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Buying property in Spain is very easy

Spain is the number one destination for tourists in Europe. So, not a surprise that many foreigners decide to buy property there.

Buying a property in Spain is not too difficult: you can do it alone, but it is strongly advised to work at least with a local real estate lawyer. Of course, local professionals like local property hunters are nice to have.

Before starting our full review on how to buy your Spanish property, we give you three easy-to-use summaries on the subject:

  • Our downloadable step-by-step infographic with all the issues we will cover
  • Our summary of the key insights you will learn in this article
  • Our 2-minute video on the subject (if you are on the go)

 

Our downloadable step-by-step guide on how to buy your property in Spain

 

Too busy? Here is our quick-read summary and our 2-minute video:

 

How to buy a property in Spain?  Our key insights

  1. Eligibility for foreigners: Expats can buy property in Spain. It’s advisable to consult a legal professional throughout the process to ensure compliance with Spanish laws. For certain foreigners, a Golden Visa is available to facilitate living in Spain.
  2. Cost of Property: The cost of buying property in Spain averages at about 15% of the property’s value, which includes taxes.
  3. Best Places to Buy: Choice of location depends on personal preference and intended use of property. Popular regions include Andalusia, the Valencian Community, Catalonia, and the Balearic and Canary Islands.
  4. Spanish Property Market: The Spanish property market has seen a recovery in recent years. By early 2024, property prices in Spain averaged €1.835 per square meter.
  5. Homeownership Vs Renting: Deciding between buying or renting in Spain involves considering income level, interest rates, rental prices and the general economic situation. Each individual’s circumstances will determine the best choice.
  6. Finding Property: Several resources are available to aid in finding the ideal property in Spain. These include guides on starting a Spanish property search, determining the best places to buy, and checklists for different buyer profiles.
  7. Working with a Property Hunter: A local property hunter can offer expertise, negotiate the best deal, save time, protect buyer’s interests, assist with language barriers, and provide post-purchase support.
  8. Legal Adviser: It’s advisable to work with a real estate lawyer to ensure the property purchase is watertight and avoid potential issues.
  9. New-Build Homes: Spain offers advantages for those looking to purchase a new-build home. Abundant plots, high-quality materials, and affordable labor costs are some benefits.

 

Buying property in Spain, our 2-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.

 

 

After this quick introduction, let’s give you all our useful resources on how you should buy your property in Spain to enjoy a nice and safe journey.

#1 May foreigners buy property in Spain?

Yes, foreigners and expats may property in Spain. Spain welcomes foreign buyers, including expatriates, who are interested in purchasing property within the country. There are no specific restrictions or limitations on property ownership for expats in Spain. However, it is advisable to seek professional legal advice and guidance throughout the purchasing process to ensure compliance with Spanish laws and regulations.

For some countries, it is more tricky to buy and/or stay in Spain for a long period of time. The good news is that Spain has created a Golden Visa for foreigners looking to invest in Spain.  Don’t miss our detailed article for more on that subject: Golden Visa in Spain: Your ultimate guide!

 

#2 What are the costs of buying a property in Spain?

Your first question before buying your property will be: Does it cost a lot to buy a property in Spain?

On average the cost of buying a property in Spain will be close to 15%. As in many countries, they are taxes involved with your property purchase.  We wrote a paper to give you the detailed answer: “The cost of buying a property in Spain“.

 

 

#3 Best places to buy a property in Spain for foreigners

 

There are many beautiful regions in Spain. Everybody can find what he is looking for. Depending on your personal project, you could decide on one region rather than another: for instance, if you want to stay all the winter months in Spain, the canary islands could be a nice location if you want at least 20 degrees. In order to help you zoom in on the best Spanish region, we wrote a detailed article on that subject: Where are the best places to buy a property in Spain?

It discusses the choice between a sea view or a countryside setting, with the majority of foreigners preferring properties near the beaches. The popular regions for property purchases are Andalusia, the Valencian Community, Catalonia, and the Balearic and Canary Islands.

A few questions and ideas to help you:

  • When do you want to stay in Spain? Which period of the year? Which weather do you like?
  • How often? The proximity of an Airport?
  • Do you have a good budget? The countryside is cheaper. See the next item in the article on the “Spanish property market”.
  • What is your property use? Second homes, first homes for relocation or retirement, and investment properties

We advise you to read our detailed articles on all the Spanish Costas and of course, visit different areas in Spain.

If this could help, here is our article on where foreigners love to buy properties in Spain.

 

The Spanish property market and property prices

The Spanish property market experienced a significant boom in the early 2000s, fueled by a combination of factors such as favourable mortgage lending conditions, increased demand, and a growing economy. However, the market faced a major downturn during the global financial crisis in 2008, leading to a sharp decline in property prices and a rise in mortgage defaults. At the top in 2007, property prices were valued at €2.100 per square meter while it reached the bottom in 2014 when it went under €1.400 per square meter for the Spanish national average.

In recent years, the Spanish property market has shown signs of recovery, with increased demand from both domestic and foreign buyers. Factors such as low-interest rates, favourable lending conditions, and improved economic conditions have contributed to the growth in homeownership. Additionally, government initiatives and incentives, such as tax benefits for first-time buyers, have aimed to stimulate the housing market. So, as of early 2024, property prices in Spain are back to €1.835 per square meter.

Don’t miss our detailed article on that subject covering all the real estate prices of the major Spanish cities.

Beach of Los Muertos, Cabo de Gata-Níjar Natural Park, UNESCO Biosphere Reserve, Hot Desert Climate Region, Almería, Andalucía, Spain, Europe

Homeownership in Spain

Homeownership in Spain is very high vs other European countries. Owning a property is considered an important goal for many Spaniards, and it is seen as a sign of stability and financial security. According to statistics, around 78% of households in Spain were homeowners as of 2021. This means that there are fewer rental properties on the market and maybe a lower turnover as well on properties. To compare with other European countries: Italy has homeownership above 70% and France and United Kingdom are above 60% while Germany is just above 50%.

It is worth noting that the homeownership rate varies across different regions of Spain. In urban areas and larger cities, such as Madrid and Barcelona, there is a higher prevalence of renting due to factors like higher property prices and a more transient population. On the other hand, in rural areas and smaller towns, homeownership rates tend to be higher.

Overall, while homeownership remains a popular choice in Spain, renting is also common, particularly among younger generations and those living in urban areas. The decision to buy or rent a property depends on individual circumstances, financial considerations, and personal preferences.

 

Should you buy or rent property in Spain?

Deciding whether to buy or rent property in Spain involves considering various economic factors, including the level of income, interest rates, rental prices and the general economic situation. Here’s a breakdown of how these factors can influence your decision:

Level of Income: The level of income is a crucial factor in determining whether buying or renting is more feasible. Generally, higher income levels provide more flexibility and affordability for purchasing a property.

Interest Rates: Interest rates play a significant role in the affordability of buying a property. When interest rates are low, borrowing costs decrease, making mortgages more affordable. If interest rates are low in Spain, it can be advantageous to buy since you can secure a favourable mortgage rate, potentially resulting in lower monthly mortgage payments compared to high rental prices. On the other hand, if interest rates are high, renting may be a more financially reasonable option as it avoids taking on a mortgage with unfavourable borrowing costs.

Rental Prices: Rental prices in Spain vary depending on the region, property type, and demand. Comparing rental prices to the cost of buying a similar property is essential.

General economic situation: Is your job stable? Are property prices expensive or not at a nationwide level? Vs international cities? Is the economy growing? What about inflation?

Ultimately, the decision to buy or rent in Spain depends on personal circumstances, financial stability, long-term plans, lifestyle preferences and the economy in general. It is always wise to discuss this further with financial and real estate advisors.

 

Don’t worry there are bank properties for all budgets in Spain. If you are on a tight budget, we give you direct access to Spanish bank properties.

Short-term (holiday) lets

Before buying a property, you can rent a property. Each Spanish region has its own regulation on short-term rentals. So, if you want to invest in a property for short-term rentals, it is wise to double-check with a legal advisor.

Yacht berth in Barcelona. Spain

 

#4 How can I find my dream property in Spain?
What is your ideal property?

 

Buying property in Spain alone

We wrote a detailed guide on that with different sections helping you to find your ideal home in Spain, whatever your goal is: relocation, remote working, investment, second home, retiring to Spain… We have you covered.

