The Spanish real estate market can be difficult to understand, and it’s worth doing your research before you buy. Factors to consider when buying a Spanish property include real estate scams, high capital gains tax and fluctuations in the real estate market.
The additional uncertainty caused by COVID-19 means that it could be a risky time to buy in Spain. The country’s rental market is also changing.
Before the pandemic, regional governments were looking to introduce stricter rules for people buying vacation rentals, after rental prices rose dramatically in areas popular with investors.
Each of Spain’s 17 regions has the power to set rules for foreign buyers who buy properties for rent. The strictest rules are found in the Balearic Islands, where only Spanish residents can apply for buy-hire licenses, and in Madrid, where the new measures only include authorization to stay for up to five days.
If you are considering a shorter stay, renting in Spain might be a more suitable option once you factor in the high levels of capital gains tax in Spain, which could outweigh the benefits of a purchase in Spain. short term.