Tag Archive for: Investing

When you are thinking about relocating, starting a business or buying property in Spain, one of the things you will think about is a Spanish bank account, and how this will work. In this article, we will explain all you need to know about Spanish banks and how to open a bank account in Spain.

Why open a bank account in Spain?

There are many reasons why you might need a bank account in Spain. Even if you are not planning on living in the country, having a Spanish bank account can be useful if you are planning on buying property or investing in a business. A bank account will also allow you to easily transfer money between Spain and your home country.

If you are planning on living in Spain, then a bank account is almost essential. You will need a place to store your money and to receive your salary. A bank account will also allow you to easily pay your bills and make other purchases.

Opening a bank account in Spain

Is having a bank account a requirement in Spain?

No, having a bank account in Spain is not a legal requirement. However, it is generally advisable to have one, especially if you are planning on living in the country.

What do I need to open a bank account in Spain?

To open a bank account in Spain, you will need the following documents:

  • Identity documents (such as a passport) should be shown.
  • Address: A copy of a bill with your current address must be included.
  • Employment documents: A document that establishes your work status (for example, a student card, employment contract, or unemployment documentation)
  • NIE number (Spanish foreigner identification number) – If you are a Non-Resident.

Some banks may require additional documents, so it is always best to check with the bank in advance.

How to open a bank account in Spain?

The process of opening a bank account in Spain is relatively straightforward. However, it is important to remember that each bank has its own requirements and procedures. It is always best to contact the bank in advance to find out what is required.

In most cases, you will need to make an appointment with the bank and then go into a branch to open the account. During the meeting, you will be asked to provide the documents listed above. The bank will then run a credit check and, if everything is in order, will open the account for you.

Some banks may require that you open an account with a certain amount of money. Others may offer special deals or bonuses if you open an account with them. It is always best to shop around and compare different banks before making a decision.

Types of bank accounts in Spain

There are several different types of bank accounts that you can open in Spain. The most common are:

  • Current account: This is the most basic type of account and is used for everyday transactions.
  • Salary account: This account is specifically for people who receive their salary in Spain.
  • Savings account: This account is used for savings and typically offers a higher interest rate than a current account.
  • Fixed-term deposit account: This account is used for savings and offers a higher interest rate than a current or savings account. The money deposited in this account cannot be withdrawn for a set period of time.
  • Pension account: This account is used to receive pension payments.
  • Youth account: This account is designed for young people aged 18-25 and typically offers special deals and bonuses.
  • Non-Resident account: This account is for people who do not live in Spain.
  • Digital account: This account is an online-only account with no physical branches.

What are the bank fees associated with bank accounts in Spain?

The fees charged by banks in Spain can vary depending on the type of account and the bank itself. However, there are some general fees that are common across most banks. These include:

  • Account opening fee: This is a one-time fee charged when you open a new bank account.
  • Yearly fee: You’ll pay around €12–15 for a debit card and potentially more than €30 a year for a credit card with many Spanish bank accounts.
  • Banks charge a fee to send money to other countries. In Spain, this fee can range from €3-15 if you’re sending less than €50,000.

How long does it take to open a Spanish bank account?

It usually takes between one and two weeks to open a bank account in Spain. The process can be started online, but you will need to go into a branch to complete it and provide the required documents. You may also be asked to provide additional information, such as your reason for opening an account in Spain. When you have opened your bank account you may need to wait a few days for your debit card and credit card to arrive in the post.

Types of banking services in Spain

Spanish banks offer a wide range of services, from savings and checking accounts to loans and investment products. In addition, many banks offer special services for businesses, including business accounts, merchant services, and loans. Most banks also offer ATM and debit card services, as well as online and mobile banking.

However, some services, such as credit cards and international money transfers, may be offered by only a few banks. To find the right bank for your needs, it is important to compare products and services to find the best fit. With so many options available, Spanish banks offer something for everyone.

