In recent years, residential real estate in Spain has become a profitable investment for many Russians. Affordable prices for Spanish housing, the annual growth in the value of residential real estate allow not only to save, but also to increase money, spend a pleasant vacation, acquire a "safe haven" at the end of life, give children and grandchildren an opportunity to receive a European education and acquire a modern prestigious profession. Therefore, the question of how to buy an apartment and apartments in Spain is very relevant for many citizens of the Russian Federation who wish to acquire real estate here.
The real estate market in Spain: reasons for its popularity
The Spanish real estate market in 2021 continues to maintain growth trends: the rapid pace of new housing construction, rising property prices, as well as an increase in the number of transactions. In 2021, more than 480 thousand properties were sold in Spain, which is 16.7% more than in the previous 2021.
The growth in demand for Spanish property among foreign citizens is outstripping other EU member states. Among the factors contributing to foreigners investing their money in residential property in Spain are:
- stable development of the Spanish economy and an increase in the level and quality of life in Spain. At the beginning of 2021, GDP growth was 3.5%;
- a large selection of housing, both primary and secondary stock;
- respect for private property in Spanish society;
- the possibility of obtaining a mortgage on favorable terms;
- loyal taxation;
- stable banking system and security of home purchase and sale;
- simplicity of the transaction registration procedure;
- high profitability of residential real estate. The growth of rental rates guarantees from 7 to 9% profit.
In Spain, foreigners are traditionally attracted by its rich cultural heritage, favorable climate, the presence of seaside resorts such as Marbella or Ibiza, and healthy Mediterranean cuisine.
What the Spanish housing market offers
The Spanish housing market is quite diverse and is ready to offer potential buyers from abroad the following options:
- city apartments and apartments - apartamento - differ from apartments in that the dining area is combined with the living area. The popularity of this type of housing is caused by a wide selection of objects both from the developer and in the secondary market, affordable prices, minimal maintenance costs, the ability to rent out housing;
- villas - vivienda unifamiliar - detached houses with garden and pool. Provide maximum comfort and privacy. This category includes both elite class real estate and modest houses for 4-5 people. Require constant care and investment of money;
- townhouses - casa adosada - two-storey houses with a small garden and a swimming pool for two families in the suburbs;
- rural houses with front gardens in the Spanish hinterland - casa de pueblo. Typically in need of repair or renovation;
- masia - masia - country estates with extensive land, vineyards and olive groves.
The backbone of the Spanish housing market is secondary housing. More than 83% of all sales come from this sector.
Spanish new buildings - obra nueva, despite the higher cost, are advantageous in that they do not require major repairs for decades.
How a foreign citizen can choose an apartment or house in Spain
Where to buy residential property in Spain, each buyer decides for himself, based on subjective and objective reasons. Someone wants a villa by the sea, and someone wants an apartment in Madrid or Barcelona.
In any case, before starting the search for suitable options, you should clearly define the region, carefully study it, and, if possible, visit the place.
You can search for a property on your own, or you can immediately contact real estate agencies, real estate companies for help.
You need to start your search with an acquaintance with the major Spanish real estate sites. These sites post thousands of ads from individuals every day, here you can also find information from professional agencies and get a general idea of the demand and prices.
- https://www.idealista.com is the largest site with a database of more than 1.3 million properties throughout Spain. The site supports the Russian language. Conducts regular monitoring of property prices in Spain;
precios-q2-18.pdf
- https://www.fotocasa.es/ - the second largest portal in Spain with an offer of 1.2 million objects;
- https://www.habitaclia.com/ - the most popular website in Catalonia;
- other sites: http://www.comprarcasa.com/, https://www.pisos.com/, https://www.aldeasabandonadas.com/ etc.
However, it should be noted that when making a purchase, you cannot do without the help of professionals - a lawyer or a special agency. Most real estate companies and agencies also have their own websites: http://gogospain.net/, https://www.masainternational.ru/, https://estate-barcelona.com/, etc.
Spanish property prices
The cost of primary and secondary housing in Spain in 2017-2018 continued to grow. The average price of "secondary housing" in Spain at the beginning of 2021 amounted to 1,733 euros per sq. m.
The formation of housing prices is influenced by factors such as belonging to a province or region, distance from the sea coast, infrastructure development, time of construction of the structure and materials used in construction, area and landscaping, the presence of a garage, land, etc.
Leadership in the growth of housing costs was captured by:
- Balearic Islands - 15.1%,
- Malaga - 13.3%
- Catalonia - 10.5%,
- Canary Islands - 7.5%,
- Madrid - 6.9%
- and La Rioja - 6.2%.
