Spain is proposing a bold new measure aimed at addressing its housing crisis by targeting non-EU residents purchasing property in the country. Prime Minister Pedro Sánchez has announced plans to impose a tax of up to 100% on the value of homes bought by non-EU residents, including from nations such as the UK. This significant policy proposal aims to prioritise the availability of homes for Spanish residents amidst a growing housing emergency.

An 'Unprecedented' Measure

Speaking at an economic forum in Madrid, Sánchez described the proposed tax as an "unprecedented" measure that is necessary to combat the division of society into wealthy landlords and struggling tenants. He pointed out that in 2023 alone, non-EU residents purchased around 27,000 properties in Spain, primarily for investment rather than personal use.

"Which, in the context of shortage that we are in, obviously cannot allow," Sánchez declared. By placing the tax on non-resident, non-EU buyers, Sánchez hopes to make more homes available to those who live and work in Spain.

While the announcement has made headlines, detailed plans on how this tax would be implemented are pending. The prime minister's office has indicated that the tax burden would increase up to 100% of the property's value, similar to measures in Denmark and Canada. However, specifics on the taxation mechanism and a timeline for its introduction remain elusive, with a legislative history showing difficulty in securing the necessary votes in parliament.

Housing Market Snapshot

Foreigners, including those from within the EU, account for around 15% of the Spanish housing market. In 2023, out of 583,000 property transactions in Spain, 87,000 involved foreign buyers. The proportion of purchases by non-EU residents has sparked considerable debate among property experts and potential buyers.

Mixed Reactions from Property Professionals

The response from property professionals has been varied. Experienced agents in selling homes to non-EU buyers in Valencia describe the proposal as extreme and likely to deter potential buyers. Currently, non-residents and Spanish citizens alike pay around a 10% transfer tax on property values in Valencia, varying by region.

The new proposal is not seen as favourable for non-resident buyers but may increase the buying power of EU citizens. Some experts doubt that the 100% tax would solve the housing affordability problem and instead emphasise the need to increase housing supply to meet the demands of migration to major cities like Madrid, Valencia, and Malaga.

Potential Buyers Reconsider

Prospective British buyers are rethinking their plans as a result of the new proposal. There are concerns about the uncertainty and difficulties in reselling properties if they can no longer sell to non-residents, particularly in touristy areas.

Some prospective buyers are now exploring alternative options in other countries, feeling that the policy makes Spain a riskier investment.

Housing Initiatives

This proposed tax is part of a broader set of housing initiatives unveiled by Sánchez's administration. Other measures include tax exemptions for landlords providing affordable housing, transferring over 3,000 homes to a new public housing body, and implementing tighter regulations and higher taxes on tourist flats.

Further efforts include abolishing Spain's "golden visa" scheme, which offered fast-tracked residency for those investing €500,000 (£428,000) or more in property, starting in April.

The Spanish government's proposal to impose a 100% tax on properties purchased by non-EU residents has sparked significant discussion and debate among property professionals, potential buyers, and the broader public. While aimed at prioritising housing for Spanish residents and addressing the housing crisis, the measure's effectiveness and fairness remain points of contention. Potential buyers are now reconsidering their plans, and industry experts are urging a focus on increasing the supply of affordable housing as a more sustainable solution.

The government's broader initiatives aim to tackle the housing problem from multiple angles, but only time will tell whether these efforts will achieve the desired results in making housing more affordable and accessible for all.

It is unlikely that tax incentives or penalties alone will solve the housing problem in Spain. The underlying issues of housing affordability and availability are more deeply rooted in systemic problems, such as the inadequate supply of new housing, rising construction costs, and urban planning challenges. Simply deterring foreign investors without addressing these core issues may result in unintended economic consequences, such as decreased investment in the property market and reduced overall property values, which in turn could negatively impact the broader economy. Additionally, the policy may not directly benefit the most vulnerable segments of the population who face the greatest barriers to accessing affordable housing. As such, comprehensive strategies that include boosting the supply of affordable housing, improving rental market regulations, and incentivising sustainable urban development are crucial for a lasting resolution to Spain's housing crisis. 

