Buying a holiday home abroad – my experience in Spain and what to consider

While many Brits have traditionally bought places in the sun, there has been a recent rise in the UK with people considering a second home abroad or perhaps escaping altogether. So I thought it could be worth looking at the subject since I recently bought a property in Spain.

I have always dreamt of spending the winters somewhere less grey and miserable in the UK, and when I sold TLFL last year, I was finally in a position to do something about it. I thought it could be worth sharing the thought process about choosing where and what to buy, as well as some key points from my own experience. Plus ,you can see what I bought and even rent it out!

Deciding on a location and country

The first thing to decide is how you are likely to use the property, as this will in some ways dictate the location.

Visas

If you never want to spend more than a few weeks at a time, it means that you won’t need to worry so much about visas. If, however, like me, you plan to spend 6 months a year in your accommodation, you will need to look at the entry requirements and whether you qualify for a visa, if needed. In the EU, you can spend 90 days out of every 6 months within the EU without a visa. However, if you want to spend a disproportionate amount of time there in one season, this could be an issue. If your spouse has an EU passport, such as an Irish passport, this should not apply as you will be “piggy-backing” on their passport and can stay longer than 90 days.

Many countries offer visas that are relatively easy to obtain if you plan to spend a significant amount of time there. For example, Spain has a Non-Lucrative Visa, which is perfect for retired people with a reasonable income. There is also a digital nomad visa for those who can work remotely. Portugal also has a similar retirement visa, the D7, which allows you to stay if you can prove you have a certain level of modest income but won’t be working. Many other countries offer visas through investment.

Travel times and cost

If you plan to visit for short periods fairly regularly, then flying time, cost, and nearest airport should be considered. As we plan to visit frequently until we both retire, but often only for a weekend, one of the things we liked about where we bought was the fact that it was an easy 15-minute drive from the airport, which has regular flights from our nearest UK airport. Make sure you look off-season as well, because particularly within Europe, flight schedules vary widely during the year.

You should also consider the cost of travel if you are considering long-haul destinations or somewhere like Greece, which has become extremely expensive during the summer for a short-haul flight. 

Finally, you should consider how easy it is to get around without a car, even if you plan on hiring one. There may be times when you don’t want to drive everywhere just to get a few essentials.

Location

While you may have set your heart on a particular area, prices vary wildly between different areas, so it can be helpful to look beyond the normal areas. For example, most people automatically look by the sea, but if you are only going to go to the beach or sea front a couple of times a week, could you be slightly further inland to save money? If you won’t be there much, you may feel better having your property within a development such as an urbanisation in Spain, where there is often on-site security. 

I would have originally liked somewhere in the South of Spain, but unless you go a long way inland from the airports and coast, prices are high. Then, having visited around Alicante many times, I had originally thought this was the place for me, as prices are far more reasonable. However, by extending the search slightly further, I found prices were 20% cheaper, but that there was also another, closer, small airport in the area. 

How to research and find properties

There are several useful Facebook groups that provide lots of good information and the opportunity to ask questions. I definitely found these invaluable. For example, for Spain, I used Non Resident Spanish Owners.

I used a Place in the Sun and Right Move International to look for properties. Once I found estate agents in the area, I also followed them on Facebook and YouTube so I could see the properties when they were put on the market. That way, you don’t get hassled by them in the same way as if you signed up for their mailing list. 

Type of property

While a beautiful countryside finca with a lovely garden and pool may seem ideal, if you are only visiting a few times a year, this leads to a big headache about maintenance. Pools are particularly tricky as they need to be tended to very frequently, so a communal pool could be a better option.

Apartments are the easy, lock-up-and-leave option, but when you are in a sunny country, you usually want to spend time outdoors, so it can be surprisingly tricky to find apartments with good outdoor space. However, it is possible, and some even have small plunge pools. Apartments can also be more secure if they don’t have a separate entrance, but you need to consider things like stairs if you plan to keep it long term. Will a third-floor apartment with no lift seem so appealing in 15 years’ time?

