The number of Americans living in Spain grew by 13% from 2019 to 2021, and home sales to Americans jumped 88% from the first half of 2019 to the first half of 2022, according to a report by the General Council of Notaries in Spain.
Among expat groups buying in the sun-washed country, Americans paid the second most, after the Danes, shelling out up to 2,837 euros, or $3,119, per square meter. In addition, the home prices that grew the most in the same period were paid by Americans, according to the report.
Purchasing or living in a home abroad requires a certain level of wealth, given the cost not only of real estate but overseas travel, as well, said Alex Ingrim, a Florence, Italy-based private wealth manager and senior investment analyst at global financial services firm Chase Buchanan.
According to the General Council of Notaries report, American buyers are focusing on urban areas like Madrid — as with any big city, people are attracted to its job opportunities and amenities, said Ingrim.
While the southern coastal region of Andalusia has always been a popular location for Americans, there’s a “strong word of mouth” for the city of Valencia, an urban area on the beach farther north on the Mediterranean coast with a large expat community, among them many Americans, said Ingrim.
However, Americans who want a different retirement or remote work experience and an adventure by relocating to Spain should take a few factors into consideration.
Property taxes in Europe are different
Most tax on property purchased in Spain is paid upfront in a stamp duty, or “AJD” in Spanish parlance, rather than in annual property tax payments like in the U.S.
“The stamp duty can run from 1% to 2.5%, and then there is [value-added tax] on new construction or transfer tax on pre-owned homes,” said certified financial planner Jude Boudreaux, partner and senior financial planner with The Planning Center in New Orleans. “It’s all substantially more than in the States.”
It must be paid by the buyer at the treasury office of the appropriate autonomous region in Spain within 30 business days after the property is bought.
“You pay a lot of the taxes upfront rather than on an ongoing basis, so the purchasing costs and the purchasing process are a lot different,” said Ingrim, who advises interested buyers to get in touch with local estate agents and property lawyers early on in the process.
If you are looking to retire in Spain, consider the financial and tax implications, and seek help from an advisor before setting into the idea, he added.
Additionally, make sure your taxes are in order. Although you are rarely taxed on the same income twice, look at the different streams of income and assets you may have in order to understand “who gets to tax what first, whether Spain or the U.S.,” said Ingrim.
For instance, an American citizen working in Spain will have a higher tax rate, but those taxes become a deduction when they file their federal tax return in the U.S., said Boudreaux, who is a member of CNBC’s Financial Advisor Council.
On the other hand, the U.S. taxes your global income, so if an American earns an income from rental properties in Spain, or anywhere else in the world, “the U.S. will gladly tax your income from Spain,” he added.
For his part, Ingrim noted that “while you might have a liability to both systems, you rarely pay tax on the same income stream or asset base twice.”
Liabilities in the U.S. don’t just go away
It’s important to remember your debts in the U.S. doesn’t just go away when you move abroad, he added. “You need to still have a plan to deal with your American liabilities while you’re living abroad.”
Some countries, like Portugal, may ask foreign residents for a credit report from their home country when they take out a mortgage or try to establish credit. Keep your debts in mind and plan to keep up with your payments.
“Keep repaying your student loans, your car payments, mortgages, whatever it may be, and try to [keep up] your U.S. credit history because it may impact your going forward in your new country [of residence],” said Ingrim.
Keep an American bank account tied to a U.S. address open before you move so you can pay your bills through automatic transfers from that account, said Boudreaux, to save on exchange rates and monthly wires.
Additionally, you may need a Spanish bank account to pay your daily living expenses in euros and avoid being regularly at the mercy of fluctuating exchange rates. The U.S. government imposes bank reporting rules on every bank that does business with U.S. citizens. Find a Spanish bank that complies with these rules, “so they can do all the proper reporting when and as necessary,” added Boudreaux.
You may qualify for different kinds of visas
Spain launched its digital nomad visa earlier this year, making it easier for foreigners to move to and work there. The visa is tailored for “international teleworkers,” and applicants must comply with a set of requirements, such as accreditation or professional experience of at least three years.
“Prior to having this visa, it was difficult to work in Spain because the tax rates were so high and there wasn’t a clear-cut immigration regime, other than the ‘golden visa’ that allowed you to move to Spain and work,” said Ingrim.
The golden visa, which you only obtain if you purchase a property for more than 500,000 euros — or about $550,000 — allows you to live, work and earn a larger set of rights once you’re residing in Spain, he said.
Nonlucrative visas, meanwhile, are meant for people who are no longer employed, including retirees, who can rely on a passive income. This type of visa allows you to live in a new country but prohibit you from working. “The first step would be engaging with a Spanish immigration lawyer and understanding if you meet the requirements,” said Ingrim.
However, before you make your bid on a property, consider renting first to see if the area meets your preferences and needs, added Ingrim.
Some Americans already living in other countries, namely Portugal, are conscious about how arrangements like the golden visa can exacerbate housing problems for locals. That ought to be a consideration for buyers in Spain, he said.
In Ingrim’s experience, incoming U.S. buyers express concerns around the issue, saying “We don’t want any part in contributing to that.” As a result, many prefer to initially rent, as a precaution.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
