Culturally, Spain is a country of contradictions. There is an element of machismo left over from the days of the dictatorship that ended almost fifty years ago but the country is also one of Europe's most liberal societies. Same-sex marriages were legalised tweny yars ago, there is a high level of involvement of women in senior political office and Spain is only the fourth country in Europe to allow euthanasia. Under strict conditions, obviously.

Euthanasia in the European Context

Spain's legislation aligns it with other progressive European nations but also highlights significant contrasts across the continent.

• The Netherlands, Belgium, and Luxembourg: Pioneers in euthanasia legislation, legalizing it in the early 2000s. Their laws allow euthanasia for adults and, under strict conditions, for minors.

What is an AFO and When is it Required?

The AFO (Asimilado Fuera de Ordenación) is a legal status in Spain, particularly in Andalusia, for buildings that have been constructed without a permit or in an area where construction is not allowed but which are too old to face demolition under urban planning laws. The AFO designation provides a way to regularize such properties, allowing their owners to access essential services like water and electricity while ensuring that the buildings meet minimum safety and habitability standards.

Below is an overview of key aspects of the AFO process based on frequently asked questions:

1. When Does the AFO Status Apply?

The AFO status applies to any building classified as irregular within Andalusia. These can be situated on urban, developable, or non-developable land and may include isolated buildings or collections of buildings. In reality, AFOs mostly affect country properties in Andalucia whose title deeds do not reflect reality. To be eligible for an AFO, the building:

• must have been completed more than 6 years ago, which should be verified by an architect.
•  cannot be located on specially protected land, within coastal influence zones, or in areas of flood risk.

2. What Is A Completed Building?

A building is considered completed when no further work is required for it to serve its intended purpose, other than minimal maintenance or safety repairs. In other words, a house ready for occupation.

Why Is Spain Cancelling The Golden Visa?

Back in April, the Spanish government announced the cancellation of its Golden Visa programme due to growing concerns about its impact on the housing market and social inequality. Just to recap, the Golden Visa has offered residency to non-EU nationals (UK, USA, Canada, Japan etc.) who invest at least €500,000 in Spanish real estate. However, it has also sparked controversy for several reasons. Let’s look at why the government has taken this step.

1. Rising Property Prices and Gentrification

Critics argue that the Golden Visa programme has contributed to rising property prices in cities like Madrid, Barcelona, and popular coastal areas, making it difficult for local residents to afford housing. With foreign investors purchasing expensive properties, often for speculative purposes or as second homes, the demand has driven up prices in both the rental and purchase markets, leading to gentrification and pricing local residents out of the market. There is some justification for this argument in the cities but not in the countryside where the market for properties in excess of €500.000 is relatively small in number. And the countryside needs investment from non-EU nationals as there is still a drift away from rural zones amongst the Spanish population, leading to depopulation in some areas.

2. Housing Affordability

Nestled in the heart of Andalucia, Granada has long been a melting pot of cultures. Among its many treasures, the art of creating ceramics stands out as a living testament to the city's rich heritage. Two names stand out as proponents of the ceramicist's art in the city: Fajalauza and Al-Yarrar.

Fajalauza

Fajalauza pottery, named after the historic Fajalauza Gate in the Albayzín district, dates back to the 16th century and represents the enduring artistry of Granada ceramics. Emerging during a period of cultural synthesis following the Reconquista, Fajalauza pottery embodies the fusion of Moorish and Spanish influences. Its distinctive motifs, often featuring natural elements such as birds, flowers, and vines, are painted by hand with a characteristic palette of cobalt blue and green on a white background.

In recent years, co-living has emerged as a popular trend in Spain, offering a fresh alternative to traditional housing models. Rooted in the idea of shared spaces and communal living, co-living brings together people from diverse backgrounds to live, work, and socialise in a supportive environment. While it began in urban centres like Madrid and Barcelona, co-living has now spread to rural areas, offering a flexible lifestyle for individuals seeking connection and affordability. But what is driving this rise in co-living in Spain, and who is it really for?

What is Co-living?

Co-living is a shared housing concept where residents, often strangers, live together in a communal setting, sharing common spaces such as kitchens, living rooms, and workspaces while having private bedrooms. This model promotes a sense of community, collaboration, and shared responsibility, appealing to a generation looking for more sustainable and cost-effective living options.

