Buying property in Spain

Lawyer Raymundo Larrain gives us a brief overview on buying property in Spain.

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By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8th of September 2022

Introduction

September marks the end of the summer and the start of autumn. Autumn is the high season for property purchases. Traditionally the best months for property sales are September, October, and November.

As we have highlighted in multiple articles over the last two years, there is a property boom going on in Spain. Property prices have strongly rebounded post-pandemic (since 2021).

We are witnessing an annual capital appreciation of 8.5% for resale property across the board and over 10% for new builds (off-plan). In coastal areas, and large Spanish cities, it’s actually a two-digit property rise! Bottom line, property prices have risen in Spain reaching all-new highs!

In addition to the above, rental yields are also growing by two digits year-on-year. Long term lets offer a net yield of 4.5% per annum, whereas short-term rentals (holiday homes) are far more profitable, delivering a two-digit return.

Pro-tip: The combination of both capital appreciation and soaring rental yields translate into a combined yield of over 10% per annum! No other safe investment offers such high returns.

In some regions of Spain, regional authorities have (dramatically) lowered the taxes associated to buying property in a bid to foster an economic recovery post-pandemic. For example, Andalusia slashed by 20% its tax on off plan and from 13% to 30% in resales (contingent on the asking price; the higher the price, the more tax you save). Indeed, it’s a great moment to seize the opportunity and save dozens of thousands in tax money!

Our law firm, Larraín Nesbitt Abogados, published a detailed (free) guide to buy property in Spain. Simply follow the link supplied: Guide to buy property in Spain

Conclusion

Spanish real estate is poised for combined two-digit gains over the next year, interest rate fluctuations notwithstanding, easily trumping alternative investments (bonds, commodities, cryptocurrencies, gold, etc) and paltry fixed returns in a context of historic ultra-low interest rates.

If you are thinking of buying (or selling), please contact us. We have 20 years’ experience buying & selling property. Our friendly staff can guide you safely through the procedure.

We offer this service:

Conveyancing in Spain – Buying

Larraín Nesbitt Lawyers, small on fees, BIG on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyance, taxation, inheritance, residency, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

Article also published at Larraín Nesbitt Abogados: Buying property in Spain

“If you are not moving forward, you are moving backward.”  Mikhail Gorbachev

Mikhail Sergeyevich Gorbachev (1931 – 2022). Was a Russian statesman who served as the last leader of the Soviet Union from 1985 to the country’s dissolution in 1991. Domestically, his policy of glasnost (“openness”) allowed for enhanced freedom of speech and press, while his perestroika (“restructuring”) sought to decentralize economic decision-making to improve its efficiency. Internationally, he avoided WWIII and nuclear armageddon, in tandem with US President Ronald Reagan, on kickstarting the most ambitious denuclearization treaty to date (START). Despite being broadly scorned in his home country (because he proved instrumental in dismantling the dreaded U.S.S.R. empire and the collapse of the Iron Curtain), the West, and most of the free world, widely regards him as one of the greatest Russian president ever. Gorbachev was a peacemaker who brought freedom and democracy to one of the greatest countries in our planet. In 1990 he was bestowed the Peace Nobel Prize. He left our world a better place.

Неограниченная власть в руках ограниченных людей всегда приводит к жестокости.– Александр Солженицын

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