Stay ahead with the latest Spain insights and updates

The 12th U.S. National Risk Assessment: Property Prices in Peril presents a stark warning about the U.S. housing market. Climate change is disrupting traditional real estate patterns, making once desirable areas in the U.S. less attractive due to rising insurance costs, frequent natural disasters, and declining home values. As a result, millions of Americans are expected to relocate within the country or consider international alternatives for stability, affordability, and quality of life.

Spain’s real estate market has undergone significant changes from 2021 to 2024, with projections indicating continued growth through 2031. Below is an overview of past trends and future expectations.The market has been shaped by various economic factors, including interest rate fluctuations, foreign investment trends, and evolving buyer preferences. In recent years, there has been a noticeable shift towards sustainable and energy-efficient housing, as both regulatory policies and consumer demand push for greener real estate solutions.

Buying property in Spain involves complex legal procedures that differ from those in many other countries, particularly the United States. The purchasing process includes several steps, such as obtaining a NIE (Número de Identificación de Extranjero), securing financing if needed, conducting legal due diligence on the property, and ensuring compliance with local regulations. Unlike in the U.S., where title companies often handle transactions, Spain requires a notary to formalize the sale, and a property registry system verifies ownership and any outstanding debts.

When a U.S. citizen resident in Spain passes away, leaving a property in Spain to heirs who all live in the U.S., the Inheritance and Gift Tax will generally apply in Spain. However, U.S. tax implications may also come into play, making it essential for the heirs to understand their tax obligations in both countries. Spain’s inheritance tax is regulated at both the national and regional levels, meaning that tax rates and exemptions can vary significantly depending on the autonomous community where the property is located. In different regions recent reforms have greatly reduced the tax burden for close relatives, such as children and spouses. 

Moving to Spain from the U.S. comes with many lifestyle changes, and one of the most significant is healthcare. The differences between the Spanish and American health insurance systems are substantial, affecting accessibility, cost, coverage, and the overall approach to medical care. Expats relocating to Spain must understand how the system works, what options are available, and how to ensure they have adequate coverage for their needs.

Buying a property in Spain (Andalucia) involves understanding the differences in taxes and legal procedures between purchasing a new build and a resale (second-hand) property. These differences can significantly impact the total cost of the purchase, the legal steps required, and potential financial considerations for buyers, especially foreign investors. Further on is a detailed guide outlining these key distinctions and what buyers need to know before making a decision.