Here you will find news, views, events and information relating to real-estate in Spain.

Modelo 720 Fines Declared Null and Void

Modelo 720 Fines Declared Null and Void
Modelo 720 Fines Declared Null and Void

Modelo 720 Fines Declared Null and Void

The draconian fines which were imposed under the Modelo 720 Assets Declaration have been declared null and void opening the doors to claiming the money back. This is some welcome news for foreign residents and investors.

Under Spain’s 720 tax model, which was introduced back in 2012, foreign residents had to declare the assets they own in other countries to the Spanish tax authorities. This was, ostensibly, to combat tax evasion, money laundering, and the funding of terrorism, but many people suggested it was simply an attack on expats and appeared to be nothing more than a shameless shakedown.

“Null and Void”

Those with assets outside of Spain totalling 50,000€ or more had to declare this to the tax office but it didn’t work. Many investors simply stayed out of Spain and many that were already there simply left, leaving the country poorer. Ignoring or incorrectly filing under the Modelo 720 opened you up to massive fines sometimes approaching the value of the assets; possibly huge sums.

The judgement from the Spanish court follows an earlier judgement from the European Court of Justice (ECJ) ruling back in January which said that aspects of the 720 tax model declaration were illegal. The Spanish Supreme Court has now declared all related fines given out as null and void.

Therefore, the punitive measures are recognised as null and void, including those before the sentence of the ECJ on the 27th of January 2022,” explains the ruling.

The court judgement does not completely remove the Modelo 720 although it does declare the disproportionately high fines for non-compliance to be void. Additionally, Spanish tax law did not provide for a limitation period for the tax liability thereby violating the principles of the free movement of capital. A limitation period of 4 years has now been introduced.

In practice this means you still have to declare your assets but failure to do so or errors in your submission will no longer incur huge fines.


Rental Price Rises 2.40% in First Half

Average cost of renting in Spain was €10.22 in June
Average cost of renting a home in Spain was €10.22 in June

Average rental cost in Spain was €10.22 in June

The average cost of renting a home in Spain was 10.22 euros per square meter at the end of the first half of the year. This figure marked a monthly decrease of -0.10% and a quarterly increase of 0.17%, half-yearly of 2.40% and interannual of 6.13%.

According to Ferran Font, Director of Studies at, “rental income is showing its strength at a time when access to housing is difficult due to rising inflation.” Font suggested that one of the reasons that explains why it is now more expensive to be a tenant than a year ago is that “housing for sale has also become more expensive, as well as mortgages, and that means the plans of many potential buyers are delayed, which puts pressure on the rental market.” Font indicates that “tenant turnover is not renewed, which limits the available supply.” In addition, he points out that “the longer the economic uncertainty lasts, the more prices will skyrocket“.

On the other hand, Font believes that “it is very likely that the limits on rents that the Government plans to establish within the stressed areas to alleviate the salary effort will act as a deterrent for the owners of these properties, who may withdraw their apartment after assessing that it is no longer worth it“. In this sense, Font exposes the need to “provide greater incentives and reinforce legal security to bring out that unproductive housing that is not rented due to lack of stability and for fear of a costly and almost endless legal process.

Barcelona The Most Expensive Capital

The half-yearly data revealed that the most expensive regions to rent a home in June 2022 were Madrid (€13.38 p/m²), the Balearic Islands (€12.09 p/m²) and Catalonia (€11.78 p/m²), while the cheapest rents were in Castilla y León (€4.73 p/m²), Extremadura (€5.28 p/m²) and Castilla-La Mancha (€5.46 p/m²).

In the first half of the year, the most significant increase took place in Madrid (7.92%). The greatest adjustment occurred in Navarra (-8.16%). Compared to last year, Catalonia (11.10%) was the one that increased the most and Navarra (-9.33%) the one that fell the most.

In the classification of provinces by the cost of renting, in June 2022 the first position went to Madrid, with 13.38 euros per square meter. It was followed by Barcelona (€12.89 p/m²) and the Balearic Islands (€12.09 p/m²). On the opposite side, Cuenca closed the classification with 3.15 euros per square meter. Other economic provinces were Ávila (€3.32 p/m²) and Ciudad Real (€3.65 p/m²). The province that made its rents more expensive in the first semester was Cáceres (13.24%), while the one that made them cheaper was Guipúzcoa (-8.94%). From one year to another, the highest increase registered was that of Huelva (22.80%). The income that adjusted the most was that of Badajoz (-17.56%).

Regarding provincial capitals, Barcelona was the most expensive for renting a home with a price per square meter of 17.77 euros. It was followed by Madrid (€16.69 p/m²) and Donostia-San Sebastián (€16.14 p/m²). On the contrary, Zamora was the cheapest with 5.76 euros per square meter. Other economic provincial capitals were Ourense (€6.02 p/m²) and Ciudad Real (€6.23 p/m²). Zamora (15.43%) led the monthly increases, while Seville (-2.76%) was the capital that devalued the most in this period. Compared to June 2021, Pontevedra (18.39%) led the increases. The most striking cut was thrown by Ourense (-4.81%).


House Prices Up in Second Quarter

Average prices reached €1,936 p/m2 in Q2
Average price of homes for sale reached €1,936 p/m2 in Q2

Average prices reached €1,936 p/m² in Q2

The price of second-hand homes for sale in Spain increased by 1.2% in the second quarter of 2022. This is a year-on-year increase of 2.8%, bringing the average price per square metre to 1,936 euros. This increase is also the first quarterly increase since the fall seen in Q2 of 2021.

