The American interest in purchasing real estate in Spain has seen a remarkable 13.6% year-over-year increase during the first half of 2023, totalling 1,339 transactions. According to data from the General Council of Notaries, this marks the highest figure in historical records.
The landscape of international real estate investments is undergoing a significant transformation, and Spain is emerging as an attractive destination for foreign buyers. In this article, we will delve into the driving forces behind the increasing interest in Spanish properties, focusing on recent developments in Portugal, the preferences of American buyers, and key factors contributing to Spain’s appeal as an investment hub.
Golden Visa and Tax Incentives in Portugal: A Shift in Momentum
Recent changes in Portugal’s Golden Visa program and the tax incentives for Non-Habitual Residents (NHR) have had a profound impact on the international real estate market. These alterations have not only influenced investment dynamics in Portugal but have also triggered a surge in interest among foreign clients looking to acquire properties in Spain.
American Buyers on the Rise
Both American residents and non-residents have been actively investing in the country, with non-residents acquiring 719 properties, marking a 23% year-on-year increase, despite a 1.4% decrease compared to the previous semester, and residents closing 620 transactions, demonstrating a 4.4% year-on-year increase.
Record-High Property Prices
The average price paid by American buyers for Spanish real estate reached a historic high, standing at 2,921 euros per square meter. This unprecedented figure showcases the willingness of Americans to invest in Spanish homes. Furthermore, when comparing residents and non-residents, the latter group tends to purchase higher-end properties, with an average price of 3,087 euros per square meter, while residents pay an average of 2,742 euros per square meter. This might also be a consequence of the difference in the ares in which residents and non-residents choose to invest.
The Allure of Spain: A Multifaceted Magnet for Investors
Several factors contribute to Spain’s appeal among foreign investors. Favorable exchange rates, legal security, enticing real estate taxation, and the Mediterranean lifestyle are just a few of the elements that make Spain an attractive destination. Moreover, the growing flight connections between the United States and Spain, including routes like Mallorca and Málaga to New York, further facilitate American buyers’ arrival.
The Role of the Golden Visa& Digital Nomad Visa
While the Golden Visa plays a secondary role in purchasing decisions, its presence can ignite the interest of some clients. It is worth noting that Spain has recently introduced a new tax treatment for international digital nomads, as part of the ‘Startup Law.’ This change is one of several modifications in Spain’s tax regulations designed to attract high-income international earners.
The key reasons behind US buyers’ attraction to the country go from the parity in the exchange rate between the euro and the dollar; to the excellent quality of life in Spain; to the diversity of properties available, and its affordability; to the safety and stability; the education; and the possibility of obtaining a residence visa.
I will discuss all these advantages in detail in further articles.
Conclusion:
The surge in American homebuyers in Spain is driven by a unique blend of economic factors, attractive lifestyle choices, and appealing investment opportunities. The combination of these factors makes Spain an increasingly popular destination for American investors seeking a piece of Mediterranean paradise. If you’re considering investing in Spanish real estate, now might be an ideal time to explore the opportunities this dynamic market has to offer. If you are planning to purchase a property in Spain, or you are a foreign agent with buyers interested in investing in the country, our team of dedicated professionals is at your disposal to support you with all the needed steps and ensure the highest level of satisfaction for you or your client.
Comments