Ongoing costs

Make sure you consider the costs of running the property in your affordability calculations. Apartments can come with a hefty monthly charge, plus there are energy bills, water, and council tax equivalents to consider. You may also want to have someone local to keep an eye on the property, which also costs. Finally, you should make sure you understand any personal taxes you will have to pay. For example, in Spain, you have to pay a non-resident tax and income on any rental money. The good news is that many countries have a reciprocal arrangement with the UK so you only have to pay tax in one of the countries. 

Money, money, money

There are a couple of things to consider, such as whether you need a mortgage, how you will transfer such large sums of money, and whether you will need a bank account in the country. In terms of a mortgage, interest rates are generally lower in Europe, but it can be much harder to get a mortgage. Spain has some very strict lending criteria that seem very unreasonable to me. It can be easier to get a loan in the UK, such as a second mortgage, but it will cost more.

You will be at the whim of the exchange rate changes, as I discovered when Donald Trump decided to destabilize the markets with his tariffs just before I was due to transfer the money. This can result in having to pay thousands more than you budgeted. I recommend finding a currency broker if you don’t want to rely on Revolut or Wise. They can provide reassurance when transferring large sums of money and buy the currency for you when it reaches a certain level. Then you can leave it there until you are ready to transfer. Currencies Direct and Lumon were two that I used.

You will need a bank account for direct debits for bills. Many countries, such as Spain, have much more complicated banking systems with fees. However, Wise is a global online bank where you can hold and transfer many currencies. I use this for my direct debits, rental income, and transferring money for services. If you buy a monthly subscription with Revolut, it can work out cheaper for exchanging money, but it is less accepted as a bank account for direct debits, even though it should work the same as Wise.

Renting your property out

If you think there is a chance you may want to rent your property out, this is something to investigate thoroughly. With growing resentment in Spain and other countries over short-term rentals and their impact on the housing market, laws governing rentals are tightening up. Even in the US, many Homeowners Associations have strict rules about rentals. Spain now has quite restrictive laws, which means you need a license to rent out your property and must obtain approval from your local community. If possible, try to obtain a property with a license already in place. 

You also need to have an understanding of the costs involved in rentals. While it can be a great way to cover the costs of having a place abroad, it may be more expensive than you think, considering costs such as cleaning, pool maintenance, and key holding. Will you do the advertising and organising yourself instead of using a company? Do you have the time to deal with enquiries and issues? Will using an agency cut too much into your profits? Finally, you will need to have insurance for rentals and may need a buy to let mortgage if you need finance.

Climate, health care, and insurance

It may sound obvious, but a lot of people assume that Southern European countries are warm all year. For example, areas such as the Balearics can be warmer than the UK but still pretty cool over the winter. Make sure to conduct detailed searches on your area, including weather conditions year-round, as the climate can vary significantly even by venturing 30 minutes inland. 

Although you have travel insurance and the GHIC scheme, if you plan to spend longer than 30 days in the holiday home, it may be excluded from your current policy. If you have health conditions, you may want to check if you can get longer coverage before making any decisions. Similarly, many UK house policies have mandates on how long you can leave your house unoccupied.

If you have health conditions or are concerned, ensure you are familiar with the local facilities. Countries such as Portugal and Spain, which attract many English tourists, typically have English-speaking clinics in the tourist areas, but not in more remote areas. At regular doctors’ and hospitals in Spain, you will be expected to arrange and bring a translator with you if you do not speak Spanish. 

My experience buying in Spain

I had always been tempted by Spain, but went through a lot of options, such as other European countries as well as the US and Asia. In the end, I went back to my original plan of Spain as I felt from going almost every year to various parts over the last 40 years, I am pretty familiar with the culture and what it has to offer. I also wanted somewhere I could just go to for a weekend or pop across quickly if there was an issue with the property. 

As I mentioned, I originally chose Alicante because I was familiar with the town and its inland areas. However, as I started to look at the areas with “urbanisations”, ie, housing developments, I realised that many were quite old now and often looked very crowded and busy. I was struggling to find anything I liked the look of within budget, so I decided to widen my search area to Murcia, which seemed a lot cheaper.

