This article will be of interest to those who prefer to analyze all the information in detail before making a decision on buying property in Spain. We will tell you about the advantages, disadvantages and prices of real estate by the sea.
Buy property in Spain by the sea: disadvantages and pitfalls
Let’s talk about the disadvantages of buying and owning real estate in Spain by the sea. Among the main ones we can highlight high maintenance costs, taxes, and the risk of purchasing unverified objects.
High costs of maintaining real estate in Spain by the sea
Maintenance of the complex: cleaning the local area, cleaning the pool, maintaining the garden, removing garbage – these costs are included in the monthly payment, which is called “comunidad”. The size of the communidad depends on the size of the complex territory, infrastructure and other parameters. These expenses will have to be borne even if no one lives in the apartment. For example, if there were no tourists during the pandemic and the owners could not get into the apartment, then the communidad still had to be paid.
Comunidad per month is approximately 150 €. To this amount you must also add payment for utility bills: meters for electricity, water, gas, heating, Internet – approximately 100 euros per month additionally.
If the owner carries out renting out real estate in Spain for short-term rent through a management company, then it is worth considering the cost of its services – 15% of income.
Property taxes in Spain by the sea
Even without living in Spain, the owner is required to pay a number of taxes.
- The annual real estate tax is 0.4-1.1% of the cadastral value of the property.
- Home insurance – about 300 euros/year. If issued mortgage in Spain, then insurance is required.
- If you plan to rent out property in Spain, income tax will be 24% of income.
Legal issues of purchasing real estate in Spain by the sea
Before purchasing real estate in Spain by the sea, especially on the secondary market, it is important to thoroughly study the property: obtain documentation, find out whether the previous owner has any debts, check the legal status of the property. This nuance is not scary if the purchase of real estate in Spain by the sea occurs with the help of a trusted real estate agency. If you are accompanied by an agency, then most likely they have already verified this information. Inspection of the property before purchase in Spain can also be ordered as a separate service.
You also need to study Spanish legislation and local peculiarities well. For example, in order to rent out property for short-term rent in Barcelona, you must obtain a tourist license.
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Buy property in Spain by the sea: advantages
The advantages of having property in Spain by the sea are much greater. If you are in love with Spain and you are satisfied with the region where you are planning to purchase property, then you will be satisfied with the conditions and your home.
1 plus of real estate in Spain by the sea: Ecology, climate and nature
Having real estate in Spain, you will be able to live or periodically vacation in a place where there is good ecology, clean, healthy air, picturesque nature, and comfortable temperatures almost all year round. Usually foreigners have a place they like, where they then buy property by the sea and fly in for a seasonal vacation.
Most beaches in Spain are marked with the Blue Flag, so if you buy property in Spain by the sea, you can be sure that your holiday on the beach will be comfortable: the beaches are well-maintained, equipped with sun loungers, toilets and showers.
2 pluses of real estate in Spain by the sea: Yield 5–7% per annum
Foreigners often buy property in Spain by the sea in order to combine personal recreation and apartment rental. The advantage of the Spanish real estate market is that it is possible rent out property for long-term rent in Spain. If the client wants to earn more, the short-term rental option is suitable for him. A plus is the presence of management companies that take full care of the tenants and monitor the condition of the apartment or villa.
3 pluses of real estate in Spain by the sea: Mortgage and installments
Russians have the opportunity to get a mortgage from a Spanish bank at a low interest rate of 3.3-3.5%. The loan covers 50–60% of the cost of the property.
It is especially profitable to buy new housing. Often developers offer interest-free installments from the initial stage of construction to commissioning. Thus, clients pay half the cost in installments, and take out a mortgage for the second part.
4 pluses of real estate in Spain by the sea: Opportunity to obtain a residence permit
When purchasing real estate in Spain by the sea for an amount of €500,000 or more, the investor and family members receive Golden Residence. This residence permit gives the right to work, conduct business and educate children in Spain. The investor does not become a tax resident of the country, and to maintain a residence permit, it is enough to visit Spain at least once a year and not sell real estate for 5 years.
Having real estate will also help obtain a residence permit for financially independent persons.
Having a residence permit in Spain, you can enter the country even with closed borders.
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5 pluses of real estate in Spain by the sea: Possibility of purchasing remotely
During the time of severe restrictions on movement, many real estate agencies have tested the remote purchase scheme in practice. If you see a promotional offer that interests you, the manager can call you via video and take you on a tour of the property, the local area, and advise you on all issues. After this, you can book the property online and sign a sales contract upon arrival, or pay the entire amount remotely.
Real estate in Spain by the sea: prices
Real estate in Spain by the sea always remains liquid regardless of the state of the market; it is best rented and increases in price.
If we talk about the cost of real estate in Spain by the sea, then take, for example, Costa Blanca – this is still the most budget region of the kingdom with inexpensive real estate in Spain by the sea, located in the south of the country. The average cost of real estate in Spain by the sea in this region is 1500–2500 €/m2. Typically, the price of real estate in Spain by the sea depends on the popularity of the region, the location of the property, the infrastructure in the residential complex itself and what is nearby.
The minimum cost of real estate in Spain by the sea starts from 70,000 €. These will be apartments on the secondary market in Torrevieja, in a new building – prices start from 100,000 €. Torrevieja is a quiet, calm city; it is chosen mainly by the older generation. In contrast to Torrevieja, let’s take Benidorm – a party city with a huge amount of entertainment. In Benidorm, an apartment by the sea on the secondary market will cost from 90,000 € for an area of 70 m2, in a new building the cost starts from 270,000 € also for 70 m2.