Are you searching for a property in Spain on a budget but want one that combines stunning sea views, practical amenities, and exceptional value? Look no further. Discover 30 Spanish properties, each priced under €100,000 and featuring a coveted trio of benefits: sea views, a garage, and a pool.

Why Spain?

Spain offers a compelling combination of advantages for property buyers:

• Vibrant culture and rich history
• Excellent climate with abundant sunshine
• World-renowned cuisine
• Well-developed infrastructure
• Welcoming communities
• Properties with this unique combination of features and price points are increasingly rare in the current market. 

Explore these 30 properties now

By clicking the link above, you'll gain immediate access to detailed information about each property, including photos, floor plans, and location details. 

Find Your Ideal Spanish Home Today!

Acquiring a second home in the sun-kissed realms of Spain is a venture many dream of. A haven away from the hustle and bustle, or perhaps a prudent investment – the reasons vary but the charm remains. The Spanish property market, with its vast array of second-home buyers, both local and international, entices with its promise of a picturesque locale and unparalleled quality of life. But what exactly does it entail financially to secure a second dwelling in this vibrant nation?

Embarking on the quest to buy a second home often foments questions about the fiscal implications – from taxes to deductions and the investment's worth. Let's simplify the intricate web of costs associated when you decide to invest in your Spanish escapade.

The Taxing Affair of Purchasing a Second Home

Property Transfer Tax and VAT

The Spanish tax system distinguishes between second-hand properties and new builds when it comes to taxes. For second-hand homes, you’re required to pay the Property Transfer Tax (ITP), which is between 6% to 10% based on the autonomous community's legislation. On the other hand, new properties incur Value Added Tax (VAT), set at 10%, along with 1% to 1.5% for the Documented Legal Acts Tax (AJD). These taxes are non-negotiable and a significant portion of your budget should be allocated for them.

Additional Expenses

Beyond taxes, the path to homeownership is paved with additional costs. Notary fees, registration fees for making it all official, management fees to handle the processes, and potential bank commissions all add weight to your financial outlay. Each has its own scale but typically, they all contribute to adding around 1% to 2% cost on top of the property price.

The Recurring Costs of Second Homeownership

Once you’ve leapt over the initial financial hurdle and possess the keys to your new abode, ongoing costs become a part of your annual budgeting.

Community Fees

Should your residence boast communal luxuries, such as a shared pool or gardens, this comes at a price. Community fees maintain these shared perks and their costs hinge on the services provided.

Real Estate Tax (IBI)

The Real Estate Tax (IBI) is an annual fee that differs across districts. It's essential to note that as a second home, the tax may surpass the rate of primary residences as some local councils extend discounts for the latter.

Upkeep: A Necessity

The practicalities of maintaining a property can't be ignored. Repair funds, general maintenance, utilities, and insurance to shield against unforeseen events are continuous financial commitments you must be prepared for.

The Second Home and Tax Authorities: An Enduring Relationship

Owning a second home ties you to tax obligations each year – the evident one being the IBI. But if you choose to transform this residence into a profitable rental, expect to declare this income annually and understand that the tax rate can be sizeable, ranging up to 45%. However, maintenance costs and community fees can be claims on your tax return, easing the fiscal load.

Deductible Expenses: A Silver Lining

Spanish law allows certain expenditures to mitigate your tax dues. Mortgage interest stands out as a significant deductible when certain conditions are checked off. Banking fees, notarial costs, even registration fees associated with the acquisition can slot into your IRPF deductions.

However, not all expenses can be. The primary purchase taxes like ITP or VAT aren't directly deductible, but they form part of the acquisition value which aids in calculating future capital gains.

