meter for their properties in Spain.
• People from Ukraine pay on average 1612 € per square meter for their properties in Spain.
• People from the USA pay on average 2837 € per square meter for their properties in Spain.

Here is our downloadable infographic on that:

Source: Centro de Información Estadística del Notariado de Espana

Of course, there are many reasons to explain those differences:

• The region where those nationalities are buying on average,
• The location of the property: sea view? countryside? within a city?
• The type of properties: villa or apartment, newbuild or resale, with terrace or plot or not,…

So, those are just “statistics” but they are interesting as price discrepancies between foreigners are quite big when foreigners buy properties in Spain.

4. How to start your property search in Spain?

Here is our A to Z must-read guide: Our ultimate 2022 guide to buying your property in Spain.

At HTBIS, we assist foreigners with their property search in Spain thanks to our network of local partners: legal advisers, tax advisers, property hunters and much more. Discover all our partners here.

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FAQ

The post Where are foreigners buying properties in Spain in 2022? appeared first on How to buy in Spain.

How to get a Golden Visa in Spain?

How to get your real estate Visa in Spain?

How to work in Spain if you are not a European citizen?

There are many reasons for people to want to live in Europe or in Spain. People living in Europe don’t need any visa to work in Spain. People living outside Europe do need one if they intend to work or live in Spain.

Spain has a population of 51m people of which 5m are foreigners. Have a quick look at our earlier paper on that subject: Who are the foreigners living in Spain in 2018? of course, if many foreigners are living in Spain, they are as well actively purchasing properties Who are the foreigners buying properties in Spain? Our detailed analysis

Another interesting article we would recommend if you are serious about buying real estate in Spain: How to buy a property in Spain as a foreigner?

Spanish Golden Visa 1-minute video

Would you like to watch this video in your own language? Click at the bottom right of the video on “cc” to get subtitles in your language.

Too busy? Here is our quick-read summary:

Let’s go deeper into how it works to get a Spanish Golden visa and why it is interesting.

Spain is a nice country with some really strong advantages

1. Its weather and the 320 days of sun are often given as the main motive
2. Strong economic recovery with one of the strongest growth in Europe, have a look at our March paper on that: Spanish GDP growth to remain strong up to 2020,
3. A low cost of living,
4. High quality of life and long life expectancy,
5. Investing in real estate in the major cities in Spain is cheaper than in other major cities in the world,…
6. Have a quick look at our paper on the 10 reasons why you would love to buy real estate in Spain if you want to know more about this.

At the same time, Spain created many ways to allow residency and work permits for people living outside Spain. Therefore, Spain wrote a Law aimed at investors, entrepreneurs, highly qualified professionals, researchers and workers who make intra-company movements, as well as spouses and children under 18 years of age.

There was a first law in 2013 which was adjusted in 2015. The law was created with a speeding-up procedure: an answer should be given within a period of 10 days for all the visas included in the law.

The residence visa issued under the present Law constitutes sufficient title to reside in Spain for one year without the need to process the foreigner’s identity card. The renewal of it could be possible if the residence period in Spain is may exceeding six months a year in the case of visas and residence permits for foreign investors or foreign workers.

If you are dreaming of Spain but don’t know where to live, have a quick look at our Spanish Costas articles covering all the nice things to enjoy in Spain.

What is Spain’s Golden Visa?

The Spain Golden Visa is a type of residency-by-investment program that allows non-European Union (EU) citizens to obtain a Spanish residence permit in exchange for making a significant investment in the country. This program was introduced in 2013 to attract foreign investors and boost the Spanish economy.

The program is open to investors from all over the world, regardless of their nationality, who meet the following criteria:

Who can apply for a Spain Golden Visa?

General requirements to meet to get a golden Visa in Spain:

• You must be 18 years or older
• You must have a valid passport
• You don’t have any criminal record in Spain or in the countries where you have resided in the last 5 years.
• You must have public insurance or private health insurance arranged with an insurer authorized to operate in Spain.
• You must demonstrate a source of income to support yourself and your dependents
• You must have public insurance or private health insurance arranged with an insurer authorized to operate in Spain.
• You must have suitable accommodation in Spain
• You must be able to demonstrate knowledge of the Spanish language
• Not found irregularly on Spanish soil.
• Not appear as rejected in the territorial space of countries with which Spain has signed an agreement in this regard.
• Pay the fee for the processing of the visa.

In addition to the above criteria, you will also need to provide evidence of your investment in Spain. The type of investment required to qualify for the visa will depend on the purpose of your residence. For example, if you are applying for a business visa, you may need to demonstrate a capital investment of at least €1,000,000 in a Spanish company. If you are applying for a residence visa for the purpose of purchasing property, you will need to demonstrate an investment of at least €500,000 in Spanish real estate.

The main qualifying investments for obtaining a Golden Visa in Spain include:

1. Real estate: Buying a property worth at least €500,000. This can be a single property or a combination of multiple properties totaling the required amount.
2. Financial assets: Investing at least €1 million in shares of Spanish companies, bank deposits in Spanish banks, or purchasing public debt.
3. Business projects: Investing in a business venture that is deemed to be of general interest to Spain. This could include creating new employment opportunities, contributing to economic growth, or promoting technological and/or scientific innovation.

The Spain Golden Visa offers several benefits to successful applicants:

1. Legal residency in Spain: The Golden Visa grants the holder and their immediate family members the right to live, work, and study in Spain.
2. Free movement within the Schengen Area: As a Spanish resident, the Golden Visa holder and their family can travel visa-free throughout the 26 countries of the Schengen Area.
3. Pathway to permanent residency and citizenship: After living in Spain for five years, Golden Visa holders can apply for permanent residency. After ten years of legal residency, they may be eligible to apply for Spanish citizenship, subject to meeting certain requirements.

It’s important to note that the Golden Visa does not grant immediate citizenship or a Spanish passport. Rather, it provides an attractive opportunity for non-EU citizens to invest in Spain and obtain legal residency with a potential path towards permanent residency and citizenship in the future.

It is important to note that the possibility of processing the residence visa extends to the spouse and children under 18 years of age, or of age who are not able to cover their own needs due to their state of health when they meet or accompany them. the appliers. Consequently, they may apply, jointly and simultaneously or successively, for a family residence visa, after proof of compliance with the aforementioned requirements.

The presence of the visa applicant is not required, they may request and collect the residence visa through a duly accredited representative. The taking of biometric data is not required.

Complete your Spanish Golden Visa application form with our partner

We work with a dedicated lawyer for those forms. He is one of the biggest lawyers in the field and gets 100% success rate. In order to get in touch, please fill out this quick Spanish Golden Visa Application form:

Spanish Golden Visa application

Here is usually how the conversation starts with our partner

The starting point is a conversation in which the family tells us what their situation is and what they would like to achieve.

My name is Jane, I am the CEO of an IT company based in XXXX. I have XXXX nationality as do my husband and my two children, 14 and 19 years old. The little one would now go to secondary school and the older one is doing his first year of college. Our goal is to move to Madrid next spring but only if they can continue their studies there, otherwise we would wait until summer. Regarding the investment, we would be interested in acquiring a property that would provide us with a monthly income until, once established, we decide where to buy our permanent residence.

With this information, it is possible to check the feasibility of the project and adjust it to the needs of the family making the entire journey as smooth and efficient as possible.

The family receives a simple optimized itinerary that includes all the processes that take place in parallel: the administrative/legal process, the investment process, as well as those procedures related to the particular situation of the family (transfer of educational records, etc.).

After 5 months and two visits to Spain, the family obtains an investor visa valid for one year that allows them to reside and work in Spain without the obligation to spend a minimum of time in the country, as well as to travel freely through space Schengen.

From then on, every two years, they renew their permit, obtaining nationality if the requirements are met.

What are the different types of visas for foreigners looking to set up in Spain?

There are 7 different types of visas available if you are looking to move to Spain. We will develop a little bit more the Real Estate Acquisition Visa as we think that it is the most interesting one if you are a real estate investor. Please jump to visa #2 if that’s your case.

1. Residence Visa for Capital Investors, “Visado de Residencia para Inversores de Capital” or RIC

If you make an initial investment for

• a value equal to or greater than 2 million euros in Spanish public debt securities or
• a value equal to or greater than 1 million euros in shares or shares of Spanish companies or deposits banks in Spanish financial institutions.

In addition to the general requirements given earlier on, the applicant must prove having made the investment in the minimum amount required, in a period not exceeding 60 days prior to the submission of the application.

2. Residence Visa for Acquisition of Real Estate, “Visado de Residencia por Adquisición de Bienes Inmuebles” or RIV

Foreigners who prove the acquisition of real estate in Spain with an investment of 500,000 € or more may apply for this visa.

In addition to the general requirements given earlier on, the applicant must prove having acquired ownership of the real estate through certification. This certification will have to be issued within 90 days prior to the presentation of the application for the residence visa. If at the time of the visa application, the acquisition of the property is in the process of being registered in the Property Registry, it will be sufficient to present the certificate stating the validity of the acquisition document, accompanied by the documentation accrediting the payment of the corresponding taxes.

The applicant must prove to have an investment in real estate of € 500,000 free of any charge or lien. The part of the investment that exceeds the amount required may be subject to charge or lien.

a. How to submit your applications?

it will be done in person or by a duly authorized representative and by means of a prior appointment made by email to your consulate (without adding attached documents).

b. What are the requirements and the documentation needed?

1) A national visa application form duly completed in capital letters. There must be a means of contact (mobile, e-mail) for all types of notifications and requirements. Add a copy of the first page of the application that, stamped by the consular office, will be returned to the applicant as proof.

2) A recent colour photo, with a white background, between 26-35mm wide and 32-45 tall.

3) For Chinese citizens, photocopy of all pages and translation into Spanish of the “Hukou”

4) Ordinary passport with at least 1-year validity.

5) Photocopy of all passport pages that contain information. (stamps, visas).

6) Certificate of criminal record, or equivalent document, in the case of an applicant of legal age, which must be issued by the authorities of the country of origin or the country or countries in which he or she has resided during the last five years, translated and legalized (original and copy). This document has a validity of 3 months. It must be translated into Spanish.

7) Have public insurance or private health insurance arranged with an insurer authorized to operate in Spain. (original and photocopy).

8) The documents evidencing sufficient financial means for their support during the time of residence in Spain including, where appropriate, that of their family, without the need to develop any work or professional activity. The minimum amount established amounts to € 2,130.04 per month (400% of the monthly IPREM index, to be consulted in successive years), increasing by € 532.51 per month (100% of the IPREM) for each family member accompanying him.

9) Proof that the applicant has acquired the property / real estate properties / for a minimum value of 500,000 euros through certification of ownership and charges of the Property Registry that corresponds to the property or real estate. If at the time of the visa application, the acquisition of the property is in the process of registration in the Property Registry, it will be sufficient to present the aforementioned certification in which the entry form for the acquisition document is valid, accompanied by documentation accrediting the payment of the corresponding taxes. The certificate must be dated within 90 days prior to the submission of the application.

10) For relatives of these applicants, in addition to the above, to prove the conjugal bond or filiation, by a marriage certificate or birth certificate in the case of children, translated and legalized. Original and photocopy.

