Buying a House in Spain as an American: An August Guide

The Spanish Real Estate Landscape

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In recent years, Spain’s real estate market in coastal areas and major cities has seen increased demand, largely driven by international investment and of course, tourism. Generally, property prices have risen despite fluctuating economic circumstances, likely driven by the country’s attractive lifestyle, favourable climate, and somewhat ‘affordable’ house prices in comparison to its other European neighbours.

The sign of a stable investment, data from real estate website idealista reported a 7% (3.68% inflation-adjusted) growth in nationwide house prices in Q1 2024 from the previous year. It’s also great news for American buyers, as there are no special requirements for investing, with the Spanish government broadly encouraging international buyers.

Choosing the Right Location

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Second home ownership in Spain, particularly in hotspots such as Mallorca and Barcelona, has become increasingly popular with both domestic and international buyers. The Balearic Island of Mallorca, with its endless Mediterranean coastline, honey-coloured villages, and vibrant cultural scene, attracts those seeking laidback living. 

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Barcelona, on the other hand, is an August top pick for urban dynamism, its streets brimming with architectural marvels yet just a stone’s throw away from a golden stretch of sand. Both locations benefit from Spain's warm climes, making them prime destinations for those seeking a sunny second home.

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Other Factors to Consider

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When buying a house in Spain, there are several key factors for a successful investment. Proximity to amenities like healthcare and dining, or a desire for a remote location, varies based on buyer preference, while accessibility, cost of living, and resale value are crucial for all. It’s also worth understanding and legal and tax responsibilities to avoid complications further down the line. Regional laws, cultural nuances and local market trends can add layers of confusion when making an investment - daunting for those lacking a close connection in the region. 

Specific tasks to consider include applying for a tax registration number known as a Número de Identificación de Extranjeros (NIE), and - once you’ve found a property - checking the Registro de la Propiedad to make sure the home is free of any outstanding debt. 

With August, our Expert Advisors handle all of the above, from legal paperwork to sharing the best beaches and restaurants in the region, ensuring a hassle-free journey to second home ownership from the outset - even for buyers from across the Atlantic. 

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The Buying Process with August

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August's fractional ownership model offers potential buyers effortless access to selection of hand-picked locations, alongside the knowledge of its Expert Advisors to help overcome any challenges along the way. Simplifying the journey of buying a home in Spain, the process removes uncertainty in a variety of areas so you can sit back and enjoy the process from across the pond. Here’s how it works:

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1. We Select the Perfect Homes
   We have built up extensive knowledge of all our destinations, so we know exactly where the best homes are going to be located. From studying flight connections to building up a little black book of local recommendations, we select accessible homes filled with potential, in destinations that are attractive all year round. For our US buyers, this takes away the stress of multiple trips to view properties, and saves hours spent researching destinations from afar. 

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2. We Negotiate and Navigate the Intricacies to Close the Deal
   We know what things are going to cost and how to get the best deal. From years of building up a vast network of relationships and connections in our regions, we also have the advantage of getting first dibs on not-on-the-market real estate from our partners. This provides us with a unique opportunity to find some of the best unique properties in each region for our buyers. 

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3. We Design, Renovate and Create a Home from Home
   We don't just buy properties - we create the perfect holiday homes. We focus on properties with a lot of potential and renovate to the highest standards, allowing you to simply arrive, unpack and enjoy. Great respect and love for original details and material choices are also essential in order to create beautiful homes with the right atmosphere so you feel comfortable, no matter where you are in the world. 

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4. We Take Care of the Maintenance
   Visiting your second home should be as convenient, simple and easy as staying in a hotel and August takes pride in preparing your homes to hotel-like standards, everytime you visit. The beds are made, fresh towels are folded, the garden is perfectly maintained, meaning you arrive after a long flight, and can relax right away without having to take care of any cleaning, maintenance or renovations. 

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Armed with knowledge, buying a house in Spain can be the most rewarding of investments even when investing from across the pond. Why not schedule a call with one of our Advisory team today to understand more about the August model, and how it could help you on your way to securing a second home in Spain, and beyond, with ease…