The rate of US residents buying homes across the pond is on the rise.
That said, a new study by the Spanish government has found the number of American expats in Spain increased by 13% between 2019 and 2021, with most flocking to the nation’s more urban areas, including Valencia and Madrid — as well as the perpetually popular Andalusia in the far south.
According to recent research by Spain’s General Council of Notaries, Americans bought 88% more homes in the nation in the first half of 2022 than they did in the first half of 2019, CNBC reported.
And it’s not just digital nomads behind the sales: Many are retirees looking to live out their sunset years in the Iberian Peninsula, which is known for near-constant sunshine.
Still, the choice to move to Spain isn’t the cheapest one for Americans, at least compared to other foreigners’ standards. The report found that Americans paid more than any other group of expats save Danish nationals, paying in the $3,119-per-square meter range for their properties.
Taxes are also not a plus in terms of reasons to buy an abode there instead of the US.
“The stamp duty can run from 1% to 2.5%, and then there is [value-added tax] on new construction or transfer tax on pre-owned homes,” Jude Boudreaux, a certified financial planner and partner with New Oreleans’ the Planning Center told CNBC.
“It’s all substantially more than in the States.”
“You pay a lot of the taxes upfront rather than on an ongoing basis, so the purchasing costs and the purchasing process are a lot different,” added Italy-based private wealth manager Alex Ingrim.
As well, buying a home in Spain does not mean one can work in Spain — unless the purchased property costs over a certain amount, approximately $550,000, which earns buyers a “golden visa” and the ability to work and live in the nation.