Buying a property in Spain as an American

Are you thinking of buying property in Spain as an American? Don’t you know if can Americans buy property in Spain?

The Euro fell to a 20-year low against the US Dollar in August 2022. This has led to a surge in US citizens seeking to buy property in Spain at prices much lower than normal for anyone exchanging Dollars into Euros.

Exchanging $100,000 in August last year would have given you €85,000. But in September of 2022 you could have got €104,000 for the same amount.

Such an opportunity for Americans to buy Spanish property may not last forever.

Below, we’ll talk you through all you need to know, including visas for US citizens in Spain, documents to buy a house as an American, finding an estate agent, choosing your ideal location, and the process of buying a property in Spain.

Our international, English-speaking team at Bcn Advisors are specialised in luxury apartments in Barcelona for sale. For any further questions about how to buy property in Spain as an American, don’t hesitate to contact us.

What visa do I need to live in Spain as an American?

Under Schengen terms, American citizens can visit Spain visa-free for a maximum 90 days in a 180-day period. But, what about if you like a lot the experience and you considerate of buying a holiday home in Spain?

Once you’ve used up your 90 days, you cannot return to Spain or any other of the 26 Schengen countries without a visa. This doesn’t stop you buying, owning or even renting out property in Spain as a foreigner, but it stops you living in Spain year-round.

These are the three main visas to consider:

Work visa

The visado de trabajo y residencia lets you live and work in Spain. For a standard work visa you need a job offer in Spain, or if you fulfill income requirements and can prove your qualification and experience you can apply for a self-employment visa. It’s advisable you seek professional help to apply for the self-employment visa in Spain.

Study visa

The visado de estudios lets you study in Spain for the duration of your course.

Non-lucrative residence visa

The visado de residencia lets you retire in Spain, but not work there. To qualify you must prove you have 400% of the IPREM (a public income index in Spain) in your bank account – in 2021, this was a minimum of €6,778.80.

There are three further visas to consider in specific circumstances:

Golden Visa

If you invest at least €500,000 in Spanish real estate you can get fast-tracked residency. Contact Bcn Advisors for information and application procedures.

Family reunification visa

The visado de reunificación familiar is for family members of foreigners (or Spanish nationals) who already have residency in Spain.

Entrepreneur visa

The entrepreneur visa is for anyone with a business of economic interest to Spain. You will need a favourable report from Spain’s Oficina Económica y Comercial (these are housed within the Spanish consular offices in the USA) which details your business plan and why it helps the Spanish economy. The visa can cover your spouse and children provided you can prove sufficient funding to support them.

What documents do I need to buy property in Spain as an American?

First of all, the answer to “can us citizens buy property in Spain” is: YES. So this is what you need:

The number one essential requirement to buy property in Spain as an American is the NIE.

NIE stands for numero de identidad de extranjero or ‘foreigner’s identity number’. You can get a NIE at the Spanish embassy or consulate closest to you in the US: Los Angeles, San Fransisco, Houston, Chicago, Boston, New York City, Washington D.C. and Miami

You can also get a NIE while in Spain:

– Make an appointment at your nearest immigration office

– Fill out the EX-15 application form (link in Spanish)

– Fill out the Modelo 790 Código 012 form and pay the fee (around €12) at a bank branch

– Take both forms to your appointment along with your US passport, two passport photos, and a letter explaining why you need a NIE (e.g. to buy property in Spain)

Expect to wait up to three weeks before receiving a phone call that your NIE is ready to be picked up at the same immigration office where you applied.

Once you have a NIE, it’s strongly recommended you open a Spanish bank account. Buying property in Spain with funds from an American bank could lead to delays, lengthy money-laundering checks and outright refusals from a seller’s bank.

You can also have a lawyer or representative get you a NIE and open a bank on your behalf.

Finding the right estate agent to buy property in Spain

You can search properties for sale via the largest property portals in Spain: Idealista, Fotocasa, Yaencontre, and more.

But using these listing sites is not always the best solution for foreigners. Anyone can list a property for sale on these websites, and it’s important you have an estate agent or property lawyers you can trust working on your behalf.

Estate agents who deal with US citizens will know the best places to buy. They know where an existing American community is and where the best neighbourhoods are for your requirements and budget. An estate agency offering buyer’s agent services (such as at Bcn Advisors) can further help with the legalities of buying a property as well as the practicalities of securing a mortgage or transferring funds, for example. All that helps to you if you are thinking of buying homes in Spain.

