Investing abroad: Buying a house in Spain

When I bought property in Spain five years ago, the exchange rate was about one Canadian dollar (CAD) to 60 euro cents (EUR), whereas last September the dollar was changing hands at 76 euro cents, the strongest ever. It fell slightly in October, but it still has a significant impact on the price of real estate.

For example, most of the Canadians we help are interested in obtaining a Golden Visa, which gives buyers from outside the European Union (EU) the opportunity to live in Spain with their loved ones without tax residency status. This is available with a cash investment of 500,000 euros or more in real estate. If the value of the property exceeds the €500,000 investment, they may be eligible to obtain mortgage finance from a Spanish lender for the remaining amount. If we look at this level of investment, we can see the impact the exchange rate can have.

Buying a property for 500,000 euros to get a Golden Visa would have cost $620,000 in July or September, but nowadays it will cost $672,000. Just a few years ago it would have cost the equivalent of $700,000.

To take full advantage of the strong dollar, we recommend using a reliable currency broker to convert your funds into euros instead of using a regular bank. The fact is that this can actually save you a lot of money, as they will offer the best rate and options such as letting you transact at an attractive rate, or you can buy at the current rate when it reaches your predetermined level. All these tricks can save you thousands of dollars and protect you from the possible instability of the Canadian dollar.

If you dream of the Spanish lifestyle and tranquility, incredible weather, delicious food and wine that Southern Spain has to offer, I recommend you look into investing as soon as possible. Not only is the exchange rate on your side, but on average, real estate prices in Spain are lower than in Canada and the cost of living is lower, helping expatriates avoid potential problems with rising inflation and interest rates. Another recent good news for buyers is that Andalucía (a province in Spain) has eliminated the wealth tax to attract people with high incomes to make this place their permanent home. This makes Andalucía one of the most tax burdened regions in Spain after Madrid. Based on all these factors, I believe there has never been a better time for Canadians to invest.

How we work with agents

The real estate market is very collaborative; agents work with agents from other agencies as our buyers come from all over the world. Similar to Canada and the US, we work with a multi-listing service that allows agents to see all available properties on the market with much more up-to-date and accurate information than on public systems. This means that if we partner with an agent from Canada who has a buyer interested in our area, we can search for suitable properties, list them and even arrange virtual viewings for your clients without having to travel.

How Canadians buy real estate in Spain

We are seeing significant changes because of the exchange rate, and the number of buyers from North America and Canada has increased significantly. Buyers from North America account for 25 percent of our sales over the last four months, and the last four transactions have been three Americans and one Canadian buyer.

We have tons of information about this region, including great guide videos on our YouTube channel. I love my life in the south of Spain! I think the lifestyle, weather, climate, people, food, wine and European travel opportunities here are unique. As a Canadian expatriate, I am ready to help any Canadian buyer repeat my journey and make the dream of Spanish living a reality.

Joyce Little is an Irish-Canadian who lived and worked in Los Angeles, Florida and Toronto before moving to the Costa del Sol in Southern Spain in 2017. She is the director of Cloud Nine Spain and specializes in helping international buyers purchase properties in the Marbella area.