Overview of Banking in Spain

  • The Banco de España, Spain’s national bank, also serves as the financial regulator.
  • The top four banks in Spain by assets under management are Santander, CaixaBank Banco, BBVA, and Sabadell. These five banks account for around 70% of the sector’s assets.
  • Santander is such a big bank it is under re-capitalization pressure from the ECB.
  • A number of these banks also have a strong international presence, with branches or subsidiaries in several countries. For example, Santander has branches in the UK, Brazil, and the US, while BBVA has a presence in Mexico, Colombia, and Uruguay.
  • There are currently 141 private banks (including around 80 foreign-owned banks), as well as several cooperative and savings banks, in the country.
  • The banks in Spain hold a lot of real estate assets as a result of the 2008 financial crisis.

Currency in Spain

The currency in Spain is the Euro (€). Euros are divided into 100 cents. There are eight different coins: 1, 2, 5, 10, 20 and 50 cent coins, as well as 1 and 2 Euro coins. There are also seven different banknotes: 5, 10, 20, 50, 100, 200 and 500 Euros.

Opening a bank account in Spain

Opening a bank account in Spain

ATM in Spain

In Spain, you can find ATMs (cajeros automáticos) in almost every town and city. They are very convenient when you need to withdraw cash, and most of them accept foreign cards. However, there are a few things to keep in mind when using an ATM in Spain. First, make sure that the ATM is affiliated with your bank. Second, be aware of your surroundings, as ATM thefts are not uncommon. Finally, remember that Spanish ATMs dispense euros, so if you are withdrawing cash from a foreign account, you may incur fees. With these things in mind, using an ATM in Spain can be a quick and easy way to get the cash you need.

A word from SpainDesk

In conclusion, opening a bank account in Spain is a crucial step to take if you are considering relocating, starting a business, or purchasing property in the country. With the right information and documentation, the process can be straightforward and efficient. By understanding the various types of accounts and services offered by Spanish banks, you can choose the one that best suits your needs and preferences. Whether you are a resident or a non-resident, opening a bank account in Spain is essential for managing your finances and making the most of your time in this beautiful country.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

Financial advisors in Spain are professionals that help you with financial planning and help to provide financial services. They work as tax planners and financial planners and often give financial advice and information, including options for saving and investments, retirement planning and managing money. Financial advisors are not the same as lawyers and accountants. Lawyers will give advice and guidance on legalities, while accountants give advice on tax and perform declarations.

Financial advice when you need it the most

Spain is one of the most popular countries in Europe for foreign residents. The country has a rich culture and beautiful landscape, making it an attractive place to live. It is one of the oldest countries in Europe with a rich history and culture mixed with modernity, making it an attractive destination for expats and firms who want to find happiness and reach their goals abroad. Financial advisors in Spain can help you navigate the Spanish new environment so that you can enjoy your time there without any money worries.

Get taxes done more quickly and efficiently with our tax services in Spain

Advice in Spain on Finances

Tax planning for expats

When you are an expat and are planning to buy a property in Spain, financial advice on mortgages in Spain is very good to have. If you are not familiar with mortgages in Spain, you might not get one or pay too much. Through the financial analysis of the advisor, you can reduce the interest rates for your loan. There are also other financial services advisors can offer. For example, they can assist you with tax planning to reduce income and capital gains taxes.

Advice on wealth tax

Advice for pensioners in Spain

When you retire in Spain and have a pension, you can request financial advice on a wide range of financial services. These services include financial planning, financial investment and financial risk assessment. They can advise you on the best way to bring your pension over to Spain, as well as assist you with mortgages if you need one.

Spanish expat receiving financial advice

Financial advice for your business in Spain

Financial advice in Spain is also available for firms in Spain. For example, it can be very useful when you are starting a business in Spain with a significant loan. While you need lawyers to guide you through the company formation and accountants to guide you through the taxes in Spain. Financial advisors can help you plan for the future and give you advice on what financial products would be best for your company. This financial advice can help protect your company from financial risks and give you more financial freedom.

Businesses can request financial advice on how best to manage their financial resources. Financial advisors will provide loan analysis and investment management services. They can use advisors regarding corporate financial products. These include pensions, share schemes, financial planning for retirement, financial investments, financial risk assessment and financial reporting. Businesses can also use financial advisors to guide them through the financial aspects of mergers and acquisitions.

Financial advisers for firms

What financial services do financial advisors offer in Spain?

Financial advisors offer a range of financial planning and management services, including financial analysis, financial management, financial advising services, and financial analysis.

