The General Council of Notaries in Spain’s report has recently revealed a significant surge in the number of Americans snapping up property in Spain. With a 13% increase in American residents from 2019 to 2021 and an 88% surge in home sales to Americans from the first half of 2019 to the first half of 2022, it’s evident that Spain’s magnetic pull is stronger than ever.
Among foreign buyers in Spain, Americans spent the second highest amount on property in Spain, spending up to 2,837 euros per square metre, just after the Danes. American homebuyers have not only secured their own havens in Spain, but they have also contributed significantly to Spain’s real estate market over the years.
As we all know, Andalucía has long been a favourite for tourists and expats alike for many years, and it’s no surprise that it’s one of the American’s favourite destinations in Spain. However, we are seeing a so-called ‘strong word of mouth’ for the city of Valencia on the Costa Blanca, notably for its large American expat communities. Navarre, Basque Country and the capital Madrid have also experienced a surge in popularity amongst Americans too.
With Americans tending to snap up some of the pricier properties, it’s also allowing many citizens to obtain the coveted ‘Golden Visa’, entitling foreigners who spend at least 500,000 euros on a property to live and work in Spain.
However, for those who don’t have that kind of budget to play with, Spain’s introduction of their new Digital Nomad visa earlier in February 2023 has opened yet another channel for expats. The Digital Nomad Visa allows Non-EU citizens who work remotely, to move to and work in Spain and even allows for family members to join them.
There are a number of direct flights between prominent U.S. cities to various destinations across Spain. In particular, those with properties in Andalucía can enjoy weekly direct flights from Málaga to New York courtesy of United Airlines, until September 2023. There are talks of extending the service beyond the summer, however, with easy access from Málaga to other destinations such as Granada, Cordoba and Seville, this service provides a sought-after link for American passengers wishing to travel to Andalucía without a stop in Madrid.
Unlike the U.S., most taxes on properties in Spain are paid upfront in stamp duty, or AJD in Spanish, rather than annual payments.
There are also other taxes in Spain that Americans need to consider before moving to or buying property in Spain. These taxes are often dependent on whether the person is resident in Spain or not, but typically, Americans can expect to pay IBI (a land value tax), Spanish property taxes (imputed income tax), as well as other local Spanish taxes.
It’s also important to remember that as a U.S. citizen, you must still file a tax return with the IRS even when you’re living abroad. In these instances, we highly recommend employing the assistance of an accountant in order to help you navigate these issues with ease.
If you’re an American citizen looking to invest in Spanish property, make Propertissimo your first choice. Our seasoned professionals understand the unique needs of American investors, guiding you seamlessly through every phase of the process with ease.
With an in-depth understanding of the Spanish property market on both the Costa del Sol and the Costa Blanca, we can match your preferences and aspirations to find a property that’s just right for you.
Simply get in touch with our team today and kick-start your Spanish property search with Propertissimo.
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