Spain is often ranked as one of the healthiest countries in the world. The country is a target for ex-pats because of the high quality of life and low cost of living.
The weather is often fantastic in the south, the people are friendly, and the food is incredible. All of these things make Spain an attractive destination for retirees, digital nomads, and tourists.
The biggest downside to Spain is the bureaucracy. It can try the most patient of people, especially if you want to buy a property in Spain.
You have a lot of obstacles and paperwork to overcome. Most foreigners need to come up with around 40% of the cost of the home as a deposit.
You might question whether all of the trouble is worth it. The fact is, there are plenty of great reasons to buy a home in Spain. Keep reading to discover what they are.
Property Prices Remain Low
Spain was one of the countries hit the hardest by COVID-19. The country was under a strict lockdown for about 10 weeks. As a result, the economy stood still.
Property prices dropped in 2020, and they’re expected to drop more in 2021. If you think that you have time on your side to buy a property, think again.
Home prices are expected to rebound in 2022, as pent-up interest and demand drive prices back up throughout the country.
You have a small window of opportunity in front of you to buy a property before higher demand makes it difficult to find a great property. Buying now helps you avoid a price war with other buyers and buying at a higher price.
Interest Rates Are Reasonable
What do you think a great mortgage interest rate is? In the United States, you’re likely to say anywhere between 4% and 5%. In the United Kingdom, a mortgage rate under 3% is good.
In Spain, interest rates are incredibly low. The average interest rate hovers around 2.5%. It’s not the cheapest rate in Europe, but it ranks in the top 5 in the world.
Foreigners Can Buy Property
You might wonder if it’s possible to purchase a property in Spain if you’re not a resident or citizen of the country. You can, but there are some hurdles in front of you.
For example, the maximum mortgage you can get is 70% of the property value. So if you want to purchase a property for €150,000, the maximum mortgage loan you can get is €105,000. You also have to come up with closing costs, including taxes.
On the plus side, owning property in Spain can open many doors for you. You could be eligible to get the Golden Visa, which gives you and your family residency. After 10 years, you and your family can become citizens of Spain.
To qualify, you have to invest €500,000 in real estate. There are many professionals that can help guide you through this process.
Broad Range of Properties
Do you want an urban apartment in Madrid? Perhaps a casa de campo in a remote village? You can live in a smaller town outside of a major city. You can live in luxury along the Costa del Sol.
No matter what your tastes are, you can find your ideal home in Spain. How can you go about finding your dream home with so many choices?
You’ll need to ask yourself some pointed questions.
- Do you prefer mountains or beaches?
- Do you want an urban or rural environment?
- Do you want a single-family home or an apartment?
- What amenities are important to you?
- What activities do you enjoy the most?
- How important is sunshine to you?
- Are you willing to deal with a lot of tourists?
These questions will help you narrow down the type of property and the region that best suits you. For example, if you want a single-family home in a location that gets sunshine year-round, you’ll look for bargain villas for sale.
You Can Rent Your Property
Spain has been one of the top tourist destinations in the world, drawing over 80 million visitors a year.
The most popular destinations for tourists are Barcelona and Madrid. Valencia, Málaga, Marbella, Puerto Banús, and other areas along the Costa del Sol are popular with tourists.
What does that mean for you? Depending on where you buy your property, you can rent it out. You can convert it into a retreat center, B&B, or an Albergue along the Camino de Santiago.
You can end up with a great investment on your hands. Just be aware that Spain does have a high capital gains tax if you want to sell the property.
You Can Go Anywhere Easily
Spain has a lot to offer, and it’s really easy to explore various parts of the country. You can easily explore other parts of Europe, too.
A high-speed train takes you to most major cities in the country and you can fly a bargain airline like Ryanair or Easy Jet. You can take a weekend getaway anywhere you choose.
Each Region Offers Something Special
Spain is incredibly diverse. The country is divided into 17 autonomous regions, each with a distinct culture. In some cases, you’ll hear a different language other than Spanish.
You don’t want to miss out on the opportunity to see the traditions and unique perspectives of each region.
Don’t Wait to Buy Property in Spain
Buying a property in Spain is one of the best things that you can do for yourself. Yes, you do need to manage the paperwork and the process, but it’s all worth it in the end.
You’ll have a great property, access to beaches, tourist destinations, and high quality of life. Most of all, you can enjoy yourself and live the life you’ve always dreamed of.
Ready for more property talk? Check out the Invest section of this site to learn more about real estate investing.