The Average Price for a Home in 2024: US vs. Spain

From its Mediterranean climate and fascinating history to its globally celebrated wine, cuisine and, of course, afternoon siestas, no one could blame you for dreaming of owning a home in Spain.

And if you want to, there’s good news. You can.

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Writing for BrightTax, managing CPA Nicolas Castillo explained, “Foreigners have the right to own property in Spain, which is not the case in every foreign country.”

He continued, “The Spanish property purchase process is relatively straightforward, the cost of buying real estate in Spain is often lower than in the U.S., there are a number of highly desirable areas of Spain to live in, it’s possible to create a reliable passive income stream by renting out a Spanish property… [and] in some situations, buying property may even offer you a pathway to residency.”

Here’s what you need to know about the cost of buying a home in Spain compared to in the U.S.

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Overall, There’s Near Price Parity, but the Big Cities Tell the Tale

According to Statista, the average home in Spain costs 2,809 euros — or around $3,112 — per square meter. That translates to about $289 per square foot.

The St. Louis Fed says the average home in the U.S. costs about $231 per square foot, which means Spain is a little more expensive overall. However, American homes typically run larger than many across Europe and other parts of the world — so the overall cost of a Spanish house may run lower, even if the price per square foot is higher.

Additionally, if you dream of living in a big, urban wealth center, Spain’s are far more accessible than their stateside counterparts.

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Home to Barcelona, the autonomous Catalonia region is the most expensive housing market in Spain. Statista reports the average property there commands $461 per square foot.

According to Kiplinger, America’s most expensive housing market is Manhattan, where the St. Louis Fed says the average price is $1,533 per square foot. That means your dollar buys 3.33 times more real estate in Barcelona than in the Big Apple.

Spain’s No. 2 most expensive housing market is the capital city of Madrid, where Statista says the average price is the equivalent of $440 per square foot. Kiplinger says America’s second-priciest market is San Jose, California, where Redfin reports the average cost as $875 per square foot. That means the Bay Area gives you half as much as you’d get in Madrid for the same price.

From there, the disparity only widens.

Beyond the top three — Catalonia, Madrid and Basque Country — all of Spain’s many regions are cheaper than the national average price per square foot. Conversely, the U.S. has Honolulu, San Francisco, Orange County, California, Washington, D.C., Los Angeles, Boston, San Diego, Seattle and many other markets where the average American earner can’t afford the average home.

In short, Spain offers a tempting alternative to anyone who is priced out of America’s exclusive millionaire metros but aspires to live in a big, culturally significant urban center.

Budget for Taxes, Double Taxation and Fees

According to the global population and cost-comparison platform Numbeo, life is comparatively cheap in Spain. The No. 40 most expensive country in the world, it falls between Latvia and Lithuania.

On the other hand, the U.S. is in the top 10 — more expensive than No. 8 Hong Kong but cheaper than No. 10 Australia.

In Spain, you’ll spend less on things like utilities, entertainment and groceries, but if you buy a home there, be sure to set aside plenty for the Spanish taxman.

According to the full-service global law firm Giambrone, which has offices around Spain and greater Europe, “When buying property in Spain, you should expect to pay between 8% and 11.5% in taxes, but this can differ between new and resale properties. For a new property, you will have to pay 1.5% of the purchase price on stamp duty and VAT (IVA), which is imposed at 10% of the purchase price.”

Ownership also exposes your earnings to taxation — even if you cash your check in the States.

The Giambrone Full Guide To Real Estate Tax Law in Spain continued, “Nonresidents who own a property but do not rent it (impuesto de la renta de no residentes, declaracion ordinaria) will have to pay personal income tax. Even if you have no other taxable income in Spain, you will still have to pay this tax.”

It’s important to remember that the U.S. taxes global income, too. That means Uncle Sam will take a piece of any income you earn in Spain while Spain gets its cut of your U.S. income.

This article originally appeared on GOBankingRates.com : The Average Price for a Home in 2024: US vs. Spain