Traditionally the most expensive urban housing in Barcelona and Madrid. The championship, despite the political upheavals in Catalonia and a slight decrease in prices, is confidently held by Barcelona.
In the second quarter of 2021, the average price per square meter here was 4400 euros. The most expensive areas of Barcelona are Sarrià-Sant Gervasi (5340 euros), Eixample (5120 euros), Les Corts (5071).
Madrid is close to Barcelona. So, in the 21st district of Madrid, the average price per sq. m was 3759 euros. The highest prices are recorded in the elite area of Salamanca (5930 euros), aristocratic Chamberí (5202 euros), the old business center of Chamartín (5007 euros) and the historic Centro (4987 euros).
The lowest prices are in the working area Villaverde (1,578 euros), the sleeping Puente de Vallecas (1,733 euros) and Madrid's Chinatown - Usera (1,893 euros).
Average prices for residential real estate in cities of Spain
| Town | Price for 1 sq.m (euro) | Price growth rates for 2018 (%) | Price growth rate for Q2 2018 (%) |
|---|---|---|---|
| Ibiza (Balearic Islands) | 5299 | 6,7 | 0,8 |
| Barcelona | 4400 | 3,5 | 1,5 |
| Madrid | 3759 | 23,4 | 6,2 |
| Bilbao | 2880 | 4,6 | 0,6 |
| Malaga | 2149 | 22,3 | 5,9 |
| Seville | 1928 | 4,8 | 4,2 |
| Santander | 1915 | 2,5 | 0,9 |
| Valencia | 1831 | 14,9 | 5,0 |
| Tarragona | 1612 | 5,1 | 0,2 |
| Salamanca | 1602 | 0,9 | 0,8 |
| Zaragoza | 1469 | 8,3 | 2,6 |
| Cordoba | 1391 | 3,7 | 1,6 |
| Valladolid | 1391 | 7,4 | 0,7 |
| Alicante | 1360 | 7,4 | 1,1 |
| Ciudad Real | 1088 | -2,9 | -0,2 |
The situation with prices for residential real estate in the provinces of the Spanish kingdom can be diametrically different - it all depends on the popularity of the region, availability of demand and supply.
Interesting fact. In 2021, most residential properties (7,215) were sold in Andalusia (Costa del Sol). The largest sales growth since 2021 - 44% - was recorded in Castile-La Mancha.
Among the most popular provinces among foreigners are:
- Balearic Islands. The main trump cards are the sun and the sea with beautiful beaches. On the island of Ibiza, prices for villas start from 400 thousand euros, with land - from 1 million euros. An apartment with two bedrooms near the beach - from 220 thousand euros. Prices on the island of Mallorca are also high - 2809 euros per sq. m in Palma. An apartment by the sea will cost 300 thousand euros. In Menorca - from 1814 euros per square meter (Mahon). A small apartment - from 200 thousand euros, a villa - from 420 thousand euros.
- Catalonia. This is one of the richest regions in Spain, which has always attracted the attention of citizens of Germany and Great Britain, which also affected prices.North Catalonia or Costa Brava (Wild Coast) is famous for its natural landscapes, cultural attractions and shopping. New villas here can be purchased from 1.5 million euros, apartments by the sea - from 300 thousand euros, a rural house - from 800 thousand. Southern Catalonia attracts lovers of beach holidays (Costa Dorada), wine and gourmet cuisine. Prices start at 150 thousand euros for apartments on the coast, for a rural house with a plot of land - from 180 thousand euros.
- Madrid. The popularity of the metropolitan province is due to its proximity to the capital of Spain. Prices for 1 sq. m of housing range from 802 to 4622 euros.
Valencia. Costa Blanca on the Mediterranean coast is famous for luxury real estate at prices ranging from 200-400 thousand euros and more. South of Alicante, an apartment by the sea can be purchased for 60-80 thousand euros (Torrevieja), a house in a village - from 120 thousand euros.
- Murcia. The region is famous for fruits and vegetables, deserted beaches, wild landscapes. House in a village with land - 170 thousand. The average price for 1 square meter was 1027 euros. Townhouses in old quarters can be purchased for 100 thousand. In most cities in the province, prices are lower, and in the first two quarters of 2021, prices decreased by 0.5%. So, in Alguazas 1 sq. m costs 509 euros, and in Mula - 517.