A Change of Scenery: The Second Home as a Primary Residence

Spanish regulations offer the possibility of reclassifying your second property as your residential hub – the primary residence. It requires living there for at least 183 days yearly and having it as the central node of your economic and family web. This switch can reveal tax deductions and lower IBI rates, bolstering the incentive to make such a shift.

Profitability: An Investment Viewpoint

Is a second home a wise investment? Opinions sway. While the investment brings leisure and lifestyle perks, the upkeep costs demand careful contemplation. Rentals, especially holiday rentals, can offer an appealing revenue stream, countering maintenance expenses.

Before embarking on this investment journey, a thorough financial breakdown is indispensable. Ensuring that the running costs align with your capabilities, while also gauging the property's utility against other potential investment options is crucial.

The Verdict

Spain's allure for second homeowners remains undiminished. Recognizing the financial aspects and preparing accordingly can transform your Spanish property dream into a delightful reality, rich with personal joy and potential monetary gain. Whether for leisure or investment, understanding these fiscal foundations is the first step towards successful second home ownership in Spain.

In a significant policy shift, Spanish Prime Minister Pedro Sanchez has announced the government's decision to abolish the golden visa program. This scheme allows foreigners to secure residency by investing a minimum of €500,000 in Spanish real estate. The move marks a pivotal change in Spain's approach to foreign investment and residency.

Introduced in 2013, amid a struggling housing market and the wider Euro crisis, the golden visa program was seen as a vehicle to attract foreign capital into Spain's property sector. The scheme did not only pertain to real estate investments but also extended to those injecting over €1 million into Spanish companies or more than €2 million into government bonds.

Despite its initial intent to bolster the economy, the program faced intense criticism for fueling inflation and serving as a conduit for illicit funds. In a press conference held in the Seville area of Dos Hermanas, Sanchez outlined the government's stance, emphasizing the move away from speculative property investments. This decision aligns with the Socialist-led government's broader housing policy aimed at ensuring access to affordable living spaces.

The Prime Minister detailed that an overwhelming 94% of the visas issued under this scheme were linked to real estate purchases in major cities like Barcelona, Madrid, Malaga, and Valencia. These cities are notorious for their high market prices, reflecting the program's contribution to property value inflation in sought-after urban centres.

The decision arrives at a crucial moment, ahead of imminent local elections in Catalunya and the Basque Country. With housing affordability at its heart, Sanchez's administration is keen on reforming the housing sector to guarantee that no Spaniard spends over 30% of their income on housing.

In 2022 alone, Spain awarded 2,462 golden visas for property investments surpassing the €500,000 threshold, marking a 60% increase from the year before. Since its inception, the program has issued 11,464 individual authorizations, not including the 19,805 permits granted for family reunification purposes.

The announcement follows a trend seen in other European countries, such as Ireland, Portugal, and Greece, which have recently scrapped their versions of the golden visa, pointing to the adverse effects on affordable housing stocks in major cities.

While intended to regulate the housing market and curb speculative investment, housing experts have voiced concerns over the potential economic fallout from such a move. Foreign investments, particularly in real estate, have been a significant driver of the Spanish economy, with international buyers constituting 15% of all property transactions last year—a record high.

As Spain prepares to phase out its golden visa program, the decision is poised to redefine the landscape of foreign investment and residency in the country, balancing economic benefits against social and housing policy objectives. Further details on the implementation and timeline for the scheme's termination are awaited

Spain has long been a popular destination for foreign real estate investment, with British, German, and French investors leading the way. However, a new trend is emerging from within Europe: an increasing interest from Polish investors. This article delves into the surge in Polish real estate investments in Spain, exploring the motivations behind this newfound interest.

The Emerging Polish Market

For decades, the Spanish real estate market has drawn significant attention from foreign buyers, largely from Britain, Germany, and France. However, recent statistics indicate an unprecedented rise in Polish investors. Commercial activities along the Mediterranean coast appear to be the primary focus for Polish investments, possibly due to the region's favourable climate and potential for substantial returns on investment.

