Whether you’re longing for a holiday home in the Balearics, a renovation project in Andalucia, or a lock-up-and-leave apartment in Alicante, we are here to support you through this very special purchase.
We can think of 101 reasons to buy a holiday home in Spain. From 320 days of sunshine a year and the al fresco lifestyle that allows, to the tasty tapas and diverse landscapes to explore. Spain is a dream destination offering a plethora of leisure activities for every type of person.
The destination you choose to buy a property in will depend on your circumstances and preferences. The most popular regions for international buyers to purchase a property are Alicante, Valencia, and Gran Canaria, according to Kyero data. If you’re looking for a budget property with typical Spanish features, search for properties in the province of Cádiz or Almería. If your pockets are a bit deeper, you can’t go wrong with the popular Costa Del Sol / Málaga region, particularly if you’re after a good investment. Check out our favourite Spanish destinations for families, retirees and digital nomads for more destination inspiration.
The legal process of buying a property in Spain differs from many other countries, as Spain has specific regional laws as well as national and EU legislation to consider. Listen to Alex Radford from My Lawyer In Spain, and Sean Woolley of Cloud Nine Spain estate agents explain the legal process of moving to Spain in our Moving to Spain Experts Series podcast.
There is no doubt that Brexit has made it more challenging for British citizens to buy a property in Spain, but it’s certainly far from impossible. We have compiled answers to all your Brexit-related questions in our article Moving to Spain Post-Brexit: All Your Questions Answered.
The cost of purchasing your holiday home will depend on its size and location. To get an idea of average house prices across Spain, check out the Spanish Institute of National Statistics’ average property prices.
Expect to pay between 6% and 11% of the property price in property transfer tax, plus an annual property tax known as the IBI which is calculated using the cadastral value of your property. This is the value that local tax authorities give your property, which is usually a lot less than the market value of your property.
Other costs include: solicitor and estate agent fees (typically 3%), notary costs, title deed tax, and land registration fees at 1-2.5%. And don’t forget the cost of property insurance.
If you plan to rent out your holiday home for extra income, you’ll need specialist holiday home insurance. And you may want to hire a property management company to take care of the property when you’re out of the country. See below for more information about property management companies. Typically you’ll pay an annual fee to a property management company, somewhere between €400 + VAT for an apartment and €800 + VAT for a villa. Plus service fees such as 20% commission, €25 call out fee, and 20% service surcharge applied to costs of repairs or replacements.
If you want to rent out your holiday home while you’re not there to make some extra income, there are several things to consider:
There are lots of options for where to list your property rental, from the big property portals such as AirBnB, Vrbo, Owner Direct, and Trip Advisor Rentals, to setting up your own website to advertise your property. If you choose the latter option, we strongly recommend seeking the help of a marketing/SEO specialist to get you up and running.
So you have considered the costs and legal requirements of renting out your holiday home. You’ll also need to think about who will look after it while you’re not there. Finding a reliable local agent to manage the property for you will be vital to make sure those staying in your holiday let have a good experience.
A property management company can offer a number of services including:
You could ask your holiday home neighbours or other expats for recommendations, as a good property management company is worth its weight in gold. And remember that there are issues around the legal status of holiday lets that you’ll need to be aware of. If you plan to let out your home on a short-term basis you must make sure that you are acting in accordance with Spanish laws. There are restrictions in many areas, not just on letting a private residential property but also marketing it to tourists. Rules will vary depending on the region in which the property is located and fines can be significant if you are found to be acting illegally. Check out our guide to maintaining your holiday home for more tips.
For more insights into the process of buying a property in Spain, check out Kyero’s buying advice guides. And if you’re ready to start looking for your dream Spanish holiday home, start your search here. Buena Suerte!
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