11) For ancestors of the applicant: points 1 to 7, plus: a) certificate of kinship notarized and legalized b) documents proving that they are in charge of the investor. If there is cohabitation, a certificate from the “district community”

The deadline to meet the requirements and documentation required is 10 business days.

This Consulate General reserves the right to request any additional documentation it deems appropriate.

Visa applications will be resolved and notified within 10 days, it’s a fast-track procedure, except in the cases provided for in art. 22 of the Visa Code.

The visa data must be verified by the applicant at the time of the withdrawal of the passport. The collection of the visa implies the acceptance of these data as correct.

3. Residence Visa for Entrepreneurs and Business Activity, “Visado de Residencia para Emprendedores y Actividad Empresarial” or REM

Under this assumption, there is room for investors to submit a business project that will be developed in Spain and that is considered accredited as general interest, as those who plan to enter and remain in Spain for a period of one year in order to develop an entrepreneurial activity.

In the first case, the interested party must submit a favourable report from the Commercial Office of the geographical demarcation area where the investor submits the visa application, in order to verify that the business project submitted includes reasons of general interest.

It must be taken into account that a significant investment of capital will be carried out by a legal entity originating from a territory that does not have the consideration of a tax haven according to Spanish regulations, and the foreigner has, directly or indirectly, the majority of the voting rights and has the power to appoint or dismiss the majority of the members of its administrative body.

In the case of Entrepreneurs, an entrepreneurial activity will be understood as one that is of an innovative nature, with a special interest in Spain, and for that purpose has a favourable report from the Commercial Office where the investor submits the visa application.

4. Residence Visa for Highly Qualified Professionals, “Visado de Residencia para Profesionales Altamente Cualificados” or TAC

The application for this visa requires that the company carry out the prior processing in Spain of a Residency Authorization for highly qualified professionals, which will be carried out in the Large Companies and Strategic Groups Unit. Its concession will correspond to the General Directorate of Migrations.

5. Residency Visa for Training or Research, “Visado de Residencia para Formación o Investigación” or RIN

Under this visa, cases regarding foreigners who wish to carry out training, research, development and innovation activities in public or private entities are contemplated. Such cases are:

1. 1. The Research Staff referred to in article 13 and the additional provision of Law 14/2011, of June 1, on Science, Technology and Innovation.
   2. The Scientific and Technical Staff that carries out scientific research, development and technological innovation work in business entities or R & D & I centres established in Spain.
   3. Researchers welcomed in the framework of an agreement by public or private research organizations, under the conditions established by regulation.
   4. Teachers hired by universities, organs or centres of higher education and research, or business schools established in Spain in accordance with the criteria established by regulation.

6. Residence Visa for Business Transfer, “Visado de Residencia por Traslado Empresarial” or TTI

It can be processed by foreigners who travel to Spain within the framework of an employment, professional or professional training relationship, with a company established in Spain or in another country.

The application for this visa requires that the company carry out the prior processing in Spain of a Residence Authorization for intra-corporate transfer, which will be carried out in the Large Companies and Strategic Groups Unit. Its concession will correspond to the General Directorate of Migrations.

7. Residence visa for family members, “Visado de residencia para familiares” or RFI

The new Law establishes that legal spouses and children under 18 years of age, or children older than 18 years old but who are not objectively able to provide their own needs due to their state of health, who accompany an owner of a visa may request a residence visa.

In addition to the general requirements stated above, they must prove their family relationship.

Spanish Golden Visa

What are the advantages of having a work Visa to Spain?

• Being able to Work in Spain
• Being able to live in Spain
• Being able to have your family living in Spain
• Enjoy the high-quality life of Spain
• Get social security in Spain if you work in Spain
• Get access to the European market for your business and for yourself
• Easier investments in Spain: Business and real estate

How Long Can I Stay in Spain With a Golden Visa?

The amount of time you can stay in Spain with a Golden Visa depends on the type of visa you have and the duration of your residency permit. Golden Visas are granted to non-EU citizens who invest in Spanish real estate. The visa is valid for a period of one year and can be renewed annually.

If you have obtained a Golden Visa through investing in real estate, you will be eligible to receive a residency permit, which allows you to stay in Spain for up to five years. After five years, you can also apply for permanent residency, which allows an indefinite stay in Spain.

In addition to the residency permit, you must also adhere to the Schengen Area regulations, which apply to all European countries. This includes registering with the local police if you plan to stay in Spain for more than 90 days. The Schengen Area regulations also allow for a maximum stay of 90 days per 180-day period, which means you can stay in Spain for a maximum of three months at a time before returning to your country of origin.

Don’t miss our last update on the subject from May 2023 as Spain could change the current Golden visa program: “Spanish Golden Visa 2023 update“.

If you are looking to live in Spain but don’t know where to settle as a foreigner, check our paper on that subject: The most loved Spanish regions for the foreigners’ properties: British, French, German,…

Sources: Ministerio de Asuntos Exteriores y de Cooperación, the different visas for foreigners in Spain in Spanish , Ministerio de Asuntos Exteriores y de Cooperación, the Real estate visa in Spain in Spanish, Ministerio de Industria, Comercio y Turismo in Spanish

Looking for a lawyer to assist you with your Golden Visa procedure?, an architect, or a property hunter in Spain?

Ask us directly and benefit from our local network!

The post Golden Visa in Spain: Your ultimate 2023 guide! appeared first on How to buy in Spain.

Follow this link if you are looking for the latest real estate price trends for Spain’s top 20 cities.

The Spanish real estate outlook 2023

Last year, we predicted a strong market with price increases between 3 and 6 per cent. We were spot on!

The Spanish real estate market should be more stable in 2023 and we could even see some price decreases. As we will explain in this report, Expectations for the Spanish housing market are for price changes between minus three per cent and plus 4 per cent as experts have different views due to a greater uncertainty of the evolution of the economy. The good news is that many experts see it as one of the best-performing markets in Europe for 2023.

Inflation will be the main topic if you want to understand the real estate market: after many years of loose monetary policy and after the war in Ukraine, inflation is back and should stay with us for a while. We will have to cope with that. Last year we already spotted those potential risks for the real estate markets in our Spanish real estate outlook for 2022. So, this is not a surprise for us. But we have to admit that the magnitude of the moves impressed us.

In this report, you will have our detailed outlook on the Spanish real estate market and benefit from the analysis and feedback of our local experts and partners established everywhere in Spain. Of course, the market won’t rise as much as in 2022 on one hand, but it will give more opportunities on the other hand. And make no mistakes, we will explain to you why real estate prices in Spain remain conservative at current levels: we don’t see excesses as in 2008.

Last but not least, we tell you why we think that Spain’s economy should become stronger than other European countries over the next five years. This positive news should keep the Spanish real estate market healthy and in demand at least compared to other real estate markets in Europe.

In this environment, Spain has a lot to offer to Spaniards, foreigners and remote workers: a high quality of life. Actually, Spain is one of the best places to relocate and work remotely thanks to 320 days of sun and of course the low cost of living in Spain.

Looking for a comprehensive and up-to-date analysis of real estate prices in all major Spanish cities? Look no further than our quarterly report, which provides precise insights you won’t find anywhere else.

The Spanish property market will be a buyers’ market in 2023

Here are the important metrics to follow in 2023:

• Inflation
• mortgage rates
• the consumers’ purchasing power
• Economic activity in Spain and in Europe
• Remote working
• Of course as usual what will be the activity of foreigners in Spain in 2023?

Yes, let’s start with the bad news: inflation is back. That is why both short-term and long-term interest rates have risen. So, as a consequence, mortgage rates are much higher now than one year ago. We expect this situation to stay at least two years, maybe more. So, property financing with mortgages will be less easy for buyers and the Spanish economy should moderate in the short term. Those are the two main reasons why we think the Spanish property market will mark a pause in the short term. The good news is that mortgage rates are not crazy if you compare them to inflation.

Check the evolution of the mortgage rates: average, fixed and variable over the last year

Transactions should decrease and prices should be stable or decrease slightly

as on one hand, economic activity will be less strong and on the other hand mortgages rates are rising.

Both Spaniards and foreigners will be less active, which will give more opportunities for the buyers, and even more for the foreign cash buyers that don’t need a mortgage.

Foreign cash buyers will be the perfect time to get a better home: more space inside and outside and more light, and for those with a smaller budget, our advice is to go after a second home outside city centres.

That is why we are optimistic for foreigners in 2023: opportunities will be there and the market will be less tense.

So, our view is that prices could decrease between 1 and 3%!

What about the GDP growth in Spain for 2023 and 2024?

The FMI predicts that Spain will have strong GDP growth in 2023 and 2024: 1.1% and 2.4%.

Are we at risk of a big property price decrease as in 2008?

Are we in a real estate bubble in Spain?

Many experts don’t think so as:

• The portion of real estate vs income is not excessive for most Spaniards
• Leverage is not excessive
• Building companies have less leverage
• The number of new build properties coming to the market is not excessive.

Here is another article to read more on that: Are we in a property bubble in Spain?

So, the short answer is no, we are not at risk of a big price decrease, as long as the economy remains stable, as current property prices in Spain are not overextended. Read our quarterly report for more on that: Spanish property prices remain very competitive vs other international markets.

The biggest risks we see for the time being are:

• Central banks in the world are aggressively raising short-term interest rates: the Fed, the ECB,…
• Long-term interest rates are spiking
• Inflation is spiking everywhere in the world central banks are fitting it.
• The Chinese economy is dependent on its management of Covid, its real estate sector and its slowing economy.
• Consumers are squeezed worldwide with high inflation numbers.

The positive data for the Spanish real estate markets are:

• property prices are not too expensive in Spain vs international real estate markets,
• mortgages rates are much lower than current inflation rates
• real estate could be a good hedge against inflation for investors.
• we see Spain having a long-term competitive hedge in this environment of high energy prices.

Why are the long-term prospects for the real estate market in Spain strong?

• Not enough properties are available on the rental market as Spain is an “Owner” country with more than 75% of Spaniards owning their home.
• With inflation rising, construction costs are on the rise and supply won’t easily come
• Most of the properties in Spain are old and some need renovation works, which means a delay to have those back on the market
• Real estate prices in Spain are not too expensive, read our quarterly report on Spanish property prices for more on that.
• With the energy crisis in Europe, Spain is one of the European countries with the lowest costs for utilities in Europe, as we told you in our article, we think that this will remain the case in the future, so, the Spanish economy should remain stronger than many European countries. This will provide strong support to the real estate market. We could even see some relocations of companies toward Spain in the future.
• Buy-to-let in Spain provides a nice return for investors.

Newbuild vs resale in 2023?

We don’t expect huge discounts for real estate buyers but yes, cash buyers should get discounts on resale projects and they should negotiate before writing an offer. We don’t expect huge discounts for newbuild – we have some special offers on newbuild properties from our partners, just ask us directly – as construction costs are higher and the Spanish housing market is healthy and not oversupplied as it was in 2008. Some regions could have more newbuild supplies which could give opportunities for buyers.

A new long-term trend favouring Spain!

