If You Want to Buy A House in Spain, You Can!
Adventure awaits. And so does the opportunity to spend time sipping a coffee from a terrace that overlooks the mountains. I am here to tell you that if you want to buy a house in Spain, you can! And it might just be a lot easier and less expensive than you would imagine. Let me show you how to buy a house in Spain.
NOTE: I’m going to tell my story, but you can scroll down to view the actual step-by-step process of how to buy a house in Spain.
The view from the top of a mountain, just outside my little town in Spain.
Homes in Italy for Less than $30,000
In 2017 I was traveling Europe. One day I was sitting in my Airbnb on the side of a mountain that overlooked a little village in Italy. I thought to myself, “I wonder how much it would cost to buy one of these little mountain homes.” I googled something to do with real estate and the village name that I was staying in. The results were shocking to me! Some of these little homes were selling for $25,000 to $35,000 in Italy. They needed some work, but I had never heard of buying a house for less than a new car. This was news to me. Dreaming about living in this little village, I sat there thinking that I had found a hidden gem of an opportunity.
Buy Cheap Homes All Over Europe
A couple of days later it hit me. If there are houses in this little village in Italy, maybe there are also houses in other parts of the world that are this cheap. I spent the next few days, weeks, and months, looking at listings for homes all over the world. What I found was that in Europe, there were several places where you could buy a fixer upper (with varying levels of work needed) for under $30,000. Some of these locations were in Italy, France, Greece, Portugal, and you guessed it … Spain!
At this point it was all I wanted to talk about with people. My mind was just blown. I knew that I really wanted to buy a house somewhere in Europe, but I hadn’t decided where exactly.
How I Found My Cheap House in Spain
In January of 2018, I was sitting in the backseat of a pickup truck in Colorado with two of my coworkers. We were trying to stay warm, when one of them asked me what I was going to be up to next. I started telling her about my dreams of buying a house overseas. To show her what I was talking about, I pulled out my phone and googled, “cheap houses for sale in Spain.”
One of the first links I clicked showed a townhouse in small town in Spain that had an incredible view. This townhouse was listed for less than €19.800. That was less than $25,000 US! I showed her the house and then continued looking at other listings, but I kept coming back to that townhouse with a view. It was three stories with two terraces, two bedrooms, one bathroom, and it came furnished. The furnishings were not very nice and it definitely needed some cosmetic work. However, the bones were good and the view was incredible.
The view from my house in Spain that I bought for €19.895 (less than $25,000 US)
How I Bought a House in Spain
the Pay in Cash or with a Personal Loan
For two days I continued looking at this listing and I just had a wonderful feeling about it. I started looking at the mortgage process in Spain. It seemed like there was less certainty that it would work out than if I were to pay in cash. I reached out to my bank, USAA, and asked if I could get a personal loan for $25,000. There was some cash in my bank account, but not enough for this purchase. Within an hour I was approved for a personal loan which meant that even though I was getting a loan, it wasn’t tied to the house in Spain. This meant I would be able to pay cash for it when I went to Spain.
Home Location – Not Perfect
I called the real estate agent in Spain. It turns out that he was from the UK which made communicating really easy. He told me that the house was on a “colorful” street which really meant that there were gypsies (Romani people) living in some of the homes. Although it wasn’t dangerous, it did make it a less desirable street. I was only concerned about safety, so it didn’t bother me, although I knew renting it out would be more difficult. He told me that the owner wasn’t trying to make any money on it. They had done well with real estate in the UK and they were just looking to pass off the property. He informed me there was one other person who was planning to visit from Scotland to see the house.
A 10% Deposit to Secure the House
Not wanting to lose the house, I just had a good feeling. So I asked him to please let me know what I needed to do to secure it. I ended up making a deposit of €2,000. The real estate agent recommended a currency exchange service. I wired the money which really cost me some hefty fees!
Wise for the Win – Cheap Currency Exchange
At the time I didn’t know about TransferWise, which is now just Wise. I wish I had known then, because I would have saved a lot of money! This is one of my top company recommendations after going through this process. I still use Wise all the time to transfer money to my bank account in Spain, and it costs me pennies on the dollar, plus it is in my account in seconds, with a super easy process from an app on my phone. I can also use it to transfer money internationally to other people or businesses.
Time in Spain – 30 Days to Process Paperwork
After I made the deposit on the house in Spain, I booked a flight for about a month later, when I would go to view the house for the first time, and spend a month there to finish the process of purchasing the home. If you don’t have a month to spend in Spain, you could fly in once to see your house and get the process started, and then fly in again for the signing date about thirty days later. For me, it was more fun to spend that time in Spain, but being there in person wasn’t needed most of the time.