In Q2 2023 alone, foreign real estate buyers accounted for nearly 15% of the total housing transactions in Spain, which translates to more than 22,700 sales. A striking 890 of these transactions, or roughly 4%, were conducted by Poles. Compare this to previous years, and the trend becomes clear: in 2019, Poles were responsible for a mere 1.9% of all real estate sales in Spain, but by 2023, this figure had grown to an astounding 3.6%. Polish buyers are now surpassing American and Russian buyers in their investment in Spanish real estate.

Why the Sudden Interest in Spanish Properties?

The surge in Polish investment in Spanish properties is born out of a blend of factors, with soaring inflation serving as a key catalyst. Many Poles see real estate as a stable investment, especially amidst economic uncertainties, and buying abroad offers an enticing alternative to the inflation-ridden domestic market.

Yet it's more than just fiscal practicality that's luring Poles to Spain. With its tantalizingly low cost of living, year-round sunshine, and attractive pricing, Spanish real estate is hard to resist. A brand-new development along the sunny Spanish coast can be priced as low as 1500 euros per square meter – significantly cheaper than in Warsaw, where you'd be hard-pressed to find a new property priced below 2300 euros per square meter.

War as a Contributing Factor

Another important catalyst behind this shift is the fear of war. Amid global uncertainties and instability, many Poles are increasingly viewing Spanish properties as safe havens to secure their wealth and provide a potential escape route.

Lifestyle and Climate Appeal

In addition to the economic motivations driving this trend, the pursuit of more pleasant living conditions also plays a substantial role. The Mediterranean lifestyle – complete with sunny weather, laid-back living, and plentiful outdoor recreation opportunities – stands in stark contrast to Poland's gloomier winters. In fact, six of Europe's top ten sunniest cities are in Spain.

Within Spain, the Alicante province, known for having the most sunny days per month and most hours of sunshine per year, has become especially popular among Polish investors.

As this trend continues to grow, areas popular with Polish investors are adapting quickly, adding amenities like Polish shops and schools, as well as real estate services catering specifically to Polish customers. With Poles not only investing but also making the move to enjoy their Spanish properties, regions like Torrevieja are slowly evolving into 'little Poland'. This not only helps new residents feel at home on the Spanish coast but also helps to drive even more Polish buyers to the area.

Overall, the rising Polish interest in Spanish real estate reflects both the economic and lifestyle advantages that Spain offers to foreign investors. As this trend continues, it will be interesting to see how the Spanish property market and society continue to evolve and adapt.

[source : BizBlog.pl]

In today's rapidly transforming world, the concept of work has evolved beyond traditional office spaces and rigid schedules. The rise of digital nomadism signifies this shift, where professionals leverage technology to work remotely while exploring new cultures and geographies. Spain, with its rich cultural heritage, enticing landscapes, and favourable climate, has emerged as a coveted destination for digital nomads worldwide. To embrace this modern work lifestyle, Spain has introduced the Digital Nomad Visa, making it easier for international remote workers to move to and live a new life in its vibrant locales.

What is the Spanish Digital Nomad Visa?

The Spanish Digital Nomad Visa is a part of Spain's strategic initiative to attract international talent and foster economic growth by tapping into the global trend of remote working. This visa provides a legal framework for non-EU/EEA citizens to reside in Spain while working for foreign employers or as self-employed individuals. It's a response to the growing demand for flexible living and working conditions, catering to professionals who crave adventure without sacrificing their careers.

Requirements and Eligibility

To qualify for the Spanish Digital Nomad Visa, applicants must meet certain criteria, including but not limited to:

Proof of Sustained Income: Applicants must demonstrate a stable and sufficient income to support their stay in Spain. The required monthly income is typically above a threshold set by the Spanish government, often around 2,000 to 2,500 euros, though this may vary based on individual circumstances and the number of dependents.
Health Insurance: Comprehensive health insurance coverage is mandatory, ensuring that applicants have access to medical services without burdening the local healthcare system.
Clean Criminal Record: A clean criminal background is essential for securing the visa, and reaffirming the applicant's suitability for living in a new community.
Professional Status: Applicants must either be employed by a company outside of Spain or work as freelancers with foreign clients. Proof of employment or business activity is crucial.