Spain has many competitive edges over other EU countries:

• Low cost of Utilities: Electricity and Gas prices compare in favour of Spain vs nearly every country in Europe. Have a look at our detailed article for more on that subject: the cost of utilities in Spain is up to 75% cheaper than in other European countries.
• Spain is a leading country in terms of renewable energy: Spain has already 50% of its energy from renewable sources and wants to reach 100% by 2050.
• Qualified labour at a low cost

All those will be big edges for Spain in the long term and could transform Spain into one of the biggest economic and industrial powerhouses in Europe.

The IMF shares our view and published in a November report that Spain’s Economic growth is projected to reach 4.6 per cent in 2022 and 1.2 per cent in 2023. This put Spain one of the top-growing country in Europe.

That is why we think that the real estate market in Spain will on one end suffer from less demand from Spaniards and foreigners due to the slower economic activity in Europe. But, on the other hand, if we compare the Spanish property market to international markets, if we see where it is now, under €1,800 per square meter, and if we add the short-term and long-term advantages of Spain, we think that the Spanish real estate market will stay stronger than the European average.

For real estate investors, as we don’t see inflation vanishing quickly mortgage rates are very competitive in this inflationary environment and indexation of rents to inflation could water down inflation effects (not 100% as those are limited by the government). But, that’s not bad in a difficult economic environment.

For more on mortgage financing, have a look at our article: “Fixed or variable mortgage for my Spanish home?“

The 2023 Spanish property market forecast from our local experts

We asked our partners to give some colours to their local property markets. This is very interesting as they have knowledge of the market and see daily what is going on. Here is the feedback on Madrid, the Costa Blanca, the Costa Daurada and the Canaries. This section will be updated later on if we get more feedback. You can find all our local Spanish property hunters members of our network by following the link.

The 2023 forecast for Madrid real estate market

We discussed this with Agnes one of our local property hunter in Madrid.

Are foreigners active in the real estate market in Madrid as of the end of 2022?

Foreign buyers, especially those who have their savings or incomes in USD, have increased their demand for both investment properties and second homes in Madrid, presumably because the EUR/USD exchange rate is very favourable for them right now, and mortgage rates are still lower in Spain than in the US.

Yes indeed, we pointed out this trend earlier on this year with Agnes: Americans are buying property in Madrid at a 20% discount.

Are Spaniards more or less active in Madrid?

National buyers who have enough savings for the downpayment have also shown an increased interest in completing their purchase this year, as it seems very likely that interest rates on mortgages will keep going up for some time, whilst decreases in prices of properties are not certain at all.

I believe that small investors who would be purchasing without a mortgage are cautious, holding off to see if there is really a recession next year and hoping they can get better deals in a few months than today.

What is the 2023 outlook for the Madrid property market?

On one hand, if mortgage rates keep increasing some buyers will not be able to buy, so part of the demand will decrease. On the other hand, if inflation rates are persistently high, people with savings will likely look towards the real estate market as a refuge, increasing demand for investment-oriented purchases. Price fluctuations will most likely not be consistent throughout neighbourhoods and property types. For example, unless there is a serious worldwide crisis, it seems unlikely prime properties’ prices will drop significantly because they might still be propped up by foreign demand and by national buyers with high purchasing power who are not stretching their budget to the limit and therefore are not so affected by higher mortgage rates.

The major risk is the “unknown” factor, such as when the covid pandemic appeared out of the blue: we don’t know what we don’t know! A possible positive surprise could be the inflation petering out sooner than expected.

Have a look at the full profile of our property hunter in Madrid Agnes here and check the last property she bought for her customers.

 

The Costa Brava 2023 real estate outlook

Séverine, our local property hunter in Costa Brava, gave her analysis on the Costa Brava.

What is the current activity on the property market in Costa Brava?

It is true that with the current climate, inflation, rising fuel prices, and the significant rise in interest rates, buyers want to know what the crisis in Spain really means. The crisis is undeniable and is disrupting the Spanish property market but in what way? It is quite heterogeneous depending on the type of product and the region. The big cities are particularly affected for purchases of main residences. On the other hand, the effects on the purchase of second homes are less noticeable, especially in areas that have always been in high demand, such as the Costa Brava and the Costa del Sol. We are writing this article in December 2022, and so far we have not seen any significant drop in prices. It is a very tight market due to the high demand and the limited number of properties on the market. The crisis is softening this contrast slightly, but prices are not falling and are tending to stabilise after the sharp increases post COVID (around +20% over a period of one and a half years).

What is the 2023 outlook for the property market in Costa Brava?

For 2023 we remain very confident about the market on the Costa Brava. With still a lot of demand from abroad, still mainly from Europeans, but also with the strength of the dollar, the return of Americans.

The latest purchase of Séverine in Costa Brava for one HTBIS customer?

Our latest sale is a very nice house in the chic area of s’Agaro located between Playa de aro and St feliu de Guixols. With a list price of 469,000 and a final price negotiated at 450,000 for a European family. This is a house located in a residence with few co-owners, with garden and swimming pool, ideally placed at 5 minutes walk from the beach and shops.

The objective for this family is to spend their holidays there but why not to live there in a few years. The search for a healthy and well-frequented neighbourhood was important!

Congratulations Séverine and team on this last deal, another happy customer of HTBIS. As we always say: a local property hunter means, a quicker process with fewer risks and savings.

Have a look at the full profile of Séverine our property hunter in Girona and the Costa Brava here and check the last property she bought for her customers.

Read more: the six reasons why working with a property hunter in Spain.

 

Find all our best Spanish Costas infographics: Costa Brava, Costa del Sol, Costa Blanca, Costa Barcelona, Balearic Islands, Canary Islands,…

The Costa Blanca 2023 real estate forecast

Valérie wrote this feedback, she is our local property hunter in Costa Blanca.

What is the current activity on the property market in Costa Blanca?

Economic crises do not always have the same impact on the property market. The Costa Blanca is a very popular area for Belgians and English speakers. This area, which stretches from Denia to Horadada, offers less expensive products than the Costa Brava or the Costa del sol. Its main airport in Elche, next to Alicante, provides direct connections from the main European airports, and its well-developed rail network with direct lines from Madrid ensures a continuous flow of traffic and a certain economic dynamism. The demand comes largely from foreign investors, mainly European, but its proximity to Madrid also generates domestic demand.

What is the 2023 outlook for the property market in Costa Blanca?

We expect the market to hold up. On the other hand, we believe that there may be opportunities in the new build sector. New developments (houses and flats), particularly in the south of Alicante, have reached a certain peak in recent years and we are therefore waiting to see the movements in this property sector where real opportunities will be available over the winter. These new buildings provide interesting energy certificates, which have become even more attractive since the energy crisis, and remain secure investments.

What is the current activity on the property market in Costa Dorada?

Before discussing the effects of the economic crisis and the outlook for 2023, it should be remembered that the Costa Dorada stretches from the south of Barcelona to the entire coast of the province of Tarragona. Unlike the Costa Brava or the Costa del Sol, it is frequented by a majority of urban Spaniards from Barcelona, Zaragoza or Madrid who have second homes there. Here the impact of the crisis will be felt more because a majority of Spaniards have borrowed at variable rates and the sudden and sharp increase in these rates will certainly push some owners to sell their second home in order to offset inflation.

What is the 2023 outlook for the property market in Costa Dorada?

This is a market that has been very popular during the covid and a drop in prices in this sector will be all the more welcome for future buyers.

The latest purchase of Sabine in Costa Dorada for one of Howtobuyinspain.com’s customers?

Our latest sale is in L’Ampolla, in the Ebro Delta. This is a less built up and wilder area than the south of Barcelona, but still only 1.5 hours from the main city. Our clients were looking for a house to buy and to invest in, and the search was not easy as many criteria were required. In the end we found them a house with a back to back aspect, 5 minutes walk from the beaches in a quiet and well frequented residential area, with 2 bedrooms. The house is in immaculate condition and therefore needs no work inside, and the low price will allow the new buyers to build a small swimming pool to maximise rental income next summer.

Why the Spanish property market will stay at the top spot for foreigners?

As foreigners are cash buyers 90% of the time, and even when they ask for a mortgage, most of the time it is a small part of the property’s value, so the increase in rates will have a smaller impact on foreigners but yes, foreigners will hesitate more before buying a property in a foreign country as the economic activity will be weaker in the short term.

Here are other positives that will keep foreigners active in 2023:

• Thanks to homeworking, a new major trend is active in any real estate market in the world: people leaving city centres for suburbs and second-tier cities. Relocate to Spain: Spain is one of the best countries in the world for relocating & working remotely
• Spain’s major cities compare very well with European major cities in terms of quality of life and cost of living. Discover the cheapest and most expensive cities to live in in Spain and compare them with any city in the world.
• Spain offers more space for less and so, it is easy for foreigners to upgrade from where they are now.
• All our partners, everywhere in Spain had a very busy year in 2022: lawyers, developers, property hunters,… It was really impressive.
• Spanish property prices remain very competitive vs other international markets.
• Mortgage rates remain cheap in Spain if you compare it to inflation, mortgages are much much lower and that means that it remains interesting to take a mortgage to hedge this inflation risk.

• Transactions’ volumes are strong in 2022 across all the Spanish local markets: rising by more than 20% getting back to pre-covid levels (and a little bit more).
• Activity was at the highest since 2007 and both Spaniards and foreigners are active, which means the trend is broad-based and not only in certain areas.
• Foreigners activity is back to the same levels it was “pre-Covid” era.
• Real estate market in Spain is strong: Have a look at our detailed quarterly report with all the prices’ evolution for the top 20 Spanish cities: Spanish quarterly property report.
• We note that the major cities are back to their pre-Covid levels: Barcelona, Madrid,…
• Second-tier Spanish cities all over Spain are rising the most while staying cheaper than the national average
• Inflation is rising everywhere in the world… This means that every day, currencies lose their value. So, one of the best hedges against inflation is holding “real assets”. There are not a lot of alternatives if you want to protect your savings against inflation. One other move could be for people to relocate towards Spain as Spain has a much lower cost of living (even more since the energy crisis).
• The rise in raw material prices has resulted in a more than 10% increase in production costs over the last two years. This will increase the prices of the new building developments and reduce supply in the long term.
• New build properties are not in oversupply: on the contrary, it remains under control and demand was strong in 2022.

The 2023 outlook from other real estate experts

• The bank of Spain predicts a return of 10% for the Spanish real estate market
• BBVA Research forecasts a slight contraction in home sales in 2023 and a 2% price increase in Spain. “BBVA Research prevé una ligera contracción de las ventas de vivienda en 2023 y un incremento del precio del 2% en España“
• ING predicts some weaker performance for the real estate market in Spain with a decrease of -3,4%, «el crecimiento real de los precios el próximo año será negativo (-3,4%)»
• Fitch, the credit rating company, foresees further growth between 2 and 4% for Spanish real estate in 2023. In fact, Fitch expects price increases for two countries in Europe in 2023: Spain and Italy.

How to find your ideal Spanish property?

We need to differentiate locals from foreigners.

Let’s start first with foreigners. Foreigners are searching either for a second home or a place to retire.

What are the property criteria demanded by foreigners in a post-Covid-19 world?

• close to the beach,
• maximum a one-hour drive from an airport,
• more rooms and a bigger property as foreigners will be more often at their second home,
• some private outside space: terrace, garden, a pool,
• close to sports and children’s facilities,
• restaurants and shops nearby,
• a nice view,
• not too far from the city centre, but not inside!

