Top tips when buying property in Spain

The fourth largest country in Europe, Spain is a gateway to the Mediterranean and North Africa, and one of the top tourist destinations in the world. 

Accessible all year round, British expats and non-residents are one of the largest groups of foreigners buying property in Spain – with Valencia, The Balearics, Canary Islands, Andalusia and Murcia being the most popular locations.

Property prices have been steadily increasing year on year since 2015, with the Spanish government warmly welcoming foreign buyers and supporting them by offering the Golden Visa scheme. This scheme allows residency for investment (subject to fees, terms & conditions), while for the financially independent, they offer a Non-Lucrative Residence Visa to those outside the EU.

Post-Brexit, Brits have started to spend more on second homes rather than buying to relocate according to our international partners, telling us that ‘you are considered a tax resident if you stay longer than 183 days in the country.’ Non-residents will be liable for tax on any income generated in Spain – so those who own a home purely for private use are accountable for annual imputed income tax, based on cadastral value, with a tax rate of 19% for EU & EEA citizens and 24% for others, including UK.

The rental demand has been rising too, especially post-Covid, helped by the shift towards remote working and the introduction of a Digital Nomad Visa scheme which was approved in November 2022.