Benefits of the Spanish Digital Nomad Visa

The introduction of the Digital Nomad Visa by Spain offers numerous advantages, making it an alluring option for professionals dreaming of a Mediterranean lifestyle:

Legal Residence: The visa grants legal residence in Spain for an initial period, usually one year, with the possibility of renewal for longer stays.
Access to Spanish Life: Visa holders unlock the door to Spain's rich culture, exquisite cuisine, and diverse landscapes-from bustling cities to tranquil beaches.
Favourable Tax Treatment: Digital nomads may benefit from specific fiscal policies designed to ease the transition and encourage long-term stays.
Work-Life Balance: Spain is renowned for its emphasis on work-life balance, offering an environment that fosters both professional productivity and personal well-being.

The Beckham Rule: A Unique Financial Incentive

The Beckham Rule is a special tax regime for expatriates, reducing the tax on the first €600,000 of Spanish income to just 24%. This also means the Wealth Tax and new Solidarity Tax only apply to Spanish assets, not those held in other countries.

How to Apply
The application process for the Spanish Digital Nomad Visa involves several steps, including submitting documentation that verifies the previously stated. Prospective applicants are encouraged to consult the Spanish consulate or embassy in their home country for detailed guidance, as procedures and requirements may vary.

Embracing the Spanish Lifestyle
Living in Spain as a digital nomad opens up a world of opportunities. Beyond the sunny beaches and historic landmarks, Spain offers a warm, welcoming community, a slower pace of life, and an exceptional quality of life. It's a chance to immerse oneself in a new culture, learn a new language, and build a life that balances work with the pleasures of discovery.
Spain's Digital Nomad Visa is more than just a permit to reside and work; it's a gateway to new experiences, friendships, and insights. For those yearning for a change of scenery without giving up their careers, this visa offers the perfect blend of opportunity and adventure. With this initiative, Spain is poised to become a leading destination for digital nomads, offering a way to live a new life filled with culture, beauty, and freedom.

Ready to start your nomadic journey in Spain? Why not take a look at what you could be renting in no time at all...

Purchasing a property in Spain is undoubtedly an exciting experience, but it can also be quite daunting, especially if you're new to the country. Spain, like any other place, has some unique factors and pitfalls that you need to be aware of when buying. To make your journey as smooth as possible, we've put together a comprehensive collection of things to avoid when buying a house in Spain.

1. Skipping the Research Phase

Spain offers a wide range of properties, each with its own charm: from modern apartments in bustling city centers to traditional farmhouses in the picturesque countryside. Before diving into the market, take some time to research the areas that interest you. Make sure to consider factors such as amenities, accessibility, and potential for rental income or resale. Thorough research can save you from costly surprises and potential disappointments down the line.

2. Ignoring Legal Advice

Common pitfalls when buying a property in Spain often involve legal issues. Engaging knowledgeable local lawyers is crucial to ensure that your interests are protected and all necessary due diligence is conducted. They can help spot potential legal problems, such as inconsistencies in property registration or pending legal disputes. Don't underestimate the value of professional legal guidance – this can be the difference between a smooth transaction and a long-term headache.

3. Overlooking Property Inspections

Just like conducting a thorough research on the local market, getting an inspection of the property is essential before committing to a purchase. A professional surveyor can identify structural issues, assess the state of essential services and utilities, and detect any potential hazards. This information is invaluable when negotiating the final price of the property and can save you a lot of money in avoiding unforeseen repairs.

4. Underestimating Additional Costs

Many buyers are surprised by the additional costs associated with a property purchase in Spain. You should be prepared for charges such as the property transfer tax (stamp duty), notary fees, lawyer fees, valuation fees, and bank charges if you need a mortgage. These costs can add up to around 10-15% of the purchase price, so make sure to budget for them in advance.

