Everything you need to know when buying a house in Spain

To buy a house in Spain there are a number of things you need to be sure of. It is often observed through one's own network that there is a house for sale in Spain, but what are the action points?

   Check out our properties in Spain   

What is the real estate market like in Spain?

The Spanish real estate market was hit hard by the 2007 global economic crisis, and the recent Covid-19 pandemic also had an impact. But despite these setbacks, the housing market in Spain has become more stable. Figures show that the market is currently recovering from the global health crisis. In fact, sales prices have already increased by 2.1% in the second part of 2020.

This increase is partly due to interest from the Benelux countries. Spain is an extremely popular destination for expats, retirees, and investors. Besides the pleasant climate, high standard of living and, of course, the delicious food, you can get a great job in Spain. Many expats leave for Spain to work. They choose to live close to the big cities, think Madrid, Barcelona, Valencia, or a stay at the Spanish coast.

Renting property in Spain will save you around € 250 per month, compared to rental prices in the Benelux. The taxes are also many times lower than we are used to here, which is also advantageous if you are planning to buy a house in Spain.

Throughout Spain you can find cheap houses, outside the coastal areas of Spain the houses are usually considerably cheaper. But even on the coast there are several regions which, in addition to the beautiful surroundings, are also financially interesting.

Emigrating to Spain

Emigrating to Spain is something that is happening more and more frequently; however, it is something that needs to be well prepared. For example, it is necessary to apply for a NIE number. But what exactly is an NIE number?

A NIE number is a personal, unique and exclusive number assigned to foreigners who carry out activities in Spain for economic, professional or social reasons. The NIE number allows you to identify yourself in Spain.

However, the NIE number does not give you the right to reside in Spain. Foreigners who want to settle in Spain should be aware that they may need to apply for a visa in advance. EU residents, once they have settled in Spain, must register with the Central Register of Foreigners.

How do I choose the right property?

Many think that buying property in Spain is the same as buying property in the Netherlands, however, there are some differences. Many different estate agencies have a house for sale in Spain, so take plenty of time to look into a particular vacation home in Spain. It is important that you also look at the corresponding lifestyle of the area in which the property is located. Our advice is also to visit several different vacation homes within different areas in Spain. During these viewings it is wise to spend a few days immersing yourself in the area, this of course might be city where you plan to live.

The goal of ConnectHouses is to offer our visitors the most diverse range of properties in Spain. Buying the right vacation home in Spain is the challenge in which ConnectHouses is happy to support you. The purchase of a vacation home in Spain is often a large investment and should be considered with care. Take your time and get well informed, our colleagues can provide you with different information, contact us without any obligation.

The real estate agencies affiliated to ConnectHouses are always up to date when it comes to properties for sale in Spain. However, real estate is a subject that requires expert knowledge.

How much does real estate in Spain cost?

If you are considering buying a property in Spain, the location of the property will be a big factor on the price. The most expensive properties can be found in Barcelona; prices in central Madrid are slightly below this. If you wish to move to an inner city, it is wise to factor this into your budgeting. Prices in the suburbs of major cities are considerably lower.





In other parts of the country, such as the coastal regions, you can find something to fit any budget due to the wide range of homes available. To give you an idea of what houses in Spain can cost, below is our quick price guide depending on the city. The average house prices by city are as follows:

  • Malaga: € 2.091,- per m2
  • Santa Cruz de Tenerife: € 1.527,- per m2
  • Santander: € 1.868,- per m2
  • Bilbao: € 3.073,- per m2
  • Barcelona: € 4.009,- per m2
  • Madrid: € 3.682,- per m2
  • Valencia: € 897,- per m2
  • Palma de Mallorca: € 897,- per m2
  • Murcia: € 1.069,- per m2
  • Toledo: € 1.355,- per m2
  • Badajoz: € 1.221,- per m2

Houses in the Costa del Sol or Costa Blanca are current favorites among the Benelux. Its abundance of golf courses, distance to popular towns like Villamartin and Playa Flamenca and the most beautiful climate in Europe makes this a great option. Prices vary between different areas and types of houses, but generally prices are low. For example, a two-bedroom apartment, near the sea at Torrevieja has an average price of €70,000.

In the south of the Costa del Sol, in popular Marbella, new construction projects are back in full swing and vacation homes are in high demand. You can get an apartment on a complex for €200,000, -, but a spacious apartment in a sought-after location will approach €350,000. Popular areas are Estepona, San Pedro, Nueva Andalusia, Mijas Costa and Benahavis. The resort of Benalmadena is also popular with tourists and property entrepreneurs.

How do I get a mortgage in Spain?

Unless you have the money up front, you will probably need a mortgage to finance your purchase in Spain.

You can buy a property in Spain with a mortgage from a Spanish bank, but you will likely get a lower loan-to-value (LTV) than residents of Spain. This means you will have to make a higher down payment. As a foreigner, you will usually be offered a mortgage of 70%; Spaniards can expect 80%.

Down payments when buying a property in Spain

It is normal to pay a 10% deposit on your new home. It is important to make sure that the first contract you sign is the 'Contrato privado de compraventarres'. This means that if the seller later withdraws the contract, you are entitled to double your down payment.

Taxes and costs when buying a property in Spain

All purchases and real estate come with additional costs. It is important to include the following taxes and costs in your budget. The following costs are percentages based on your purchase price:

  • Transfer tax: 6-10%;
  • Title deed tax, notary and registration fees: 1-2.5% ;
  • Legal fees: 1-2%;
  • Brokerage fees: usually paid by the seller, around 3% of the price;

Are you looking for a property?

It is possible to submit your active search query to ConnectHouses. The platform has a unique and diverse network of a large number of real estate agencies across Europe.

Based on your criteria ConnectHouses specialists can actively search for that one unique home you have always dreamed of. Our specialists often get a different offer than what is publicly available because of the exclusivity on the housing market, which often occurs in Spain, regardless of the price range. We therefore have access to the "silent market".

You can then choose to go through the purchase process yourself with the support of a ConnectHouses buying agent, or undergo this yourself with one of our affiliated real estate agencies.

Interested in submitting your search request to ConnectHouses and curious what such a process looks like? Contact one of our colleagues at info@connecthouses.com, we would love to help you find your dream home!

Latest posts on #ConnectHouses