Did you know that 80% of people residing in Spain own their homes? If you’re looking to move to Spain, the Spanish government encourages foreign buyers interested in purchasing a house.
And with certain regions of Spain seeing sunshine 320 days a year, it’s no wonder people are flocking to this beautiful country. But how much is a house in Spain?
The price varies from region to region, and even from the city centre to the town’s outskirts. In this article, you’ll learn about average home prices, along with additional fees to prepare for.
Let’s begin!
Prices by City
No matter what type of property you purchase in Spain, the average residential property is roughly €150,000. Home prices have levelled out, so you won’t see too much fluctuation in the market.
However, certain factors will determine what you pay for a home in Spain. For example, the original purchase price, whether the house is new or a resale, and if you’ll use cash or need a mortgage.
Every city has price variations when buying a home, with Madrid and Barcelona being the most expensive.
Madrid and Barcelona
Homes in Madrid rose 7% year-on-year in 2019. Comparing these home prices to homes in Grenada, you’d need two times the savings.
On average, you can expect to pay roughly €710,000 for a home in Barcelona. This makes the price per square meter roughly €2,900.
As with most cities, when you buy a home close to a city, you can expect to pay more. Murcia is the only exception as outskirt properties are more expensive.
Alicante
If you’re looking to buy a home in Alicante, you can expect to pay about €2,000 per square meter when looking near the city centre. Outskirt properties cost roughly €1,700 per square meter.
Santa Cruz de Tenerife
For other homes in Spain, such as those for sale in Santa Cruz de Tenerife, the average home price is €1,900 per square meter for homes near the city centre. If you purchase a home on the outskirts, you can expect to pay roughly €1,500 per square meter.
San Sebastian
A home near the city centre of San Sebastian will cost roughly €6,000 per square meter, while homes further from the city centre will cost about €3,600 per square meter.
This is the most expensive region in Spain if you’re looking to buy a house.
Las Palmas de Gran Canaria
Prices near Las Palmas de Gran Canaria’s city centre are about €4,400 per square meter. However, homes further away are about €1,800 per square meter.
Varying Home Prices by Region
Some of the most expensive homes are in Catalonia. The average price is €4,100 per square meter. Madrid, the Balearic Islands, and Basque Country and the second most expensive areas in Spain.
However, some of the most affordable home prices in Spain are in Extremadura, Murcia, and Castile-La Mancha. The average price for these homes is about €1,300 per square meter.
Fees Associated with Buying a House
It’s best to set aside extra money for fees and taxes. Your real estate agent will help you determine how much to set aside. Your money will go towards the following:
- ITP (transfer taxes)
- Notary fees
- Land registry fees
- Lawyer fees
- Valuation fees
- Stamp duty
- Lender’s commission
- VAT taxes
You’ll also have to pay IBI fees. These community fees include maintenance, home insurance, and utility fees.
Let’s take a look at some of the additional expenses in greater detail.
VAT and Stamp Duty
VAT and stamp duty are for any residential properties that are sold for the first time. They’re also applied to commercial properties and any plot of land you purchase.
VAT is a national tax, so it’ll be the same no matter where you purchase a home, with the Canaries being the exception as they have their own type of VAT taxes.
Reduced VAT taxes are 10% of a residential property’s purchase price. You can expect to pay 1% for stamp duty (also called AJD).
Spanish Transfer Tax
Spanish Transfer Tax applies to properties if this isn’t the first time you’re buying a newly built home. Deposits given before the sale’s completion aren’t subject to these taxes. However, the full amount must be paid on completion.
Estate Agency Fees
Typically, the seller pays estate agency fees and commissions. However, if the buyer uses a search agency, then they’ll have to pay search fees.
Legal Fees
It’s highly advisable to hire a lawyer when you buy a home in Spain. Your lawyer will draft all contracts and review any you receive. They can also explain exactly what’s expected of you and any issues that might arise.
Your lawyer will also check for ownership claims of the seller and look to see if there are any charges on the property or permits. They also arrange all of the required documents you’ll need to complete, such as property registration and tax payments.
Other Expenses
You’ll also need to account for Spanish mortgage costs, Spanish notary costs, and Spanish Land and Registration Inscription Fees.
Other potential fees include banking costs, Plusvalía Municipal Tax, and furniture for your new home in Spain.
Buying a House in Spain
Now that you have an idea about the average cost of a house in Spain, you can start your search! Remember that, in most cases, homes closer to a city centre will be priced than homes on a town’s outskirts, and be sure to account for additional taxes and expenses.
No matter what type of property you’re looking for, Choose Marbella can help. Click here to see a list of luxury villas for sale in Marbella, or contact us today with any questions.