Buying a property on the Mediterranean coast of Spain
Buying a property in Spain has its challenges, but don’t be discouraged because you have our help and that of our trusted partners. You have a lot to gain, starting with an exceptional quality of life.
Next, we will explain why you should buy a property in Spain and we will give you some tips for the buying process.
Should I buy a property on the Mediterranean coast of Spain?
Buying a property on the Mediterranean coast of Spain means that you will be able to enjoy more than 300 days a year of sunshine – especially on the Costa del Sol and the Costa Blanca; with lower living costs than in other European or North American cities – like Paris, Rome, London, Miami, New York, and even Madrid or Barcelona. You can play golf all year round, swim or simply sit down to breathe the fresh air and enjoy the wonderful spectacle of the blue Mediterranean on one side and the mountains on the other. You’ll also enjoy the emptiest roads, excellent health service, family-friendly lifestyle, great food and wine, super friendly people, and of course, the fun!
5 reasons – among many others – why you will love the Costa Blanca and the Costa del Sol
The best healer: the sun
Along the coasts of Spain on the Mediterranean, the sun is very well distributed throughout the year. Even in the middle of winter – especially on the Costa del Sol and the Costa Blanca, you can enjoy warm days. The effects on health, both physical and mental, are absolutely unquestionable.
Outdoor lifestyle
It is not just because of the weather that people spend more time outdoors in Spain – Spanish nights are the moment to see and be seen! People stroll the streets safely – the crime rate is very low, enjoying a leisurely pace talking – perhaps with a beer in hand, maybe shopping, chatting with neighbors, or letting the kids run and play outdoors. It’s all very relaxed.
Ideal for family life
When the OECD – Organization for Economic Co-operation and Development- compared happiness and well-being in the world’s 34 major industrialized countries, Spain was above the average when relating the equilibrium between the individual personal and working life, safety and community environment. It is a country where children tend to be happier. The latest statistics from PISA (Program for International Student Assessment) show that Spanish children were significantly happier and less stressed than children in almost all other countries.
Low cost of living
With the exception of some items in cities such as Barcelona or Madrid, the cost of living in Spain compared to most European countries – and even the United States, is cheaper when it comes to property rental, food and services . Large supermarket chains such as Mercadona, Carrefour, Hipercor, Lidl, Alcampo, Dia, Aldi, Eroski and others that have their own brands, allow you to stock up on everything at very cheap prices.
Good access
The Costa Blanca – located largely in the Valencian Community, has two major international airports: Alicante and Valencia.
The airport of Elche-Alicante, also called the Altet, is located in Elche at 9 kilometers from the city of Alicante. Valencia airport is located in the town of Manices, at 8 kilometers from the city.
The Costa del Sol Pablo Picasso International Airport is located in Malaga – Comunidad Autonoma de Andalucia.
The process of buying a property
The process of buying a property in Spain will probably take you some time and some of the first questions you should ask yourself are:
– How much money do you have available to invest?
– What type of property do you want? House, apartment, flat (in Spain it is called “piso”), commercial property, rural property, what size, category, what type of amenities and services, and so on.
– What are you going to use the property for? For personal use, for rent or both? Will it be for vacation or permanent residence?
– What place in Spain and what environment do you like? The sea, the city, the mountains or rural areas?
– Do you have enough money to buy cash or do you need a mortgage?
In general, the purchase process is quite simple, but if you are not familiar, you will have to take into account several aspects:
– First, you must choose a real estate agent and a lawyer. Our company Southland – in addition to providing you with all the services of a real estate agent, can suggest excellent professionals in all areas.
– To buy your property in Spain you can do it in your personal name or in the name of a company.
In Spain you can create a sole proprietorship company or SLU – which means Sole Limited Partnership – and you do not need partners. If you form a company, you will receive the NIF which means “Numero de Identificacion Fiscal” – Tax Identification Number.
The decision to buy in your name or through a company has legal and tax implications on how and how much you are going to pay your taxes in Spain and the IVA “Impuesto sobre el Valor Añadido” – which is the same as the VAT.
In case you rent your property, you should pay Income Tax, but if you are well advised, this tax can be deducted.
– If you are going to buy in your personal name, you must obtain your NIE “Numero de Identidad de Extranjero” or Foreigner Identity Number. The NIE is a personal, unique and exclusive number that all foreigners must have for identification purposes. It allows foreign citizens to carry out procedures that require their tax identification before the “AgenciaTributaria Española” or Spanish Tax Agency, such as signing a contract, opening a bank account, and so on.
The purchase process in summary:
- Search for the property you want.
- Hire the services of a real estate agent, a lawyer and an accountant, in case of forming a partnership and / or renting your property.
- Process your NIE or form your company
- Once you have the NIE or NIF, open a bank account
- When you have assigned your NIE or the SL is formed with the NIF number and you have the bank account open, only then should you make a reservation for the property that interests you. Reservations can be made with very little money.