Discover newbuild properties meeting those criteria from our partners or ask one of our property hunters to search for your dream property anywhere in Spain, we have a local hunter!

Have a look at our interesting articles on the subject: Our ultimate guide to buying your property in Spain is our major guide on the subject but you can find dedicated articles as well:

• Where are the best places to buy a property in Spain?
• The best search tips for buying your Spanish property
• The 7 pitfalls of buying a property in Spain and how to save on your property purchase
• Buying your holiday home in Spain? Get our 40 tips
• Your ideal investment property in Spain: 58 tips to find it
• The best 44 tips for finding your ideal home to retire to Spain

Looking for a local property hunter, a local lawyer, … any real estate expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FAQ on the subject

The post Spanish real estate outlook 2023 appeared first on How to buy in Spain.

Your definitive guide to your Spanish mortgage

How to get the best rates?

Many foreigners think that because it is a second home and that because they are not Spanish that they can’t get a mortgage. In fact you can get a mortgage but they are certain rules we will explain so that you get all our tips before applying. Thanks to those tips and our partners, you will get the best rates available on the market.

Here is the table of content of this extended article, don’t hesitate to jump directly to the desired section.

Have a quick look at our 2-minutes 30 seconds video if you prefer videos, otherwise continue reading.


 

1. 1. How much can you borrow for your 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. We call this the “Loan to Value” (LTV: i.e.: the amount of mortgage you can get divided by the value of your property before tax), but this % is only for good inquiry. This means that you would need to invest at least
      45% of the property value with your own pocket.

      How did we found this percentage? 45% = 100% + 15% costs for buying the property – 70% of mortgage!

      If you go for a LTV lower than 60%, most of the time, the bank will show more flexibility. In 2016, Mortgages issued in Spain had a LTV of 64% and only 15% had a LTV higher than 80%. Have a look at our table with up to date information on Returns, mortgages and short term and long term rates on the Spanish market.

      If you read our article on bank properties for sale in Spain, you will be aware that there could be exceptions to this… if you buy a property from a bank… 😉

       

   2. What are the documents requested for a Spanish mortgage?

      • Your Passport / ID for all the applicants
      • Your NIE: “Número de identificación fiscal para extranjeros”
        or Foreign Resident’s Tax Number. How to 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 incomes/Contract
        • If pensioners: Official proof of annual income.
      • A view on your assets and debts
      • If it’s a new building: the “Deed for new building”
      • The private sale-purchase contract
      • If you have a mortgage at home, land registry information on the property and the mortgage

       

   3. What are the different steps of the application process for your Spanish Mortgage?

      1. Set-up the credit profile of the customer and fill the mortgage request (see section 2)
      2. Formal pre-approval of the mortgage by the bank risk department
      3. Sending of the mortgage offer to the customer
      4. Opening of bank account if the offer is accepted.
      5. The client must send an appraisal provision.
      6. The bank orders the valuation of the property and gets the approval of the mortgage.
      7. Sending of the official mortgage offer.
      8. The bank arranges completion with the client or legal representative in Spain.

       

   4. Which customers will get the best mortgage rates?

      You have to ask yourself this question: What is the ideal customer for a bank?The bank will take a risk, the risk of not being repaid and in this case the bank will need to take legal action to control your property and will sell it afterwards on the market. We saw what happened after the financial crisis of 2008: thousands of properties finished in the hands of the banks as owners couldn’t pay their mortgages.

      The ideal customer for a bank:

      • has good professional profile: he is employed and has a stable nice income stream,
      • has a good credit report, he has not too many debts vs his income,
      • can afford to have debts: his debt to income ratio is under 35 %, which means that his monthly net income is 3 times bigger than his monthly debts repayments,
      • the property has a good resale value:
        1. the property price is correct vs the market
        2. there is demand in the market for such a property
      • is coming from an OECD countries, as you know, with anti-laundering laws that came into effect all over Europe, it is very difficult for banks to give a loan to resident of certain countries. Of course, if you are a resident of the European Union, it will be the easiest.

       

   5. How to get the best rate on your Spanish mortgage as a foreigner?

      At howtobuyinSpain.com, you are in good hands, we work with a mortgage broker (read next item for more on that) who asks the best mortgage prices to all the Spanish banks. Depending on your profile, certain banks will be more aggressive and others won’t be.Our mortgage partner, knows that and they will go to the best bank, or will ask quotes to many Spanish banks in order to get you the best quote. They work with all the biggest Spanish banks: BBVA, Bankia, Santander,…

       

      Click on the image bellow and fill the quick form in order to get a free mortgage quote.

       

      

      Get the best mortgage rate in Spain

       

   6. What is a mortgage broker?

      A mortgage broker is a financial professional who is helping their clients to find a home loan.

      The role of the mortgage broker is to assist the home buyer with the application process.

      • Gather information about the client’s need regarding his home loan
      • Help to create the financial profile of the customer
      • Help to establish the customer borrowing capacity
      • Gather information from banks about mortgage conditions
      • Suggest the best borrowing options according to his profile
      • Match the customer needs with the best corresponding bank products

       

   7. Why a mortgage broker will get you the best mortgage quote?

      You don’t have to work with a mortgage broker, you can directly ask a mortgage to a bank but there are many advantages of working with a mortgage broker:

      • He has the knowledge and the expertise
      • He works with many banks
      • He knows which banks will have the best offers according to your financial profile/project
      • He knows which banks are most aggressive at a certain time
      • He knows which banks are most active in a certain region
      • He will manage the process and the paperwork
      • He will improve the odds of your mortgage request being approved if your profile is close to the “no go”
      • He knows the Spanish regulation
      • He speaks your language,… you don’t need to speak Spanish
      • One contact… many bank offers…

       

   8. What rate should you take for your mortgage? Variable or Fixed?

      There are a wide range of mortgages available

      Most of the banks provide a wide range of mortgage: variable, mixed and fixed rate. Due to the current rate environment, with short-term rates, Euribor, close to 0% and long-term rates very low, borrowers are taking the opportunity to get long-term rates at fixed prices. Before more than 90% of mortgages were issued as variable, nowadays this percentage is lower and 60% of the newly issued mortgages are issued with variable rates while 30% of newly issued mortgages are issued with fixed rates.

       

      

      Read or detailed article on that subject: How do I choose between fixed and variable rates for a mortgage?

       

   9. What are the current mortgages conditions in Spain?

      Check our article update monthly with the most recent mortgage interest rates in Spain.

      • Mortgage cost in Spain: newly mortgages issued have an interest rate of 2.53%
      • Duration of mortgages in Spain: an average length of 25 years.
      • Loan to Value on new Spanish mortgage loans: 65% on average
      • Percent of newly issued mortgages in Spain with a Loan to Value higher than 80%: 10%
      • Average size of the newly issued mortgages in Spain: € 138,000
      • Average monthly mortgage cost in Spain per €100.000: €410

      Updated as of November 2021

      Please note that the mortgage cost is an average. In general, foreigners will get higher rates due to the fact that their assets and incomes are not in Spain but in their home country.

      It is always interesting to check the financing conditions for banks:

      • 10 Year Bonds: 0.5%
      • Euribor 1 Year: -0.5%

      You can always find all those data up to date on our table: “Returns and mortgage rates in Spain“

       

   10. Check our ultimate mortgage calculator to price your own mortgage

       and you will be able to calculate everything for your personal project:

       • What are your monthly payments?
       • What is your mortgage schedule?
       • What is your maximum property budget?
       • How much mortgage can I afford in my Spanish home?
       • How much money do I need to buy my Spanish second home?
       • What is the minimum down payment you will need to have to buy your Spanish property?

        

       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 a mortgage of €100.000 on 10-year with a rate of 3.5%, your monthly payment to reimburse your mortgage will be €989.

       Thanks to our Spanish mortgage rate calculator, you can change any number and calculate your monthly reimbursments depending on your own situation.

        

       Summary table of your monthly reimbursements for a €100.000 Mortgage

       €100,000	10 Year	12 Year	14 Year	16 Year	18 Year	20 Year
       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

        

        

       

       We developed a detailed mortgage calculator: Payment schedule, monthly payments,…

        

   11. What are your real estate investment returns in Spain?

       As of November 2021

       • Spanish real estate estimated Profitability (Gross rent + capital gain): +7.9%
       • Gross rental income in Spain: +3.7%
       • Real estate capital gain in Spain – Bank of Spain estimation: +4.2%
         

       • Average mortgage cost in Spain: newly mortgages issued have an interest rate of 2.55%

        

       You can always find all those data up to date on our table: “Returns and mortgage rates in Spain” and read our last article on the subject: “What is your return on your real estate investment in Spain?“

        

   12. What is the activity on the Spanish mortgage market in 2020?

       333.721 mortgages issued in 2020

       In 2020, 333.721 mortgages were issued. This is a 7.6% decrease vs 2019. You should compare that to the number of properties sold in 2020 of 487.000, which means, in our opinion, that the market is not over leveraged. Have a quick look at the table for statistics since 2014. Yes we are far from the high leverage situation we had in 2007.

       Follow this link to read our detailed article on the mortgage activity in Spain.

        

   13. Are you buying a property in Spain as an investment?

       Buy to let?

       Our best tip: Don’t forget to take the mortgage when you buy, not after, if you want to reduce the taxes on your rental income thanks to your mortgages costs. So, taking a mortgage will increase your net yield. Of course, take only a mortgage that you could afford even if you have financial problems.

        

   14. Looking for a qualitative new build project from reliable developers?

       Discover the best new build projects in Spain available right now

       New build for sale in Spain € 320,000

       2 beds 1 bath 61.3 m²

       New build for sale in Spain € 313,000

       2 beds 2 baths 61.3 m²

       New build for sale in Spain € 540,000

       3 beds 3 baths 191 m²

       New build for sale in Spain € 520,000

       3 beds 2 baths 109 m²

       New build for sale in Spain € 345,000

       2 beds 2 baths 97 m²

       New build for sale in Spain € 435,000

       3 beds 2 baths 114 m²

       New build for sale in Spain € 350,000

       3 beds 2 baths 106 m²

       New build for sale in Spain € 273,000

       2 beds 2 baths 83 m²

       New build for sale in Spain € 368,000

       3 beds 2 baths 103 m²

       New build for sale in Spain € 315,000

       2 beds 2 baths 90 m²

       New build for sale in Spain € 245,000

       2 beds 2 baths 83 m²

       New build for sale in Spain € 335,000

       3 beds 2 baths 98 m²

       New build for sale in Spain € 250,000

       2 beds 2 baths 90 m²

       New build for sale in Spain € 420,000

       2 beds 2 baths 81.7 m²

       New build for sale in Spain € 475,000

       3 beds 2 baths 101.9 m²

       New build for sale in Spain € 490,000

       3 beds 2 baths 119.8 m²

       New build for sale in Spain € 540,000

       3 beds 2 baths 129.2 m²

       New build for sale in Spain € 530,000

       3 beds 2 baths 106.9 m²

       New build for sale in Spain € 370,000

       2 beds 2 baths 88.9 m²

       New build for sale in Spain € 440,000

       3 beds 2 baths 106.9 m²

       New build for sale in Spain € 367,000

       3 beds 3 baths 177 m²

       New build for sale in Spain € 262,000

       3 beds 2 baths 84 m²

       New build for sale in Spain € 242,000

       2 beds 2 baths 72 m²

       New build for sale in Spain € 277,000

       2 beds 2 baths 73 m²

       New build for sale in Spain € 255,000

       3 beds 2 baths 85 m²

       New build for sale in Spain € 220,000

       2 beds 2 baths 71 m²

       New build for sale in Spain € 240,000

       2 beds 2 baths 80 m²

       New build for sale in Spain € 280,000

       3 beds 2 baths 88 m²

       New build for sale in Spain € 585,000

       3 beds 3 baths 162 m²

       New build for sale in Spain € 348,000

       3 beds 2 baths 220 m²

       New build for sale in Spain € 355,000

       3 beds 2 baths 100 m²

       New build for sale in Spain € 385,000

       2 beds 2 baths 76 m²

       New build for sale in Spain € 325,000

       3 beds 2 baths 97 m²

       New build for sale in Spain € 269,000

       2 beds 2 baths 81 m²

       New build for sale in Spain € 631,000

       3 beds 2 baths 123 m²

       New build for sale in Spain € 345,000

       2 beds 2 baths 154 m²

       New build for sale in Spain € 430,000

       3 beds 2 baths 116 m²

       New build for sale in Spain € 730,000

       3 beds 2 baths 149 m²

       New build for sale in Spain € 529,000

       3 beds 2 baths 133 m²

       New build for sale in Spain € 319,000

       2 beds 2 baths 87 m²

    

