Property in Spain

Spain is an excellent option for those in search of a vacation or retirement home, whether to live
in full time or to let in off seasons. The country has a strong magnetism to those who appreciate its deep culture, fun-loving atmosphere, excellent climate, sunny shores and favorable economic conditions.

For the last ten years Spain has undergone one of the strongest real estate booms in Europe, which has only recently begun to cool. Although prices are still rising, experts predict them to stabilize throughout 2008, evening out to more sustainable levels.

This shifting in the balance is positive for property seekers because it puts the buyer in a more equitable position with the seller, who previously – because of unrelenting demand – could afford to set high prices and still enjoy quick turnover.

For the purely investment-minded buyer, however, current conditions are less attractive than in previous years in the commercial property market because of reduced demand. Spain still offers interesting investment opportunities in real estate, but these have shifted more to the business side of the market (office buildings and warehouses; especially in the logistics industry).

Spanish legislators have been enacting new laws in recent years that make it easier for foreigners to buy, let and sell property as well as live in the country in general. One example is the reduction in capital gains tax to be paid by foreigners; previously 35%, it’s now been taken down to 18% (the regular rate for Spanish citizens).

When searching for  Spanish property in Spain, it’s always a good idea to engage in research on multiple levels. You can start online, gathering information that’s freely available; just begin a search with google and within a half hour you’ll know much more about property in Spain than you did before.

Another way to inform yourself is by speaking with friends or acquaintances who’ve already purchased property in Spain. It’s always eye-opening to get a firsthand account of what the experience is like, especially from someone that shares your cultural perspective.

As you get closer to the actual purchase of a Spanish home, consider taking some lessons and learning Spanish at least at a basic level. Many foreigners tend to group into closed communities and seem to think they can get by without a word of Spanish. Actually, they can and do get by, but in a limited fashion and missing endless possibilities along the way.

Spain is an incredible place to live and vacation in. Coupled with the fact that it possesses a strong economy and a healthy real estate market, it should – at the veryleast – not be left un-investigated by those in search of a dream home away from home.