They can assess financial risk and evaluate investments to give you financial plans designed for your individual needs. They will provide you with the best financial products to meet your budget and financial goals.

Although they typically advise on all financial matters related to an individual or company’s finances, their financial expertise extends beyond financial planning and financial advising.

At the very basic level, financial advisors in Spain help provide financial security and financial services, while more complex financial advisory services can be employed for personal or business use.

Financial services consist of

  • Analysis
  • Planning
  • Tax financial services
  • Risk assessment
  • Advising
  • Coaching
  • Information and guides

What is financial analysis?

Financial analysis is the process of reviewing and examining data, such as financial statements and working papers, to determine different types of risk exposure or financial health. Financial advisors use financial analysis to examine a company’s balance sheet, statement of financial position, and other financial reports to make a financial assessment.

What is financial planning?

Financial planning is the process of determining the financial goals you want to achieve in life and then creating financial plans that meet those needs. Financial advisors help clients prepare financial plans by assessing their current financial situation, determining where they want to be financially in the future, and then creating financial plans that will get them to their financial goals.

The financial planning process can be done when financial decisions are made at any point in life. Suppose you face significant financial decisions in your life, such as buying a home or retiring. In that case, financial advisors in Spain can help you make the best choices for your financial situation.

Tax advisors for living in Spain

What are financial tax services?

When you want to use Spanish tax advantages, it is wise to get help from an expert. Financial advisors can assist you with financial tax services, including advice on tax planning. This financial advice can provide additional financial security for investors. It can alleviate the financial burdens. If you need assistance declaring your taxes, accountants can help you with this.

What is financial risk assessment?

Financial risk assessment is a process performed by financial advisors to assess financial products or services’ financial risk. It is the assessment of financial risk undertaken by financial advisors to determine whether financial services are appropriate for an investor’s needs and expectations of financial returns.

Financial Risk Assessment also includes evaluating how well a portfolio or investment strategy fits with their financial goals, experience, risk tolerance and other personal factors that affect financial risk.

What is financial advising?

It is a financial service provided by financial advisors in Spain in which they provide financial advice to individuals and businesses on financial products, financial planning and budgeting.

It is a financial advisory service where financial advisors provide information and education on credit cards, debt relief services, debt consolidation loans, financial planning, financial services, financial management, financial risk assessment, loans that are offered by financial institutions.

Financial advisors can give financial advice to both individuals and businesses. Businesses need financial advisors to handle the financial operations of their companies for them. Financial advisors can help with finding the most effective way for a company’s money to be used and help financial managers maximize financial potential.

What is financial coaching?

A financial coach, also known as a financial planner or personal financial advisor, can provide financial coaching to anyone who wants to develop financial knowledge and skills for themselves. Coaching provides the opportunity (and motivation) to take control of your own finances by making you more confident in financial matters.

Coaching is particularly useful for people who are new to financial planning, or those looking to change the way they think about financial planning. You can also get financial advice on how you manage your financial life in Spain. It will help you identify areas for improvement.

What is financial information?

Financial information includes financial reports indicating financial health. It can also contain guides for investing and explanations on financial services, such as mortgages, credit cards or retirement plans.

The financial information may also take the form of daily, weekly and monthly financial updates and news on financial markets and financial institutions in Spain.

Financial advisers for retirement planning

Investment management

Investment management is financial advice on financial products. It helps investors achieve their financial goals. Financial advisors in Spain provide investment management services involving financial planning, financial investments, financial risk assessment and financial reporting in Spain.

Investment management involves an assessment of an investor’s financial profile (assets, debts, income and expenses) together with their financial objectives to help them plan for short-term financial goals, such as a home purchase or a financial emergency.

It also includes financial planning for retirement and financial risk assessment to determine the right investment mix to help achieve financial goals. Investment management may also provide financial advice on corporate financial products such as pensions and share schemes.

Types of financial institutions in Spain

There are many types of financial institutions in Spain, including banks, insurance companies, brokerage firms, financial planning professionals and credit unions. All financial institutions are regulated by the financial authorities in Spain and have to comply with financial regulations.