5. Rushing into a Decision

Committing to a property purchase in Spain can be a big step, so be patient and take your time. Do not rush into decisions under the pressure of agents or sellers. Visit the property multiple times, get second opinions, and ask lots of questions. If you feel uncomfortable or unsure about any aspect of the purchase, it's better to walk away than to realise too late that you've made a bad decision.

6. Neglecting Future Expenses

When looking at properties, it's easy to focus solely on the purchase price. However, be sure to consider the maintenance costs and any necessary renovation work. Older properties may require significant investments to restore them to their full potential, and this can impact your budget significantly. Additionally, make sure to factor in annual costs, such as property tax, local taxes, and utility bills.

7. Ignoring Currency Fluctuations

If you're transferring money from a different currency to buy a property in Spain, be wary of fluctuations in exchange rates. Currency fluctuations can significantly impact the affordability of your property purchase, so work with a currency exchange specialist, or try to lock in favourable rates to give you peace of mind and save on the overall cost.

8. Forgetting About Rental Regulations

If you plan to rent out your property in Spain, be sure to familiarize yourself with the local rental regulations and tax requirements. These can vary between regions, and noncompliance can lead to fines. Recruit a local property management company to help you navigate these laws and ensure your rental property is a success.

9. Miscommunication

Language barriers can often cause misunderstandings when buying a property in Spain. If your Spanish is not fluent, consider hiring an interpreter or a bilingual lawyer to ensure smooth communication between all parties involved. Miscommunication can lead to unnecessary complications and delays.

10. Losing Sight of Your Goals

Finally, always keep your goals in mind. Whether you're buying a property as a holiday home, an investment, or a permanent residence, stay focused on what you want and need. Remember your initial plan, and don't be tempted to compromise too much on the features that matter to you.

By avoiding these common pitfalls, you'll be better equipped to purchase a property that meets your expectations. With careful planning, thorough research, and professional guidance, buying a house in Spain can be a rewarding and enjoyable experience

Malaga, internationally renowned for its paradisiacal coast, charismatic culture, and pleasing climate, has recently achieved a new accolade. According to the recent Savills' annual ranking, Malaga now proudly stands as the second-best city in the world for executive nomads.

Savills, a globally recognised estate agency and part of the FTSE 250 index, is well-respected for its extensive research related to real estate markets across the world. Their recent ranking identifies Malaga as a leading hotspot for executive nomads, greatly boosting the city's global prestige.

The Rise of Remote Work

The sudden proliferation of remote work, triggered in part by the COVID-19 pandemic, has empowered professionals to adopt a nomadic lifestyle, escaping the limitations of a fixed work location. The phenomenon of “executive nomads” has emerged rapidly, transforming the traditional workspace paradigm. This cohort comprises professionals who value flexibility and emphasise enhancing work-life balance while maintaining high productivity and standards of work.

Why Malaga?

In this new work-from-anywhere world, why does Malaga shine so brightly on the map of executive nomads?

The city, which is a marvel of the Andalusian coast in southern Spain, ticks multiple boxes for those who work remotely. Malaga promises a pleasant, Mediterranean climate that allows for year-round outdoor activities. The city's rich cultural heritage, paired with its modern infrastructure, makes it as equally attractive to history buffs as it is to fans of contemporary architecture.

Moreover, Malaga offers a lower cost of living compared to many Western European and North American cities, an aspect that appeals to many executives. Its strategic geographical location allows for easy travel across Europe and Africa, which is a significant factor for globetrotting nomads.

Apart from these factors, the city hosts high-speed internet connectivity and co-working spaces, which are the lifelines of remote work. Also, the presence of international schools and quality healthcare make it an ideal location for those with families.

Given these factors, it doesn't come as a surprise that Savills recognises Malaga as a top choice for executive nomads.