   Our other resources on that subject

   1. 1. • • • Check our article with the last update on the best mortgage rates in Spain, with the official statistics from the INE, the Spanish statistic office.
             • Our ultimate mortgage calculator
             • If you want to find a bank in Spain, the 3 biggest are: Santander, BBVA, Bankia / Caixabank and here is the official list from the bank of Spain with all the financial registered institutions.
             • 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?
             • Check our 8 legal steps to your Spanish property.

    

    

   

    

   FAQ on mortgages in Spain

   Can I get a Spanish mortgage?

   It is very easy to get a mortgage in Spain. What are the documents requested?

   1.Your Passport / ID for all the applicants

   2. Your NIE: “Número de identificación fiscal para extranjeros” or Foreign Resident’s Tax Number.

   3. Last 3 paychecks with the contract of employment Proof of incomes/Contract

   4. A view on your assets and debts

   5. If it’s a new building: the “Deed for new building”

   6. The private sale-purchase contract

   7. If you have a mortgage at home, land registry information on the property and the mortgage

   8. If pensioners: Official proof of annual income.

    

   Read our detailed article on that

   Can foreigners get a mortgage in Spain?

   Yes, foreigners can get a mortgage up to 70% of the Value of a property.

   How long does it take to get a Spanish mortgage?

   About 6 weeks. Although, we have to say that since the new law got into effect in August 2019, there is a new 'cooling-off' period of 10 days, so this increases a little bit the timing for getting a mortgage.

   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.

   How much can I borrow for a mortgage in Spain?

   For your second residence and as a non-fiscal resident, a bank will finance no more than 70 % of the value of your property. If you include 15% of costs, this means that you would need to invest at least 45% of the property value with your own pocket.

   What are the costs of buying a house in Spain?

   The cost of buying a resale or a newbuild in Spain is between 12 and 15%. Please read our full article on that subject.

   What is the interest rate in Spain?

   As of October 2019, the average mortgage has an interest rate of 2.50% (vs 2.51% last month). The lowest rate ever is the current rate 2.50%! Read our dedicated article on that subject with the last available data.

    

    

   Looking for a mortgage? A lawyer? A property hunter in Spain? Ask us directly, we have a solution within our network!

   

    

    

    

    

    

   Stéphane

   Senior analyst and strategist at HTBIS

   Check the full HTBIS team here

The post The Ultimate Spanish Mortgage Guide: Learn how to apply and secure the best rates appeared first on How to buy in Spain.

Where are foreigners buying properties in Spain in 2022?

Which nationalities are active? Are they residents or not? Which nationalities are buying Real Estate in Spain? What price do they pay?

Europeans are buying properties in Spain as never: 137,000 properties bought by foreigners. Of course, we see many Europeans active as usual and the United Kingdom is still the first country to buy properties in Spain. A new trend is that we see foreigners coming from further: Latin America with Argentina and Venezuela, America and China are there too. Americans are benefitting from a steep discount: the euro is cheaper by 20% in 2022 vs the dollar.

A quick reminder before starting this interesting subject, please remember that if you want to buy a property in Spain, you need an NIE number, read our detailed article for more information: Your ultimate guide to your Spain NIE number – NIE Spain. Another interesting article we would recommend: How to buy a property in Spain as a foreigner? At Howtobuyinspain.com we have the best experts in our network to assist you everywhere in Spain. As you will see in this article, we have the best tools and database to know where the market is and what are the trends. Thanks to that, we help our customers to make the best deals in Spain.

As for all our articles, in this article, you will find interactive charts showing detailed data with a mouse click on it and we have static charts available for download. Please note that our interactive charts have always the most recent data as they are linked to our databases. Of course, our static charts are regularly updated.

1. Which nationalities are buying properties in Spain?

The Statistical Information Center of Notaries in Spain has just released its last report on Foreigners’ activity in the property market.

What was the activity in the Spanish real estate market up to June 2022?

• 703,331 property transactions for the last 12 months: +18% yearly growth
• property activity by Spaniards increased by 13% year-on-year to 562,956
• property activity by foreign buyers increased by 47% year-on-year to 136,921
• This equals 19% of all the property transactions that occurred in Spain.
• 45% of the transactions were carried out by non-resident foreigners and 55% by foreigners living in Spain!

Spaniards and Foreigners are very active: both are buying the most since 2008:

Quarterly statistics of the “Ministerio de Fomento”.

Which are the most active nationalities within the EU buying properties in Spain?

For the last 12 months to the end of June 2022, the most active nationalities were :

• the British with 11.2% of the property purchased by foreigners in Spain,
• the Germans with 10.3% of the property purchased by foreigners in Spain,
• the French with 8% of the property purchased by foreigners in Spain,
• the Romanians with 6.7% of the property purchased by foreigners in Spain,
• the Italians with 5.9% of the property purchased by foreigners in Spain,
• the Belgians with 5.2% of the property purchased by foreigners in Spain,
• the Dutch with 4.9% of the property purchased by foreigners in Spain,
• and the Swedish with 4.2% of the property purchased by foreigners in Spain,

Check our foreigners’ profiles and buyers guides: What are the ideal Spanish properties for Belgians Chinese Dutch English French Germans Italians Moroccans
Romanians Russians Swedish?

Discover the best new build projects in Spain available right now

Most active nationalities outside the EU buying real estate in Spain

The proportion of purchases was also high by foreigners outside the EU:

such as Morocco (7.7%), China (2.6%) or Russia (2%), America (1.6%) and other countries outside the EU 11.2%

If you want to live in Spain, have a quick check at our interesting article on the Golden Visa: Golden Visa in Spain: Your ultimate guide!

Don’t forget to hedge your currency smartly if you are buying from outside the European zone.

Here you go, a quick check of all the nationalities:

Here is the same info reproduced with a pie chart:

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are buying more properties during the last 12 months to June 2022?

Of course, Europeans are very active in the property market in Spain. Most Europeans come from northern countries. A more recent trend we noticed at howtobuyinSpain in 2022 with many new customers flowing in: Americans are buying actively everywhere in Spain, thanks to the weak Euro vs Dollar. Yes, the Euro lost 20% this year, not bad for Americans looking for bargains. Have a look at our paper written by our property hunter in Madrid for more on that: Americans are buying properties in Madrid.

Here are the countries increasing the most their property purchases in Spain in 2022 vs 2021 (last 12 months to June):

• Netherlands +101%
• Germany +81%
• Ireland +95%
• Norway +72%
• Denmark +70%
• USA +69%
• Sweden +66%
• Switzerland +62%
• Argentina +45%
• France +41%
• Belgium +36%
• UK +36%
• China +31%

Source: Centro de Información Estadística del Notariado de Espana

Which nationalities are less active during the last 12 months to June 2022?

All countries have a positive growth

Here is the evolution of the purchases done by each nationality since 2008

This was the situation end of 2016 when we wrote this article for the first time: we keep the same top 3 nations.

Foreigners living in Spain are more active

• Foreigners living in Spain recorded 74,643 operations, 26% more than one year before.
• Non-resident foreigners bought 62,278 properties, an increase of 84% year-on-year.

This is quite a strong vote of confidence by foreigners living in Spain! Of course, they work there and it is easier for them to buy than non-resident foreigners. Covid had its impacts: people wanted to remote work from a nice place if they could: Spain is a nice option. Others wanted to enjoy a better quality of life: more space, more sun, a better quality of life… while of course, the cost of living in Spain is much lower than in many places in the world and in Europe. For more on that, read our articles: Which are the cheapest cities to live in Spain? The cost of living in Spain vs the UK, Relocate to Spain? Spain is one of the best countries in the world for relocating and for working remotely.

1. Best Professionals 2. Follow up 3. Competitive pricing 4. Partners 5. Qualitative Check

Check our chart analyzing who is more active in the Spanish property market: Foreigners or Spaniards with the evolution since 2007 (the year before the crisis):

2. Where are foreigners buying properties in Spain?

What are the main regions in Spain where foreigners are buying real estate?

Same info in a downloadable format:

Source: Centro de Información Estadística del Notariado de Espana

What is the evolution of each region in Spain during the last 12 months to June 2022?

Check the property transaction growth for each region in Red (right scale) with the number of transactions in Blue (left scale)

Most active regions – The biggest activity of foreigners vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the Autonomous Communities with a greater weight of foreigners’ transactions vs Spaniards in the fourth quarter of 2021 are

• The Balearic Islands with 39% of all transactions,
• The Canary Islands with 26% of all transactions,
• The Valencian Community with 24% of all transactions,
• Murcia with 17% of all transactions,
• and Andalusia with 13% of all transactions.

Check our interactive chart on that:

Most active cities where foreigners are buying the most real estate in Spain vs Spaniards?

According to the “Colegio de Registradores de la Propiedad”, the cities where foreigners are the most active (vs Spaniards) in the fourth quarter of 2021 are:

• Alicante
• The Balearic Islands
• Malaga
• Tenerife
• Girona
• Murcia
• Almeria
• Las Palmas
• Castellon
• Tarragona
• Barcelona
• Lleida
• Valencia

Check our interactive chart on that:

Source

Which Spanish regions are the most popular for which nationalities?

We did the ranking for the 12 most active countries in Spain.

Check the evolution of the foreigners’ activity per region since 2007:

Remember the infographic we did on the subject last year, it remains nearly the same in 2018!