Popular financial products in Spain

One of the financial advisors in Spain may advise you on financial products such as:

  • Loan products
  • Savings and investments
  • Retirement plans
  • Insurance contracts
  • Housing loans and mortgages
  • Investments and financial instruments such as shares, bonds and units in mutual funds
  • Pensions

Tax planning for big investments

Types of taxes in Spain

You will have to deal with many types of taxes when you live in Spain. The financial advisors in Spain can help find information about which taxes apply to your financial situation and how best to deal with them. Ordinary taxes you will find in Spain are:

Spanish financial advisers will provide financial advice relating to taxation, housing plans, household finance planning, personal financial planning, savings plans and investments. Tax is compulsory for all citizens residing within the economic borders of Spain.

Biggest mistakes by expats

The financial advisor in Spain may tell you which financial mistakes are common among expats. Common mistakes made by expats include:

  • Not filing tax returns at all or without financial information
  • Submitting incorrect financial details due to lack of understanding
  • Attempting to save money by avoiding financial advice
  • Failure to plan financial advice, underestimating financial needs
  • Claiming too many allowances
  • Language barriers
  • Filling the wrong forms (Modelo’s)
  • Not properly dealing with debts
  • Not properly dealing with gains

Expats who are new to Spain should ensure they understand the financial requirements of living there. Because making financial mistakes can result in financial penalties.

A word from SpainDesk

When dealing with a significant amount of money, it is essential to get an independent advisor. By law, financial advisors in Spain must disclose any financial relationships with financial products. This means you can trust your financial advisor not to recommend a financial product because it pays them more money. They will provide impartial financial advice on taxation issues and financial planning in Spain.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered as professional legal advice. We highly recommend seeking guidance from a legal expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

Get taxes done more quickly and efficiently with our tax services in Spain

At SpainDesk, we can help you with advice about investments in Spain. Here we have lined up popular investments that are currently being done in Spain. SpainDesk provides financial service in Spain. We know that investing is a big decision that needs proper guidance, because of the impact of money. So do you want to invest money while living in Spain? There is always a risk of losing your money when investing. Here are the 10 most popular investments in Spain; let’s have a look.

1. Cryptocurrencies

Cryptocurrencies are decentralized virtual currencies that are not regulated by any State or Central Bank. It works through blockchain technology and come with many advantages in the security and validation of operations.The truth is that blockchain technology is quite impressive, but this does not mean that cryptocurrencies are a worth investing in money.

2. Social Trading

Today, social trading is a new type of investment that replicates the investment portfolio of another person. In this way, you don’t have to choose the companies and investment assets, but it would be enough to trust other people based on their type of investment and history.

On the other hand, you can also work on the behalf, who invest their money and you will take part in their investment’s commissions. In a way, you can easily manage your investment without any funds.

3. Real Estate

Investing in real estate became very popular before the covid-19 pandemic situation. It consists of buying or purchasing a flat, house, land, premises, garage, or real estate to generate profitability.

There are several strategies for investing in real estate, such as reform to revalue, Speculate, rented property, and enable housing premises.

4. Forex Trading

The investment in Forex is to buy other currencies with the hope that its value will increase and generate profitability. The currency’s value is continuously changing and is affected by many factors, such as social, religious, commercial, etc.

Some of the people who invest in currencies use leverage; that is, they go into debt to invest more money. This allows you to earn more for your investments, but at the same time, it means taking a much greater risk.

5. Startups

This type of investment consists of investing in companies called startups, technology companies in the very early stages of their creation.Investing in startups consists of financing a company in its early stages, hoping that this company will grow and get your multiple investments back one day.

Keep in mind; it is quite a risky way to invest because you are investing in a profitable company that may not even generate income.

6. Company shares

The best money investment plan is to buy the company shares and for this manner choose an effective company that will become part of your portfolio.Before you move to this type of investment, it is necessary to study the company’s economic indicators. However, you need to understand its business and know the main characteristics of its sector. The purchase of shares is usually carried out through a broker, who acts as an intermediary in the purchase of shares.

7. Time deposits

If you are looking for a safe type of investment thus fixed-term deposits may be a good option. Since it is one of the least risky ways to obtain a return on your capital.Time deposits is a financial product that consists of lending your money to a bank for interest exchange. There are currently European deposits with up to 2% interest, which is a good interest for those looking for maximum investment security. Also, keep in mind that the money will be blocked if the deposit period expires.