Impacts and Prospects

This recognition holds significant implications for Malaga. Primarily, it paves the way for an influx of remote-working professionals, fostering a micro-economy based on this new work culture.

The city's hospitality, real estate, and tourism sectors can all benefit from this rising trend. With the likely influx of digital nomads, local businesses can expect a significant boost, contributing to the city’s overall economic growth.

Subsequently, the distinction also holds prospects for further infrastructure developments and cultural exchanges, initiating a cycle that would further cement Malaga's appeal to the executive nomads around the globe.

The validation from Savills reconfirms Malaga’s position as a global participant in the new work culture paradigm, offering promising prospects for its future growth and development. These findings also serve as a confirmation of the rise of a new work culture that prioritises flexibility and work-life balance, ultimately transforming the professional landscape in a post-pandemic world. 

When we face the purchase or rental of a house, we always face the first doubt: Is it the right time to buy a property? If we decide it is, we'll start the search, and when we find a flat we like, we will face the next doubt: Is it well-priced? Is it an expensive or cheap house? How could I calculate the appropriate price for this flat?

It doesn't matter if you are the owner, the buyer, the landlord, or the potential tenant; everyone doubts what the adequate price for a house on sale or rent would be, and it is not always easy to identify cheap flats.

Formulas to Calculate Housing Price

Sale and rental prices have a relationship that, despite being variable depending on the time and other specific characteristics (such as location or city where the property is located), allows you to have an approximate idea.

In fact, we will see a series of simple ratios that will lead us to the approximate price of any property in relation to the rent price.

a) Gross Profitability of Rent

The gross profitability of rent is the percentage resulting from dividing the annual money we would get from a rental property by its theoretical sale price. Even if we are not going to rent our house, it is a good reference to know if we are making a good investment.

Gross Profitability of Rent = (annual rental income/purchase price) * 100

For example, with a house that rents for 12,000 euros per year (1,000 euros/month) and is worth 240,000 euros, it is said to offer a gross profitability of 5% according to this formula:

(12,000/240,000) x 100 = 5%

Keep in mind that we are talking about gross profitability (not net) because it is the ratio used for this calculation by the Bank of Spain. If we wanted to calculate the net profitability, we would subtract the expenses from the income, but that number would not be useful for the calculations in this article, for which gross profitability should be used.

b) The PER

The PER (Price Earnings Ratio) is another formula that allows us to identify if we are moving in the right price when buying a house. It involves dividing the sale price by the rental price. This data is equivalent to the number of times the annual rental income is contained in the sale price, or in other words, the number of years it would take to pay for a house through the rent under current conditions. It is a universally accepted ratio for valuing assets such as companies, homes, etc.

PER = (purchase price / annual rental income)

The PER of the previous house would be 20 times, and the calculation by which it was arrived at that data would be:

(240,000 / 12,000) = 20 times

Table of Equivalency Between Rent and Sale Price

With the above data, if we had two of the three previous figures (sale price, rent price, or PER), we could calculate the third. As we have the gross profitability data of all of Spain offered by the Bank of Spain (BdE) updated quarterly, we only need to know a reliable sale or rent figure to calculate an approximation of the other variable.

Thus, according to the latest report from the Bank of Spain (BdE), the gross profitability of renting a home in Spain at the end of the first quarter of 2023 is 3.4%. If we calculate the inverse of that data and multiply it by 100 (100/3.4), we would obtain the PER. In this case, the PER would be 29.4 years or almost 353 months.

In summary, if we are sure that an identical or similar house to our interest is rented at a certain price, currently you only need to multiply the monthly rent price by 353 months to obtain a suitable approximate sale price.

For example, if a house is rented for 1,500 euros per month and multiplied by the monthly rent price by 353 months, we would obtain that the selling price should be around 529,500 euros under current conditions.

Similarly, if we have a house that could be sold for 270,000 euros, just divide by 353 to know that its rent price should be about 765 euros monthly.

