Investing In A Holiday Home In Spain In 2024

Spain is popular with expats and is one of the most popular holiday destinations. Many choose to invest in a holiday home so that they can travel to take advantage of the lifestyle, almost year-round sunshine and affordable prices of property. If you are considering investing in a holiday home in Spain this post will cover the main points to consider before acquiring a second home in Spain in 2024.

When buying a property you need to be clear whether you plan to visit for short periods or whether you want the flexibility to spend longer in Spain.  Non-EU citizens, including Brits, have to abide by the 90 day rule in Europe (meaning that they must not spend more than 90 days in a 180 day period in Spain or other European counties).

If you wish to stay in Spain longer, you need to obtain an appropriate visa. The Non Lucrative Visa is a good option if you wish to retire full-time to Spain but this requires you to become tax resident in Spain. Spain’s Golden Visa gives you flexibility to spend shorter or longer periods in Spain not restricted to 90 in 180 days but requires an investment of €500,000 in property to qualify.  If you spend more than 183 days in Spain you become subject to Spanish tax on your worldwide income and so the Golden Visa does not provide a real advantage over the NLV if you are planning to spend more than 183 days a year in Spain.

Advantages of buying a holiday home in Spain in 2024

• Spain offers an excellent climate with over 300 days of sunshine a year in most regions.  The outdoor lifestyle, local culture and popular resort locations have long been an attraction as has the easy links to the UK and other European countries.  Spain also has a low cost of living.  The existence of a large expat population is an attraction for many, but the option of living in more Spanish dominated areas is also an option.
• Spain has a large number of modern international airports and an excellent transport infrastructure which make it easily accessible from a large number of locations worldwide.
• Property prices in Spain are generally significantly lower than many other European locations with desirable properties available in popular Spanish areas at appealing prices. According to Numbeo the price per Square Meter to buy an apartment in the city centre in Spain is €3,307 whereas in the UK the price is 80% higher at €5,980.  Outside the centre of cities in Spain is €1,965 with the equivalent in the UK 121% higher at €4,351.
• Spain offers a vast array of properties to suit various budgets and preferences, from luxury villas in the countryside to modern beachside apartments and traditional Spanish townhouses.
• The rental market in Spain is expected to grow in 2024, especially in popular tourist areas. Renting out your holiday home when not in use can generate income, which in turn can help to cover costs and potentially turn the property into a profitable investment.

See Spanish Expat Mortgages – A Guide for more detailed information on obtaining a Spanish mortgage to finance your purchase.

A holiday home in Spain can be a great investment and a great addition to your lifestyle.  Using a mortgage broker like  Mortgage Direct, can help to simplify the property buying process in Spain.

Mortgage Direct have been operating in Spain since 2006.  They were one of the first brokers to achieve the Bank of Spain’s official licence (introduced in 2020), are completely independent and have a wealth of experience in a market where contacts are everything and premium service is key.