- Andalusia. The eastern regions of the province are attracted by sunny weather and low prices. Housing on the coast starts at 100 thousand euros, in the outback - 80 thousand. Central Andalusia - Costa del Sol is a popular holiday destination for Europeans. Apartments on the coast can be bought from 200 thousand euros, a villa - from 750 thousand. A house away from the sea costs from 200 thousand. Western Andalusia - the Atlantic coast - attracts surfers. Two-bedroom apartments here cost from 300 thousand euros.
- "Green Spain" - Galicia, Asturias and Cantabria. This is the northwest coast of Spain with wild beaches and abundant seafood catches. It often rains here and there are few tourists. A traditional rural house made of wild stone costs 80 thousand euros, a comfortable apartment on the seashore - 140 thousand euros.
- Castile-La Mancha (average price per 1 sq. M. - 906 euros), Extremadura (920 euros) and Castile and Leon (1182 euros) are mainland regions of Spain, in which the rise in prices for residential real estate is minimal or even negative. They attract lovers of measured rural life.
The procedure for purchasing real estate in Spain: basic steps
Once the choice is made, the following steps should be taken:
- check the legal purity of the object. When buying a "primary" - registration of the object with state authorities and Declaracion de obra nueva or a permit for the construction of the object. When buying a "secondary housing" - ownership of real estate, an extract from the state register about the absence of a seizure of real estate, a receipt for payment of the annual tax with a cadastral number;
- reserve a property for 2 months: pay a deposit - deposito in the amount of 3 to 10 thousand euros (10% of the amount) and conclude a reserve contract with a realtor when buying a second home or with a developer company when buying a new building. The contract must reflect the amount of the transaction and the amount of the deposit, the form and terms of payment, a description of the object of sale, terms of termination of the transaction, etc.;
- open an account in one of the banks in Spain;
- get a NIE certificate. To obtain a document, you must provide a passport and an agreement on the reservation of real estate;
- use a bank mortgage if necessary.
The main transaction takes place in the presence of a notary (in case of mortgage lending, also a bank representative). It is possible to make a deal through the buyer's confidant.
Signing a sales contract
The seller must provide documents that confirm his rights, the buyer pays the agreed amount and taxes, receives the keys to the property. After the mutual signing of the sales contract, the parties receive certified copies, and after 2-3 days the originals of the contract - Escritura publica.
The final chord: state registration of the transaction
The new owner must pay stamp duties within a month and register the property in the state register of property - Registro de propiedad and receive a document of title - an extract. The procedure takes 2-3 months on average.
Additional costs for real estate registration
When buying real estate in Spain, you should be prepared for additional financial costs, in addition to those that were fixed in the sales contract. Among them:
- taxes. Every buyer of real estate in Spain must pay tax. Its size depends on the region in which the deal was made. When buying a new home - VAT (up to 10% of the transaction amount).
If the housing is from a secondary stock, you will have to pay the ITP tax - on the transfer of property rights. Its size ranges from 6% in Alava to 10% in Valencia.
All homeowners must pay an annual property tax - IBI, depending on the region, its size ranges from 0.4 to 1.16% of the cadastral value. On average, this is from 200 to 800 euros.
- stamp duty - 1% of the transaction amount;
- government fees - 0.5–0.7%;
- payment for notary services - 1.2–1.5% of the transaction amount;
- payment for real estate services - from 3 to 20%;
- payment for the services of a lawyer - 1%.
How much will it cost to maintain a property in Spain?
In addition to paying annual taxes, homeowners will have to pay monthly utility bills. Their size depends on the category of the dwelling and the region in which it is located. Moreover, some of them do not depend on whether the owners lived in the apartment or not.
This is a municipal tax on garbage collection (from 100 to 200 euros per year), a monthly payment for connecting to the electricity network, water supply (10-15 euros each).
If there is a collective zone (communidad) - a common pool, courtyard area, an elevator, parking, etc. - you will have to pay an additional 300 to 500 euros per year for their maintenance.
Maintenance of a satellite dish will cost 120 euros per year, Internet (30 Mbps) - 43 euros per month.
Another part of the costs is related to the time of residence and the amount of services consumed: water, electricity, gas, etc. A cubic meter of water in Spain costs 0.6 euros, a gas cylinder - from 17 to 30 euros, electricity - from 0.122 to 0.144 euros per kW.