3. What price do foreigners pay to buy a property in Spain?

Check the evolution of the price paid for each Spanish region since 2007 by foreigners:

The average price per square meter of properties bought in Spain by foreigners increased by 2% year-on-year to June 2022. The acceleration of real estate prices was recorded both among property transactions done by non-residents and by residents, although the former paid higher prices than the second ones, € 2,522/ m² against € 1,622 / m², respectively (with an average of € 2,062/ m²)

This price discrepancy between foreigners living in Spain and not living in Spain could come from many factors:

• Non-residents are buying top-notch second homes in more expensive locations: expensive cities and premium areas with sea views and large terraces for instance. They are going for the best properties on the market.
• Non-residents who are buying a second home in Spain are wealthy and have a higher budget from start.
• Non-residents are buying newbuild properties in Spain and newbuild properties are more expensive than resale,
• Some new “resident foreigners” relocate to Spain because of the high quality of life in Spain and the low cost of real estate in Spain. So they are looking to start a new life they can afford and will go for low-cost properties inland. Read more on that in our article: Which are the most expensive and cheapest cities to live in Spain?

You can check the evolution of the price per square m paid by foreigners (resident or not in Spain) and Spaniards (resident or not in Spain) since December 2007 (the year before the crisis) on this chart:

In terms of levels, the average price per square meter paid by foreigners continued to register strong differences between each region. End of June 2022, it was below the national average
of € 1,741 in 12 of the 17 Regions. Please note that the average paid per square meter by foreigners is € 2,062.

Regions under €1,000:

Extremadura, Castilla-La Mancha, La Rioja, Castilla y León, Aragón and Galicia.

Regions between € 1,000 and the national average paid by foreigners for real estate €1,741

Murcia, Asturias, Navarra, Cantabria and the Valencian Community

Regions above the national average for properties in Spain € 1,741

• The Canary Islands €2,195,
• Catalonia €2,249,
• Basque Country €2,230,
• Madrid €2,893,
• and Baleares €3,894.

Interestingly, all those regions are areas of interest to foreigners apart from the Basque Country, a region much appreciated by the French.

Let’s have a closer look at current property prices (value written in Blue on the chart) and at the price evolution (left scale) for each Spanish region for one year. The regions are Alphabetically sorted.

As you can see from the chart we just showed: prices are increasing everywhere.

Spanish regions with the fastest increasing prices over the last year to June 2022

Spanish regions with decreasing prices over the last year

• None

If you want to read more on the subject and you missed our paper of last semester: Which are the top 10 Spanish cities where foreigners are buying properties NOW? And don’t miss our property buyers guide written for any foreign country.

Source: Read the full paper in Spanish here.

Who are the foreigners paying the most in Spain for their properties?

As of June 2022, here is our alphabetical ranking of real estate prices paid by foreigners in Spain:

• People from Argentina pay on average 1759 € per square meter for their properties in Spain.
• People from Belgium pay on average 2104 € per square meter for their properties in Spain.
• People from China pay on average 1741 € per square meter for their properties in Spain.
• People from Denmark pay on average 2870 € per square meter for their properties in Spain.
• People from Ecuador pay on average 1198 € per square meter for their properties in Spain.
• People from France pay on average 2149 € per square meter for their properties in Spain.
• People from Germany pay on average 2657 € per square meter for their properties in Spain.
• People from Ireland pay on average 2092 € per square meter for their properties in Spain.
• People from Italy pay on average 2103 € per square meter for their properties in Spain.
• People from Morocco pay on average 694 € per square meter for their properties in Spain.
• People from the Netherlands pay on average 2252 € per square meter for their properties in Spain.
• People from Norway pay on average 2701 € per square meter for their properties in Spain.
• People from other countries in EU pay on average 2148 € per square meter for their properties in Spain.
• People from other countries in the world (outside EU) pay on average 2015 € per square meter for their properties in Spain.
• People from Portugal pay on average 1782 € per square meter for their properties in Spain.
• People from Romania pay on average 1097 € per square meter for their properties in Spain.
• People from Russia pay on average 1989 € per square meter for their properties in Spain.
• People from Sweden pay on average 2701 € per square meter for their properties in Spain.
• People from Switzerland pay on average 2567 € per square meter for their properties in Spain.
• People from the UK pay on average 2003 € per square meter for their properties in Spain.
• People from Ukraine pay on average 1612 € per square meter for their properties in Spain.
• People from the USA pay on average 2837 € per square meter for their properties in Spain.

Here is our downloadable infographic on that:

Source: Centro de Información Estadística del Notariado de Espana

Of course, there are many reasons to explain those differences:

• The region where those nationalities are buying on average,
• The location of the property: sea view? countryside? within a city?
• The type of properties: villa or apartment, newbuild or resale, with terrace or plot or not,…

So, those are just “statistics” but they are interesting as price discrepancies between foreigners are quite big when foreigners buy properties in Spain.

4. How to start your property search in Spain?

Here is our A to Z must-read guide: Our ultimate 2023 guide to buying your property in Spain.

At HTBIS, we assist foreigners with their property search in Spain thanks to our network of local partners: legal advisers, tax advisers, property hunters and much more. Discover all our partners here.

Looking for an expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FAQ

The post Where are foreigners buying properties in Spain in 2023? 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 pay in £,$,¥ Pounds, Dollars, Francs, Yuan for my € Spanish property?

How to transfer my cash efficiently to Spain?

 

Many foreigners: British, Canadian, American, Swiss, Israeli, Moroccan, Chinese, Russian, have a different currency at home than the Euro

 

Long term, it is a very good diversification strategy to have some assets like real estate in another country, and furthermore in another currency, than in your home country.

Most of your assets are in your home country but:

• Economic cycle is different in Spain than in your home country
• Inflation is different in Spain than in your home country
• Monetary policies are different in Spain than in your home country
• Euro is used by more than 300m people in Europe

 

 

In order to help you check the long-term evolution of the main currencies against Euro, we have created a table with up to date Sterling, Ruble, Swedish Krona, Norwegian Krone, Dollar, Yuan and Shekel long-term evolution against Euro.

Check what happened to the Sterling after the Brexit vote in 2016. For sure, the British who bought some properties in Spain before the Brexit vote were pleased of that diversification.

If you are buying a property in Spain, in the short term, this means that you will have some currency volatility and some costs to cover if you are investing from outside the EU zone. Have a look at this paper on why currencies are volatile and how you can manage it.

In 2021, about 15% of the properties bought by foreigners in Spain are bought by the British.

After feeling the effect of the Brexit vote that happened on the 23rd of June 2016, British were less active on the Spanish real estate market and the pound lost 10% of its value vs the Euro, Check a chart on the Sterling evolution vs Euro here from Reuters. Of course, in 2020, activity was much lower due to Covid. But end of 2021, activity was really strong. Anyway, they remain by far the first nationality in terms of purchases done by any foreign country.

Foreigners are buying their property in Euro while having their home currency in their bank account.

 

Book your free appointment with the currency hedging specialist

 

What are the solutions for foreigners buying real estate in Euro with a different home currency?

1. Ask their bank to exchange their home currency into euro and to transfer the funds to Spain
2. Benefit from lower exchange rates thanks to the online platforms like Currencytransfer.com to convert their home currency into Euro and to transfer the funds to Spain

 

HowtobuyinSpain negotiated with them so that customers get a preferred rate for their property purchases.

 

What are the biggest advantages of the later?

• No commission system, much lower final cost than with a bank taking a commission for converting your currency into Euro AND for wiring the funds to Spain
• No hidden fees: the exchange rate includes a small margin form mid-bank rate
• Get the best price available at any time on the market: Many well-known FCA regulated currency providers compete for the flow
• Segregated account: your money is on a transit account bearing your name of a FCA regulated currency entity, it is never on the balance sheet of the platform itself.
• Transfer the correct amount in the local currency
• A dedicated relationship manager will help you out to manage your hedging the most efficiently as corporations do.
• You can instruct your Relationship Manager to wait for your precise exchange rate, (to gain more or to lose less)
• If your account is open, you can lock a rate once your account is open and transfer the money after

 

 

Why Currencytransfer?

For all the foreigners looking to buy with non-Euro currencies as Sterling, American Dollar, Canadian Dollar, Shekel, Yuan, Ruble, Swedish Krona, Norwegian Krone and other Asian currencies,… when you are buying a property in Euros, you will need to exchange your currency into Euros and transfer the money to buy your property. Most of the time, this involves huge bank costs: up to 5% and mostly close to 3%.

Have a look at our partner based in London: Currencytransfer.com! We have negotiated with them the best service and the best rates for our customers. They take a very low commission rate and transfer the funds without any costs. You can create your account for free and lock your exchange rate into Euros even before wiring funds with your local currency. Have a look at their website and don’t forget to mention “HTBIS” in the field “Where did you hear about us?” to get the best rates we negotiated with them for the members of our network.

Ask our partner what is the most efficient strategy to hedge your currency risk

How does it work in practice?

1. Open your free account on Currencytransfer.com and mention HTBIS code in the field “Where did you hear about us” to get the best rates,
2. Lock an exchange rate between your local currency and Euro (or instruct a threshold exchange rate to be traded later)
3. Wire the funds in your local currency on your segregated account in a top tier bank
4. Receive the funds in Euro on your account in Spain, on the account of your lawyer,…

 

Let’s have a look at an example of trade with CurrencyTransfer.com

Let’s say you’re a British looking to purchase your second home in Spain at a cost of €200,000.

• • STEP 1 You book a deal on the CurrencyTransfer platform to buy €200,000 at an exchange rate of €/£ 0.8800. This will cost you £176,000.
  • STEP 2 Behind the scenes, your selected FCA payment provider buys €200,000 from one of its market counterparties to ensure they have funds available to honour your deal.
  • STEP 3 The next step is to pay your winning payment provider the £176,000. You pay this directly to their Segregated Client Account. These are all secure, separate client accounts, held with stable, tier-1 banks (such as Barclays or RBS). This ensures that your money is safe from any business liabilities that the payment provider could be affected by.
  • STEP 4 With your payment of £176,000 now safe in the payment provider’s Segregated Client Account, the broker now needs to pay the €200,000 that you booked across to your Spanish lawyer, notary or even your own Spanish account on the date that you have chosen.
  • FINISH Once the payment has been delivered to the beneficiary the transaction is complete

 

As of January 2022, here is the business update from Currencytransfer

• • Clients: 6,500+
  • Currencies: 28
  • Value of the currencies exchanged by the group since start: more than £3 bn
  • *Average saving: £1,260
  • Proud to have saved our clients over £15 million in hidden currency fees

 

 

Other uses? Transfer cash (minimum €10.000) to relatives everywhere around the world.

 

Looking for a lawyer, an architect, a property hunter in Spain? Ask us directly!

 

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FOLLOW US

[insert_php]
echo get_scp_widget();
[/insert_php]

SHARE with the colour icons at the bottom of your screen

The post How to pay in £,$,¥ Pounds, Dollars, Francs, Yuan for my Spanish property? appeared first on How to buy in Spain.

Spanish real estate outlook 2022

Don’t miss our Spanish real estate outlook 2023, it is just out and it will give you a better analysis than this article written one year ago.

The positive of this Covid crisis is that people want, more than ever, to spend their time efficiently and live the life they want… No more lost time. As Confucius said: “We have two lives, and the second begins when we realize we only have one.” So, Let’s go back to “The” essential: Yourself! Because you are at the centre of your life: whatever your pursuit is! Have a look at our detailed article for more on that. We stopped as well to study what experts are telling us about happiness: Your 7 positive life changes after the Coronavirus.

