Buying a holiday home in Spain

With its warm climate, open spaces, beautiful beaches and mountain scenery, Spain offers plenty of reasons to buy a holiday home. Combine this with the cheaper cost of living, fascinating history and friendly people and you’ve got the perfect location for a Spanish holiday home.

Spain is undoubtedly cheaper than the UK, both in terms of property prices and the cost of living.

If you’re looking to buy a holiday home in Europe within easy reach of the UK, Spain is an ideal choice.

Since 2016, property prices have been rising in Spain, going from just over €1,500 per square metre to €2,000 per square metre at the end of 2023. This growth indicates a strong Spanish property market which offers potential for future appreciation in the value of your holiday home in Spain.

A holiday home in Spain can also serve as a source of rental income when not in use. Renting out property for short periods, during winter for example, is a sustainable option for owners, particularly because of the shortage of rental properties in Spain.

This shortage showed a 30.57% decrease in the availability of rental properties since the government introduced a new housing law in May 2023, an 11.01% increase in demand in 5 months and a 9.2% increase in prices in a year. As a property owner in Spain, renting out for part of the year can offset the costs of ownership and generate additional revenue.

The cost of living in Spain is 23.4% lower than in the UK when taking into account food, utilities and day-to-day costs. The price of groceries is 19% less in Spain and eating out in Spain is 29.4% less than in the UK, which is why lunch on a sunny terrace is an appealing choice.

With nearly 20 major airports that handle more than a million passengers each year and several smaller airports, Spain is easily connected to the UK.

There are also several ports in the north of Spain, including Santander and Bilbao, allowing you to take your car and save on vehicle hire costs. Another popular option for the British is to drive to Spain through France, using the Channel Tunnel or one of the northern French ports.

Spain has many areas to choose from for holiday homes, from the Costas to the lush, green north. Some of the more popular locations include:

• The Costa Blanca – stretching from south of Alicante to Valencia with many coastal and inland properties to choose from.
• The Costa Brava – which includes the vibrant city of Barcelona and several Mediterranean villages.
• The Costa del Sol – encompassing Malaga, the exclusive resort of Marbella and the hot climate of the south.
• The Balearic Islands – including the bohemian island of Ibiza and the stunning islands of Mallorca and Menorca.
• The Canary Islands – Tenerife and Gran Canaria are popular holiday destinations as they sit off the north coast of Africa and offer year-round sun.
• North Spain – home to Galicia, Asturias, the Basque Country and Cantabria, all of which offer wild beaches, fantastic seafood and breathtaking scenery.

Deciding where to buy property in Spain requires research and is the perfect excuse to take a trip to find your holiday home!

When purchasing a holiday home it is important to understand the procedures for buying in Spain to ensure that the process goes smoothly.

This is possible even for Brits who are no longer EU residents. The main difference to be aware of between now and pre-Brexit is that you can only stay in Spain for 90 out of 180 days if you are not a resident. This means that you will need to consider how long you spend in your holiday home.

For example, you won´t be able to spend 6 months of the winter in Spain (which used to be a common choice for people wishing to escape the cold of the UK), unless you become a resident. This means that you will pay your taxes in Spain, so weighing up all the financial pros and cons is essential.

It’s also important to understand the property buying process when buying a holiday home in Spain. The main considerations are:

• Getting an NIE number – a tax ID reference essential to purchase property and set up utility contracts
• Paying a reservation contract – to remove the property from the market
• Paying the deposit – up to 20% of the property value
• Finding a reliable conveyancing lawyer – to perform the legal checks
• Finding a notary – to transfer the money and finalise the sale

Spain is likely to be an attractive location for both holidaymakers and expats wishing to make this beautiful country their home for a long time to come. This makes it an appealing location to buy a holiday home, whether you want to use it for holidays with family and friends or as a long-term investment.

Whether you want a luxury villa with a pool, a modern apartment or a traditional townhouse, iad Overseas can help you find your holiday home in Spain. Contact us for any advice you need on buying a Spanish property.