505,990 sq.km (195,360 sq mi)
Spain's Real Estate Market
The Spain's housing market outlook is upbeat with sales expected to increase from about 500,000 units last year to between 625,000 and 650,000 in 2019, according to TINSA. Nationwide house prices are projected to rise by between 5% and 7% this year. Demand continues to rise strongly. In the first eleven months of 2018, home sales in Spain surged 10.6% to 481,220 units from the same period last year, after annual rises of 15.4% in 2017, 14% in 2016 and 11.5% in 2015, according to the Instituto Nacional de Estadistica (INE). The continued increase in transactions was mainly driven by foreigners buying homes on the coast and in cities like Barcelona and on the Costa del Sol, one of the country's most popular areas with overseas purchasers. Most foreign homebuyers are Britons, French, Germans, Belgians, Italians and Swedes.
The total roundtrip transaction cost is around 9.50% to 15%. This includes the Property Transfer Tax, which varies from 6% to 10% depending on the autonomous region, and the real estate agent's commission, which is around 2.5% to 3%.
International Investment in Spanish
A foreigner can legally buy and operate real estate in Spain. Like some EU countries, Spain is always a real real option for an investor who wants to diversify his portfolio and enjoy a favourable economic trend.
The real estate market in Spain is favourable for transactions and investments for several reasons:
- A transparent and open system.
- The law is in favour of the owners and protects them.
- A foreigner can become owner in Spain.
- Taxation is favourable.
The European Union and other some countries signed an agreement, allowing to avoid the double taxation.