Lately, I’ve noticed more and more people on the forums discussing buying property, whether they’re newcomers to Spain looking to settle down or those with some extra cash wanting to invest. I happened to go through the process with a small apartment here in Valencia a couple of years ago, ran into some pitfalls, and also learned a few things. So, I’m starting this thread to share my thoughts. This is all just my personal opinion, and I welcome corrections and additions from the experts here.
Location, Location, Location!
This old saying is a golden rule in Spain as well. But the definition of a “good location” in Spain is quite broad. Besides the core districts of major cities like Madrid and Barcelona, some smaller, characterful cities and coastal areas also have great potential. For instance, here in Valencia where I live, property prices have seen significant appreciation in recent years. My advice is, don’t just focus on areas popular with the Chinese community or the city center. Instead, explore areas favored by locals that are mature communities with good transport links and complete living facilities, which might be relevant for Spain’s Golden Visa program. Properties in these locations are more desirable for both living and renting. Before buying, be sure to walk around the neighborhood yourself to get a feel for the community atmosphere during the day and at night.
New Builds vs. Resale Properties: Which is Better?
There’s no one-size-fits-all answer to this; it depends on your personal needs and budget. New builds are hassle-free, have modern designs, and are more energy-efficient, but they usually come with a higher price tag and you might have to wait a year or two for completion. Resale properties offer more choices, flexible pricing, and you can find gems in excellent locations, but they might require a substantial renovation budget. I bought a resale property myself. Although the renovation took a lot of effort, the total cost was significantly lower than a new build in the same area. Here’s a small table to compare:
| Property Type | Pros | Cons |
|---|
| New Build | Hassle-free, modern, energy-efficient | Higher price, fewer options, slow handover |
| Resale | More choice, good locations, room for negotiation | May need renovation, slightly more complex transaction |
Don’t Forget the “Hidden” Costs
When buying property in Spain, there’s a host of additional costs beyond the property price itself that you must not overlook. These fees can add up to 10%-15% of the property’s price! They mainly include property transfer tax or VAT, notary fees, property registration fees, lawyer fees, etc. Pay special attention to the community fees and the property tax (IBI), as these are annual expenses you’ll have to pay as long as you own the property. Make sure to ask the seller or agent for the exact amounts before you buy. I almost overlooked the community fees myself. Luckily, my lawyer reminded me; otherwise, I would have bought an apartment with exorbitant community fees, and my rental yield calculation would have been completely off.
Investing in Spanish real estate is a great option, but it’s definitely not a venture where you can make money with your eyes closed. You must do your homework thoroughly—look at many properties, ask lots of questions, and compare extensively. If your circumstances allow, I strongly recommend hiring a reliable lawyer to help you review the contract and oversee the entire transaction process. It can save you from a lot of unnecessary trouble. I hope my sharing has been helpful, and I welcome everyone to share your own stories of buying property in Spain!
