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A rising number of Americans are increasingly choosing Spain as their destination for either extended stays as digital nomads working remotely or for starting a new chapter in their lives during retirement. According to a report by the General Council of Notaries in Spain, the population of American residents in Spain experienced a notable 13% growth between 2019 and 2021. Additionally, the purchase of homes by Americans in the country surged by an impressive 88% during the first half of 2019 compared to the first half of 2022.
Among various expatriate groups investing in this sunny country, Americans ranked second after the Danes in terms of real estate acquisitions, with a willingness to pay up to 2,837 euros, or $3,119, per square meter. Furthermore, the report highlights that Americans were responsible for driving the most significant increase in home prices during the same period.
According to the report by the General Council of Notaries, American buyers are directing their attention to urban locations such as Madrid. Like any major city, Madrid's appeal lies in its abundance of job prospects and amenities, which attract people to settle there. Another favourite amongst Americans is the southern coastal region of Andalusia. However, there is now a strong reputation circulating through word of mouth about Valencia, a city located farther north on the Mediterranean coast, which offers an urban setting by the beach and boasts a sizable expat community/
Nonetheless, Americans seeking a unique retirement or remote work experience and an adventurous life in Spain should consider several factors. One crucial aspect is the difference in property taxes between Europe and the United States. In Spain, a significant portion of the property tax is typically paid upfront as a stamp duty, known as "AJD" in Spanish, as opposed to the annual property tax payments common in the U.S. The buyer is required to make the payment for these taxes at the treasury office of the relevant autonomous region in Spain within 30 business days following the purchase of the property.
Before deciding to retire in Spain, it's important to carefully consider the financial and tax implications involved. Seeking guidance from a financial advisor is highly recommended to make well-informed decisions. Certain countries, such as Portugal, might request foreign residents to provide a credit report from their home country when they apply for a mortgage or attempt to establish credit. It's essential to be mindful of your existing debts and ensure that you continue making timely payments.
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