Murcia is a much quieter area and the sixth largest city in Spain. There are plenty of lovely beaches and historic towns to explore. The climate is also known as one of the warmest and sunniest parts of Spain but tends not to get the extreme heat compared to some other parts of Spain.  I specifically wanted a golf resort (even though I don’t play golf!) as I wanted to be able to rent it out year-round and they usually have a good mix of nationalities and plenty of facilities. I then narrowed it down by the types of properties available, the location, the prices, and the facilities such as bars and restaurants, that were nearby. Once I had narrowed it down to around 4 resorts I booked a trip to view. Some larger property companies will provide a paid viewing trip, but I did not want to be at someone’s behest, so we just arranged our own. We booked appointments to see at least one property in each of the resorts and made sure we had a good look round each development. 

Although we preferred the look of one of the more established developments, none of the properties were large enough and we established that other than buying a villa, we would not get what we wanted there. However, the development I had wanted from the beginning had great properties and was reasonably priced. I had done a lot of research and was aware they were doing work to improve the golf course as well as extending the resort, which would mean more facilities. This certainly shows that the more research you can do, the better, as prices are still rising there after we bought.

We looked at a lot of properties in the same part of the development, but fell in love with ours the minute we set foot on the huge terrace. Although I had looked at the buying process in Spain, I hadn’t done enough research and realised when the agent asked that I did not have a NIE number, which you need for everything, even buying or collecting certain simple items. Fortunately, I got mine through quite quickly, and there is a way around it, but it is worth knowing about if you are considering Spain. The property seemed overpriced to me, so I made a cheeky offer and we agreed in the middle if furniture was included. In Spain, many places come with the furniture, in our case, even down to the TV and kitchen equipment!

In Spain, it is normal to pay a holding deposit of around €3000, which effectively takes it off the market. I think it is a good idea. The process is relatively quick, and depending on the circumstances, can be as quick as a week. The average is eight weeks, and a date for completion is set when you pay the proper deposit of 10%. Although similar to exchanging contracts in the UK, you could lose the 10% deposit if you don’t complete by the date (and the same for the seller). However, we were in the position where things were held up for a few days, and our solicitor indicated that in many cases, you can negotiate with the buyer to extend by a few days. 

Taxes need careful research as there are several different taxes depending on whether it is new or second-hand and where you are buying. Solicitors’ fees were similar to here, although I did have to also give my solicitor power of attorney, which means that you can buy the house without having to go back to Spain during the process. Having an English-speaking solicitor is very handy, and again, I recommend asking expats in Facebook groups for recommendations and then researching online. Ideally, go to visit one when you go on your viewing trip.

The process was fairly straightforward and definitely less stressful than in the UK, but it helped that there was only we and the buyers involved, rather than chains like in the UK. The process took just over 8 weeks from the offer. The only real stress was the Euro’s volatility against the pound thanks to Trump. At one point, we were facing a bill of an extra £5000. Luckily, I kept a very close eye on the rates and made sure I bought when it was peaking. In the end, we hardly had to pay any extra.

We employed key holders who were in the same development, and this has been a godsend in finding our feet. I would definitely recommend similar, at least for your first year, so you have someone to call if something goes wrong!

My property and how to rent

The 3 double bedroom property is situated on Hacienda del Alamo Golf resort, which is 15 minutes from the airport and within 30 minutes drive of Murcia, Cartagena and the coast. The apartment is 5 minutes stroll from the Spanish Village area which has multiple bars and restaurants as well as shop. The resort has tennis, padel, golf, kids playing areas a driving range, pro-shop, spa and hotel.

The apartment features fully integrated air conditioning and heating, two bathrooms and an outdoor shower, three bedrooms sleeping six people, a large terrace with a plunge pool, and in the near future, a barbecue area. There are steps down to a large communal pool with sun loungers, and two further pools are available for use in the development.

As the property has only just gone on the rental market, there are some real bargains available with the complete rental starting from €87 per night, even for the next few peak weeks. That’s for 6 people and includes almost everything apart from the deposit and cleaning fees.

If you want to check prices and availability as well as see a walk-through of the property, you can go to the rental agent’s site here. If you want to find out more about the location and what the resort has to offer, click here.