North American citizens are increasingly interested in buying property here in Spain due to our favorable climate, beautiful landscapes, rich culture and relatively affordable property market. We are frequently asked whether there are restrictions for US and Canadian citizens to buy property in Spain. In short, the answer is absolutely not. There is no difference between US and Spanish nationals in the actual purchase, but there is in terms of being able to live full-time in the country. Let’s look at the residence restrictions and then recap the buying procedure.
RESIDENCE RESTRICTIONS
The first thing to remember is that owning property does not automatically grant residency. For those planning to stay in Spain for extended periods, a visa or residency permit will be necessary. There are three possible visas for non-EU citizens wishing to reside permanently in Spain.
Golden Visa: This is valid for purchases of property in excess of €500,000. The Golden Visa enables holders to travel freely in the Schengen Area, to work in Spain or in any other country.
Digital Nomad Visa: This was introduced for people who can work remotely whilst enjoying the culture and climate of Spain. Fiscal residence is mandatory, but highly preferential tax rates are offered.
Non-Lucrative Visa: This was designed for retirees who have income from pensions, rents, dividends, etc. from outside Spain. Working in Spain is not allowed and the visa must be applied for outside Spain at the consulate nearest to the applicant’s residence.
BUYING PROCEDURE
Buying a property in Spain can be affordable but somewhat complicated and quite different from doing so back home. Engaging an experienced expert will allow you to avoid pitfalls and eliminate stress and worry from the process of realizing your dream of becoming a local property owner.
Research and select a property. An agent will then negotiate the price and conditions on your behalf. Once these are established, they will draft the Private Contract in Spanish as well as in your native language.
Hire a local lawyer who specializes in real estate transactions. Our agency can recommend a reputable and bilingual attorney. We will send them the Private Contract for their perusal, so they can make any changes deemed necessary. The contract can be signed remotely, you do not need to be in Spain as long as you have given your lawyer a Power of Attorney.
Secure a loan. Spanish banks are cautious and very conservative, so don’t expect to borrow 80% or 90% of the purchase price. We recommend getting proposals for financing from numerous banks. As this can be a very slow process, it is again better to let the experts deal with it. We will put you in contact with a specialist who knows which banks are inclined to lend to foreigners and have the best rates.
Be aware of exchange rate fluctuation. The cost of your property acquisition will depend not only on the interest rate of your loan but also on the fluctuations in the exchange rate. If you are planning to buy at a future date, six months ahead, it may be possible to lock into the current rate with a currency trader.
Buying property in Spain as a US or Canadian citizen is a feasible and attractive investment, provided you work with an honest agency that speaks Spanish and understands the process and all the underlying documentation necessary to guarantee a perfect and troublesome purchase.
