Exploring Spain's Property Market: Radio Show Recap
On last week’s edition of our radio show, we dove into the vibrant property market of Spain, a country that continues to reign as a top choice for expats seeking new opportunities abroad. Keep reading for a summary of the topics we discussed.
Spain Ranks as 4th Best Country for Expats
Spain again has cemented itself as the top European country for expats to move to. With various factors such as healthcare, climate, low cost of living, Spain has been ranked as the fourth-best country for expats.
The top ten countries are:
1. Panama
2. Mexico
3. Indonesia
4. Spain
5. Colombia
6. Thailand
7. Brazil
8. Vietnam
9. The Philippines
10. The United Arab Emirates
Understanding the Difference between Expat, Immigrant, and Foreigner
The definitions of these words are as follows: An expat is someone who lives outside their native country, an immigrant is someone who comes to live permanently in a foreign country, a foreigner is someone born or who comes from a different country than the one that they are currently in
Evidently, the words are very similar but the main difference is that immigrants intend to stay in their new country indefinitely whereas expats do not have this clear.
Essential Checklist for Buying Property in Spain
For anyone considering purchasing property in Spain, here’s a brief overview of essential areas to focus on:
1. Find a Lawyer: A good lawyer is essential for due diligence and navigating the legal hurdles of property transactions.
2. Obtain an NIE Number: This tax identification number is obligatory for any real estate transaction in Spain.
3. Open a Bank Account
4. Understand Your Budget: Keep this in mind when applying for a mortgage.
5. Consider the Need for a Surveyor: Though commonly overlooked, a property survey can provide invaluable insights regarding potential issues.
6. Familiarise Yourself with Extra Expenses: Besides the purchase price, be sure to account for taxes, community fees, and other potential costs.
7. Negotiate Offers: The estate agent is typically responsible for negotiations.
8. Sign Contracts: Understand the implications of reservation contracts and the subsequent arras agreement.
9. Complete the Purchase: Finalise your purchase with a notary, ensuring the property is officially registered in your name.
The entire buying process generally spans three to four months, contingent on individual circumstances and financing arrangements.
Current Trends: Mortgage Rates and Golden Visa Insights
It’s worth noting recent trends indicate a significant decline in Eurobor rates—the reference used for mortgage rates—marking the largest monthly drop in over a decade. This has promising implications for potential buyers, making now an excellent time to invest.
Moreover, the Golden Visa program, which has seen some uncertainty, appears to be making a comeback. Lawmakers are expected to reintegrate it into legislation, providing a pathway for non-EU investors looking to secure residency through property purchases.
Capital Gains Tax Considerations
For those contemplating selling their properties, understanding capital gains tax is critical. Selling a home after years of ownership often entails complex calculations regarding net profit, deductibles for expenses, and other factors. To assist homeowners, at Villalux we have developed a user-friendly capital gains tax calculator that is now available on our website.