Growth and Opportunities in Rural Areas  

The Spanish real estate market in 2025 is set to continue its upward trajectory, driven by increasing demand, favorable economic conditions, and evolving buyer preferences. While urban centers like Madrid and Barcelona will remain key players, rural areas are emerging as vibrant opportunities for buyers and investors alike. With second-hand properties, lifestyle-driven choices, are driving demand in Spain’s inland areas. 

Positive Outlook  

The market is expected to remain dynamic in 2025, with several factors driving increased activity. The continuation of interest rate cuts, initiated in 2024, is a major incentive. The Euribor, the benchmark for most Spanish mortgages, has already dropped by over 1.2% in the past year, and further decreases are anticipated. This trend is opening the door for buyers waiting for more favorable financing conditions. 

Additionally, enhanced savings among households, a stable job market, and increasingly competitive mortgage products from banks are all factors fostering confidence in property purchases. This combination of financial factors is not only revitalising urban markets but also bringing rural properties into focus as an attractive, affordable option, especially for people who work remotely.. 

We are often asked when taking on a property, how long it is likely to take to achieve a sale. The short answer is, for the very individual properties we sell,  it is impossible to tell. We recently sold a house twenty hours after collecting the keys. Other properties have lingered years on the market.

What is the reason for this disparity? A series of factors influence the time it takes to sell. Some of these are under the control of the vendor, some under our control as agents and some are external factors which neither of us can affect.

In 2024, Granada proudly marks two significant milestones: the 40th anniversary of the Alhambra and Generalife being declared a UNESCO World Heritage Site in 1984, and the 30th anniversary of the Albaicín’s inclusion in this prestigious list in 1994. These dual anniversaries not only reaffirm Granada’s cultural and historical importance but also provide an opportunity to reflect on the city’s extraordinary legacy.

As part of the celebrations, a unique initiative has been launched: the "40-30 Commemorative Route", a curated journey through fourteen monuments that encapsulate the essence of these World Heritage sites. This route offers an unparalleled chance to explore Granada’s history, art, and architecture, guided by expert historians and enriched by the stories that define this city.

Bizum: Revolutionizing Mobile Payments in Spain

Bizum is a Spanish mobile payment platform that has revolutionised the way individuals and businesses handle transactions. Launched in 2016, Bizum is integrated with the banking apps of participating financial institutions, offering a convenient and widely-used service for peer-to-peer (P2P) payments and business transactions. It facilitates quick and easy money transfers, making it an essential tool for splitting bills, paying for services, and online shopping.

Spain's Beckham Law, officially known as the "Special Expatriate Tax Regime," was introduced in 2005. Named after footballer David Beckham, who was one of the first high-profile individuals to benefit from it, the law was designed to attract skilled foreign workers and high-income professionals to Spain. It offers significant tax advantages for qualifying individuals. Here’s an explanation of the benefits and eligibility:

Overview of the Beckham Law

Renting out properties as tourist houses or apartments (Viviendas de Uso Turístico, or VUTs) in Spain can be lucrative, but there can be significant legal and regulatory challenges. Individual investors can find themselves entangled in complex legal issues after deciding to rent out their property. While the prospect of additional income is attractive, the reality may involve navigating a maze of regulations and even potential conflicts between different authorities.

Complex Regulatory Landscape

Spain's regulatory environment is multifaceted, with three levels of government—national, regional (Autonomous Communities), and local—each playing a role in tourism and land use regulations.

Clients sometimes ask us whether they should raise money to finance a property purchase in their home country where they are familiar with the process or here in Spain. Before I briefly look at possible advantages or disadvantages, I want to stress that it is unlikely that you will be able to use the property you are buying as security. A lender based outside Spain is unlikely to want to have the asset that secures the loan in another country. You will most likely have to offer security in the country where the lender is based.

Benefits

Potentially Lower Interest Rates

Wealth Tax (Impuesto sobre el Patrimonio (IP)) is a national tax in Spain which has had an up-and-down ride in recent years. It is principally regulated by Law 19/1991. However, its collection is 100% devolved to the Autonomous Communities, which can exercise their own regulatory powers according to Law 22/2009. In Andalusia, control over the IP has been subject to a number of legislative changes but fundamentally, Andalucia has chosen to avoid collecting the tax as an incentive to high net worth individuals to base themselves in the autonomous region rather than in, for example, the capital Madrid.

