4 things to consider when buying a home in Spain

Buying a new home in a new country is a big move. Amongst the excitement for your new life, one of the biggest challenges is that you simply don’t know what you don’t know. So we’re here to share with you some things to consider, that will make your home-buying journey easier and more enjoyable to navigate.

Research your ideal property types

From our experience, the more targeted your research can be, the more effective your property search will be. You can waste a lot of time looking at properties that just aren’t right for your needs.

Prices differ greatly between Spanish properties like villas, townhouses, apartments, and properties in housing developments (urbanizaciones). Of course, each property type has its own unique set of pros and cons - price, ongoing costs, community, size, and specific location. Our Types of residential property in Spain blog goes into plenty of detail about this.

Once you’ve researched and established your ideal property type, you can use our extensive property search filters to create property shortlists that meet your exact lifestyle needs. For example, you may decide you’d like to live in an apartment. Once you have selected apartments as an option, consider selecting any important features like a swimming pool, access to gardens, or a balcony. The more specific you can be, the more efficient your search will be.

For now, here are some lesser-known facts about some of the most popular property types for those moving to Spain:

1. Apartments
2. Townhouses
3. Detached houses
4. Countryside properties

1. Apartments (Pisos)

Once you purchase an apartment, under Spanish law, you’ll automatically become a member of the residents/homeowners association (comunidad de proprietarios/vecinos). You’ll need to pay community fees (gastos de comunidad) and comply with the community rules.

When doing your research, you should investigate how much those fees cost, at what intervals you’ll pay them, and what sort of community rules you might have to follow.

Community fees cover maintenance and repair costs amongst other things, which means:

• The more amenities (like gardens, and swimming pools), the higher the fees.
• Older properties or those in substandard condition may require additional community fees to be paid. Your lawyer can request minutes from the community’s most recent Annual General Meeting (AGM) to get an idea of the building’s finances and any issues that may impact future fees.

Every Spanish apartment building has different facilities, rules and regulations - so it’s really useful to find out in advance:

• If there’s a lift, as many older buildings don’t have one.
• The building-specific rules and regulations for using or installing air conditioning vary greatly from building to building - and in certain parts of Spain, living high up in an apartment block will get very hot indeed.

2. Townhouses (Adosados/Pareados)

These terraced or semi-detached houses, mostly situated in city suburbs or in resort areas can offer a close-knit community. They’re often more affordable than a villa and more spacious than an apartment block. But bear in mind these little-known facts during your research. These properties can often have pretty thin walls meaning you can hear more noise and feel like you have less privacy yourself.

You may also need to pay community fees (gastos de comunidad) for this type of property if they come with communal facilities or form part of a larger development - but they’ll most likely be less than an apartment.

3. Detached Houses (Villas/Casas)

You’re most likely to find detached houses in towns close to the city, but not in the city centre as they are bigger properties. Also, they are common in coastal complexes which are mostly owned by holidaymakers. While you may have more space and solitude in more suburban locations, most complexes will come up with higher associated costs due to facilities like swimming pools or communal gardens.

It’s worth taking all these facts into consideration to make sure that you end up in an area or community that works for you.

4. Countryside properties (Fincas/Casa Rurales)

As the name suggests, you’ll find this type of property far away from the coasts, cities, or tourist resorts. They vary in style (small village houses, large farmhouses, estates with land attached) but something that they all generally have in common is their old age. This means in most cases, you’ll need to do some sort of refurbishment work.

While this sort of property can be very spacious and cost-effective, providing an often very sought-after lifestyle it’s important to note that you’ll need to be even more diligent when it comes to research, legal checks and potentially additional costs.

Research your ideal location

It’s important to research extensively where you might like to live in Spain, to make sure you select a location that meets your individual needs.

Property prices can be a great place to start, as average property prices can vary significantly from area to area. So if you have a specific budget, and perhaps even a specific property type in mind - it’s wise to research what you can afford, and where. For example, properties in the province of Alicante cost on average €2,196/m² as opposed to an average of €2918/m² in the province Malaga. You can browse our property listings and filter by area to get a sense of average prices in the area.

It’s also wise to work out whether you wish to live near expats or completely immerse yourself in the local community. Specific areas of Spain are most popular with expats from different countries. For example - the Costa Blanca in Alicante and the Costa Del Sol in Andalucia are most popular with Brits. In contrast - Catalonia, Galicia, and Cantabria, all on the border with France are the most popular spots for French buyers. And yet, for German buyers, the Balearic Islands, Canary Islands and the region of Valencia are the most popular spots.

