Advocats Abogados

British Buyers in Spain

Real Estate - Fuente: Spanish Solutions - 10th March 2020
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Some Property News in Spain.

The Span­ish not­ar­ies re­lease some fig­ures every year re­gard­ing the state of the prop­erty mar­ket here in Spain. We get of­fi­cial fig­ures in May 2020 for the pre­vi­ous year but what we have seen so far is in­ter­est­ing.

Some of the stats have rami­fic­a­tions for the Brexit ne­go­ti­ations still on­go­ing with Bri­tain and Spain. It all makes now a good time to start the buy­ing pro­cess though.
The Spanish are buying less property in Spain.

The do­mestic mar­ket in spain de­clined in the first half of 2019 and is down 2.79%. This makes Spain even more re­li­ant on the expat market to keep the Span­ish prop­erty sec­tor bub­bling.

The Eur­i­bor rate (the in­terest rate for the ma­jor­ity of Span­ish mort­gages) hit an his­toric low in Au­gust 2019. Ex­perts pre­dict that it will re­main neg­at­ive throughout the up­com­ing year. The cli­mate for a boom in prop­erty sales here is per­fect.

The Span­ish prop­erty buyer has not dis­ap­peared. The Span­ish do­mestic mar­ket however is still 40% smal­ler than it was back in the boom. The over­seas in­flu­ence in the sec­tor is some 80% lar­ger.

From a dizzy high of 824,905 pur­chases by Span­ish people who were caught by the prop­erty bug in 2006, fig­ures dropped to 247,208 six years ago. This num­ber is rep­res­ent­ing a dra­matic a fall of 70%.

Un­em­ploy­ment in Spain con­tin­ues to fall and runs cur­rently at 13.2%, the low­est in a dec­ade. Youth un­em­ploy­ment is way down too yet Spain needs the Brit­ish to con­tinue mov­ing here.
Where are expats buying in Spain?

Two thirds of all Spain’s prop­erty sales oc­cur in Medi­ter­ranean coastal re­gions.

The main des­tin­a­tions in Spain for over­seas buy­ers are An­dalucía, Cataluña, Murcia and the Valen­ciana com­munity in­clud­ing Cas­tellón, Alic­ante, Tor­re­vieja, Pi­lar de la Horadada etc.

Both Cataluña and Murcia saw an in­crease in in­ter­na­tional buy­ers, which are re­spect­ively up 7.8% and 9.6%.

All autonom­ous re­gions in Spain re­gistered price in­creases dur­ing 2019. There were fluc­tu­ations and dif­fer­ent price in­creases in dif­fer­ent areas of course. Murcia and Alic­ante for ex­ample are see­ing faster rises in prices than other areas with less for­eign in­vest­ment.
The Brexit and Spain.

Spain and Bri­tain are cur­rently ne­go­ti­at­ing the with­drawal agree­ment. We know noth­ing will change for 2020. If you are liv­ing and work­ing in Spain now you will not be asked to get any new res­id­ency and vice versa, mean­ing Span­iards liv­ing and work­ing in Bri­tain can con­tinue to do so.

Here is a plus for Brit­ish buy­ers; the prices are in­creas­ing, nowhere near the boom prices but go­ing in that dir­ec­tion and no other na­tion is buy­ing more prop­erty than the Brits. The re­cent not­ary re­ports from the 2019 cal­en­dar year show that Brit­ish pur­chasers are head­ing the league when it comes to buy­ing a prop­erty in Spain. Brit­ish buy­ers, both in­vestors and ex­pats mov­ing to Spain last year pur­chased 38% more than the French, who were the second biggest buy­ers.
Spain needs that property tax and will do whatever it takes to protect the British buyer in spain.

We still re­com­mend Brexit proof­ing. Get­ting up to date on all your taxes, writ­ing your will, be­com­ing a res­id­ent if you are here more than half the year, get­ting a Span­ish drivers li­cence is all im­port­ant. These moves and safe­guards are al­ways good ideas, es­pe­cially now.

What will hap­pen once the situ­ation be­comes per­fectly clear is that more and more Brit­ish people will buy prop­erty in Spain, either as a second home or to re­lo­cate full time here.

We think now is the right time to start the pro­cess. We can in­tro­duce you to the top es­tate agents in the area. You will meet our local bank man­ager, mort­gage broker, not­ary, builder and even our law­yer Pedro Mo­lina if re­quired.

We have the re­sources in Span­ish solu­tions to help you join the es­tim­ate 700,000 Brit­ish people who will be liv­ing here with 12 months.