Investing in Spain: A Guide for Americans
Dream of enjoying sun-soaked days, vibrant culture, and more affordable living—while growing your portfolio? Spain is emerging as a favored destination for Americans seeking property for investment, as a vacation haven, or a retirement retreat. This guide walks you through the essentials, from average prices and the best regions, to costs, financing, and how to make your Spanish dream a reality.
Why Spain? Affordability & Lifestyle
Affordable Real Estate
The average home price in Spain is just $195,000 USD far less than Nashville’s $470,000 (Zillow, Oct 2024). This disparity offers significant value for American buyers seeking either a prime investment or a gorgeous second home.
Enviable Climate & Culture
Spain boasts 320 sunny days per year (compared to Nashville's 205), a celebrated culinary scene, and a rich history. From vibrant city festivals to peaceful seaside escapes, Spain offers a lifestyle that balances relaxation and stimulation in equal measure.
Prime Investment Locations
Madrid
- $359/sq ft
- Spain’s capital with strong economic and political importance
- High rental demand from professionals, students, and tourists
- Excellent infrastructure and international connectivity
- Consistently strong long-term appreciation
Barcelona
- $448/sq ft
- Top tourist destination with global cultural appeal
- Vibrant economy with tech and creative sectors
- Strong short-term rental potential (though regulated)
- Popular with digital nomads and international students
Málaga
- $279/sq ft
- Booming expat and retiree population
- Warm weather and beach lifestyle
- Major hub for remote workers and property investors
- Affordable luxury compared to U.S. coastal cities
Valencia
- $229/sq ft
- Growing tech/startup scene
- Less tourist saturation than Madrid/Barcelona
- High quality of life with low cost of living
- Strong long-term growth potential
Understanding the Costs
Purchasing Costs
- Taxes (6–11%) – Resale properties pay a transfer tax; new builds pay 10% VAT plus up to 1.5% stamp duty
- Legal & Admin Fees (1.5–3%) – Includes your lawyer, notary, and registering the property
- Total Extras (10–14%) – Expect to spend an additional 10–14% on top of the purchase price
Ongoing Costs
- Annual Costs: Property tax, HOA, insurance, and utilities total around $2,000–$5,000 per year, depending on the home and location
- Non-Resident Tax: If you’re not a full-time resident, expect to pay 0.5–1% yearly on your home’s value — even if it sits empty
- Maintenance & Repairs: Budget an extra $500–$1,500/year for upkeep like plumbing, appliances, and general wear and tear
Visa Options and Residency
Visa
- Non-Lucrative Visa: For retirees or financially independent individuals; must show about $30,000/year in passive income. No work allowed
- Digital Nomad Visa: For remote workers with foreign employers; must show about $2,700/month income. Allows work and residency
- Student Visa: For full-time study in Spain; allows part-time work and can lead to post-study residency options
Residency
- Temporary Residency: Granted with most long-stay visas; can be renewed yearly or biannually
- Permanent Residency: Apply after 5 years of continuous legal residence; no income requirement if you’ve been compliant
- Citizenship: Apply after 10 years (only 2 years for Latin American nationals); must show integration and pass language/culture tests
Information deemed reliable, but not guaranteed. Not intended to solicit sellers or buyers under written contract with another REALTOR®.
Steve Luther
Chief Troublemaker
CHORD Real Estate, LLC
Independently owned and operated.
Independently owned and operated.
Ashley Luther
COO/Managing Broker
CHORD Real Estate, LLC
Independently owned and operated.
Independently owned and operated.
713 18th Ave S, Nashville, TN 37203