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Buying Property in Spain: House Prices

26 de June, 2024

Buying Property in Spain: House Prices

Buying a property in Spain is a great investment. Learn how to buy, finance, the required documents, and the house prices.
Casa Espanha Girona
Reading: 5 min

Buying a property in Spain as a foreigner is entirely feasible and an excellent investment. Even if you are not a legal resident, it is possible to purchase property in the country. The acquisition can even lead to Spanish citizenship through the Golden Visa. It’s worth noting that the region has attractive market values and numerous opportunities in cities with excellent quality of life! Here’s how to buy property in Spain, the necessary documents, the taxes involved, the average house price in each province, and the main cities to invest in. Take advantage of the Spanish real estate market and turn this dream into reality!

Can I buy property in Spain while living in another country?

Yes, it is possible to buy property in Spain as a foreigner, even if you don’t live in the country. However, you will need to have some essential national documents to complete the transaction.

Do you want to live in Europe?

Realizing your goal of living in Europe or obtaining European citizenship can be simpler than you think. We offer personalized support to make the immigration process more accessible and uncomplicated.

How to Buy a House in Spain?

You will need to follow some steps and meet certain requirements. You will need to:

  • Obtain the NIE, a Foreign Identification Number required for any financial transaction in Spain;
  • Open a bank account in Spain;
  • Sign a purchase contract and obtain the Simple Informative Note of the Property (Nota Simple Informativa), which is the document issued by the Property Registry, containing the identification of the property, its history, and ownership;
  • Pay the taxes charged in the country (explained below).

Does buying a property in Spain grant Spanish citizenship?

Indirectly, yes, but only for those who buy and live in the country. There is a special residence permit in Spain called the Golden Visa, available to those who invest at least 500,000 euros in the country. The Golden Visa allows its holder and their family to reside in Spain and travel freely throughout the European Union.

For now, this amount (500k €) can be used to buy property. Interested? It’s best to hurry, as the Spanish government has already indicated it intends to end the real estate option of the program soon. Talk to our consultants now!

That said, it is worth remembering that those who legally reside in Spain for a certain period can apply for Spanish citizenship. The required residency period depends on the applicant’s original nationality. Generally, 10 years of legal residence are required. However, for citizens from Ibero-American countries, the minimum period is reduced to 2 years to access citizenship!! Learn more in our complete guide to Spanish citizenship!

Check our article on dual citizenship to see who can retain their original citizenship after acquiring Spanish citizenship.

Where to Buy Property in Spain?

If you live abroad, online research is the easiest way to get to know the Spanish real estate market. Some resources include:

Engel & Völkers: A partner of Atlantic Bridge, it is one of the leading international real estate companies with a strong presence in Spain, offering a wide range of luxury properties.
Remax: Operates in over 100 countries worldwide, including Spain, offering services for buying, selling, and renting residential and commercial properties.
Idealista: A large Spanish real estate portal offering comprehensive searches with photos, videos, and 3D tours. It has an extensive catalog of properties in various regions of the country.
Fotocasa: Also has a vast number of listings, usually with detailed photos and maps of the locations.
Habitaclia: Specializes in properties on the Mediterranean coast of Spain, making it a great option for those looking for properties in tourist and seaside areas.
Pisos.com: A free listing site resulting in a large property catalog. Includes photos and location maps, as well as contact information for the owner or real estate agency.

How Much Does It Cost to Buy a House in Spain?

Average prices for buying a house in Spain vary significantly depending on the location and type of property. Additionally, the final price involves other costs besides the property price, such as taxes and additional fees.

According to data from the Informe Gesvalt 2024, the average cost per square meter (m²) in Spain is approximately 1,538 euros, representing a moderate increase of 2.1% compared to the previous year. However, this value is still 28.2% below the historical highs recorded before the 2008 financial crisis, as reported by the newspaper El País.

  • Madrid and Barcelona remain the most expensive markets, especially in central and highly valued areas, with an average of over 2,500 euros per square meter.
  • The Balearic Islands also top the list of the most expensive territories in Spain, with an average of 2,859 euros per square meter.
  • Less central regions and smaller cities, such as León, maintain more affordable prices, around 1,300€/m².
  • At the bottom of the ranking are Castilla-La Mancha and Extremadura, with an average of 950 euros per square meter.

Spain or Portugal? Which is the Better Country to Live In?

Cheapest Regions to Buy a House in Spain?

The cheapest autonomous communities in Spain are Castilla-La Mancha, followed by Galicia, Asturias, Murcia, Catalonia, and the Canary Islands.

House Prices in Spain: Average Per Square Meter

Based on sources like the Idealista Portal, the average values shown in May 2024 are gathered below. With a national average around 2,120€ per square meter, the values are based on the properties listed on this site.

Location (Province, Municipality, District)Sale PriceRental Price
National Average2,120€/m²13.20€/m²
Balearic Islands/Mallorca (Ciutat Antigua)5,693€/m²16.90€/m²
Madrid (Chamberí)6,630€/m²22.80€/m²
Madrid (Villaverde)2,077€/m²14.10€/m²
Barcelona (Eixample)5,500€/m²23.10€/m²
Barcelona (Ciutat Vella)4,446€/m²24.30€/m²
Barcelona (Nou Barris)2,293€/m²15.50€/m²
Valencia (average)2,350€/m²14.10€/m²
Valencia (Ciutat Vella)3,485€/m²17.90€/m²
Málaga (average)2,920€/m²€/m²
Santiago de Compostela1,976€/m²8.80€/m²
León (average)1,420€/m²7.50€/m²
Ávila (average)1,272€/m²7.30€/m²
Castilla-La Mancha (average)936€/m²7€/m²
*Idealista May/2024.

Property Purchase in Spain: Taxes

In addition to the purchase price, buyers should consider other costs. Check below:

ExpensePercentage
Property Transfer Tax (ITP, for resold properties)Between 6% and 10% of the purchase price, depending on the region
VAT (new properties)10% of the purchase value (7% in the Canary Islands)
Stamp Duty (AJD, new properties)Between 0% and 1.5% of the purchase value (depends on the region)
Notary FeesBetween 0.5% and 1% of the purchase price
Registration FeesBetween 0.5% and 1%
Loan FeesIf financing is used, add another 2% of the property value

Real Estate Credit in Spain for Foreigners (Financing)

Good news! It is possible to obtain a mortgage for foreigners in Spain. However, you will need to prove financial stability. Note that there are specific requirements and processes you must follow.

To facilitate the process, we recommend the services of Habeno, a company that assists in obtaining international mortgages with the best Spanish banks, making the process simpler and more efficient. And the best part: the initial consultation is free.

Tips for Buying a Property in Spain Safely:

  1. Hire a Specialized Lawyer to handle legal checks, negotiations, and all necessary documentation, ensuring that your rights are protected throughout the purchase process. Atlantic Bridge offers this service, making your negotiation much smoother and safer.
  2. Research the property’s history, checking for debts, liens, or legal disputes associated with the property.
  3. Compare similar property prices and ensure the asking price aligns with market value. Be wary of prices significantly outside the average.
  4. Visit the area where you intend to buy the house at different times of the day to get a sense of local life, movement, and commercial and transport options.
  5. Have a solid financial plan. Remember all additional costs you will incur beyond the initial property value.

Rely on Atlantic Bridge!

If you have no experience in the field, live abroad, or don’t speak Spanish, strongly consider seeking help from a specialized lawyer to guide you through the transaction and review contracts. We recommend the best real estate companies for your region of interest and provide transaction monitoring. Contact our experts!

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Silvia Resende

Author:

Silvia Resende

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