Why Are Americans Moving To Spain Despite Soaring Real Estate Prices?

A surge in American expatriates and retirees moving to Spain has led to a significant increase in real estate purchases, with home sales to Americans jumping 88% from the first half of 2019 to the first half of 2022, CNBC reports.

Why Spain: Spain’s appeal to Americans is largely due to its urban areas like Madrid, which offer job opportunities and amenities, and coastal regions like Andalusia and Valencia, known for their large expat communities. However, the move to Spain is not without its financial implications.

Financial Considerations: “The purchasing costs and the purchasing process are a lot different,” said Alex Ingrim, a Florence, Italy-based private wealth manager at global financial services firm Chase Buchanan.

He advises interested buyers to engage with local estate agents and property lawyers early in the process.

Tax Implications: While Spain and the U.S. have different tax systems, Ingrim assures that “while you might have a liability to both systems, you rarely pay tax on the same income stream or asset base twice.” However, he stresses the importance of keeping up with American liabilities while living abroad.

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Visa Options: Spain offers several visa options for foreigners, including the digital nomad visa for “international teleworkers,” and the golden visa for those purchasing a property for more than EUR 500,000.

However, Ingrim suggests engaging with a Spanish immigration lawyer to understand the requirements.

Renting vs Buying: Before making a property purchase, Ingrim recommends renting first to ensure the area meets individual preferences and needs. He also notes that some Americans are conscious of how arrangements like the golden visa can exacerbate housing problems for locals.

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