The Solicitor Does it ALL
The real estate agent put me in touch with a solicitor (attorney) who would handle most of the process for purchasing my home in Spain, and that is the step-by-step process I’m going to take you through on how to buy a house in Spain. The details are really straightforward and most of it was handled by the attorney. Some of it began before I went to Spain and some of it took place while I was there. I only had to provide limited information and show up when they told me to.
Do You Need a Home Inspection?
Before we get into the details, I want to let you know that when you purchase a home in Spain and pay in cash, there isn’t a need for a formal inspection. I did not ask for an inspection due to the low price I was buying the home for. I could see the state of things that would need fixing and I also have a pretty good understanding of what to look for, as I’ve done a bit of construction work with my dad growing up, and have learned several things as a homeowner. I am in no way suggesting that you not have a home inspection — it is probably the safer thing to do. I’m just letting you know that it is your option to forego this if you are paying in cash.
Watch me talk about the Step-By-Step Process on YouTube for how to buy a house in Spain or read below for the details.
STEP-BY-STEP PROCESS TO BUY HOME IN SPAIN (Prices listed at the bottom)
1. Obtaining Your NIE
The first thing my attorney did was to obtain my NIE, which is your tax identification number in Spain. Basically it is the equivalent of a social security number in the US and stands for Número de Identidad de Extranjero. This is probably something you could figure out how to do on your own, but it is so much easier to just have your Spanish attorney do it for you.
2. Opening a Bank Account
My attorney escorted me to a local branch of Banco de Sabadell where he helped me to open my bank account. At the banks in Spain, you are able to pay your taxes from your account. They also offer the homeowners insurance that will be required during the purchase of the home. I have heard from other homeowners that you are able to buy insurance at a less expensive rate if you get quotes privately. I didn’t really know this until afterward and I went through the bank. They cover my dwelling value at €92.000, and my contents at €12.000. My yearly rate is €255.
Note: When listing money in numeric value, the Euro uses a period where the US uses a comma and vice versa. For example $12,499.55 in euro would look like €12.499,55.
3. Property Research
My solicitor did research on the property.
- The solicitor sent me confirmation stating that the property was free of charges, encumbrances, and tenants.
- My solicitor confirmed that the description of the house and the square meters was accurate. He met with the municipal architect at the Town Hall. They ensured that the sale was legal and there were no files opened against it.
- The solicitor ensured that all the taxes were up to date with no outstanding bills.
- My solicitor confirmed that I was good with all of this before he began preparing the documents for the notary.
4. Energy Certificate
My solicitor sent me the energy certificate for the home.
5. Utilities Setup
My solicitor setup both my electric and water bills with the bank to be taken out automatically from my bank account in Spain. No muss, no fuss.
6. Date for Signing with Notary
After all of the above was complete, my solicitor scheduled the date for us to meet with the notary, the current owner, and the real estate agent, to complete the signing over of the house and for me to get the keys. That’s it.
Looking Back
You’ll notice that in most of the above sections I said, “My solicitor did… .” I really mean it when I say I hardly had to do anything but sit around and enjoy being in Spain. Keep in mind that I rented an Airbnb for the month I was there as I obviously couldn’t move into the house before owning it.
Prices
- Notary fee – €415,45
- Transfer tax – €1.195 – This is a percentage of the purchase price and will vary.
- Legal retention fee of 3% – €598,50 – In my case this amount was actually deducted from the purchase price because the previous owners were also non-resident. I’m honestly not exactly sure what all of that means, but I didn’t have to pay it, so I didn’t really care.
- Register fees – €326
- Solicitor fees – €1.120 – This included the NIE number, setting up power of attorney, obtention of the fiscal tables at the tax office, preparation of the transfer tax, presentation of the deeds at the land registry, and setup of bills into my name with direct debit from my bank account, plus anything else I mentioned before.
TOTAL – €4.534,95
That comes to about $5,000 US.
Closing Thoughts on How to Buy a House in Spain
Going to the notary and buying a house in Spain that day was such an exciting experience for me. Just two months after seeing that house online and I was now the owner of a house in Spain. The previous owner was there at the signing and really filled me in on helpful things about the house and the town. I was incredibly grateful and excited to spend my first night in the house.
After owning a home in Spain for three years, I’m ready for the next adventure. I’m buying two more houses in Spain! I’ll be purchasing two more homes on the same street as my first home in Spain and renovating both of them. You can join me on this journey and learn more about how to buy a house in Spain by subscribing to my YouTube channel, Travel to Money.
I’m Here to Help You
I would love to hear from you. I want to be a resource for those who love to travel and are working toward financial independence. Reach out and let me know about your dreams and how I can help. I can’t wait to see where your dreams will take you!
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