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Quick Tips for Spanish Property Investment
As beautiful as the market opportunity is, it can also be tricky if you are a foreign investor and are not aware of the local requirements. Here are some tips to help you get started with your property investment in Spain.
Invest in a Rental Property
In recent years, rental prices in Spain have increased significantly, up to 26% in urban areas.
Many Spanish cities, like Barcelona, boast a quality of life arguably unrivalled elsewhere in the world. Its beautiful beaches, temperate climate, vibrant local culture and reputation as a growing business hub have been attracting increasing numbers of foreigners who generate a significant demand for rental properties.
While there are current global restrictions that have reduced this trend, rental properties remain a wise and profitable investment choice in Spain.
Get a Golden Visa
Under the Spanish Golden Visa residency scheme, non-EU nationals can get permanent residency including Schengen-area travel in return for certain types of property investment.
Lucas Fox has established its own division, Residency in Spain (www.residencyinspain.com), which is specifically geared towards non-EU investors looking to make a permanent move to Spain. The first half a million Euros invested has to be mortgage free, but anything over that amount can be financed.
In the last year we have seen growing interest from Golden Visa applicants as Spain offers great property investment opportunities coupled with an excellent infrastructure and lifestyle.
Use Reliable Real Estate Agents
Before you work with any real estate agent, it is best to check their reliability. You should make sure to ask for credentials and references from past or current clients. Ensure that you only work with the agent when you feel confident of their reliability.
For those selling a property, their goal is to get the highest sale price they can. An honest agent can offer realistic advice on the market situation, assist with legal issues, and lead the buyer to better properties.
Our credentials at Lucas Fox are first-class, and we are in a great position to help you buy or sell your property without hassle. If you were to trust us with your purchase, you can enjoy the process while we deliver the perfect property options for you.
Watch Out for Debts
In Spain, debts are transitive, implying that you inherit all the debts and bills that come with a property when you buy it. These debts can include:
- Mortgage payments
- Property tax
- Payments to relevant associations
Ensure there are no debts associated with the property, or you’ve factored them into the purchase price. Also, make sure that the contract protects you against liabilities.
How to Buy a Spanish Property
You need to first identify the type of property you want to buy. Lucas Fox is here to help you through this process. Once we’ve found a property you love, we will discuss your offer. If both parties accept the offer, you both will sign a preliminary contract. After settling on the mortgage, you will pay a deposit, usually 10% of the sale price.
It is best to address the mortgage situation before signing the preliminary contract. When these steps are taken care of, both parties can then sign the contract of sale with confidence. Now, you can move forward with the purchase of the property.
Things You Must Do Before Buying a Property in Spain
There’s a lot to consider when buying a property. The practicality of the home including the floor plan and site orientation should all be considered.
Some common challenges that you need to avoid as a new investor in the Spanish real estate market include:
- Incomplete registration with relevant authorities
- Inadequate research on the property and the agents
- A misunderstanding of the contract
- Lack of preparation for unforeseen fees, charges, and taxes
You can always contact us for suggestions and advice on the best way to buy a property. No matter the location or the size of the property, we are sure to deliver you the right advice so you can make an educated decision. Contact us today!