8. Pension plans

Pension Plans are portfolios that formed by the investment funds or ETF, although they have an exceptional Spain feature. They have a great advantage for investments and deduct taxes, specifically income tax. It is essential to keep in mind that the money you invest in a Pension Plan will not be able to be used for a long time, which means you can’t use it for the medium-long term.

9. Investment funds and ETFs

The funds are financial investment instruments that meet the capital of individuals to an external entity. In other words, instead of you buying stocks or bonds directly, why not you choose your investment plan. There are two main types of investment funds:

  • Passive investment funds: These are funds that replicate a stock index so that they do not choose companies one by one.
  • Active investment funds: These funds are characterized by actively choosing companies or bonds.

10. Robo Advisors

These are investment platforms that first determine your profile, after that offer a personalized portfolio with products chosen by their financial analysts. They usually invest in low commissions, such as index investment funds or ETFs that replicate a stock index. Robo advisors have been present in Spain since 2015.

Investments in Spain. Consult Spain

Above are some suggestions for investing in Spain. There are always risk of losing your money when investing. Now you properly have the overall idea about the most popular investments in Spain. So, it depends on you to choose the right investment plan and double your money. Keep in mind, before you take a step of investment, it is best to have proper guidelines from financial experts. If you want any professional guidance or you stuck at one point, then don’t hesitate to contact SpainDesk.

At SpainDesk, you can get legal advice on legal matters relating to all types of complaints, litigation in court, and civil law in Spain. One of our legal specialisations is in real estate in Spain. Purchasing real estate in Spain and renting it out can be a lucrative business. However, sometimes you might face legal obstacles in Spain. This can be a challenge if you don’t speak the language fluently and don’t know the law. SpainDesk is here to help. Our real estate lawyers and specialists are here to consult with you in English.

We offer legal advice for people that want to invest in real estate

SpainDesk has established lawyers and specialists that can help you with your real estate matters. This way you can securely buy and take your focus elsewhere. Services we offer are:

Company formation in Spain

Desire to have your own company in Spain or want to extend your existing company? Get help from SpainDesk lawyers and get your company formed quickly. We help to find the right solutions for your business project, for instance:

  1. Choice: We give an option for the legal structure of your new business or subsidiary.
  2. The establishment office: We help to obtain potential permits and negotiation of the lease agreement.
  3. Creation of your company: We prepare the power of attorney, your NIE number application, the company’s VAT number, and the deed of incorporation.

Real estate purchasing and renting in Spain

The real estate market in Spain involves certain risks that you need to avoid. Our professionals can offer legal advice so you dream of an apartment or want to buy an office building for your new business. We give the following guidance:

  1. Reserve contract: sometimes the seller hides unpleasant financial consequences inside of the contract. Contact SpainDesk before signing any contract, so we can advise you and you don’t miss anything.
  2. Rental contract: the rental of your second home will have tax implications. For example, you could be considered a non-resident. before renting out.

Consult our real estate team in Spain, we can deal on your behalf

Investing in property in Spain is a dream of many foreign investors. The country has a lot to offer. Our team can help you make that dream come true. We can take care of everything and make you reach full compliance with the Spanish tax legislation.

Other benefits at SpainDesk include:

  • Advice for choosing your Spanish legal entity
  • Easy Spanish company formation
  • Safely purchase with legal guidance
  • Tax implications are taken care off
  • Accounting and administration services
  • Contractual advice for renting out
  • More services in finance, legal, and business

Get advice from experts that stay up to date with the latest real estate and tax legislation. We are here to help. Connect with us today.

Land registry in Spain

Our Spanish property lawyers will also guide you through the purchase of your property and can take care of many aspects such as registering such as properly registering your property.

Registration will be done at the Spanish land Registry. The Spanish land registry is a public and universal, national and autonomous institution of the State. Its purpose is to safeguard and keep records on property rights, including their modification and cancellation.

Average property prices in Spain

Property prices in Spain continued to grow over the last two years. The average price of a property in Spain was 127.000 euros compared to 125.000 euros in 2019, and 119.000 euros in 2018.

