Everything you need to know about Spain's new Housing Law in 2023 (2024)

FAQs

What are the new rules for renting property in Spain 2023? ›

Annual Rental Increase Rates are Capped

The new changes to Spanish property laws also contain rental price controls in Spain. To reduce living costs and lessen the burden on the tenants, the new law capped the rental increase at 2% in 2023 and 3% in 2024.

It is the first state housing law in the history of democracy and will impose new limits on rental increases throughout Spain. Large landlords will be considered as having five properties, down from 10, while eviction dates must be communicated to tenants in advance, under the new law.

How Long Can I Stay in Spain if I Own a Property? Even if you own a property in Spain, you're still entitled to stay for only 90 days in a 180-day period without applying for a residence permit or a visa. You can still buy or rent your property as you wish, but you must be careful not to overstay the 90/180-day rule.

Yes, it is totally possible to buy a home in Spain even if you are not a resident. As we have already mentioned, the foreign non-resident buyer will be required to obtain the NIE in advance, which must be requested at the General Immigration Office.

Documented Legal Acts tax costs by region are as follows (as of 2023) Property Transfer Tax (ITP) is a compulsory expense when buying a pre-owned home in Spain and a rate of 6 and 10% is usually applied, although it depends on the Autonomous Community.

How long can I stay in Spain without becoming a resident? You can stay in Spain for a maximum of 183 days per year (6 months) in order to not become a resident. If you spend an extra day (184 days and onwards), you will be regarded as a resident, hence paying resident taxes in the country.

Most evictions in Spain can take anywhere from four to six months.

“By law is 2% , and it can be apply on the month when the contract was signed if was sept can not be retroactive. I posted u the legal documentation above .”

This rule simply states that you can live in Spain without residency for a maximum of 90 days. After those 3 months, you need to either obtain a residence permit, or leave the country. And that is because the shortest stay option is the tourist (or Schengen) visa, which lasts exactly for 90 days.

In calculating the proof of income for non-lucrative residency, you must have an annual income of 400% of IPREM in your bank account. The IPREM for 2023 is €600 per month. Therefore, as an individual, you will need to have €2,400 as a regular guaranteed monthly income or a yearly income of €28,800.

Can I live in Spain all year if I buy a house? ›

Yes, if you are a non-EU citizen, you can obtain a residence permit in Spain valid for 3 years as long as the property you purchase is valued at over €500,000. This residency is famously called golden visa, and comes with great advantages (which we will explore below).

Spain Golden Visa Overview

An investment of €500,000 in real estate will gain family residency. The Spanish investor visa can be renewed every two years. After five years it is possible to gain permanent residency and after ten years citizenship.

Overall, the home ownership rate in Spain has jumped slightly to almost 76% as of 2021. According to one report, the average cost of existing houses in Spain went up per square meter to just over €1,750. In December of 2022, that price moved closer to €1,920 per square meter.

While the nominal price decline will be limited, the price decline in real terms is likely to be much larger: inflation-adjusted house prices are expected to fall by 7% in three years, from 2022 until 2024.

The capital gains made by the resident taxpayers who are over the age of 65 will be exempt from taxation if they meet the following requirements: The profit from the sale of property or asset is reinvested in pension annuities. The seller meets the six-month deadline of reinvesting the profits into the pension ...

Property owners in Spain are liable to pay an annual property tax, known as council tax or IBI, which is calculated based on the property's cadastral value. This municipal tax is levied by the local authority and must be paid annually, typically through direct debit from the property owner's bank account.

Under Spanish law, the concept of part-year resident does not exist. An individual is either resident or non-resident and is taxed as such for the entire tax year. However, in certain situations, a person may be resident for tax purposes in two different countries.

Entry, Exit and Visa Requirements

Spain is a party to the Schengen Agreement. This means that U.S. citizens may enter Spain for up to 90 days for tourism or business without a visa. Your passport should be valid for at least three months beyond the period of stay.

In any situation, if you are a non-European Union citizen and would like to stay in Spain for more than 90 days, you must apply for a residence permit.

Where are most squatters in Spain? ›

The regions where squatting is officially considered to be the biggest problem are Catalonia, where 6.647 complaints were made in 2020, and Andalusia, where 2,372 complaints were made in 2020. The main reason why there are so many squatters in Spain is surprisingly simple: because there are so many empty properties.

Residents in Spain – tax rates range from 19% to 47%. EEA non-residents in Spain – a flat rate of 19% is applied to your rental income. Non-EEA non-residents in Spain – if you are not an EEA citizen, you're liable for tax at a flat rate of 24% on your rental income.

You cannot legally rent out a property in the short-term in Spain without a tourist licence, which will demonstrate that you have conformed to relevent housing regulations. To secure a tourist licence in Spain, you will need to visit your local town hall.

In 2022, faced with relentless inflation, the Spanish government approved a law to prevent annual rent increases in line with the CPI during 2022. In doing so, they set a two percent ceiling on increases, which the Spanish Cabinet then subsequently extended and will remain in force throughout 2023.

In 2023, the maximum most landlords can raise a tenant's rent without the approval of the Landlord and Tenant Board is 2.5% (rent control).

Limits on Rent Increases

Landlords cannot raise rent more than 10% total or 5% plus the percentage change in the cost of living – whichever is lower – over a 12-month period.

The cheapest province in Spain to live in is known to be the Andalucia province, located in the southern region. Here, you can find cheap cities such as Almeria, Malaga and Granada with an average cost of living that is significantly lower than most other places in Spain.