Here is the link to this major study: Our ultimate guide to buying your property in Spain if you want to start your property search in Spain

Here is what you will learn in our detailed study:

  • The article is a guide for foreigners buying property in Spain, leveraging the authors’ expertise and network.
  • Spain is a top property investment destination due to its climate, lifestyle, and affordable prices.
  • The guide answers questions about the property buying process in Spain.
  • It recommends working with local experts as property hunters, and technical advisors, and obtaining an NIE (local tax number).
  • To avoid pitfalls, the guide suggests hiring a real estate lawyer for legal aspects.
  • It lists the different criteria you should use to compare the different potential properties and avoid an emotional decision.
  • It outlines the process for starting a property search, including setting objectives, budget, and home criteria.

 

That study is followed up by four detailed articles so that you get all your answers and all our tips before going after your dream property: You will start with this one: How should you start your Spanish property search?

Once you will find a few properties that are meeting your criteria, you will need to compare those.

 

Property Purchaser’s checklist

In this article, The best search tips for buying your Spanish property we have created a dedicated checklist for each buyer profile: second home, relocate, investment property, retire in Spain. With those downloadable pdf, you will be able to compare your top properties by all the different persons involved in this project thanks to useful criteria and a perfect ranking system taking emotions out of the decision.

On top of that, we give you all the most important criteria according to us each real estate use: second home, investment property, relocate, retire,…

Fishing Port, Mutriku Harbour, Old Town, Mutriku, Guipúzcoa, Basque Country, Spain, Europe

 

How to compare and rank different properties to make the best choice?

Use our ranking system for comparing your future Spanish homes

Ranking your property according to criteria will allow you three main objectives

  1. remove emotions
  2. help you to compare properties
  3. allow you to discuss and compare properties with your partner(s)

The idea is simple: to create a weighted matrix containing the physical characteristics (pragmatic, rational) of the house, we will call them the Criteria and you will give each of them an importance level (personal, irrational) or Weight. Each person involved with the project should do the same.

Listing those locations and property CRITERIA in a table will help you for comparing the different properties visited by giving them a global score.

The CRITERIA are rational and shouldn’t take into account your personal feelings (unless for one). They are listed beforehand by all the parties involved in the form of an exhaustive list of each of their criteria.

How to compare two second homes in Spain before purchasing the good one?

How to compare two second homes in Spain before purchasing the good one?

 

#5 Finding the perfect property with a local property hunter

It is very wise to work with local property finder as you can see, there are many benefits of working with a property hunter:

  1. Market Knowledge: Property finders have extensive knowledge of the market, prevailing prices, neighbourhoods, and reliable partners.
  2. Cost Savings: A property finder negotiates the best deal for you, potentially saving you a significant amount of money.
  3. Time Savings: Property finders search the market on your behalf, saving you time and effort. They have contacts and can make multiple visits in a day.
  4. Protection of Interests: Property finders work for the buyer, ensuring their interests are protected throughout the buying process.
  5. Language Assistance: Property finders speak both Spanish and your language, bridging the communication gap and facilitating the process.
  6. Post-Purchase Support: Property finders assist with tasks like opening utility meters, contacting property owners, paying taxes, and finding local partners for renovations or property management.

Using a property finder streamlines the property search process, saves time and money, provides market expertise, and offers support throughout the entire buying process.

Find a local property hunter in our network and read more on that here.

 

#6 Don’t forget the legal adviser

Buying a property in Spain alone is perfectly fine, but we always strongly advise working with a real estate lawyer as we wrote in our article. If we should cite only one reason, the lawyer will make sure that your property purchase is watertight as the notary is not legally obliged to check different potential issues with the property.

Seascape from Peña Furada Viewpoint, Ortigueira, A Coruña, Galicia, Spain, Europe

 

#7 Buying a new-build home in Spain

When considering the purchase of a new build property, Spain offers three significant advantages. Firstly, Spain stands as Europe’s leading source for a wide range of high-quality materials, including tiles. Secondly, the cost of labour is reasonably affordable. Lastly, the country’s expansive size and extensive coastline make it an ideal location for development, offering abundant plots for construction projects.

Discover the best new build projects in Spain available right now
€ 320,000
2 beds 1 bath 61.3 m²
€ 313,000
2 beds 2 baths 61.3 m²
€ 540,000
3 beds 3 baths 191 m²
€ 520,000
3 beds 2 baths 109 m²
€ 345,000
2 beds 2 baths 97 m²
€ 435,000
3 beds 2 baths 114 m²
€ 350,000
3 beds 2 baths 106 m²
€ 273,000
2 beds 2 baths 83 m²
€ 368,000
3 beds 2 baths 103 m²
€ 315,000
2 beds 2 baths 90 m²
€ 245,000
2 beds 2 baths 83 m²
€ 335,000
3 beds 2 baths 98 m²
€ 250,000
2 beds 2 baths 90 m²
€ 420,000
2 beds 2 baths 81.7 m²
€ 475,000
3 beds 2 baths 101.9 m²
€ 490,000
3 beds 2 baths 119.8 m²
€ 540,000
3 beds 2 baths 129.2 m²
€ 530,000
3 beds 2 baths 106.9 m²
€ 370,000
2 beds 2 baths 88.9 m²
€ 440,000
3 beds 2 baths 106.9 m²
€ 367,000
3 beds 3 baths 177 m²
€ 262,000
3 beds 2 baths 84 m²
€ 242,000
2 beds 2 baths 72 m²
€ 277,000
2 beds 2 baths 73 m²
€ 255,000
3 beds 2 baths 85 m²
€ 220,000
2 beds 2 baths 71 m²
€ 240,000
2 beds 2 baths 80 m²
€ 280,000
3 beds 2 baths 88 m²
€ 585,000
3 beds 3 baths 162 m²
€ 348,000
3 beds 2 baths 220 m²
€ 355,000
3 beds 2 baths 100 m²
€ 385,000
2 beds 2 baths 76 m²
€ 325,000
3 beds 2 baths 97 m²
€ 269,000
2 beds 2 baths 81 m²
€ 631,000
3 beds 2 baths 123 m²
€ 345,000
2 beds 2 baths 154 m²
€ 430,000
3 beds 2 baths 116 m²
€ 730,000
3 beds 2 baths 149 m²
€ 529,000
3 beds 2 baths 133 m²
€ 319,000
2 beds 2 baths 87 m²

 

#8 Moving into your Spanish property

Our checklist for a new property owner in Spain

Yes, you did it, you bought your property. Now, you have some easier task to set up like opening utilities and so on…

The 18 things to do as a new property owner in Spain 

Barcelona City in Spain seem from the air, showing the impressive architecture and block systems of the apartments and offices in the busy Spanish metropolis

Cost of Owning a home in Spain

Of course, a property is an investment and it means that you have costs for the property. We calculated for an apartment in Barcelona that costs are between 0.5% and 1% of the property price on a yearly basis.

Does it cost a lot as an owner of a Spanish property? Check our paper: “The cost of owning a property in Spain“.

Yes of course you got it… Taxes again: What taxes do you have to pay on your Spanish property?

 

#9 The 9 Steps to buying your Spanish property

In order to complete this review on the buying process of your property in Spain, in this section, you will have a closer look at all the different practical steps before you become an owner in Spain.

if you prefer, listen to our 2 min 30 seconds Video on the 9 steps to buying your Spanish property:

  1. Get your NIE “Número de Identificación de Extranjeros”

    It is a unique tax identification number in Spain for anyone who isn’t a Spanish citizen. You will need your own NIE number to purchase property and pay the necessary taxes! So it’s wise to apply for this as soon as you start looking for properties.

    You can get it in person or via a third party. You can get it in Spain or in your home country at a Spanish Consulate. You need to ask one for your spouse as well if you buy together.

    Read our article on this: “Your ultimate guide to your NIE number“.

     

  2. Find a lawyer speaking your language and Spanish

    Your first step will be to find a reliable independent lawyer who is specialized in Spanish land and property law. Unless you speak fluent Spanish, you should find a lawyer speaking your mother tongue. More on that here: What is the legal due diligence for your Spanish property?

    Looking for a property lawyer in Spain? Check all our partners here!