While property prices in Spain continued to grow over the last two years. The average growth rate (new dwellings + second-hand dwellings) decreased from 6.8% in 2018, to 5.1% in 2019, and 2.1% in 2020.

While real estate investment has not been as popular as it was during the rapid growth of Spain, there has been an increase in demand for real estate over the past few years.

Average property prices of new property in Spain

Property prices in Spain continued to grow over the last two years. The average price of a property in Spain was 137.000 euros compared to 129.000 euros in 2019, and 129.000 euros in 2018.

The average house price value of new property in Spain grew by 6.5% in 2020, compared to 7.3% in 2019, and 6.4% in 2018. This means that new houses in Spain are getting more and more popular among investors.

The value of new real estate has continued to rise, although at a slower rate than in prior years.

Average property prices of second-hand property in Spain

Property prices in Spain continued to grow over the last two years. The average price of a property in Spain was 126.000 euros compared to 124.000 euros in 2019, and 118.000 euros in 2018.

The average property prices of second-hand Spanish property grew by 1.4% in 2020 compared to 4.7% in 2019, and 6.8% in 2018. This means that property prices increased at a slower rate in 2020 than in 2019 and 2018.

The growth of prices of second-hand properties in Spain slowed down quite a bit. Which is something that you should keep in mind when doing your next property investment.

Reasons why people enjoy living in Spain

The Cost of Living – For many, the cost of living is a significant factor for choosing their next destination. Spain has become one of the most popular destinations in Europe thanks to its great weather, good infrastructure and relatively low cost of living.

Climate – Spanish weather isn’t too extreme with mild winters, warm summers and stable temperatures year-round. The climate also encourages outdoor activities which is another reason people enjoy living here.

Popular autonomous regions foreigners buy property in Spain

Among the most popular autonomous regions to buy property in Spain are Andalucia, Catalunia, Murcia, Canary Island, Valencia, Madrid, and the Balearic islands. Below we discuss the reasons why people are buying property in these locations, as well as the prices of these increases.

Property market in Andalucia

Property prices in Andalucia continued to grow over the last two years. The average price of a property in Spain was 120.000 euros compared to 117.000 euros in 2019, and 111.000 euros in 2018.

The average property prices grew by 2.3% in 2020 compared to 5.4% in 2019, and 5% in 2018. This means that property prices increased at a slower rate in 2020 than in 2019 and 2018.

Reasons why people are buying property in Andalucia

Andalucia is a popular place to buy property in Spain. Andalucia has many qualities to offer such as excellent climate, both in coastal towns and inland.

Almeria is located in the southeast part of Andalucía and has a very warm climate throughout the year. It is a popular city made up from a mix of traditions and modern culture.

In the west part of Andalucía, where it’s also sunny all year round, you can find Cádiz. This region has many historical monuments which will make it a great place to live. Parts of the Costa del Sol are also located in Andalucía, which is popular as a hot climate with around 300 days of sunshine per year. This area is popular among people who are looking for a good holiday home with lots to do throughout the year.

  • A near perfect climate that brings with it sun-drenched beaches and blue skies the majority of the time.
  • An affordable lifestyle yet with many comforts, especially in the south where property prices seem to be permanently fixed well below those in other regions of Spain.
  • Andalucia has a very attractive cultural life, with an abundance of festivals all year round.
  • The area offers many activities to occupy your time, be it water sports in the coastal areas or mountain sports in the Sierra Nevada range – excellent for hiking and climbing.
  • Alternatively simply enjoy Andalusian sherry or wine on one of the many terraces of the Alameda parks.

Property market in Cataluña

Property prices in Cataluna continued to grow over the last two years. The average price of a property in Spain in 2020 was 134.000 euros compared to 134.000 euros in 2019, and 128.000 euros in 2018.

The average property prices grew by 2.0% in 2020 compared to 5.2% in 2019, and 8.8% in 2018. This means that property prices increased at a slower rate in 2020 than in 2019 and 2018.

Reasons why people are buying property in Cataluña

Cataluña is another one of the most common places where foreigners buy property. Catalonia has a lot to offer with many different styles of homes and areas. There are several popular home buying regions in Catalonia that attract buyers from around the world, including Costa Brava.

There are many places in Cataluña you can buy property. Barcelona is one of the best places to buy property in Catalonia. Barcelona has many attractive things for people who want to live there.