Approximate calculation of annual utilities for a family of four (in euros):
| Services | Villa 130 sq.m, garden, communal pool, secured area | Apartment 100 sq.m. 2 bedrooms, 2 bathrooms, kitchen, terrace |
|---|---|---|
| Condominium payment | 500 | 150 |
| Garden maintenance (per year) | 2600 | - |
| Water (per year) | 500+120 | 120+120 |
| Gas (8 cylinders per year) | 240 | 240 |
| Electricity (500 kW / month) + maintenance | 900+180 | 900+180 |
| Insurance | 300 | 180 |
| Internet | 516 | 516 |
| TV antenna | 120 | 120 |
| 5976 | 2526 |
Heating in different regions of Spain is carried out and paid for in different ways. With the use of central heating from November to March, the calculation is based on the gas consumed, while the payment can range from 100 to 300 euros per year. Recently, in the construction of new homes in Spain, central heating has been abandoned.
What to look for when choosing a property
When choosing a property to buy in Spain, several rules should be followed:
- familiarize yourself with the specifics of local real estate legislation. The best option is to hire a local real estate lawyer who is independent of the realtor or seller, as well as a professional translator;
- not to draw up legal documents without the participation of a lawyer, not to sign them without translation into Russian and approval by a legal consultant;
- use the services of a competent building inspector independent of the seller or agency;
- carefully analyze the location of the facility, infrastructure development, the presence of unreliable neighbors, proximity to the beach, etc.;
- take into account that objects over 15 years old need additional expenses for repair work;
- do not rely on photos on the site or the stories of a realtor - it is better to make a study trip and see everything with your own eyes;
- do not rush to buy, but weigh everything carefully.
In addition, you should clearly define the purpose of buying an object: for renting or for personal residence. For occasional living, it is better to buy an apartment, for renting out - a house on the coast.
What questions do Russians ask most often about buying Spanish real estate?
When buying real estate in Spain, Russian citizens often face certain difficulties. Consider a few typical questions that Russians often seek answers to.
Do Russian citizens get the right to a residence permit when buying an apartment or house in Spain?
Citizens of the Russian Federation who have purchased real estate in Spain at a cost of 500 thousand euros and more automatically become members of the Golden Residence Permit program.
The investor himself and his family members (including financially dependent parents and children under 26 years of age) receive the right to a residence permit in Spain with all the ensuing opportunities: work, receive education and medical care, visa-free entry, etc.
After 5 years, the property can be sold, but the residence permit remains, so after 10 years you can apply for Spanish citizenship.
What kind of visa does a citizen of the Russian Federation need to come to Spain to inspect an apartment?
Spain is a signatory of the Schengen Agreement. A visa-free agreement has not been signed between the Russian Federation and the Schengen countries, therefore, in order to get to Spain, you need a single-entry short-term Schengen visa or a Schengen multivisa (and not only a Spanish one).
Does it make sense when buying real estate to bargain on the "secondary" in Spain?
In Spain, bargaining on the market is a common and favorite pastime. When it comes to "secondary housing", then with the right approach to business, you can reduce the initial price by 10-15%. To do this, you need to be aware of the real prices on the real estate market, to have complete information about the proposed object, to know its pros and cons that can be used when bargaining. For example, restless Moroccan neighbors, the need for renovation, remoteness from communications, etc. In this case, it is important to make the seller feel that the buyer has serious intentions and should not lose him, because he will buy an apartment from a competitor.
Can a foreigner expect to receive a mortgage in Spain and what will be the rate in this case?
Foreigners, including citizens of the Russian Federation, have the right to mortgage loans in Spain, and on very favorable terms: not in rubles, but in euros.
New legislation made it possible to increase the size of the loan to 80% of the value of real estate. At the same time, fixed rates are used - 3.63-3.93%, floating - 1.96-2.6% and mixed - 2.43-2.5% rates. A number of benefits also attracts foreigners to Spain: favorable loan repayment terms - from 5 to 30 years, the right to early loan repayment, etc.
Let's summarize
Russian citizens have the opportunity to use the right to freely buy residential and non-residential real estate in Spain and invest their money profitably. The Spanish real estate market is ready to offer properties for sale for every taste and budget. At the same time, foreign citizens can count on obtaining a mortgage loan on favorable terms.
Another pleasant bonus that the purchase of an apartment in Spain gives is the opportunity to obtain a residence permit, and in 10 years, citizenship in Spain for the investor and his family, subject to investing at least 500 thousand euros in Spanish real estate.
In search of a house or apartment, as well as the execution of a transaction, it is advisable to resort to the help of professional lawyers and use the services of a professional translator. The transaction registration procedure is simple. At the same time, the purchase of an apartment or house in Spain imposes certain obligations: it is necessary to pay taxes and pay utility bills.