     

  3. Open a Bank account

     

    With your NIE and all your documents, it is easy to open a bank account in Spain. Pay attention if you are buying from outside the Eurozone. Your local bank could charge high costs to convert your local currency into Euros or wire funds to Spain. We found a good partner to assist you in a cost-efficient manner, read our detailed paper for more on that: How to pay for your Spanish property in Euros – € while you live in a non-Euro country?

     

  4. Do you need a mortgage?

    If the answer is yes, it’s time to start working on it. You can get a mortgage either

    • from your home country
    • or from Spain

    Ask for a mortgage from one of our partner

    Read our step-by-step article with all the information you need: Your Spanish Mortgage: How to apply? How to get the best rates?

     

  5. Sign the “contrato de Reserva”

    The “contrato de Reserva” expresses your intent to purchase and remove the property from the market, it is the reservation contract. In general, you will need to pay a holding fee of €3000 to 6000. Funds are held in escrow for 14 to 21 days and you have the time to do checks on the property during that period. At the same time, a purchase contract will be drawn up and legal checks carried out.

    => This contract is very important, don’t sign without including provisions so you can exit the contract.

    => Cash ideally held by a reliable third party

     

  6. Important checks of the property with experts

    1. the land registry, « Registro de la Propriedad»
    2. the appropriate planning permission has been obtained
    3. No outstanding debts attached to the property
    4. the Community of owners documents’
    5. the property is as described and structurally sound

    Looking for an expert in Spain? Ask us directly!

     

  7. Get your mortgage confirmed

    Have a look at our reports on this subject:

     

  8. Sign the “contrato de Arras”

    It is the private purchase contract called as well “Contrato Privado de Compraventa”.

    You will need to pay your deposit of 10% of the property within 10 days.

    As soon as the necessary legal checks have taken place, you will be required to sign the private purchase contract which will state the full price of the property.

     

  9. Go to the Notary to sign the contract for the purchase of the property

    At the completion stage, all parties connected with the selling and purchasing of the property must be in attendance to sign at the offices of Notaria Publica. This includes your lawyer, mortgage provider (if applicable) and the seller or their legal representative. Before signing you should ensure you have a thorough understanding of all the costs involved and have sufficient funds to cover payments, fees and taxes.

     

Now that you know all the different steps, let us help you with how to do it in an easy way.

#10 Useful resources

For further reading:

 

Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain:

Click on your country flag, you will find your pdf report at the end of each article. Get most of our tips there.

 

 

 



Stéphane
Senior analyst and strategist at HTBIS

Stéphane, with over 20 years of experience in real estate, finance and entrepreneurship, is the co-founder of www.howtobuyinspain.com. With an extensive network of local partners in Spain, his deep commitment to the real estate sector combined with strong analytical skills and a problem-solving mentality have fueled his success. Constantly eager to learn and passionate about teaching, Stéphane believes in the power of knowledge sharing to master any subject.

Check the full HTBIS team here

 

FAQ Buying property in Spain

Is buying property in Spain a good idea?

There are many reasons for buying a property in Spain: one of the first is that real estate is cheap and the cost of life is low. Of course, you need a Beach and 320 days of Sun. But there are many others, that's why Spain is the number one tourist destination in Europe

What taxes do you pay when buying a property in Spain?

The taxes for buying a property in Spain are different depending on the fact that it is a resale or a new build. Each region in Spain as well as some tax authority. The rule of thumb is that taxes are between 10 and 15%. Read our dedicated article on that: What is the cost of property acquisition in Spain?

How long does it take to buy a house in Spain?

Buying a house in Spain can be done in one day. But if you want to do proper due diligence and if you want a mortgage it should be about 10 weeks.

Can foreigners buy real estate in Spain?

Yes foreigners can purchase a property in Spain. In order to do that, they need a NIE. Read more in our article: the 9 steps to your Spanish property

The post Buying property in Spain? Easy with our 2024 Guide 😎 appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/buy-property-in-spain/feed/ 0 Buying property in Spain – Step by step guide Golden Visa in Spain Costs of buying a property in Spain Beach of Los Muertos, Cabo de Gata-Níjar Natural Park, Spain Beach of Los Muertos, Cabo de Gata-Níjar Natural Park, UNESCO Biosphere Reserve, Hot Desert Climate Region, Almería, Andalucía, Spain, Europe Harbor in Barcelona Yacht berth in Barcelona. Spain Fishing Port, Mutriku Harbour, Mutriku, Spain Fishing Port, Mutriku Harbour, Old Town, Mutriku, Guipúzcoa, Basque Country, Spain, Europe How to compare different Spanish holiday homes Seascape from Peña Furada Viewpoint, Ortigueira, Spain Seascape from Peña Furada Viewpoint, Ortigueira, A Coruña, Galicia, Spain, Europe Barcelona City Cathedral at Sunset Barcelona City in Spain seem from the air, showing the impressive architecture and block systems of the apartments and offices in the busy Spanish metropolis Infographic the 8 steps to your spanish property How to get the best mortgage rates in Spain gbunitedkingdomflag_111699 degermanyflag_111762 nlnetherlandsflag_111906 Russia China Sweden Morocco Italy Belgium Belgium France Romania Stéphane co-founder of HTBIS How to write the financial plan for your B&B in Spain? https://howtobuyinspain.com/en/bb-spain/financial-plan-for-your-bandb-in-spain/ https://howtobuyinspain.com/en/bb-spain/financial-plan-for-your-bandb-in-spain/#respond Mon, 17 Apr 2023 15:35:07 +0000 https://howtobuyinspain.com/?p=27239   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   The financial plan for your B&B in Spain   This is our final article on how to open a B&B in Spain. Let

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The financial plan for your B&B in Spain

 

This is our final article on how to open a B&B in Spain.

Let us summarise the conclusions reached earlier in our first 4 themes.

Maria and John are planning to move to Spain and start a bed and breakfast business. They have validated the essential conditions of personal and budgetary aspects.
In order to refine the search criteria, they then had to specify the location of their future B&B. Spain is a large country, very diverse, both geographically and culturally.
In carrying out this study, and based on their common criteria, Maria and John decided to focus their search on a specific area: the coastal region between Valencia and Alicante.

To summarize the conclusions reached in the first four themes, Maria and John have taken the following steps in their journey to open a B&B in Spain:

  1. Personal and Budgetary Aspects: Maria and John have assessed their personal and financial capabilities and preferences, ensuring they have the necessary resources, skills, and commitment to run a successful B&B business in Spain.
  2. Location: They have recognized the diversity in geography, culture, and tourism opportunities throughout Spain and have narrowed down their search area based on their criteria and interests.

    Read more on that here: Theme 4: The Top Spanish Regions for setting up Your B&B

  3. Focused Search: Based on their personal preferences, target clientele, and business goals, Maria and John have chosen the coastal region between Valencia and Alicante as their desired location for opening the B&B. This region offers a mix of beautiful beaches, historic sites, and cultural attractions, catering to various types of tourists.

Moving forward, Maria and John should now focus on the following steps:

  1. Property Search: Investigate the real estate market in the chosen region, considering factors like property size, condition, and proximity to tourist attractions. They should also evaluate the potential for renovation and expansion, as well as any legal restrictions.
  2. Business Plan: Develop a detailed business plan that includes market research, financial projections, marketing strategies, and operational procedures. This will help them stay organized and focused on their objectives, as well as secure any necessary funding. In this article, we will study the financial part of the business plan.
  3. Legal and Regulatory Requirements: Research and comply with local laws and regulations regarding business registration, permits, licenses, and insurance. This will ensure their B&B operates legally and avoids any potential fines or penalties.
  4. Networking and Marketing: Establish connections with local businesses, tourism boards, and online platforms to promote their B&B and attract potential guests. Utilize social media, a well-designed website, and online booking platforms to increase visibility and bookings.
  5. Prepare for Opening: Once they have secured the property and completed any necessary renovations, Maria and John should furnish and decorate the B&B, create a welcoming atmosphere, and train any hired staff to ensure a smooth and successful opening.

By following these steps, Maria and John can successfully open a B&B in Spain and enjoy their new life as business owners in the beautiful coastal region between Valencia and Alicante.

 

They are ready to tackle the next chapter of their feasibility study.

