Buying property in Spain from Ireland. Key considerations
If you're considering a house in Costa del Sol, Cajasur could be your top choice. For properties under €100,000, Santander offers a viable option, while CaixaBank stands out for competitive fixed interest rates. Explore the Spanish property market from Ireland and discover insights about locations and mortgage deals for Irish buyers.
Dreaming of relocating to Spain and starting a new life? You’re not alone since over 20,000 Irish citizens already live there.
This guide covers all you need to know about buying property in Spain from Ireland, including insights into the property market, the best buying locations, and the latest mortgage deals.
What’s the property market like in Spain?
In 2022, the Spanish property market experienced a significant boost in investment from Irish buyers purchasing properties at record rates.
From January to June 2022, Irish buyers acquired 1,395 homes in Spain. This number was a large jump from the same timeframe in 2021, marking a 106.7% increase in homes bought by Irish buyers.
According to a Bloomberg study, Spain's housing market remains comparatively more accessible in terms of pricing than Ireland's. House prices in Ireland have escalated sharply, surging by 13.9%, in stark contrast to Spain's more temperate increase of just 6.3%.
Top cities to buy a property in Spain
Continuing the interest in Spain's property market, let's look at the top cities drawing buyers, and their pricing details.
Canary Islands
With attractive tax incentives and lower prices, these islands offer a blend of investment value and lifestyle appeal.
With affordable living costs and many leisure activities, islands like Tenerife, Gran Canaria, and La Gomera are ideal for international buyers.
Costa del Sol
Costa del Sol is ideal for holiday homes or retirement with its year-round sunshine, beautiful beaches, and warm climate. Its relaxed lifestyle and warm climate attract foreigners, and the well-established Irish expat community offers a welcoming touch of home.
Valencia
Valencia is an ideal location for foreign property investment with its transport connectivity, including direct international flights to Ireland.
Ongoing urban regeneration is enhancing infrastructure and public spaces, suggesting a bright future for property appreciation.
In October 2023, residential property prices averaged €2,049 per m2, up 11.84% from €1,832 in October 2022.
Is it hard to get a mortgage in Spain from Ireland?
Securing a mortgage in Spain as an Irish buyer can be more complex due to different lending criteria for non-residents. Spanish banks typically lend a lower percentage of the property value to non-residents—70%, as opposed to up to 80% for residents.
However, the fact that foreigners secured over 30,000 mortgages in Spain in 2022 indicates that navigating the Spanish property market is achievable with the right assistance.
How to get a mortgage in Spain as an Irish: step-by-step
Getting a mortgage in Spain as an Irish national involves several steps, due to the different regulatory environment and the banks’ lending criteria for non-residents.
Here's a simplified step-by-step guide:
#1. Compare mortgage deals
Consider interest rates, fees, and overall costs. A solution that can optimize your time is Homevest, a digital service where you can submit your request to all the banks in the network, allowing them to compete to offer you the best deal.
#2. Prepare your documents
Gather the required documents for your mortgage—proof of income, employment, debts, credit history, and secure a Spanish tax ID (NIE) for property transactions.
#3. Apply for pre-approval
Apply for pre-approval to know your potential loan amount, but remember it doesn't ensure final approval.
#4. Have the property appraised
A property valuation assesses a property's value based on size, location, and condition, affecting your loan amount.
#5. Finalize the mortgage application
Once you agree on a property, apply for a mortgage; if your credit and documents check out, the lender will offer you a loan.
#6. Conduct legal checks
Hire a Spanish notary and lawyer to manage legalities and sign the mortgage deed.
#7. Close the deal and get funded
Finalize the deal by signing the contract, paying the fees, and settling the payment with the seller, which will make you the property owner.
Homevest: one application, multiple banks
Homevest simplifies property buying by managing real estate agents, banks, surveyors, notaries, and lawyers, and negotiating with banks for competitive deals.
The digital platform connects applicants with banks like Santander, Sabadell, CaixaBank, Cajasur, and Unicaja, streamlining the process of obtaining a mortgage abroad by offering multiple options and resources in one place.
Homevest offers flexible service alternatives tailored to your needs, including a dedicated mortgage broker who structures your application to secure the best offers and ensures bank prioritization for your case.
What are the best mortgages in Spain for Irish citizens?
There are many options that an Irish citizen can consider based on the currency of their salary income.
If you want to buy a house in Costa del Sol, Cajasur might be the best choice. For properties valued at less than €100,000, Santander can be a viable option, as can CaixaBank if you're seeking a competitive fixed interest rate.
It's important to note that in October, the average interest rate for non-residents in Spain was 5.5%.
The lowest interest rate offered was a fixed rate of 3.64%, while the highest was a variable rate of 6.44%.
When assessing 2023 mortgage rates in Spain for non-residents, staying informed about the latest market deals is key to negotiating the best price.
Sources used and checked in November 2023:
- Irish residents in Spain
- Irish buying property in Spain at record rates
- Property price data Spain
- Buying a home in Spain and taking out a mortgage as a foreigner
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
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