The obligation to declare the IP was abolished in 2008, but temporarily reinstated in 2011 by Royal Decree-Law 13/2011. Since then, the obligation to file a tax return has been extended by various laws until 2021, when it was established that it would remain in force indefinitely.

US and Canadian citizens are increasingly interested in buying property here in Spain due to our favourable climate, beautiful landscapes, rich culture, and relatively affordable property market. We are frequently asked whether there are issues for US and Canadian citizens in buying property in Spain. In short, the answer is absolutely not. There is no difference between US and Spanish nationals in the actual purchase but there is in terms of being able to live full time in the country.

I’ll look at the residence restrictions and then recap the buying procedure.

Residence Restrictions

There has been considerable controversy in Spain in recent times with regard to tourist rentals in urban areas. As well as the popularity of “City Breaks” made possible by cheap flights, the rise of Airbnb creating a market for inexpensive rooms, apartments and houses, often in residential areas, has encouraged such travel and created a boom in urban tourism.

Whilst this has undoubted economic benefits, it is often not local businesses but international chains that benefit most. Increased tourist numbers also lead to overcrowding on public services and in the most popular streets, a change in the nature of shops with a tendency away from the need of locals to catering for tourists and, perhaps most significant a steep rise in rents, forcing residents further away from the centre. There are also environmental concerns, both with increased waste, higher carbon emissions and greater pressure on water and sewage resources.

What is it? How is it calculated? Who pays it and when?

The plusvalía tax, formally known as the "Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana" (IIVTNU), is a municipal tax. It is imposed on the increase in value of urban land when it is sold, transferred, or inherited. This tax is crucial for local governments as it provides a significant source of revenue. Here’s an overview of what it entails and how it is calculated.

Many clients ask us about the Catastro. They've heard of it in connection with property purchases, but don't know what it does and why it is important. I'll attempt to explain with some concrete examples:

Property Identification

The origins of the Catastro date back to the 18thC. The introduction of land use planning was a threat to the privileged classes because once ownership was attributed to each plot of land, the owner could no longer claim not to own it, nor to own less land than, in reality, in order to avoid taxes. The primary function of the Catastro is to identify all real estate properties in Spain. This includes both urban, rural, and industrial properties. Each property is assigned a unique catastral reference, which ensures clear identification and helps prevent disputes over ownership.

The Spanish Ministry of Housing and Urban Spaces has announced grants for house owners who wish to upgrade their property and reduce dependence on fossil fuels.

Comprehensive Residential Building and Housing Rehabilitation Aid Programme

The rehabilitation programme for economic and social recovery in residential environments, forms part of the Recovery, Transformation, and Resilience Plan (PRTR), which aims to promote the rehabilitation of apartment buildings, houses and neighbourhoods. The distribution of Next Generation EU funds to the eventual beneficiaries will be managed through the Autonomous Communities, such as Andalucia, based on agreements proportional to the number of households in each region. 

Objectives and Targets

High-speed rail (HSR) is a critical component of modern transportation infrastructure, offering fast, efficient, and environmentally friendly travel. Various countries have developed extensive HSR networks, with notable differences in length, development plans, and operational characteristics. Spain is at the forefront of HSR development. Only one country in the world has a more extensive network: China.

Here’s a comparison between Spain and some other European countries:

1. Spain
   • Current Length: ~3,330 km
   • Key Lines: Madrid-Barcelona, Madrid-Seville, Madrid-Valencia
   • Development Plans: Expansion towards Galicia, Basque Country, and along the Mediterranean corridor.
   • Features: Spain boasts one of the largest HSR networks in the world, emphasising connectivity between major cities and regions.

Introduction

Recognising that the 2002 regulations governing urban planning (known as LOUA: la Ley de Ordenación Urbanística de Andalucía) were too restrictive and based on an outmoded way of thinking, the Junta de Andalucia set about creating a more flexible model and this was brought into effect in June 2022. The new regulations are known as the LISTA: la Ley de Impulso Para La Sostenabilidad del Territory de Andalucía.