 

 

The last essential roadmap of your Spanish B&B

To pursue a dream is a beautiful thing…. even indispensable. Didn’t Oscar Wilde say, “Wisdom is having dreams big enough not to lose sight of them”?
We can nevertheless put this quotation into perspective. If the dream (and therefore the intuition) is indispensable, pragmatism (and therefore the necessity of profitability) is just as much.
María and John have the budget. So they think the purchase project is doable.

 

But is the project economically sustainable?

Investing is one thing; being able to last in time is another. A new constraint therefore appears. It is essential that the revenues generated by the management of the B&B must at least cover the costs. It doesn’t have to be right away, but you have to have a road map. He will predict when the business will be profitable and what he will be able to generate in profit afterwards.

This roadmap is called a financial plan.

I choose…. to call a friend!

María and John know a couple of friends who have already done this work. They decide to contact them to help them achieve this roadmap.
It will be an easy job, they say. As the primary objective is not to generate a significant income from the activity, this work should not be very complicated. They call Susan and Daniel, the friends in question.
Susan & Daniel have been managing a B&B in Catalonia for almost 15 years. They have had a lot of difficulties in carrying out their project. In the end, they have succeeded and are now well-integrated socially in the region, and well-referenced in terms of their professional activity.

 

The telephone conversation starts.
– Hello Susan, it’s John!
“Hey, hello! How are you? And María?”
“Look, we’re doing great. And you: still in Catalonia?”
“Well, yes. We like it, you know. It wasn’t easy at the beginning, but everything is going well.” We are very happy with the change in our lives that we decided on 15 years ago! My God, how time flies! And you, what’s new?
– We even live in a dream…
“Oh, what is it? You have aroused my curiosity.”
– We would like to follow your example and also open a B&B in Spain…
“No kidding…are you serious?”
“Absolutely; you want to change your life…and you think this is the right time.
– Awesome that…. but brave…! Where are you at with the project?
– Time was spent setting our goals, defining our budget and concept and where we want to be.
– Cool. You’re looking for a house then?
– Yes…well, no; not quite yet. We would first like to ensure that the project is viable in the medium term, financially speaking.
– Wise precaution…and what is your conclusion?
“In fact, Susan and I would have liked to discuss this aspect with you and Daniel…so that you could share your advice and experience… Would that be possible?
– Of course…but it will take a little time. If you want to do things properly, you have to spend a little time. You could stay with us for a few days. We would take the time to analyze all this together. What do you think?
“Excellent! I’ll tell María about it; she’ll be delighted. I’ll call you back in the next few days and we’ll organize a little stay with you.
– Listen, that sounds great. Let us know. We will be pleased to share all this with you. We made a lot of mistakes…as much to avoid others do not commit the same! I await your call!
– Perfect see you soon!

 

 

Why do you need a financial plan? 

The realization of a financial plan for a B&B implies the pooling of many elements that interact.
At the sales level, the amount of turnover will depend on the location but also on the quality of the services and prices offered.
In terms of costs, the variable costs vary according to the occupancy rate of the B&B. Fixed costs have the advantage of being more predictable, but they are more difficult to compress.
Macroeconomic factors are completely out of control (health epidemics, natural disasters, high inflation, political instability, etc.). They, therefore, do not intervene in a plan, other than by providing a “worst & best case scenario”. This can be achieved by acting at the level of room occupancy forecasts.
Overall, the managers of a B&B have some control over certain factors, but not others.
The plan will therefore aim to forecast, at a time “t”, the B&B’s financial entries and exits over a medium-term period “t+X”, while being aware that external elements can generate an impact.
The plan must therefore be:
• accurate to set a course
• flexible to bringing new data and adapting old ones.
• take into account the B&B and the environment in which it operates

 

Each decision will have an impact on the whole project

To illustrate the previous point that everything is linked in a financial plan, let us take a concrete example for María and John: massages. They are considering this service proposal to reinforce the “zen” side of their B&B.
The addition of this type of service leads to an increase in revenues, and costs, but also in the time devoted to the activity. María and John will have to make a choice.
They could decide to:
• outsource this activity to a local discipline specialist, but then they will have to reduce their profit margin.
• carry out this activity themselves, but it will be necessary to follow courses, obtain certifications, dedicate a budget for the necessary equipment (table, sheets, towels, massage oils,…),…
Overall, it will be necessary to choose between saving “free” time (if subcontracting) and a gain of financial revenues (if own realization). The decision will inevitably have a financial impact.

 

The financial analysis of your B&B

Susan and Daniel meet with María and John to discuss the issue and prepare the financial plan together.
First of all, they want to understand María and John’s objectives. The non-exhaustive checklist includes questions such as:
* what are their real goals (a “cool” life, a need for an “authentic” life in nature?)
* What type of clientele do they want to welcome (socio-professional class, social level, cultural background (nationality/country of origin),…)
* Is there a personal touch they want to bring? Here it is a question of identifying unique comparative advantages, which would make María and John’s B&B product exclusive (and therefore offering better control over prices). We can imagine several themes in this sense:
– gastronomy (organic products from the local area, the inclusion of star chefs,…)
– sport (in Spain, disciplines such as golf, horse riding or padèl are very popular)
– culture (possibility of exhibitions of local artists, organisation of concerts,…)
In short, the idea here is to understand what the final “product” is. Based on all of this, we will be able to draw up a plan.

 

…indicates the following

During this brainstorming, María and John explain that they want to offer
– a quiet and relaxing place for middle to high-class families,
– services such as table d’hôtes and also massage, yoga and pilates
– a place that will be pet-friendly.
María intends to dedicate herself 100% to the B&B while John will continue his current part-time job to ensure a secure monthly income. They also want to minimise any investment outside the purchase of the property. It is possible that over the years they will decide to develop the B&B differently, but they prefer to wait a few years. This will allow them to take the time to integrate into their new environment as well as possible, to get to know the requirements of their clientele and thus to define, with thought and experience, the areas of growth for their business.

 

Concrete financial planning of a B&B set up in Spain

Here is a plan on which Patrick worked to assist a customer with his financial planning.

With this data, we create a spreadsheet with all the data relevant to María and John’s project. We estimate high and low season prices and occupancy levels. Either we indicate a “mother” cell and, by modifying the value (best/normal/worst case) we determine the impact, or we create 3 spreadsheets (the first one: “best”, the second “normal” and the third “worst”).
Note that when it comes to setting a price for a night in a B&B, three sources can be useful and provide a lot of relevant information, namely
– existing offers from other B&Bs located geographically close by
– discussions with people active in the hotel sector in the area
– the local tourist office
Based on this information, Susan and Daniel prepare a financial table. Here is an example of what the plan might look like, for the year 2024.

Here are the accommodations revenue

 

Accomodations revenue for a b&b in Spain - Financial planning

Accommodations revenue for a b&b in Spain – Financial planning

Here the extra revenues

Other revenues for a b&b in Spain - Financial planning

Other revenues for a b&b in Spain – Financial planning

The operational costs

Operationals costs for a b&b in Spain - Financial planning

Operational costs for a b&b in Spain – Financial planning

 

And the fixed costs of the bed and breakfast

Fixed costs for a b&b in Spain - Financial planning

Fixed costs for a b&b in Spain – Financial planning

 

All those information should be adjusted for each project and will help you to learn more about the financial aspects of your project and its profitability.

On the basis of this table, we realize that the break-even point for the B&B de María et John would already be reached by the end of the second full year of activity (“t+2”).
Whether that is the case or not is not the most important. What is interesting is that at t+2 time, and on the basis of the information available and the projects currently planned, it would be possible to cover all costs in a relatively short time.

Is this acceptable? Fine.
Is that not the case? We have to look at the data and see where we can reduce costs or increase revenues.
This is where the whole point of the plan lies: to be able to play with the various parameters in order to judge their changes and obtain an acceptable end result.

 

Our little extra tip

Get help with your project. Test it with your family and friends, and challenge it with your family. Listen to what they say. You’ll have to sort it out because there may be jealousy…or even a desire for you to fail, but it doesn’t matter. You will sort it out and you will certainly come up with ideas that you had not thought of.

 

General Conclusions to help you with Your B&B financial plan in Spain

María and John are moving forward step by step, in a structured way, in the development of their beautiful project. They are defining the final product more and more precisely. The concept, location and financial plan are defined. The next step will be to find the property…. and detect any administrative loopholes.