With this data and knowing that the gross profitability data changes over time and should be checked regularly, we can construct a table that relates the rent price to the current sale price.

Equivalencies between the rent and the purchase price with the average PER in Spain

Rent Price                         Purchase Price

300 €                                  105,900 €

400 €                                  141,200 €

500 €                                  176,500 €

600 €                                  211,800 €

700 €                                  247,100 €

800 €                                  282,400 €

900 €                                  317,700 €

1,000 €                               353,000 €

1,100 €                               388,300 €

1,200 €                               423,600 €

1,300 €                               458,900 €

1,400 €                               494,200 €

1,500 €                               529,500 €

1,600 €                               564,800 €

1,700 €                               600,100 €

1,800 €                               635,400 €

1,900 €                               670,700 €

2,000 €                               706,000 €

2,100 €                               741,300 €

2,200 €                               776,600 €

2,300 €                               811,900 €

2,400 €                               847,200 €

2,500 €                               882,500 €

2,600 €                               917,800 €

2,700 €                               953,100 €

2,800 €                               988,400 €

2,900 €                               1,023,700 €

3,000 €                               1,059,000 €

Note: The data has been calculated according to the latest data published by the Bank of Spain for a gross profitability of 3.4% in the first quarter of 2023 (PER 29.4 times). To move from one column to another, you must multiply or divide one of the data by 353 months. This coefficient is valid for current data but varies over time.

[source of data - Bankinter]

The Costa de Azahar, also known as the Orange Blossom Coast, is located in the province of Castellón. It is a stunning coastal region that boasts a diverse array of landscapes, ranging from rocky coves and secluded beaches to lush forests and citrus groves. Living in the Costa de Azahar is an experience that many people dream of, with its vibrant culture, breathtaking scenery, and relaxed way of life.

One of the most significant advantages of living in the Costa de Azahar is the climate. With an average of 320 days of sunshine per year, this region is perfect for those who love warm weather. The summers are hot and dry, with temperatures averaging around 30°C, while the winters are mild and comfortable. This climate is ideal for outdoor activities such as hiking, swimming, and cycling, making it a popular destination for adventure seekers and nature lovers alike.

In addition to the climate, the Costa de Azahar is famous for its stunning beaches. With over 120 kilometres of coastline, there are plenty of options for sunbathing, swimming, and water sports. Some of the most popular beaches include Playa del Norte in Castellón de la Plana, Playa del Moro in Alcossebre, and Playa de la Concha in Oropesa del Mar. Each of these beaches has its unique charm and character, and there is something to suit everyone's taste.

Aside from the beaches, the Costa de Azahar is also renowned for its gastronomy. This region is known for its fresh seafood, locally grown fruits and vegetables, and traditional rice dishes. Some of the most popular dishes include paella, arroz a banda, and fideuà. The local wine is also excellent, with many vineyards in the area producing high-quality wines.

The Costa de Azahar is a culturally rich region, with a history that dates back to ancient times. The area is home to many charming villages and towns, each with its unique architecture, traditions, and festivals. Some of the most famous festivals in the region include the Fiestas de la Magdalena in Castellón de la Plana, the Fiestas de San Juan in Peñíscola, and the Fiestas de la Virgen de la Salud in Algemesí. These festivals are an excellent opportunity to experience the local culture and traditions and are a highlight of living in the Costa de Azahar.

In terms of infrastructure, the Costa de Azahar is well-connected and has excellent transport links. The region is served by Castellón Airport, which offers domestic and international flights. There are also regular bus and train services that connect the towns and cities of the region. The healthcare system is also of a high standard, with modern hospitals and medical centres in each town.

In conclusion, living in the Costa de Azahar is a dream come true for many people. The region's stunning natural beauty, vibrant culture, and relaxed way of life make it an excellent place to call home. Whether you are looking for a peaceful retirement destination, a place to raise a family, or an exciting new adventure, the Costa de Azahar has something to offer everyone.