You need proof of your income.

Before the landlord agrees to rent their property to you, they might ask for a document that proves you have a minimum monthly income that will allow you to pay the monthly rent without any problems. You have to have a bank account in Spain.

“You need a nie for nearly everything in Spain. Finding an apartment is possible without job, if you proof you have enough funds. It was the same for me. I registered as autonomo one month after we had the apartment, which makes sense because you need an address for that, and to get a bank account as well.

You can retire comfortably on about $2,000-2,200 a month, about $25,000-27,000 a year. If you choose to live a bit further away from the big cities, you can retire at approximately $1,700-1,900 a month, which is about $20,000-22,000 annually.

Can I live in Spain for $1,000 a month? ›

With an average salary of €2,710 per month, you'll find that Spain is really as affordable as everyone says. If you're by yourself, you can live on €1000 per month in Spain. This includes room rent, groceries, health insurance, rare use of public transport, eating out a few times a month and shopping moderately.

US citizens can stay in Spain for 90 days out of every 180 days without the need for a visa. After acquiring Spanish residency through the Spain Golden Visa program, US citizens can apply for permanent residency with the following : A completed Modelo EX11 visa application.

Anyone can move to Spain; however, the moving process is easier for certain groups of people: EU/EEA and Switzerland citizens can pack their bags and move to Spain without obtaining a Spanish visa. They can live and work in Spain for three months.

You can acquire dual citizenship in Spain even if you are a national of a country with which Spain doesn't have a dual citizenship agreement. This applies to existing dual nationals who hold a passport from a country that meets Spain's dual citizenship criteria.

As an EU citizen, you can live, work, or retire in Spain without a visa or residency permit. However, Non-EU citizens have to apply for a visa and a residence permit. There are two types of visas that Non-EU citizens can acquire: The Golden Visa or Investor Visa, and.

You are eligible to apply for Spanish citizenship through naturalisation if you have experienced Spanish residency for ten years and have no criminal record.

Deposit. For a Spanish mortgage, you will generally need a minimum deposit of 30% of the property's purchase price, with borrowing rates currently starting around 2% (lower for premium clients). “The maximum mortgage for non-residents is 70% of the purchase price or valuation, usually depending on which is lower.

After 2,5 or 10 years of living in Spain with your residency permit, you can easily get Citizenship by residency. If your parents were Spanish nationals, you can also get citizenship for yourself, as long as you meet the requirements. You or your children must be under 18 years old.

Housing in Spain

In popular retirement destinations, such as Barcelona and Valencia, average rental prices for a furnished two-bedroom flat range from $1200 to $2,000+ per month depending on the size and location of the property.

Is it worth buying a house in Spain? ›

According to statistics released by the Central Bank of Spain in November 2022, the return expected on the residential Real Estate market in Spain is 11% and 8.4% if you take a mortgage – Green line on the chart. Not a bad property investment in Spain!

Is it a good time to buy property in Spain 2023? Yes, for sure, as you can see, prices are rising since 2014 but are far from the top of 2008. Returns are healthy and not excessive while financing remain low.

While experts agree that house prices will fall in Spain in 2023, they differ in the amount. Pisos.com predicts that prices will be 1 to 3% lower, although with the caveat that they will see negligible changes in the busiest markets in Spain.

In conclusion, it is a good time to buy a property in Spain, there are still good prices and opportunities in the market. It is true that prices tend to rise, but this seems to be the general trend in all major European cities and in the most beautiful tourist resorts, such as the Costa Blanca.

Owners who rent their houses in Spain are required to declare rental income through Form 100 (Spanish Tax Return – IRPF) or Form 210 (Non-Residents tax) depending on if the owner is a tax resident or not in Spain. Form 100 is submitted once a year between April 1st to June 30th, whether you are a Spanish tax resident.

Is it a good time to buy property in Spain 2023? Yes, for sure, as you can see, prices are rising since 2014 but are far from the top of 2008. Returns are healthy and not excessive while financing remain low.

Your landlord is obliged to inform you of the update in writing with one month's notice and in any case, the rental increase must not exceed the rate of inflation from the 12 months prior to the change.

Spain applies the same taxes to rental income as the regular income you earn from employment. The rates vary depending on your residence status, as follows: Residents in Spain – tax rates range from 19% to 47%. EEA non-residents in Spain – a flat rate of 19% is applied to your rental income.

How much is rental tax in Spain for non-residents? ›

Non-resident property owners in Spain may be surprised to learn about the 24% rental tax. The current Spanish income tax rate for non-residents is 24% of gross income, with no deductions permitted for expenses.

According to Spain's Property Appraisal Society, the average price of a new home in Spain so far in 2021 is €223,380. That's equal to $263,169 or £191,683.

The Spanish economy will undoubtedly slow down in 2023, although no risk of recession or contraction is envisaged for the time being.

The new Housing Law brings with it a number of significant changes for landlords and tenants in Spain. One of the big questions to be answered is: Who pays the estate agent's fees? As stated in the Law 12/2023 of 24 May on the right to housing, fees are paid by the landlord to the real estate agency.

In Spain, agency fees are usually equal to one month's rent, sometimes more, and fortunately for renters the new law shifts the onus to pay fees onto owners, not the tenants.

Limits annual rent increases to no more than 5% + local CPI or 10% whichever is lower. Provides Just Cause protections to tenants.