 

 

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

 

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

 

 

Patrick

 

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master’s in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you on all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

 

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

Check the full team of HTBIS here

 

The post How to write the financial plan for your B&B in Spain? appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/bb-spain/financial-plan-for-your-bandb-in-spain/feed/ 0 Mijas Village in Spain for a B&B Accomodations revenue for a b&b in Spain – Financial planning Accomodations revenue for a b&b in Spain - Financial planning Other revenues for a b&b in Spain – Financial planning Other revenues for a b&b in Spain - Financial planning Operationals costs for a b&b in Spain – Financial planning Operationals costs for a b&b in Spain - Financial planning Fixed costs for a b&b in Spain – Financial planning Fixed costs for a b&b in Spain - Financial planning Patrick How to set up a Bed & Breakfast…and manage it? https://howtobuyinspain.com/en/buy-property-in-spain/bed-and-breakfast-for-sale-in-spain/ https://howtobuyinspain.com/en/buy-property-in-spain/bed-and-breakfast-for-sale-in-spain/#respond Thu, 24 Mar 2022 18:45:54 +0000 https://howtobuyinspain.com/?p=14166 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 set up a Bed & Breakfast…and manage it?   “Of course, one day, I change my life and I will run a

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]]> Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

How to set up a Bed & Breakfast…and manage it?

 

“Of course, one day, I change my life and I will run a B&B in the sun!”.
You have certainly heard that phrase in your life. Perhaps you expressed this feeling yourself. Is it a utopia? Certainly not because nothing is impossible but everything can be organized.

Dreaming is essential in this kind of project because it is an ideal of life that is sought after. It is by definition intangible and irrational.
The purchase of a property and its daily B&B operational activity nevertheless requires a whole series of objective and rational data.

 


Balearic Islands image of Lutz Hirschmann

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. At the end, you will have all the keys to open the door of your dreams.

We wish you a pleasant reading.

 

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

 

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

 

Patrick

 

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you for all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

 

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

Check the full team of HTBIS here

The post How to set up a Bed & Breakfast…and manage it? appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/buy-property-in-spain/bed-and-breakfast-for-sale-in-spain/feed/ 0 spain-86898_1920 (1) Patrick The Top Spanish regions for setting up your B&B https://howtobuyinspain.com/en/bb-spain/bed-and-breakfast-top-spanish-regions/ https://howtobuyinspain.com/en/bb-spain/bed-and-breakfast-top-spanish-regions/#respond Mon, 20 Jan 2020 19:10:55 +0000 https://howtobuyinspain.com/?p=19393   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   The Top Spanish regions for setting up your B&B   Let us summarize the conclusions reached previously. Please find the earlier articles on

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Click on any flag to get an automatic translation from Google Translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

The Top Spanish regions for setting up your B&B

 

Let us summarize the conclusions reached previously. Please find the earlier articles on setting up your B&B in Spain at the bottom of this article.

Maria and John have plans to move to Spain and start operating a guesthouse. The basic conditions are met: their objective is not primarily financial, because they have funds available (€ 365,000) and they love human contact. Remember our first article: Is the life of a B&B Manager for you?

Both Maria and John have different criteria, although compatible: Having a pool, large rooms and a nearby beach is fundamental to Maria. For John what primarily matters are: the reduced maintenance of the property, an available garage and a golf course nearby. If you need a full refresher, here was the article: How to select the perfect bed and Breakfast in Spain?

Once the property is acquired and they start running the business, they also know that they should not skimp on hygiene and safety conditions (swimming pool/fire). It will be relevant to go beyond legal obligations as we explained in our article The Spanish B&B market

We continue in this 4th theme an important phase: the B&B localization.

 

The top Spanish regions to set up your B&B in Spain are :

  1. The Canary Islands,
  2. Andalusia,
  3. The Valencian Community,
  4. The Balearic Islands and
  5. Catalonia.

Those five regions have been pre-selected on the basis of data from official tourist supply and demand.

Let’s fly to those regions but here are some good advice.

Our advice: Fall in love with your place!

Expatriation as part of a B&B project has to be viewed from a global perspective.

The goal is to live there all year long. Maria and John, therefore, investigated the region in depth. This means not only from a touristic point of view (because it will be a working place for them)…or just a professional one (because they will also have free time..hopefully!). They travel to these areas, during the low tourist season as well, to be sure that there is a good chance that they will enjoy themselves. Discussing with the local population also enabled them to “feel” the area.

Identify the potential disadvantages

The idea is to try to identify all potential disadvantages because a dream usually hides them. The heart must express itself while leaving room for more pragmatic aspects.
You, as B&B managers & as human beings, will be part of the service provided. Therefore, you have to deeply love the place where you live in order to share your experiences with your guests. More than anything else, this is what will make their stay unforgettable! Your past guests will be your best ambassadors for attracting future ones. Don’t forget it!

Measure the attractiveness of your selected region

That being said, let us focus, in this 4th theme, on the aspects of tourist attraction of the different regions preselected. Maria and John have to think not only for themselves but also for their future guests by answering the following question. What makes their customers prefer their house & region over another one?

 

Canary Islands

8 islands, very different from each other, make part of this archipelago benefiting from a subtropical climate. Of volcanic origin, they are geographically on the African plate. The Canary Islands is the Spanish region that hosts (after Catalonia) the most foreign tourists.

Maria and John were impressed by the island of Hierro, which is a biosphere reserve, self-sufficient in terms of electrical needs. They also loved the impressive vegetation of La Palma as well as the island of La Gomera, Christopher Columbus’ last European stopover in 1492, the eternal spring of Tenerife, the micro-continent of Gran Canaria with its northern vegetation and its southern deserts, as well as the 3 eastern islands, including the black sand of Lanzarote, not to mention the small island, recently promoted as the region’s 8th island, Graciosa. Tourism mainly focuses on Tenerife, Gran Canaria and to a lesser extent Lanzarote and Fuerteventura.

The conditions of purchase of a property are quite attractive. The general rule in Spain is a 10% registration rate. In the Canary Islands, buyers will only have to pay a reduced rate of 6.5% (purchase value <400,000 €, 7% for new properties). For Maria and John, based on their budget of 365,000 €, this represents a potential saving between 10,950 € and 12,775 €. Quite a substantial amount.

The climate varies a little throughout the year as you can check on our weather infographics with monthly averages for the top 20 Spanish cities. The high season is even considered as December / January. By deciding to settle there, Maria and John could therefore attract guests throughout the year. The occupancy rate of their homes would increase … and thus their financial figures.

Having listed these attractive points, let’s not lose sight of a Canary Islands reality: the distance to northern European countries. Count between, is +/- 3,500 kilometres according to the place of departure, meaning 4-5 hours flying.
Only Gran Canaria and Tenerife are also accessible by direct flights. Going to any other 5 islands will require an internal flight, or even take the boat. With waiting times, and stops, plan a 1-day journey to reach them.

 

Andalusia

The most southerly region of mainland Spain, which is also the most populous, includes eight provinces, from Cádiz in the west, called the “Costa de la Luz” to Almería in the east, going as far as Córdoba in the north.
It has a large number of golf courses along the coast. We sometimes talk about the “Costa del Golf” rather than the “Costa del Sol“!
Sometimes criticized because the region has suffered from real estate developers’ appetites, the region still has delightful hidden places in small villages, not far from the coast. It sometimes only takes a few miles inland drive to discover them.

 

 

The Costa del Sol is the most famous region in Andalusia but you have three other Costas in Andalusia: The Costa Tropical, The Costa de la Luz and The Costa de Almería.

A tax aspect is also worth pointing out: in terms of inheritance, the property of an Andalusian resident will be tax-exempt up to € 1 million.

As far as coastal villages are concerned, Maria and John have identified several spots. Their “best of” consists of Manilva, Mijas, Nerja, El Varadero and the unmissable Cabo de Gata. They also found beautiful B&B’s already operating on Archidona (1 hour north of Málaga), in the vicinity of Órgiva (near Motril), Conchar (Granada) or Barbate (Cádiz).

Seeing beautiful guesthouses in activity inspires them. Maybe it would be relevant to buy a running B&B, already having its activity license? It could save time and money. We will come back to it later.

