The popularity of Spain among Americans is increasing, with more individuals relocating to the country as digital nomads or for retirement. According to the General Council of Notaries in Spain, the number of Americans living in Spain has grown by 13% from 2019 to 2021, and home sales to Americans have jumped by 88% from the first half of 2019 to the first half of 2022. Expats from America pay the second-highest prices for properties in Spain, after the Danes. They often pay up to 2,837 euros, or $3,119, per square meter. Additionally, the report shows that American buyers have contributed to the most significant growth in home prices.
Moving or purchasing property abroad requires a level of financial stability due to the expenses associated with real estate and overseas travel. Alex Ingrim, a private wealth manager and senior investment analyst at Chase Buchanan, suggests that interested buyers should reach out to local estate agents and property lawyers early in the process. Furthermore, it is important for individuals looking to retire or work remotely in Spain to consider the financial and tax implications. Taxes on properties in Spain differ from those in the United States. In Spain, most of the tax on purchased properties is paid up front, such as in the form of a stamp duty, rather than through annual property tax payments. The stamp duty can range from 1% to 2.5%, and there are additional taxes on new constructions or pre-owned homes. It is crucial to ensure that taxes are in order and to seek assistance from advisors to understand the tax obligations in both Spain and the United States.
Moreover, individuals moving to Spain should also consider their existing debts in the United States and create a plan to manage them while living abroad. It is recommended to maintain an American bank account tied to a US address for convenient bill payments and to open a Spanish bank account for daily expenses in euros. Keeping up with debts and maintaining a good credit history can significantly impact one’s financial standing in the new country of residence.
When considering a move to Spain, individuals may qualify for various types of visas, including the digital nomad visa and the golden visa. The digital nomad visa is designed for international teleworkers, making it easier for foreigners to work and reside in Spain. On the other hand, the golden visa allows individuals to live, work, and enjoy additional rights in Spain if they purchase a property for over 500,000 euros. Nonlucrative visas are suitable for retirees or those with passive income, granting them the ability to live in the country but prohibiting them from working. It is crucial to consult with a Spanish immigration lawyer to understand the requirements and options for visas.
Prior to purchasing property, it is advisable to consider renting in the desired area to ensure it meets one’s preferences and needs. Some American buyers already residing in countries like Portugal are conscious of how arrangements like the golden visa can impact housing issues for locals. As a precaution, many individuals prefer to rent initially to avoid contributing to these problems.