Southland provides free advice to all of its clients
If you do not know the Mediterranean of Spain well, here is some good information:
The regions of Spain
Spain is a geographically varied country, with wonderful beaches, mountains, cities, inland towns and rural areas that offer different types of properties. The northern part of Spain is much colder in winter, while the southeastern part that runs along the Mediterranean Sea is warmer throughout the year.
Northeast Spain – the Costa Brava
The Costa Brava is on the Mediterranean coast of Catalonia north of Barcelona near the border with France; where the mountains of the Pyrenees meet the sea in glorious cliffs and sandy beaches providing a wonderful and wild spectacle.
If you like cold, snow and wind in winter and days of glorious blue skies and mild weather in summer, this is the ideal area for you!
South Eastern Spain – the Costa Blanca
The east coast of Spain on the Mediterranean is where Spain’s modern tourist boom took off in the 1960s; precisely in Benidorm between Valencia and Alicante – a few kilometers north of Alicante.
The Costa Blanca encompasses two communities, Murcia and Valencia, but most people think of it as the north and south of the Costa Blanca.
The north is cooler, greener, and tends to attract more residents throughout the year. The south is warmer and it is very easy to get to from Alicante airport all year round.
This coastal area is crossed by old fishing villages and small towns such as Jávea, Moraira and Dénia that combine historical castles with unpretentious residential luxury, marinas to moor your boat, rural beauty, golf courses, beautiful coves, beaches, mountains and excellent fish restaurants. In this region there is no reason to not live a quiet, full and happy life – and especially the sun!
Southern Spain – the Costa del Sol
The southern coast of Spain is the Costa del Sol. It has 160 kilometers of sun-drenched beaches practically all year round and lies entirely within the Andalusia region. It is the classic Spain of flamenco, bullfights, tapas and long, hot summer days.
Both the Costa Blanca and the Costa del Sol assure you 320 sunny days a year! Impossible to have a bad time! In winter, you can sit outside on the boardwalk or play golf in shirt sleeves.
But there is much more than the coast in Andalusia: the Sierra Nevada mountains and its glorious slopes of the Alpujarras. There is also art and culture that includes the modern and historic monuments and architecture like the Alhambra Palace in Granada. Take an hour or two to visit the Picasso Museum in Malaga!
The Costa del Sol is known for being the favorite place of the “rich and famous”. There are 160 kilometers of pleasant sun-drenched beaches and it is one of the best places for a holiday home in Spain.
The quality of the beaches is obvious, but the fun by the sea includes family entertainment and all the nightlife you can imagine, excellent shopping, Michelin-starred restaurants, 18-hole golf courses, marinas and spas.
The hills overlooking the beaches and alongside luxury resorts like Marbella, Puerto Banús and Estepona are filled with multimillion-dollar villas. There are also more affordable – but no less beautiful – areas like Torremolinos, Mijas and Fuengirola. All are easily accessible from the Málaga Pablo Picasso Airport with a great deal of flights to and from everywhere.
Balearic Islands – Islas Baleares
The Islas Baleares are three islands – Mallorca, Menorca and Ibiza – in the Mediterranean off the coast of the Valencian Community. Although it is one of the most expensive areas of Spain, few people regret buying here. In addition to the well-known tourist complexes, people make the Balearic Islands their home for the ease of access, the excellent climate, the wonderful beaches and its unique history.
Mallorca has something for everyone with prices above € 150,000. Idyllic villages such as Valldemossa and Deia, the luxury shops and nightlife of the capital Palma, with its medieval old town and cobbled streets around the cathedral, family-friendly resorts along the southeast coast, beautiful country houses in the interior and then the thunderous (but fun) nightlife of resorts like Magalluf.
Many people prefer Menorca, “the jewel of the Balearic Islands”, for its calmer and more relaxed atmosphere. You can see vestiges of the 1700s British colonial rule in some Georgian architecture. The main attraction of the island is its beautiful coastline, with more beaches than Mallorca and Ibiza combined. Menorca does not have as good access as Mallorca, but the prices are also lower.
Ibiza “La Isla Blanca” may be more famous for its nightclubs and hedonism, but as you move away from the coastal strip you will find that it is a wooded island with charming quiet rural areas. It also has a spiritual undertone, mixed with hedonism. Properties are expensive, unsurprisingly, but have the lure of high rents.
The Canary Islands – Las Islas Canarias
The Canary Islands – Islas Canarias – are a Spanish corner off the African continent. It is a paradisiacal archipelago that is located in the Atlantic off the southwest coast of Morocco.
The main islands are Tenerife, Gran Canaria, Lanzarote and Fuerteventura. Like the Balearic Islands, it attracts huge numbers of tourists annually and makes many decide to settle with a new life or, at least, a second home.
The subtropical climate makes Islas Canarias known as the islands of eternal spring.