 

The Costa del Sol is the most famous region in Andalusia but you have three other Costas in Andalusia: The Costa Tropical, The Costa de la Luz and The Costa de Almería click on the links to find out everything on them: Airports, AVE stations, the biggest cities, the nice shopping places, what should you visit, the Unesco Sites, the golf courses, the top beaches,…

 

The Valencian autonomous region

Three provinces are part of it: Castellón, Valencia and Alicante. From the north, the Costa del Azahar (orange trees) opens the way to the Northern part of the Costa Blanca. Going beyond Alicante, we go along the Southern part. Overall, the weather conditions are quite attractive all year long, even in winter, with sometimes milder temperatures than in Andalusia (follow the link to compare any Spanish City weather statistics). Many British people have elected this region as their residency place.

Here is another paradise for golfers; there are a large number of golf courses along the coast.

Last but not least, several airports serve the Costa Blanca all year round: Castellón, Valencia and also Alicante.

Maria and John enjoyed towns and villages such as Denia, Jávea, Peñiscola and Altea. South of Alicante and not far from the airport, they also noted Gran Alacant which presents new built-up housing with magnificent views of the Mediterranean, located 10 km below.

The B&B touristic offer naturally exists, but the hotel offer primarily dominates, with urban areas such as Benidorm, Gandía or Calpe.

The Costa Blanca is the most famous region in the Valencian Community but you have three other Costas: The Costa Calida, The Costa de Valencia and The Costa del Azahar click on the links to find out everything on them: Airports, AVE stations, the biggest cities, the nice shopping places, what should you visit, the Unesco Sites, the golf courses, the top beaches,…

 

The Balearic islands

Like the Canary Islands, the Balearic Islands are an archipelago of islands. The three main ones are Mallorca, Menorca and Ibiza.
Mallorca is the largest and most populated one. Tourists mainly come from the UK or from Germany just like Menorca.
Ibiza sometimes presents the image of mass tourism. Although this is not always justified, it is likely that Maria & John’s potential clients are also aware of this reputation and may even share this point of view.
In the Balearic islands, we will talk about “rural hotel”, “agroturismo” or “turismo de interior”.

In terms of climate, average temperatures are around 20 degrees between May and October. This period more or less corresponds with the tourist season, which is spread over 6 to 7 months per year.

The journey to get there almost inevitably involves the plane. The distance to the Canaries is nevertheless halved. On the other hand, going to Menorca or Formentera means internal movements (plane / boat) which lengthen the journey time.

Here, too, María and John will have to be taken into account the legislation on rural tourism in general and guest houses in particular. Rural areas are protected; you can not do whatever you would like to, not any more.

 

Catalonia

Catalonia is Spain’s main road gateway. One of the important advantages of the region is therefore its location. This can be important for Maria & John because people who choose a “bed and breakfast” mode for their holidays usually ride their cars. This is especially the case if they travel with their family. Coming from the north of Europe, they will discover Catalonia first.
The Costa Brava will path the way to the Costa de Barcelona and then to the Costa Dorada (Tarragona region).

“Between sea and mountains”; Catalonia has everything: better geographical proximity, gastronomic and cultural high-quality offer, and one of the coolest climates in Spain. The coastal areas’ often hilly landscapes have protected Catalonia from extensive urban touristic projects.

In addition, the city of Barcelona attracts tourists all year round. The cooler climate of the region, compared to other Spanish regions, does not therefore represent a disadvantage as such. The heat and the sun are not necessarily the first reasons for going to Catalonia.

Maria and John hit Catalan roads, looking for beautiful “casas de payés”. The favourites of our heroes are Empuriabrava, Calella de Palafrugell, Pals, Begur, Tossa de Mar and Garraf.

In terms of politics; the region is regularly in the spotlight. Catalonia presents a history and a culture of its own, which makes it “different” … just like the Basque Country or Galicia elsewhere. If María & John choose to settle there, they need to know it…and be ready to learn the Catalan language. This will secure a better integration in the local everyday life.

The Costa Barcelona is the most centric Costa in Catalonia but you have The Costa Brava in the north of Barcelona and The Costa Daurada in the South click on the links to find out everything on them: Airports, AVE stations, the biggest cities, the nice shopping places, what should you visit, the Unesco Sites, the golf courses, the top beaches,…

 

Our general advice

Gather information by reading a maximum of information blogs or websites on “casas rurales”. For example, the Spanish association of rural tourism ASETUR, created in 1997 offers a lot of information, particularly on the legal requirements. This is useful when it comes to check certain details when they have selected the property and to confirm the conformity of the property with the Spanish and regional laws.
This ASBL also proposes a classification of guest houses via “ears”, ranging from a scale of 1 to 5. It mentions the criteria to belong to different categories:

Do you want to discover any region in Spain? Start with this page with all the different maps of the Spanish Costas in Spain with their must-do activities.

To conclude

Focusing on the geographical criteria of Maria & John, we realize that they each have one in common: the property must be close to the beach for her, and close to a golf course for him. Willing to benefit from the longest possible tourist season, they eliminate Catalonia, too cool in winter. They also say that access must be easy, so they finally reject both island archipelagos (Canary and Balearic). There are two possibilities remaining: the Valencian community and the Costa del Sol.

Having ridden in these two areas, they finally decided to focus on the Costa del Azahar and the north of the Costa Blanca. This coastal region linking Valencia to Alicante seems to them quite adapted to their project. A mild climate all year long, beautiful beaches and a profusion of golf courses in the immediate vicinity represent solid arguments.

We now have this essential data: the “where”. In the next episode, María and John will introduce us to the Costa del Azahar and Costa Blanca, through some real estate visits. They will share their feelings, explain the way they managed the purchase negotiation … and present their final choice. See you soon.

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. At the end, you will have all the keys to open the door of your dreams.

We wish you a pleasant reading.

 

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

 

 

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

 

Patrick

 

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master’s in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you on all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

 

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

Check the full team of HTBIS here

The post The Top Spanish regions for setting up your B&B appeared first on How to buy in Spain.

]]> https://howtobuyinspain.com/en/bb-spain/bed-and-breakfast-top-spanish-regions/feed/ 0 Canary Islands Know everything on the Canary Islands: 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. Costa del Sol map 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. Costa Blanca Small map Know everything on the Costa Blanca: 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. Balearic Islands Find everything on the Balearic Islands: its Airports, 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. Costa de Barcelona map Know everything on the Costa de Barcelona: 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. The Spanish Costas Infographics maps Find all our best Spanish Costas infographics: Costa Brava, Costa del Sol, Costa Blanca, Costa Barcelona, Balearic Islands, Canary Islands,... Patrick €100,000… for our 100,000 readers! https://howtobuyinspain.com/en/buy-property-in-spain/buying-real-estate-spain/ https://howtobuyinspain.com/en/buy-property-in-spain/buying-real-estate-spain/#respond Sun, 08 Sep 2019 05:27:17 +0000 https://howtobuyinspain.com/?p=6696 Translate this page: Our 100,000th reader just joined our network! Thank you all.   It took us about 2 years to reach 60,000 readers, it took us less than 7 months to get the next 40,000 readers. We are seeing an impressive growth in our traffic as we are THE

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Our 100,000th reader just joined our network!

Thank you all.

 

It took us about 2 years to reach 60,000 readers, it took us less than 7 months to get the next 40,000 readers.

We are seeing an impressive growth in our traffic as we are THE solution of choice for any foreigner purchasing a property in Spain.

 

Our biggest EVER giveaway 20 x €5,000

In order to thank you, we have created our biggest event ever with our partners:

For the 20 first new build property buyers listed on our website, starting this 22nd of July 2019, we will reimburse you €5,000!

 

 

More than 500 properties listed on our portal

We can’t list all the properties of our partners but we list 30 of them representing more than 500 properties available:

Don’t hesitate to ask our partners for more by filling the form available on any property.

We are constantly adding properties and partners to our portal, so, before buying a property in Spain, check first here, we have the properties listed at the lowest prices available directly from renowned developers.

 

 

You already have a new build apartment on our portal for €173,000

 

Any trick?

Just buy any property listed and work with our partners, easy isn’t it? see detailed conditions here.

We will regularly update you with the list of the buyers.

 

Why our partners are happy?

They are all happy to work with you and to be partnering with us as it keep them busy.

 

 

Check our property buyers’ guides for the 11 top nationalities.