Last but not least, due to Covid, we all had this feeling of losing liberty. We all want to get it back and enjoy life 300%, don’t we?

In this environment, Spain has a lot to offer to Spaniards, foreigners and remote workers: a high quality of life. Actually, Spain is one of the best places to relocate and work remotely thanks to 320 days of sun and of course the cheap cost of living in Spain.

We are optimistic about the outlook for the real estate market in Spain in 2022. While we have to admit that the comeback of the Spanish real estate market (and everywhere in the world) was quicker and stronger than we expected. But if we compare it to international markets, the rise is reasonable and not speculative.

Why are we optimistic about Spanish property prices in 2022?

We observe a very healthy market: property prices are rising not too aggressively because we have a lot of activity spread everywhere in Spain:

everyone, according to their own financial means, will try to improve their living conditions.

Both Spaniards and foreigners want to improve their daily life in the current environment:

get a better home: more space inside and outside and more light, and for those who can afford it, buying a second home outside city centres and with a nice weather (foreigners) is ideal to relax once work is done, or even better, why not work from my second home?

That is why we are optimistic for 2022: everybody is active to improve his own living conditions: people with high-end budgets go for more space either in cities or outside city centres and by doing so they allow others with smaller budgets to do the same… and so on to the small apartments in the city centres.

So, our view is that prices could surprise on the upside and rise between 3% and 6%!

Many positive elements for the Spanish real estate market in 2022

• Thanks to homeworking, a new major trend is active on any real estate market in the world: people leaving city centres for suburbs and second tier cities.
• Anyone will try to upgrade for more space even if they can’t leave or don’t want to leave city centres.
• All our partners, everywhere in Spain had a very busy year in 2021: lawyers, developers, property hunters,… It was really impressive.
• Spanish property prices remain very competitive vs other international markets.
• Mortgage rates remain cheap in Spain.

• Transactions’ volumes are strong in 2021 across all the Spanish local markets: rising by more than 20%, of course, 2020 was a weak year due to Covid, so 2021 getting back to pre-covid levels (and a little bit more).
• Activity is spiking mostly from Spaniards, which means the trend is broad-based and not only in certain areas.
• Foreigners are getting back but are far less active than “pre-Covid” era.
• Real estate market in Spain strong: Have a look at our detailed quarterly report with all the prices’ evolution for the top 20 Spanish cities: Spanish property rose by 2,6% over the last 12 months to September 2021
• We note that the major cities are back to their pre-Covid levels: Barcelona, Madrid,…
• Second tier Spanish cities all over Spain are rising the most while staying cheaper than the national average: Málaga +7,6%, Almería +5,6%, Huelva + 5,1%, Tarragona +4,9%, the Balearic Islands +4,8%, Alicante +4,6%, Sevilla +3,9%, Bizkaia +3,9%, Cádiz +3,9%: this means that the rise is spread over all the Spain.
• Inflation is rising everywhere in the world… This means that every day, currencies lose their value. So, one of the best hedges against inflation is holding “real assets”. There are not a lot of alternatives if you want to protect your savings against inflation.
• The rise in raw material prices has resulted in a 5 to 10% increase in production costs. This will increase the prices of the new building developments.
• New build properties do not oversupply the market for the time being, on the contrary, it remains under control and on the weak side vs demand.

What are the current experts forecasts for the Spanish property market?

• The bank of Spain predicts a return of 7% for the Spanish real estate market
• The Spanish real estate market should remain strong according to El Economista as European real estate markets are strong, +8% up to Q4 2021, and back above 2007 levels, El precio de la vivienda subirá al mayor ritmo en 30 años en la Eurozona, El Economista
• The price is going to rise by 10% and sales by 15% in 2022, estimates Gonzalo Bernardos, professor and director of the Real Estate Master’s programme at the University of Barcelona.
• CaixaBank wrote in its 2020 interesting research that: according to the Bank of Spain’s own estimates, the price of housing at a national level is currently close to equilibrium. They noted that prices were too high vs income in the major cities and that there was a lot of price divergence within provinces: “The gap between the most expensive and cheapest provinces and cities is widening. In 2019, buying a home in Barcelona or the Spanish capital will cost more than double the national average, while in 2014 it was «only» 1.6 times more.” The situation remains the same one year later and this gap is even higher in foreign countries.

Are there any major downside risks?

The biggest risks we see for the time being are:

• Central banks in the world are getting less aggressive at providing the markets with liquidity: the Fed, the ECB,…
• Long term interest rates spiking

• Inflation is spiking everywhere and the central banks could decide to get more aggressive
• The Chinese economy is dependent on the evolution of the real estate developer Evergrande.
• The consumer could not afford inflation anymore.

Are we in a real estate bubble in Spain?

Many experts don’t think so as:

• The portion of real estate vs income is not excessive for most Spaniards
• Leverage is not excessive
• Building companies have less leverage
• The number of new build properties coming to the market is not excessive.

Here is another article to read more on that: Are we in a property bubble in Spain?

What are ideal property search criteria?

We need to differentiate locals from foreigners.

Let’s start first with foreigners. Foreigners are searching either for a second home or a place to retire.

What are the property criteria demanded by foreigners in a post-Covid-19 world?

• close to the beach,
• maximum a one-hour drive from an airport,
• more rooms and a bigger property as foreigners will be more often at their second home,
• some private outside space: terrace, garden, a pool,
• close to sports and children’s facilities,
• restaurants and shops nearby,
• a nice view,
• not too far from the city centre, but not inside!

As said, we expect a strong pick up of activity by foreigners on all the major Spanish Costas in 2022.

Have a look at our interesting articles on the subject: Our ultimate guide to buying your property in Spain is our major guide on the subject but you can find dedicated articles as well:

• Where are the best places to buy a property in Spain?
• The best searching tips for buying your Spanish property
• Buying your holiday home in Spain? Get our 40 tips
• Your ideal investment property in Spain: 58 tips to find it
• The best 44 tips for finding your ideal home to retire to Spain

Spaniards will remain the biggest driving force on the Spanish property market.

As there is a lot of diversity and the market is very big, we see everywhere in the world that second-tier cities are getting some nice activity, both in terms of transactions and pricing.

What are the property criteria for Spaniards in a post-Covid world?

• bigger private places inside and outside to play for the children,
• more private places to work and to have a social life at home,
• a lot more natural light as we are living 24/24 at home 4 days a week.

So, here is the real choice Spaniards will need to make: space vs commuting time, luckily, thanks to the Coronavirus, homeworking could become more the norm than before. That is why Spaniards are moving outside city centres to get more space inside and outside at a cheaper price.

Have a look at our interesting articles on the subject:

• Our ultimate guide to buying your property in Spain
• Where are the best places to buy a property in Spain?
• The best search tips for buying your Spanish property
• The best 41 tips for finding your best home for moving to Spain

Looking for a local property hunter, a local lawyer, … any expert in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

FAQ on the subject

The post Spanish real estate outlook 2022 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

Let’s check what are your Mortgage costs for your property

In order to help you with your purchase in Spain, we added a Mortgage pricer to help you check your financial power.

It will give you your monthly payments for your mortgage, a table of all your monthly payments, a chart of the evolution of your monthly payments…

Of course, you may adjust the calculations with your own data, you can reverse as well some calculation… Don’t hesitate to use it!

Before we jump to a first example, we thought it would be useful to give you a summary table of your fixed monthly payments for your mortgage depending on:

1. the interest rates (fixed rates of course)
2. the length of the mortgage

Summary table of your monthly reimbursements for a Mortgage of €100.000

Starting from this table and if you are in a hurry, it is easy to estimate any mortgage repayment for any amount and any period between 10 and 20 years, adjust accordingly the numbers.

Get the best mortgage rate in Spain

If you want to go into the details, here is a calculation example we did for a €100.000 mortgage:

As you will see, if you take a mortgage of €100.000 on 10-year with a rate of 3.5%, your monthly payment to reimburse your mortgage will be €989.

CLICK either “Calc” or “Payment Schedule” or “Charts” at the bottom of the pricer.

	
	







	

	
	


		
		

		

			www.HowtobuyinSpain.com
Mortgage Loan Calculator		


		

		

			Price of Real Estate?:
			

				
			
		



		

			Down Payment Percent?:
			

				
			
		

		

			Amount of Loan?:
			

				
			
		

		

			
Enter a "0" (zero) for one unknown value above.
		


		

			Number of Payments? (#):
			

				
			
		


		

			Annual Interest Rate?:
			

				
			
		


		

			Points?:
			

				
			
		


		

			Annual Property Taxes?:
			

				
			
		


		

			Annual Insurance?:
			

				
			
		


		

			Private Mortgage Ins. (PMI)?:
			

				
			
		


		

			Payment Method?:
			

				
					End-of-Period
					Start-of-Period
				
			
		

		



		

			Monthly Payment Amount:
			

				
			
		

		

			Down Payment Amount:
			

				
			
		


		

			Total Interest:
			

				
			
		

		

			Total Principal & Interest:
			

				
			
		

		


		

		

			

				
Calc
				
Clear
				
Print
				
Help
			
			

				
Payment Schedule
				
Charts
			
		

		

			©2024				 AccurateCalculators.com, all rights reserved			
						$ : mm/dd/yyyy
					

	
	

	

		
		  Original Size  
		
	














	

		

			
Mortgage Calculator Help
			
You can calculate the mortgage loan amount from the price of the real estate by providing the down payment percentage.
			
If you know the mortgage amount you can afford and the cash down payment percentage required, you can calculate the affordable real estate price.
			
Or if you know the price of the real estate and the loan amout and enter "0" for the down payment percentage, the calculator will calculate the down payment amount and percentage.
			
Points, Annual Property Taxes, Annual Insurance and Private Mortgage Ins. (PMI) are all optional. If you enter values, the periodic portion of each will be calculated and shown on the schedule. Property taxes and insurance are combined under escrow.
			
If a borrower does not have cash to cover at least 20% of the purchase price, some lenders will require the borrower to purchase private mortgage insurance (PMI) to cover against a possible default. Premiums are typically 0.5% to 2.0% of the original loan amount. The borrower can drop the insurance coverage once the mortgage balance is less than 80% of the original purchase price. The calculator handles this automatically. (There may be other conditions as well under which the lender will no longer require PMI. One such case might be apprciation of the real estate.)
			
Points are charges that are normally due at closing. Borrowers (normally only in USA) may select to pay a lender "points" up front in exchange for a lower interest rate. Points are expressed in percent and are calculated on the amount borrowed. 3 points on a $200,000 mortgage equals $6,000. If the user enters points, this calculator includes their value in the summary and as part of the total payment at loan origination on the payment schedule.
			
The term (duration) of the loan is expressed as a number of months.
			

