When I bought my property in Spain five years ago, the exchange rate was hovering around one Canadian dollar (CAD) to 60 euro cents (EUR), whereas this past September, the dollar was changing hands for 76 euro cents, the strongest it has ever been. In October, it dropped slightly, but this still makes a big difference in the price of a property.
For example, most of the Canadians we’re helping are interested in obtaining a Golden Visa, which provides buyers outside of the European Union (EU) with residency in Spain for their immediate family without becoming tax residents. This is available with a cash investment of €500,000 on a property. Should the property price exceed the €500,000 investment, they may be eligible to obtain mortgage funding with a Spanish lender for the remainder.
When we look at this level of investment, we can see just what a difference the exchange rate can make. Purchasing a property of €500,000 to qualify for the Golden Visa would have cost $620,000 in July or September but will currently cost $672,000. This would have cost the equivalent of $700,000 only a few short years ago.
To benefit fully from the strong dollar, we recommend using a reputable currency broker to transfer your funds into euros instead of using a high street bank. It can make a real difference, as they will get the best rates and offer options such as allowing you to forward-buy at an attractive rate, or you can spot-buy when the rate hits your pre-determined level. All of these tricks can save you thousands and protect you against the volatility of the Canadian dollar.
If you’re dreaming of the Spanish lifestyle and the laid-back way of life, incredible weather, delicious food and wine that the South of Spain has to offer, I’d recommend that you look into making an investment sooner rather than later. Not only is the exchange rate on your side, but on average, the price of real estate is lower in Spain versus Canada, and the cost of living is lower, too, helping ex-pats avoid the squeeze as inflation and interest rates rise.
Another recent development, which is excellent news for buyers, is that Spain’s Andalucia province has scrapped the wealth tax to encourage those with higher incomes to make it their permanent home. This makes it the region of Spain with the fewest taxes after Madrid.
Given all of these factors, I believe Canadians have never had a better time to invest.
How we work with agents
This is a very collaborative real estate market; agents work with agents from other agencies as our buyers come from all over the world. Similar to Canada and the USA, we work with a multi-listings service, which allows agents to see all properties on the market with much more up-to-date and accurate information than you find on the public systems.
This means that if we collaborate with an agent from Canada who has a buyer interested in our area, we can search for suitable properties to match their brief, shortlist properties, and even offer virtual viewings for your clients without having to travel.
How Canadians are buying property in Spain
We’ve seen a significant shift due to the exchange rate and North American and Canadian buyers massively increasing. North American buyers represented 25 per cent of our sales over the last four months, and the last four deals we’ve done have been to three Americans and one Canadian buyer.
As I am an ex-pat of Canada and the USA, I understand that the Canadian buyer will have a different buying journey than our UK and European buyers. In collaboration with the Canada-based agent, we can assist these clients from start to finish.
Due to the distance, there’s a lot of research done prior to their visit to Spain. We work with them via video calls and virtual viewings to help them familiarise themselves with the area and their property selection.
A recent buyer spent nearly three weeks with my colleagues discussing, shortlisting and viewing properties virtually before coming over to touch, feel and experience the property in person. Ultimately, they bought on the same development they had identified as their favourite from the video tours. They felt very comfortable because they felt that they had already got to know the place. So, it was time well spent for them ahead of the visit.
These buyers are committed to purchasing something before they travel, as they must make specific trips to come here to look at properties and decide. As they are travelling a great distance, they are on a mission to find something, as many don’t have the time or desire to come back for multiple visits. It is a lot easier when we all have taken the time to research and shortlist before they arrive so that they can confidently make the right decision and purchase.
We have a wealth of area information available for those interested, including some 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 opportunities to travel in Europe are second to none. As a Canadian ex-pat, I’m here to help any other buyer from Canada to follow in my footsteps and make the dream of Spanish living a reality.
Joyce Little is Irish-Canadian and has lived and worked in Los Angeles, Florida and Toronto before relocating to the Costa del Sol in Southern Spain in 2017. She is a Director of Cloud Nine Spain and specializes in helping international buyers purchase property in the Marbella area.