Here are our FREE pdf property buyers’ guides written for all the foreign nationalities looking to buy in Spain: click on your country flag, you will find your pdf report at the end of each article. Get most of our tips there.

 

 

 

And of course, don’t miss our quarterly report on the Spanish real estate activity:

 

 

 

Get all our useful animated videos and register to any of our YouTube Channel in your mother language:

 

Here is the TOP 100 list of the nationalities of our readers:

  1. United Kingdom
  2. Spain
  3. United States
  4. Belgium
  5. France
  6. Netherlands
  7. Ireland
  8. Germany
  9. Sweden
  10. Canada
  11. Switzerland
  12. India
  13. United Arab Emirates
  14. Luxembourg
  15. Italy
  16. Peru
  17. Poland
  18. Philippines
  19. Russia
  20. Denmark
  21. Norway
  22. Ukraine
  23. Argentina
  24. Australia
  25. Bulgaria
  26. Finland
  27. Portugal
  28. Brazil
  29. Israel
  30. Turkey
  31. China
  32. Mexico
  33. Romania
  34. Morocco
  35. Singapore
  36. Hong Kong
  37. Lithuania
  38. Malaysia
  39. Colombia
  40. Venezuela
  41. Greece
  42. South Africa
  43. Estonia
  44. Egypt
  45. Hungary
  46. Austria
  47. Algeria
  48. Czechia
  49. Latvia
  50. Saudi Arabia
  51. Thailand
  52. Vietnam
  53. Cyprus
  54. Nigeria
  55. Indonesia
  56. Iceland
  57. Bahrain
  58. Japan
  59. South Korea
  60. Qatar
  61. Bangladesh
  62. New Zealand
  63. Chile
  64. Iran
  65. Moldova
  66. Malta
  67. Kenya
  68. Kuwait
  69. Kazakhstan
  70. Costa Rica
  71. Slovakia
  72. Gibraltar
  73. Mauritius
  74. Pakistan
  75. Tunisia
  76. Taiwan
  77. Jordan
  78. Sri Lanka
  79. Panama
  80. Slovenia
  81. Albania
  82. Azerbaijan
  83. Belarus
  84. Croatia
  85. Cambodia
  86. Andorra
  87. Dominican Republic
  88. Lebanon
  89. Oman
  90. Curaçao
  91. Ecuador
  92. Honduras
  93. Macedonia (FYROM)
  94. Serbia
  95. Bolivia
  96. Côte d’Ivoire
  97. Guernsey
  98. Montenegro
  99. El Salvador
  100. Tanzania

 

Tell us how we can improve, take 1 minute, thank you in advance!

 

Looking for an expert: a lawyer, a property shopper, a mortgage, an architect in Spain? Ask us directly!

Stéphane

Senior analyst and strategist at HTBIS

Check the full HTBIS team here

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]]> https://howtobuyinspain.com/en/buy-property-in-spain/buying-real-estate-spain/feed/ 0 Property Voucher of €5,000 The-Best-New-build-opportunities-in-Spain gbunitedkingdomflag_111699 degermanyflag_111762 nlnetherlandsflag_111906 Russia China Sweden Morocco Italy Belgium Belgium France Romania Our full review of the top 20 Spanish real estate markets HowToBuyInSpain_FinalFiles (twitter) HowToBuyInSpain_Twitter Spain HowToBuyInSpain_Twitter French HowToBuyInSpain_Twitter Germany HowToBuyInSpain_Twitter Romania HowToBuyInSpain_Twitter Italy HowToBuyInSpain_Twitter Holland HowToBuyInSpain_Twitter Morocco HowToBuyInSpain_Twitter China HowToBuyInSpain_Twitter Russia HowToBuyInSpain_Twitter Sweden Stéphane co-founder of HTBIS The Spanish Bed and Breakfast market https://howtobuyinspain.com/en/bb-spain/spanish-bed-and-breakfast-market/ https://howtobuyinspain.com/en/bb-spain/spanish-bed-and-breakfast-market/#respond Mon, 01 Jul 2019 16:11:55 +0000 https://howtobuyinspain.com/?p=17455 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   The Spanish B&B market Maria and John are now convinced that their near future will include the management of a guest house. That’s done!

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]]> Click on any flag to get an automatic translation from Google translate. Some news could have an original translation here: News Nouvelles Nieuws Noticias Nachrichten

 

The Spanish B&B market

Maria and John are now convinced that their near future will include the management of a guest house. That’s done! It is now necessary for them to understand what the Spanish market looks like. This is the goal of this third article.

We will develop the subject following two directions: the type of guest house and their location.
At the end of this chapter, Maria and John will have more keys to:

  • select the type of B&B they want
  • determine in which region it will be located

 

What is a Bed and Breakfast in Spain?

Let us first agree on the definition of the concept “guest house“. According to commonly agreed terms, it involves the following ideas:

  • a building of traditional architecture, isolated in the countryside or located in a small village, sometimes a former farm, “recycled” in tourist housing,
  • tranquility & silence must prevail in its close environment,
  • a historical dimension is also assumed, through the maintenance of an architectural style specific to the region concerned,
  • the housing capacity must be limited to less than 15 people,
  • specific thematic may be presented such as:

–agrotourism with the reconnection of passing travelers with local traditional agrarian and cultural activities

–ecotourism which favors ecological tourism with a set of sustainable energy management parameters

–wine tourism which offers tastings and wine consumption and gastronomic goods produced on the site

It isn’t therefore:

  • a hotel in a rural area (the managers / owner (s) often live in the B&B),
  • an urban apartment,
  • a 24h service offering, minibar, TV in the rooms or daily cleaning service

The concept is so vast, the B&B offers many different experiences. A classification in Spain is in the study phase, but is not yet operational, unlike in France where “ears” or “spikes” give hierarchy of the different guest houses.

For the purpose of simplification, we identify two large groups of B&B in Spain;

  • the ones which rent rooms: las casas “por habitaciones” – CH
  • the ones which rent a whole building: las casas “de alquiler” – CA

Some regions, such as Catalonia, carry out an additional subdivision, depending on whether the managers exploit (“casas de payés”) or not (“allotjaments rurals”) their farm, in addition to their rural tourism offer.

 

CH’s offer at least one service: breakfast.

Beyond that, flexibility prevails: lunch and dinner are optional. Some offer a “cooking right” with a space available to guests including cooking hotplate, fridge, oven, microwave,…

CA’s are divided into 2 subgroups.

There are those with a single building, and those consisting of various independent houses with private access. Common areas are available to all, such as swimming pool, garden, living room. In all these cases, there is no service offered to guests on a daily basis.

 

In the majority of cases, all B&Bs, whether “CH” or “CA”, provide sheets, blankets, dishes and kitchen equipment to their guests.

Contact between hosts and managers is more intensive in CHs. This is the kind guesthouse that Maria and John want because human connection is key in their choice. They wish to make sure that their customers join them in the B&B experience.

 

What does the law say?

As is often the case, when a concept works, it attracts people. Legislators must set a framework, indicating rules and standards to follow. Spain being a federal state, the various regions have a certain autonomy in legislative matters. This implies that laws are different depending on the location. Maria and John will therefore have to consult the specific rules that will apply should they want to develop a specific offer.

Nevertheless, there are general rules, common throughout Spain, for all guesthouses. Let’s mention 3 of them.

1. The pools: The rules are generally less strict than in France for example. Legislation in terms of B&B in Spain “outsources” all liability of children on their parents. Even if access to water is free (unfenced), it will be the parents’ responsibility to constantly monitor their offspring. As a matter of fact, in Spain, the pool does not have to be monitored under a certain water volume level.

Our advice: Even if you, as the manager, are protected by law, feel free communicating this information to your guests orally … and in writing. We are never too careful! You will also have the freedom to determine the bathing hours. A floating cover will also prevent early or late at night swimming. This will enable a more convenient and efficient maintenance work. No minor thing: the swimming pool is very important place of your B&B. You must keep it, at all times, in perfect condition, whether inside (water quality and cleanliness) or outside (terrace, toilets, …).

 

2. The sanitary: Appointing CH’s, i.e. those who do not yet have their working licence, must, in order to obtain it, offer a private toilet per room. This is not the case for CA’s. At this level, it is basically a personal decision, regarding the quality level you want to give to your guests.