In order to refine your location research further, think about what you want from your new life in Spain:

1. Do you want to make it as easy as possible for friends and family to visit from abroad? Then you may want to live close to an airport.
2. Do you drive or do you need a location that boasts a great public transport network?
3. Do you have ongoing medical needs? If so, focus your search on more suburban locations with easy access to hospitals/medical centres/pharmacies.
4. What sort of lifestyle do you want? The relaxation or activities that come with the coastal living? The hustle and bustle of city life? Or the calm and solitude of rural life?

Many rural villages and towns are becoming less and less popular, with huge swathes of people moving towards the cities. But on the flip side, some of these places now offer financial incentives to buy property and boost the population there. If you’re interested in big city living, really consider just how busy it can get with tourists during the high season.

Think carefully about Spain and its varied climate. You may indeed be attracted to the all-year-round warm climate in the South of Spain, but bear in mind that areas like Malaga and Murcia can be exceptionally dry and arid during the Summer months.

If you’ve settled on a particularly hot part of Spain, you should definitely consider researching properties with air conditioning. It might surprise you that even in the warmest areas of Spain, not all properties have it installed, so be sure to check. Our individual listings will always tell you whether the property has AC or, in fact, central heating. Most international buyers will be used to heating systems, but it’s not a given in Spain. It’s also important to research monthly usage costs or the cost of installation if your ideal property doesn’t have it already.

It’s definitely useful to research and then shortlist a few areas for visiting Spain and viewing properties, based on your personal criteria - be that budget, community, or other needs that are unique to your lifestyle. It will make your buying process and experience much more efficient.

Plan ahead for your required documents and registrations

We recommend registering for your NIE (Foreign Identity Number, or Número de Identidad de Extranjero) as soon as possible, ideally from your home country before you start the process of moving to Spain. Otherwise, you must apply for the NIE within 3 months of your arrival in Spain, as per Spanish law. The application process will differ slightly but it can be a really lengthy process, so make sure to apply as soon as possible. For more details, you can read the information provided by the Spanish Government.

If you’re a Non-EU Citizen (including British citizens) you need to apply for a TIE (Foreign Identity Card, or Tarjeta de Identidad de Extranjero) instead of a NIE. This is a photo identity card for non-EU residents. The application process is similar to that of a NIE.

Once you have your NIE or TIE, you can open a Spanish bank account which you’ll need for your mortgage as well as the taxes and fees associated with your property purchase. You’ll need proof of address, identity, and employment status. It’s advisable to specifically request an English speaker when you make your appointment, should you need it. You’ll also need a NIE to complete any purchase in Spain (that includes property) and you’ll need it to pay your property taxes.

Brexit has changed the financial criteria for British citizens becoming residents, visa requirements, and the documents you’ll need. The UK government website is the best place to start.

EU citizens don’t need a visa to live in Spain, just register for the NIE and on the padrón, Spain’s population register. Non-EU citizens planning to stay in Spain for longer than 90 days will need long-term residence visa. The type you’ll need depends on whether you’ll want to work or you plan just to live/retire in Spain. You can visit the Spanish Ministry of Foreign Affairs to research what visa you might need, depending on your own unique situation.

Prepare fully for your finances

To avoid any financial shocks or delays along the way, it’s worth investigating all the associated costs of buying a property in Spain. These costs can be different from what you’re used to in your home country. This will also help you feel positive and in control of what can sometimes feel like a stressful and opaque process. Similarly, we recommend looking into the ongoing costs associated with both owning a property in Spain and living in Spain.

Check out our blog on all the costs involved, but for now, here’s a snapshot:

• Property transfer tax (Impuesto de Transmisiones Patrimoniales): 6-10% of the purchase price
• Land registry fees: 0.4% of the purchase price
• Notary fees: 0.1% – 01.4% of the purchase price

Ongoing costs will vary based on property type, but here’s an idea of what you can expect to be included:

• Community fees
• Rubbish collection fees
• Utilities - AC, energy, pool maintenance

Finally, let’s not forget about tax. If you’re still generating income, or have savings or investments - you may need to pay income tax - on the income left after contributions to things like your pension, social security, and more. As a property owner, you’ll also be liable to pay local property tax (IBI) on the property you buy in Spain, and Capital Gains Tax if you sell it in the future. Visit The Spanish Tax Authority online, to research the forms required to submit your tax. You can find a tax calendar with the relevant dates for all the different taxes, as well as useful information and handy FAQs.