Property Investment in Spain as a Foreigner

Frequently asked questions

• Can foreigners buy property in Spain?

  Yes. Foreigners in Spain can freely buy, sell, and rent out residential and commercial real estate.

• Are property prices still falling in Spain?

  No. Property prices in Spain have been growing by 1.3% every quarter on average. Seven years ago, an apartment of 100 m² was worth an average of €203,000, and today it can be sold for €300,000.

• Can I get residency in Spain if I buy a house?

  Investing in real estate is an opportunity to get additional income in Spain. Investors can make money on reselling the property on average, prices for Spanish real estate are growing by 5% per year. If an investor had bought an apartment worth €200,000 in 2017, they could now sell it for €300,000.

• What is the average price of a house in Spain?

  The cost of Spanish real estate increases by an average of 1.3% quarterly. The dynamics are confirmed by Eurostat statistics: since 2015, housing prices have increased by 32%.

  The average cost of housing in Spain is €3,300 per 1 m². An apartment by the sea will cost around €500,000. For apartments in the centre of Madrid or Barcelona, you will have to pay about 2 million euros.

• Do I have to pay tax on my Spanish property?

  Yes. Buyers of new buildings pay a VAT plus a stamp duty: 7—12% of the purchase price. For resale real estate, buyers pay a 6—10% transfer tax.

  The annual property tax in Spain ranges 0.4 to 1.1% of the cadastral value. The rate depends on the region where the property is located.

  Foreign owners who rent their property in Spain pay a 24% income tax. Foreigners may be charged a tax on imputed income, even if the property is not rented. The imputed income tax rate ranges 1 to 2% of the cadastral value of the object. The tax is levied on non-resident owners who live in Spain less than 183 days a year.

• Is Spain a good place to invest in real estate?

  In general, Spain can offer attractive opportunities for real estate investment, particularly in popular tourist destinations and major cities. However, thorough research and due diligence are essential to assess the suitability of the investment based on your objectives and risk tolerance.

• How much does a 1 bedroom apartment cost in Spain?

  The cost of a 1-bedroom apartment in Spain can vary significantly depending on the location, city, neighbourhood, size, condition, and other factors. Generally, prices can range from around €50,000 to well over €300,000 or more.

  In major cities like Madrid, Barcelona, and Valencia, as well as popular coastal areas such as the Costa del Sol and the Balearic Islands, prices tend to be higher due to demand and the attractiveness of these locations for both residents and tourists.