Have you ever fantasized about owning a property on the Costa del Sol or a chic apartment in Barcelona? This guide on buying a home in Spain includes tips; let’s take a look. Our guide explains how to buy a home in Spain in detail.
All about the Homeowners in Spain!
Prices have been progressively growing in Spain since 2016, and despite the COVID-19 epidemic affecting the market in 2020, official records show that average prices increased in the second quarter of the year. Sale prices grew by 2.1%, with new-build prices up 4.2% and second-hand homes up 1.8%.
Spain has a high rate of homeownership, with over 70%-80% of residents owning their own home, many of them doing so without a mortgage.Spain suffered tremendously during the global financial crisis and the subsequent property market meltdown. House values fell by 30%, but the market has stabilized in recent years.
Spanish Real Estate Market and Prices in 2022!
San Sebastian, Barcelona, and Madrid are the most expensive cities to buy in Spain. In all three districts, the prices per square meter varied from €3,000 to €3,600.
With costs of €338 per square meter, Madrid was the most luxurious place to buy land in Spain. Canary Islands (€245), Catalonia (€184), Andalusia (€171), and Valencia (€158) rounded out the top five. The cheapest place to buy is Castilla y Leon, with intermediate land prices of €66 per square meter.
Cost of Purchasing Property in Spain in 2022!
The costs of purchasing a home in Spain vary by region, and many are negotiable – for example, there are no set fees for lawyers or estate agents. The purchasers bear the majority of the costs, and they are as follows:
- 6%–10% (existing properties) property transfer tax / 10% VAT (or IVA) (new properties)
- 1–2.5 percent for notary fees, title deed tax, and land registration.
- Fees for legal services: 1–2% (including VAT)
In Spain, the estate agent is frequently paid by the seller. Estate agents normally charge a percentage of the final sale price for their services, usually approximately 3%.
Financing Property in Spain This Year!
As an international buyer, you may only be able to borrow at a shorter loan-to-value (LTV) rate than Spanish locals, requiring a larger deposit. Non-residents may be limited to 60% –70%LTV being sure of the mortgage type, while Spanish residents can borrow up to 80% of the property’s assessed value.
Finding Local Estate Agents that are available in Spain!
Estate agents are a valuable asset in your Spanish property search since they can provide a lot of knowledge about the area, are bilingual, and frequently deal with international purchasers; however, because regulation is weak and evil estate brokers do exist, be wary of anyone who requests upfront money or proposes cutting shortcuts.
For the best real estate experience, you can also check out www.javeaestateagent.com, as they offer the best deals on the best properties in Spain.