At Bcn Advisors, we offer the above services for anyone looking to buy property in Barcelona – and more.

We have a personal real estate shopper service which lets you sit back and wait for your shopper to come back with the best property for your requirements, with support on making an offer, checking any debts or charges on the property, and accompanying you through the property purchase process. All these details are the ones that make us one of the best luxury real estates in Barcelona.

Understanding where to buy property as an American in Spain

Here’s a list of where most Americans live in Spain (according to the latest census):

Madrid

Close to 12,000 US citizens live in the Spanish capital, largely for work, business or diplomatic purposes.

Cataluña

Close to 9,000 US citizens live in the northeastern region of Cataluña, with the majority settling in Barcelona for work, business, leisure, retirement and the fantastic lifestyle.

Andalucia

Over 6,500 Americans live in the southern region of Andalucia, spread out across the cities of Sevilla, Granada, Cordoba, Malaga, Marbella, Jerez, Cadiz, Ronda and more.

Valencian Community

Close to 4,000 Americans live in the eastern region of Valencia, home to the cities of Valencia and Alicante as well as the international Costa Blanca.

Balearic Islands

Close to 1,500 Americans call one of the islands of Ibiza, Mallorca or Menorca home.

Galicia, Basque Country & Canary Islands

Just over 1,000 US citizens reside in each of the regions of northeastern Galicia, the northern Basque Country and the Atlantic subtropical Canary Islands.

Barcelona is quickly overtaking Madrid as the startup, tech and lifestyle capital of Spain. The city’s 22@ neighbourhood is home to the offices of Silicon Valley giants like Meta and HP, alongside hundreds of other multinational businesses.

The America’s Cup is coming to town in 2024, which is expected to provide a boom in short to mid-term renters.

If you’re looking to make a strategic investment into Barcelona property as an American, or simply want to find the best neighbourhoods to buy in, don’t hesitate to contact our team at Bcn Advisors.

Understanding what property to buy as an American in Spain

Where you buy property, and what property you buy, will have a huge impact on your property search in Spain as an American.

If you wish to make a property investment, you could consider buying a property in need of renovations. You could perform refurbishment works on the property and sell it for a capital gain.

If you wish to rent a property out, you may wish to buy a fully-refurbished property that is fit to move in.

Equally, you may require a property as a vacation home or permanent home.

A buyer’s agent or personal real estate shopper can help you figure out the best course of action for your specific requirements (we can advise you if you want to sell your property in Barcelona as well).

How to buy a house in Spain as an American?

Here’s a quick five-step guide to property purchase process as an American in Spain:

1. Get your NIE, bank account & get looking

Once you have your NIE you can get looking to buy property in Spain. You can get your NIE and even start looking from the US, or you can do both in Spain. Ideally you will open a Spanish bank account if you’re serious and establish a relationship with a real estate agent of personal real estate shopper to help you navigate the Spanish property market.

2. Make an offer, sign a reservation agreement

Once you find a property in Spain that fits your budget and requirements, it is common to make a formal offer. The help of a real estate lawyer or personal real estate shopper can help you to draft an offer in Spanish, state persuasive reasons for offering a specific price, and outline any contingencies. If the seller agrees, you will move on to sign a reservation contact that fixes the details of the purchase. You will pay 5-10% of the property price, held by a notary or lawyer in escrow. If you default on the reservation agreement, the seller can keep the down payment. If the seller defaults, you can receive compensation provided the agreement is legally sound.

3. Step three – checks, funds & mortgages

You can make a reservation agreement binding so long as the property does not have undeclared debts or charges, and provided you can access a mortgage within the time frame, for example. You now have time to prepare your funds or secure a mortgage. The help of a Spanish bank account and legal advice can save you a lot of time and money here.

4. Step four – transfer deed

On a specified date, you will meet with the seller before a public notary. The notary provides an administrative role to confirm the presence of essential documents the seller must bring: these prove the seller is the owner, proves the property has an energy performance certificate, proves the property has a certificate of habitability, proves the building is structurally sound, and proves the seller is up to date on utility and property tax payments. You all sign the transfer deed, you pay any funds (or have you bank write a cheque) and receive the keys.

5. Step five – utilities, ownership and the padrón

You can now take the notarised transfer document to the nearest Land Registry office (Registro de la Propiedad) to have your name inscribed as the new legitimate owner. You can now take out service contracts in your name and put yourself on the municipal (padrón).

For any further questions regarding buying a luxury flat in Barcelona or moving to Barcelona as an American, don’t hesitate to contact Bcn Advisors.