 

3. Cleaning: Unlike hotels, there is no legal requirement for daily maintenance for CH’s; even less for the CA’s. Again, depending on the level of luxury of your CH, it will be up to you to determine how often you do it, and what the maintenance entails.

Our advice: Even if not mandatory, go to the rooms on a daily basis. Leave “tracks” of your visits behind. An addition of toilet paper or shower gel is highly appreciated because it avoids your guests to come begging…sometimes during breakfast time, next to other clients … Your guests will feel that you care for them, in a proactive way. This is a way to build customer loyalty.

 

How many B&B’s are there in Spain and where are they located?

It is important to be aware that guesthouses are a real alternative to so-called “traditional” holiday homes such as hotels. Their number in Spain has steadily increased in recent years. A country map is quite telling at this level. It shows the number of B&B’s per province. The darkest is the province, the most important the guesthouses’ concentration is.

The total number of B&B’s in Spain (last March) is an estimated 16,375. They are spread unequally across the country’s 50 provinces. For example, the one region of Asturias in the north, which is geographically small, is home for more than 1,250 establishments. It is nevertheless interesting to note that the B&B offer is spread over the entire territory, and not only in hot and coastal areas. See the high concentration of guesthouses along the Pyrenees, as well as a rural area bordering Portugal (provinces of Cáceres and Salamanca).

This overall number is confirmed by consulting specialized Internet booking sites. See below. The result, purely estimated, relates to a B&B research for a 2 people 1 week stay during the month of June.

 

Website

 Number of listed B&B’s
clubrural.com

>20,000 Spain + Portugal
toprural.com

5,400

escapadarural.com

16,915
casarurales.net

>20,000
booking.com

>650

airbnb.com

>300
homeaway.com

>200

 

In terms of occupancy figures, we note that, as far as last March is confirmed, there were nearly 40,000 nights spent by foreigners in bed and breakfast in Spain. Almost 30% of these focus on the Balearic Autonomous Community alone. The Canaries (17%) and Andalusia (14%) follow. The average stay is the longest (4 nights) in the provinces of Santa Cruz (Canary Islands), Las Palmas (Canary Islands) and Málaga (Andalusia).

Check the site of the INE for more interesting informations on that subject.

 

How relevant is all this to Maria & John?

Maria and John, our couple looking to set-up a B&B in Spain (see our earlier article) realize that they are neither the first ones nor the last ones to carry out a “B&B adventure” in Spain. They nevertheless think that it might be appropriate to choose a region with a large amount of tourists … which has a low offering of B&B. In a nutshell, find an area with high demand and low supply. Based on the information below, they decide to pre-select 5 provinces:

  • Las Palmas (Canary Islands)
  • Almería (Andalousia)
  • Valencia (Valencia)
  • Menorca (Baleares Islands)
  • Girona (Catalonia)

The last province of Girona is an exception: the offer is substantial but the geographical location (sea / mountains, bordering France) has aroused the curiosity of our couple. They want to investigate a little more on the topic.

 

Conclusion

The B&B market in Spain is quite substantial … in any case much bigger than Maria & John would have originally suspected.
As a reminder, the objective of this third theme was twofold:

  • Understand what a bed and breakfast meant in Spain
  • Identify potential areas of establishment

Maria and John want to offer a local service to their future guests and we saw that human contact was a key factor for them. They decide to move towards a CH … which will be located in one of the 5 pre-selected regions. They will have to investigate a little more and that is why they will go onsite.

They will provide the details of their trips to these 5 autonomous communities in the next issue of this series.

Stay tuned follow Maria & John’s B&B project!

We want to contribute to the success of your B&B in Spain

We invite you to discover this world thanks to our external partner, Patrick. We want to contribute to the success of your project by sharing tips and informative data.

Patrick has created a detailed series of articles related to his extensive experience in the B&B business in Spain. It is a chronological guide starting with the set up of your B&B project and advising you step by step in order to better manage this professional transition: How to create selection criteria? Where to locate? Administrative work? Marketing?…

The topics are divided into a series of 8 themes and will be published on a regular basis. At the end, you will have all the keys to open the door of your dreams.

We wish you a pleasant reading.

 

Need assistance for your B&B? Ask for more information to Patrick. Our B&B Specialist in Spain

 

Introduction: How to set up a Bed & Breakfast…and manage it?

Theme 1: Is the life of a B&B Manager for you?

Theme 2: How to select the perfect bed and breakfast in Spain?

Theme 3: The Spanish B&B market

Theme 4: The Top Spanish regions for setting up your B&B

Theme 5: The financial plan for your B&B in Spain

 

Patrick

 

B&B adviser, Partner of HowtobuyinSpain

Patrick created and managed his own B&B in Spain for 8 years. He knows the ins and the outs of that business.

About Patrick and his team, our B&B adviser

Patrick has a degree in Applied Economics and a master in International Politics. With a financial background, he lived for 8 years in Spain, setting up from scratch and managing a charming B&B. The B&B is still running today.

Patrick advises you for all the major decisions related to the business life of a B&B: B&B Business setting up, B&B estate selection criteria, administrative & legal procedures, Communication strategy and Day to day business.

His expertise covers all the Spanish coastal regions.

Languages: Dutch, French, English, Spanish & Catalan

 

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

Check the full team of HTBIS here

 

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]]> https://howtobuyinspain.com/en/bb-spain/spanish-bed-and-breakfast-market/feed/ 0 Spain Andalusia Nice walking street in Spain Spain village Patrick Spain GDP growth: the European commission expectations for 2019 & 2020 https://howtobuyinspain.com/en/spanish-economy/spain-gdp-growth-european-commission/ https://howtobuyinspain.com/en/spanish-economy/spain-gdp-growth-european-commission/#respond Tue, 21 May 2019 07:19:44 +0000 https://howtobuyinspain.com/?p=4626 Automatic translation from Google translate:   Spain GDP growth confirmed above EU for 2019 and 2020 by the European Commission The European commission has just released it’s last report with economic expectations for all the European countries. Here are the main details for Spain:   Before investing anywhere, it’s always

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]]> Automatic translation from Google translate:

 

Spain GDP growth confirmed above EU for 2019 and 2020 by the European Commission

The European commission has just released it’s last report with economic expectations for all the European countries. Here are the main details for Spain:

 

Before investing anywhere, it’s always good to check the Economy and the macroeconomic data of the country. There is a good news: the economic expectations of Spain are revised upwards.

Here is the summary of the analysis of the European Commission:

The expected mild deceleration of real GDP growth materialized in the first three quarters of 2018. In the last quarter, real GDP growth regained some momentum and expanded by a robust 0.7%, partly due to a rebound in net exports. As a result, real GDP in 2018 grew by 2.5%.

In fact, the Spanish GDP growth expectations remain  above EU average: 2.1% in 2019 & 1.9% in 2020

 

The European commission sees the Spanish growth decelerating further to 2.1% in 2019 and 1.9% in 2020  as the cycle matures. The deceleration is mainly driven by a slowdown in private consumption, which is expected to grow more slowly than disposable income, as pent-up demand is absorbed and households increase their saving rate.

 

 

Compare the GDP growth expectations for Spain vs other EU countries with our interactive charts:

You will see right away that Spain is in the winning group in Europe.

2019 GDP Growth expectations – interactive chart

Source: European Commission

Expectations

  • Growth is expected to continue easing over the forecast horizon, to  2.1% in 2019 and 1.9% in 2020 but remains higher than EU averages.
  • Private consumption is projected to remain the main driver of growth, but to slow down as the pace of job creation moderates.
  • Residential construction and equipment investment are set to ease gradually.

 

Net exports contributing negatively (vs positively before) to growth

  • The contribution of the external sector to growth is projected to remain negative but improve in 2019, and turn
    neutral in 2020.

Despite weak growth in global trade, exports are forecast to accelerate slightly in 2019 and
2020, as Spain’s export market shares gradually improve after a sharp deterioration in 2018. At the same time,
imports are expected to decelerate broadly in line with final demand.

 

The unemployment rate to fall to about 14% by 2019

  • The unemployment rate to fall to about 14% by 2019, a reduction from 21% at its peak in 2013.
  • Wage growth is expected to accelerate in 2019, partly under the impact of the increase in the minimum wage, and to moderate but still be above inflation in 2020.