  • Catalonia is a very safe place in Spain, especially in Barcelona where the crime rate is extremely low. The police presence is also high and the general public gives it that good vibe (Surveys show that citizens feel happy and proud of living in Barcelona).
  • Barcelona and its surrounding towns and villages offers an abundance of activities from outdoor activities to culture, art & cable cars to reach the mountain tops etc. There is also lots of nightlife with a large variety of places for whatever taste you might have (from glamourous clubs to bars and restaurants where people are at until midnight).
  • Barcelona is well-known for its markets especially La Boqueria where you can buy the best fresh produce and fish. Also, they have stylish shops in Barcelona’s old town with fashion designers’ boutiques, jewelers etc.
  • Catalonia has some of the best natural parks in Spain such as Montserrat, Aiguestortes, La Garrotxa etc. Next to this, Catalonia is a very “green” region where most people see it as their duty to recycle and they enjoy doing so.
  • Catalonia is one of the most open minded regions of Spain and people are very polite and friendly with foreigners, which you don’t find in certain places of the country.

Property market in Murcia

Property prices in Murcia continued to grow over the last two years. The average price of a property in Spain in 2020 was 114.000 euros compared to 111.000 euros in 2019, and 106.000 euros in 2018.

The average property prices grew by 3.1% in 2020 compared to 4.6% in 2019, and 3.4% in 2018. This means that property price increase remains stable in Murcia.

Reasons why people are buying property in Murcia

Murcia is located in the southeast of Spain. It’s a popular place to buy property because of its good climate and affordable prices. The most visited region in Murcia by foreigners is El Carpio de la Jara, with its 17th century palace and plenty of natural parks.

Murcia also has rural areas like Carboneras with beautiful beaches and lots to do outdoors.

Property market in Valencia

Property prices in Valencia continued to grow over the last two years. The average price of a property in Spain in 2020 was 114.000 euros compared to 111.000 euros in 2019, and 106.000 euros in 2018.

The average property prices grew by 2.2% in 2020 compared to 4.2% in 2019, and 4.1% in 2018. This means that property growth decreased in Valencia.

Reasons why people are buying property in Valencia

Valencia is an ideal place to buy property. The climate is warm all year round and the beaches are close by. There are many cultural activities that make it into a great place to live.

Valencia, located in the east of Spain, is an ideal place to buy property. The climate is warm all year round and the beaches are close by. There are many cultural activities that make it into a great place to live. Valentia offers many different types of real estate projects which will be perfect for different people.

Valencia is located in the east of Spain. It’s surrounded by mountains and has a strong agricultural economy, which makes it an ideal place to buy property.

The most visited region in Valencia by foreigners is La Marjal, with its low prices and beautiful green surroundings.

Property market in Madrid

Property prices in Valencia continued to grow over the last two years. The average price of a property in Spain in 2020 was 144.000 euros compared to 141.000 euros in 2019, and 133.000 euros in 2018.

The average property prices grew by 1.7% in 2020 compared to 5.9% in 2019, and 10.2% in 2018. This means that property growth decreased rapedly in Madrid.

Reasons why people are buying property in Madrid considered

Madrid is also a popular investment location, the prices has increased significantly. Madrid is one of the most interesting investment regions in Southern Europe.

The rental market is also very favourable, especially when compared to other markets in Europe where demand is extremely high. In addition, Madrid is a city with an excellent quality of life and offers all types of services.

A list of reasons for people to live in Madrid are:

  • Madrid is a large and dynamic city with many cultural, social and leisure activities.
  • It is a very safe city with one of the lowest crime rates in Europe.
  • The standard of living and life quality in general is very high.
  • Madrid is a city with a great international projection and a large concentration of multinationals.
  • The city has excellent infrastructure: transport, roads, telecommunications… Madrid also benefits from two airports (Barajas and Torrejon), several railway stations to connect the capital with the rest of Spain and Europe (AVE), as well as extensive road networks.
  • The academic offer is broad and varied: the city offers a university for each of its citizens, having more than 350,000 students. Furthermore, it has a network of public and private schools that guarantee education at all levels.

