In recent years, the purchase of homes in Spain by foreign citizens has increased. There are many reasons for this boom, among which we can point out the good price at which real estate can still be purchased in many areas and the interesting tax benefits for foreign investors.
During the year 2022, 18,7% of the homes acquired in Spain were purchased by foreign citizens. And although there are still no definitive figures for 2023, the first semester data Last year they indicate that purchases in this type of transactions reached 19,5%.
The Community of Madrid will provide fiscal incentives for the purchase of homes in Spain by foreigners
The Community of Madrid will allow Spaniards who have been outside Spain for 5 years to deduct 20% on the purchase of their home in the capital, something that foreigners who are residents and have been filing the declaration of residence for six years will also be able to benefit from. rent in Spain.
Madrid wants to continue increasing its attractiveness by lowering taxes and promoting the arrival of residents to the Community of Madrid. During a conference on taxation held at the Chamber of Commerce, the Minister of Economy and Finance, Rocío Albert, pointed out these interesting tax benefits for those who purchase a home in the capital.
In fact, foreign investment is one of the main assets of the Community of Madrid: during the year 2023 more than 50% of foreign investments were located in this community for an amount of more than 15.000 million euros.
What are the requirements for purchasing homes in Spain by foreigners?
Buying a home as a foreigner or non-resident expatriate is possible in Spain, as long as a list of legal requirements are met. In fact, Spain is one of the most profitable countries to invest in housing and this, without a doubt, attracts investors residing in all countries of the world.
For foreigners residing in Spain, it is only necessary to have a resident NIE or NIF (in the case of having Spanish nationality). To apply for a mortgage, it is best to have an account in a Spanish bank to be able to take advantage of ordinary loans.
According to INE data, the majority of foreign investments are located in coastal cities, university cities or in the center of large Spanish cities, such as Barcelona or Madrid.
The preferred destinations to buy a property in Spain for foreigners are the Valencian Community, the Canary and Balearic Islands as well as Andalusia, Catalonia and the Community of Madrid.
Knowmads, a new profile of the foreign home buyer
The arrival of foreigners who end up investing in Spain has three moments: the visit for tourism, beginning to telework from our country and, finally, the purchase of a home. In this way, a new buyer profile emerges “non-resident” or 'knowmads' .
The majority are British, German, French and Belgian, who come to our country thanks to the flexibility that remote work offers them, the good price of real estate, together with the climate and our quality of life. Normally, the home they acquire becomes their habitual residence or a second home where they spend long periods of time.
The attractiveness of our country and the fact that our market is a safe haven and stable value for investments, tax benefits or good communication routes with all of Europe means that the purchase of homes in Spain by foreigners increases every year. a trend that will continue to grow in the coming years.
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