The Spanish property market has many quirks, and it pays to do your research before buying. Factors to be aware of when buying Spanish property include property scams, high capital gains tax, and fluctuations in the property market.
The added uncertainty caused by COVID-19 means that now could be a risky time to buy in Spain. The country’s rental market is also in flux.
Before the pandemic, regional governments were looking to introduce stronger rules around people buying holiday lets, after rent prices increased significantly in areas popular with investors.
Each of Spain’s 17 regions has the power to set rules around foreign buyers purchasing properties to let out. The most stringent rules are in the Balearic Islands, where only Spanish residents can apply for buy-to-let licenses, and Madrid, where new measures include only allowing stays of up to five days.
If you’re considering a shorter stay, renting in Spain could be a more suitable option once you factor in Spain’s high levels of capital gains tax, which could offset any benefits of buying in the short-term.