Spain’s weather, fresh food, charming and welcoming people offer a wonderful quality of life that pulls in more than 5.5 million foreign nationals.

Foreign buyers accounted for 16.5% of sales in Spain last year. British citizens are still the highest foreign property owners at 11.8%, followed by German buyers at 10.4% with the French in third place with 8.3%.

Now that travel restrictions due to the coronavirus between Spain and the USA has ended, there are an increasing amount of American investors looking to buy their dream home in Spain.

Whether you are looking to move here full time with your family, work or start a business or you are looking for the best place to enjoy your retirement, Spain is a wonderful place to be. Especially in the south of Spain in the province of Málaga which is in Andalucía where you will also find the infamous Costa Del Sol, one of the most in demand holiday areas of Spain. Click here to learn more about the Costa Del Sol.

Is the Spanish real estate market similar to America?

More people own their own homes in Spain, around 76% of people, compared to the US, where 65% on average own their own homes.

The Spanish market, like most of the world has had its highs and lows. Prior to the Global Financial Crisis in 2008, Spain was one of the most expensive places to buy real estate in Europe. Some areas saw a 250% price increase during the ten years before the crash!

Between 2007 and 2015 the average property price dropped by around 40%!

Spain’s property market has been steadily increasing. Since the coronavirus pandemic, it has become a very popular country to invest in, with real estate prices rising by 2.6% in 2021. Demand for property and early sales in 2022 show no sign of this increase slowing down.

Can you buy property in Spain if you are American?

Yes!

In fact anyone from any nationality, from any country, can purchase real estate in Spain without any restrictions.

You don’t have to be a registered resident of Spain to buy property here, whether it be residential or commercial property or plots of land in Spain. However, there may be restrictions on how many days you can live in the property per year, unless you are able to obtain a Golden Visa.

How long can Americans stay in Spain?

US citizens are allowed to stay in Spain, or anywhere within the European Union, for up to 90 days within a 180 day period, without needing to apply for a visa, just like other non-EU citizens. It doesn’t matter if the 90 days are all together or broken down into smaller trips as long as you don’t exceed 90 days in every 180 day period.

If you would like to study or work in Spain or stay for longer than 90 days in a 180 day period then you would need to apply for a visa.

You will need to look into which is the best visa for you.

How long does buying real estate in Spain take?

You’ll need to be slightly more patient to buy property in Spain as sales can take a little longer to complete. On average it can take around 8 to 10 weeks from your first viewing to completion. This all depends on how fast you want to move, what situation the seller is in and if all the proper paperwork is in place. Obviously you can have very quick sales and you can have much longer time scales depending on individual circumstances of both the buyer and the seller.

In America, the average property transaction is a little faster, taking around 6 to 8 weeks for the whole process.

Don’t be afraid to negotiate!

In fact, a lot of the time you are expected to put in an offer lower than the asking price, but don’t be too cheeky! On average, prices are agreed at around 10% lower than asking price. This all depends on how much demand there is for the property, the condition of the property and how quickly the seller wishes to complete the sale.

Talk to your realtor, they will have invaluable local knowledge, they will know what other similar properties in the area have sold for and how much demand there is for the style of home you want in that area. They will also be able to advise you on what the seller wants, what offers are likely to be rejected and what is likely to be accepted.

This is a little different in the United States where 35% of homes achieve between 95% and 99% of their asking price.

Find the right Realtor for you!

In America you have buyer’s agents and seller’s agents. Buyers choose one agent as they all have access to the Multiple Listing Service (MLS) and that agent will organize all the viewings with the seller’s agents. When you purchase a home the commission is paid from the sale and divided between both agents.

To be a realtor in America, you must be trained, qualified and continue to train to be a licensed member of the National Association of Realtors.

Finding a property in Spain is very similar to the USA. 

Find a good Estate agent (Inmobiliaria) that is professional and who you get along with, just like in America you only need to deal with one agent. 

One main difference to the USA is that agents in Spain can act on behalf of both seller’s and buyer’s.

In Spain the property market isn’t regulated so anyone can become an ‘agent’. Find a good agency that has many years of experience, is bilingual and who is a member of a professional organization like the AIPP (Association of International Property Professionals). 

Here at Mediterranean Homes we are committed to the highest standards of Real Estate Agency practice and service. We have over 35 years of collective experience and we are members of the AIPP to ensure that we provide a satisfactory redress system and abide strictly by their professional code of conduct and practice of the Property Ombudsman.

In Spain, just like America, there is a Multi Listing System, so you only need to deal with one agent. Once you have found an good agent, they can see all the properties available, if you have seen a home you like online or they know a property that is suited to you that isn’t one of their direct properties, they will arrange the viewing through the agent that has it listed. If a sale is made with one of their direct listings and with a client of theirs, then that agent will get the whole fee, if another agent has the property then they will share the fee.

One main difference is open houses vs individual appointments. In America, open houses, where all potential buyers are invited to view the house at once, are very popular. But in Spain, individual appointments are the preferred approach, so each potential buyer can view the home on their own with the agent.

So if you are ready to put your dream into motion and want to buy a home in Málaga, Spain, then we can help you! Simply fill in our contact form or call us on (+34) 951 242 157 and we will be happy to help.

Check out some of the wonderful properties we have to offer!

Hasta pronto!