Property market in Canary Islands

Property prices in Canary Islands continued to grow over the last two years. The average price of a property in Spain in 2020 was 119.000 euros compared to 118.000 euros in 2019, and 113.000 euros in 2018.

The average property prices grew by 1.2% in 2020 compared to 3.8% in 2019, and 5.0% in 2018. This means that property growth decreased rapedly in Madrid.

Reasons why people are buying property in Canary Islands

If you would prefer to investing in beach-front property, the Canary Islands are a good choice. There is a variety of properties to choose from all with different names and prices.

The Canary Islands are situated in the Atlantic Ocean between Africa and Europe. This group of islands is made up by seven major islands, including La Palma, Tenerife, Gran Canaria, Fuerteventura, Lanzarote, La Gomera and El Hierro.

The region offers diverse climate climates that range from hot and dry to humid and wet. Buyers can choose between beach properties on the coast or mountain retreats inland. Popular cities on the canary islands

Buying property in the Balearic Islands

Property prices in Islas Baleares continued to grow over the last two years. The average price of a property in Spain in 2020 was 136.000 euros compared to 131.000 euros in 2019, and 123.000 euros in 2018.

The average property prices grew by 4.1% in 2020 compared to 6.0% in 2019, and 7.5% in 2018. This means that property decreased in the Balearic Islands, but not as fast as in other regions.

Reasons why people are buying property in Balearic Islands

If you would like to live in one of the most popular places for foreigners wanting to purchase property, the Balearic Islands is a good choice. But with all these choices, it can be hard to know which one is best for you. Palma de Mallorca offers a warmer climate and more affordable prices with a variety in homes in different areas of the city. Majorca has a mild climate year round and less expensive properties with beautiful views from terraces overlooking the bay. Ibiza is more expensive but offers an active clubbing scene along with beautiful beaches and various homes styles from contemporary to traditional Mediterranean style villas. Menorca is cheaper, but also has less varied options in housing.

Property buying a residency in Spain

Buying property in Spain by non-residents

Non-resident buyers need to present a bank letter of guarantee for the purchase price agreed with the seller. They also need to provide proof that they have sufficient funds available in the country’s banking system.

Buying property in Spain by residents

The process to buy your first home as a resident is quite straightforward. All that needs to be done is show up at the notary office with your NIE number and a few copies of your documentation. The requirements to buy a house in Spain are the following:

  • Proof of home ownership where you live, or evidence that it will be inherited soon.
  • Proof that you have sufficient funds available in the country’s banking system.

For non-residents renting out their primary residence: In the event of a rental contract, there are certain requirements you need to fulfill in order to be considered a non-resident. For instance, if the tax authorities find that you spend more than 183 days a year in Spain or more than six months a year on average, you will have to pay taxes on your property. These sanctions can be avoided by sending proof of your absence from the country during various periods of the year.

Rental income tax in Spain

Rental income is subject to a 30% tax rate in Spain. This can be reduced by claiming expenses, such as those incurred from the maintenance of the property.

The tax implications of Spanish property investment

In Spain, when you buy a property, you will have to pay a property tax. For instance, when buying a new property in Spain, the buyer has to pay 1% of the purchase price in stamp tax. Next to this, you will also have to pay VAT on these properties.

When you are buying a send hand property you will have to only pay ITP. The ITP rate depends on the region you are situated in.

Frequently asked questions

Below you can find some frequently asked questions on the Spanish property market.

Why should I use a company for my real estate investment in Spain?

Reasons why you should use a company to invest in Spanish property, numerous. First of all, it allows you to have certain tax benefits that regular individuals don’t usually enjoy. Secondly, it allows for more advanced legal structures. Finally, there are added benefits when you buy Spanish property through a company. For example, you can avoid having all the legal fees and taxes associated with acquiring property in your name.

What are the benefits of investing in property in Spain?

There are a few benefits that come with investing in the Spanish property market. Property brokers in Spain point out that most house prices in Spain are relatively low, especially when compared to other European countries.

What is the process for buying and renting out property in Spain

There are different procedures to follow, depending on who is the buyer and what type of property is desired. For instance, if you’re a foreign buyer and want to buy an apartment in Spain, there will be different requirements and difficulty levels than someone who is a Spanish citizen and wants to renovate their primary property.