				
 60 months =  5 years
				
120 months = 10 years
				
180 months = 15 years
				
240 months = 20 years
				
360 months = 30 years
			
			
Need more options including the ability to solve for other unknowns, change payment / compounding frequency and the ability to print an amortization schedule? Please visit, https://AccurateCalculators.com/mortgage-calculator
		
	











	
	

		

			

				

					
Currency and Date Conventions
					
						×
					
				
				

					

						


							

								
									Albania    (Lek)    Lek12,345,678.99
									Algeria    (Algerian Dinar)    DZD12,345,678.99
									Argentina    (Argentine Peso)    $12.345.678,99
									Armenia    (Armenian Dram)    AMD12,345,678.99
									Australia    (Australian Dollar)    $12,345,678.99
									Austria    (Euro)    €12.345.678,99
									Azerbaijan    (Manat)    ₼12,345,678.99
									Bahrain    (Bahraini Dinar)    BHD12,345,678.994
									Belarus    (Ruble)    Br12,345,678.99
									Belgium    (Euro)    12 345 678,99€
									Belgium    (Euro)    €12.345.678,99
									Belize    (Belize Dollar)    BZ$12,345,678.99
									Bolivia    (Boliviano)    $b12.345.678,99
									 Bosnia/Herzegovina    (Mark)    12.345.678,99KM
									Brazil    (Brazilian Real)    R$12.345.678,99
									Brunei    (Brunei Dollar)    $12,345,678.99
									Bulgaria    (Bulgarian Lev)    12345678,99лв
									Canada    (Canadian Dollar)    $12,345,678.99
									Canada    (Canadian Dollar)    12 345 678,99$
									Chile    (Chilean Peso)    $12.345.679
									China    (Yuan Renminbi)    ¥12,345,678.99
									Colombia    (Colombian Peso)    $12.345.678,99
									Costa Rica    (Colon)    ₡12 345 678,99
									Croatia    (Kuna)    12.345.678,99kn
									Czechia    (Czech Koruna)    12 345 678,99Kč
									Denmark    (Danish Krone)    12.345.678,99kr
									Dominican Republic    (DR Peso)    RD$1,234.99
									Ecuador    (US Dollar)    $12.345.678,99
									Egypt    (Egyptian Pound)    £12,345,678.99
									El Salvador    (El Salvador Colon)    $12,345,678.99
									Estonia    (Euro)    12 345 678,99€
									Faroe Islands    (Danish Krone)    kr12,345,678.99
									Finland    (Euro)    12 345 678,99€
									France    (Euro)    12 345 678,99€
									Georgia    (Lari)    GEL12,345,678.99
									Germany    (Euro)    12.345.678,99€
									Greece    (Euro)    12.345.678,99€
									Guatemala    (Quetzal)    Q12,345,678.99
									Honduras    (Lempira)    L12,345,678.99
									Hong Kong    (HK Dollar)    HK$12,345,678.99
									Hungary    (Forint)    12 345 678,99Ft
									Iceland    (Iceland Krona)    kr12,345,679
									India    (Indian Rupee)    ₹1,23,45,678.99
									Indonesia    (Rupiah)    Rp12.345.678,99
									Iran    (Iranian Rial)    ﷼12,345,678.99
									Iraq    (Iraqi Dinar)    IQD12,345,678.994
									Ireland    (Euro)    €12,345,678.99
									Israel    (Sheqel)    ₪12,345,678.99
									Italy    (Euro)    12.345.678,99€
									Jamaica    (Jamaican Dollar)    J$12,345,678.99
									Japan    (Yen)    ¥12,345,679
									Jordan    (Jordanian Dinar)    JOD12,345,678.994
									Kazakhstan    (Tenge)    лв12,345,678.99
									Kenya    (Kenyan Shilling)    KES12,345,678.99
									Korea (South)    (Won)    ₩12,345,679
									Kuwait    (Kuwaiti Dinar)    KWD12,345,678.994
									Kyrgyzstan    (Som)    лв12,345,678.99
									Latvia    (Euro)    12 345 678,99€
									Lebanon    (Lebanese Pound)    £12,345,678.99
									Libya    (Libyan Dinar)    LYD12,345,678.994
									Liechtenstein    (Swiss Franc)    CHF12’345’678.99
									Lithuania    (Euro)    12 345 678,99€
									Luxembourg    (Euro)    12.345.678,99€
									Luxembourg    (Euro)    12.345.678,99€
									Macao    (Pataca)    MOP12,345,678.99
									Malaysia    (Ringgit)    RM12,345,678.99
									Maldives    (Rufiyaa)    MVR12,345,678.99
									Malta    (Euro)    €12,345,678.99
									Mexico    (Mexican Peso)    $12,345,678.99
									Monaco    (Euro)    12 345 678,99€
									Mongolia    (Tugrik)    ₮12,345,678.99
									Morocco    (Dirham)    MAD12,345,678.99
									Netherlands    (Euro)    €12.345.678,99
									New Zealand    (NZ Dollar)    $12,345,678.99
									Nicaragua    (Cordoba Oro)    C$12,345,678.99
									
									Nigeria    (Naira)    ₦12,345,678.99
									Norway    (Norwegian Krone)    kr12 345 678,99
									Norway    (Norwegian Krone)    kr12,345,678.99
									Oman    (Rial Omani)    ﷼12,345,678.994
									Pakistan    (Pakistan Rupee)    ₨12,345,678.99
									Panama    (Balboa)    B/.12,345,678.99
									Paraguay    (Guarani)    Gs12.345.679
									Peru    (Sol)    S/.12,345,678.99
									Philippines    (Philippine Peso)    ₱12,345,678.99
									Poland    (Zloty)    12 345 678,99zł
									Portugal    (Euro)    12 345 678,99€
									Qatar    (Qatari Rial)    ﷼12,345,678.99
									Romania    (Romanian Leu)    12.345.678,99lei
									Russian Federation    (Ruble)    12 345 678,99₽
									Saudi Arabia    (Saudi Riyal)    ﷼12,345,678.99
									Singapore    (Singapore Dollar)    $12,345,678.99
									Slovakia    (Euro)    12 345 678,99€
									Slovenia    (Euro)    12.345.678,99€
									South Africa    (Rand)    R12,345,678.99
									South Africa    (Rand)    R12 345 678,99
									Spain    (Euro)    12.345.678,99€
									Sweden    (Swedish Krona)    12 345 678,99kr
									Switzerland    (Swiss Franc)    CHF12’345’678.99
									Switzerland    (Swiss Franc)    12 345 678.99CHF
									Switzerland    (Swiss Franc)    CHF12’345’678.99
									Syrian Arab Republic    (SYP)    SYP 12,345,679
									Taiwan    (Taiwan Dollar)    NT$12,345,678.99
									Thailand    (Baht)    ฿12,345,678.99
									Trinidad & Tobago    (T/T Dollar)    TT$1,234.99
									Tunisia    (Tunisian Dinar)    TND12,345,678.994
									Turkey    (Turkish Lira)    ₺12.345.678,99
									Ukraine    (Hryvnia)    12 345 678,99₴
									United Arab Emirates    (UAE Dirham)    AED12,345,678.99
									United Kingdom    (GBP)    £12,345,678.99
									United States    (US Dollar)    $12,345,678.99
									Uruguay    (Peso Uruguayo)    $U12.345.678,99
									Uzbekistan    (Uzbekistan Sum)    лв12,345,678.99
									Venezuela    (Bolívar Soberano)    VES12.345.678,99
									Viet Nam    (Dong)    12.345.679₫
									Yemen    (Yemeni Rial)    ﷼12,345,678.99
									Zimbabwe    (ZWL)    ZWL12,345,678.99

								
							



							

								
									MM/DD/YYYY
									DD/MM/YYYY
									DD-MM-YYYY
									DD.MM.YYYY
									YYYY-MM-DD
									YYYY.MM.DD
									YYYY/MM/DD
								
							

						
					
					
All calculators will remember your choice. You may also change it at any time.
					
Clicking "Save changes" will cause the calculator to reload. Your edits will be lost.
				
				

					Cancel
					Save changes
				
			
		
	
	
	

Here is the data we took for this mortgage:

• Down Payment: in per cent of the property cost, here we took 50%: this means you are bringing €100.000 of your own money
• Amount of Loan: €100.000, it is calculated but as you guessed, in this case, it is the Property cost €200.000 minus the Down Payment €100.000
• Number of Payments? (#): is the number of months you intend to take to reimburse your mortgage, #120
• Annual Interest Rate?: This is the rate we took: 3.5% for a 10 year mortgage. Check the current mortgage financing conditions in our paper: “The best mortgage rates in Spain in 2020“. Don’t forget that rates are higher for foreigners.
• Points?: This is the upfront charge for the mortgage, we took 1%
• Annual Property Taxes?: We took €300
• Annual Insurance?: We took €150
• Private Mortgage Ins. (PMI)?: We took 0% (this is mostly done in the US)
• Payment Method?: You can choose if you pay at the start of at the end of the month, we took the latest.
• Monthly Payment Amount: The monthly amount you will pay to reimburse the mortgage €988.86
• Down Payment Amount: The amount you will pay yourself to buy the property.€100.000
• Total Interest: The total amount you will reimburse during the life of the mortgage. €18.663.19

In your Schedule of payments, you will find all the information with some details as:

• PMI — private mortgage insurance. Could be required if your loan to value (LTV) is more than 80%. That is, your down payment frequently needs to be 20% or more to avoid PMI.
• Property Taxes — are included in the escrow column on the schedule. Please be sure to enter an annual amount in the calculator.
• Casualty Insurance — is also included in the escrow column on the mortgage schedule. Again, enter an annual amount.
• Points — calculated on the loan amount, they are reported in the first row of the schedule.

All the above are optional. That is, you may set them to 0.

You can run this simulator to know your monthly payments:

1. Click clear and enter values for:
   • Loan Amount
   • Number of Payments
   • Annual Interest Rate
2. Leave “Payment Amount (P & I only)” set to 0.
3. Click either “Calc” or “Payment Schedule” or “Charts” to see the monthly evolution of your mortgage or “Clear” to input your own data

You can use this calculator to answer such questions as:

• How much mortgage can I afford?

Most of the time, banks will give you a mortgage with a monthly reimbursement of maximum 33% of your net income, check our earlier paper “Your definitive guide to your Spanish mortgage” for more on that.

• What is the mortgage payment?

The pricer allows you to have a detailed payment schedule.

• How much money do I need to buy a house?

In general, a quick guess is at least 50% of the value of the property, check the explanation of the calculation for the down payment.

• What is the down payment on a house?

Most of the time, the bank will require a down payment of 30% and in addition to that, you will have to pay the taxes and some costs, take another 15% and eventually some works & refurbishment. So, all in all, you will have to pay at least 45% (if no works and no refurbishment)… a little more if repair works and refurbishment. For more on that, read our paper on “Your definitive guide to your Spanish mortgage”

Do you want a mortgage quote in Spain? We have a very strong partnership with one of the biggest Mortgage broker in Spain. Click on this picture and read more/fill the form for a quote.

For more information on the mortgage pricer, you could want to read the comments from the developer.

Here is our FAQ on Spanish mortgage calulator

Our other resources on that subject

• Your definitive guide to your Spanish mortgage
• The best mortgage rates in Spain in 2021

Looking for a lawyer, fiscal expert, architect, property hunter,… or any expert in Spain? Ask us directly!

Stéphane

Senior Analyst and Strategist at HTBIS

Check the full team of HTBIS here

The post Your ultimate Spanish mortgage calculator: What is the cost of your Spanish Mortgage? appeared first on How to buy in Spain.