The trend in house prices is rising in general terms, but at a moderate pace. The demand to buy continues to be very strong and the offer is gradually reducing, these are the engines that drive prices up. However, the vast majority of autonomies are 34% below the maximum price reached during the bubble. So we still oscillate between relatively reasonable prices. Although there is one exception: the Balearic Islands currently have the maximum price of housing registered in its entire historical series, it is the only autonomous community to exceed the levels of the 2007 bubble, and the situation is alarming since it increases the difficulties of access to property. The rise in interest rates in July will very likely curb the demand for housing by making mortgage loans more expensive, and with a more moderate demand, prices may stabilize in the medium term“, explained María Matos, Director of Studios for Fotocasa.

Prices by Autonomous Communities

14 Autonomous Communities saw the price of homes for sale rise and it was the Balearic Islands that once again headed the ranking with a 5.4% increase; the largest quarterly increase detected among all the Spanish communities in the last twelve months. They are followed by Madrid (2.3%), Castilla-La Mancha (2.0%), Region of Murcia (1.9%), the Canary Islands (1.5%), Valencia (1.5%), Extremadura (1.0%), Aragon (0.8%), Cantabria (0.8%), Asturias (0.6%), Catalonia (0.5%), Andalusia (0.5%), Navarra (0.5%) and the Basque Country (0.3%). However, the average prices of homes in Castilla y León (-1.1%), La Rioja (-0.8%) and Galicia (-0.6%), are cheaper in June than three months ago (March 2022).

Regarding the ranking of prices by communities, Madrid is the most expensive, paying about 3,289 euros per square meter. It is followed by the communities of the Balearic Islands (3,070 euros/m²), the Basque Country (2,893 euros/m²), Catalonia (2,590 euros/m²), the Canary Islands (1,800 euros/m²), Cantabria (1,761 euros/m²), Andalusia (1,727 euros/m²), Navarra (1,682 euros/m²), Aragon (1,611 euros/m²), Galicia (1,599 euros/m²), Asturias (1,585 euros/m²), Valencian Community (1,472 euros/m²), La Rioja (1,437 euros /m²), Castilla y León (1,410 euros/m²), Extremadura (1,148 euros/m²), Region of Murcia (1,144 euros/m²) and Castilla-La Mancha (1,120 euros/m²).

Prices by Province

Data from Fotocasa shows that in the second quarter of 2022 the price of homes for sale rose in 34 of the 50 provinces of Spain. The quarterly increases range from 7.2% in Toledo to 0.2% in Ávila. On the other hand, the province with the most pronounced decrease is Zamora, which has seen its value fall by -3.4% in June compared to March 2022. It is followed by Salamanca (-2.6%) and Lugo (-2 %), among others.

The only province that has so far reached its maximum value in 2022 since the so-called real estate bubble is the Balearic Islands, reaching 3,070 euros per square meter in June. Taking into account the ranking of prices by province, Gipuzkoa, Madrid and the Balearic Islands are the only ones that exceed the barrier of 3,000 euros, specifically Madrid pays 3,289 euros, Gipuzkoa 3,174 euros and 3,070 euros per square meter for the Balearic Islands.

Only five provinces saw the price of housing between 2,000 and 3,000 euros/m² and they are Barcelona with 2,974 euros/m², Bizkaia 2,853 euros/m², Malaga with 2,596 euros/m², Araba – Álava with 2,570 euros/m² and Girona with 2,202 euros/m². On the other hand, Ciudad Real with 938 euros/m² is the only province with housing prices below 1,000 euros per square metre.


Significant Increase in Property Sales in April

Home sales registered an annual increase of 11.9%

Home sales registered an increase of 11.9%

In April, there were 173,396 property transfers recorded in the property registers, 1.3% fewer than in the same month of 2021.

In the case of property sales, there were 94,876 registered in April, an annual increase of 6.3%, according to data released by the INE.

86.3% of the purchases registered in April correspond to urban properties and 13.7% to rustic properties. In the case of urban, 57.8% are home sales.

The number of sales of rustic properties decreased 1.2% on the annual rate in April, while that of urban properties increased 7.6%. Within the latter, home sales registered an annual increase of 11.9%.

18.6% of the home sold in April were new build properties, while 81.4% were used. The number of sales on new homes increased by 3.4% compared to April 2021 and that of used homes by 14.0%.

Results by Autonomous Communities

In the month of April, the total number of transferred properties registered in the property registries per 100,000 inhabitants reached its highest values in Castilla y León (742), La Rioja (712) and Castilla–La Mancha (656).

The Canary Islands (23.4%), Andalucía (6.6%) and Asturias (3.7%) registered the highest annual variation rates.

Comunidad Foral de Navarra (–18.4%), Madrid (–12.3%) and the Basque Country (–6.4%) presented the lowest annual rates.

Considering registered home sales, the communities with the highest number of transfers per 100,000 inhabitants are Valencia (159), Andalucía (149) and Cataluña (133).

The specific sales figures for those three communities were 6,383 in Valencia, 9,984 in Andalucia and 8,018 in Cataluña.

House Prices Up Almost 5% in May

Second-hand houses increased 4.86% in May
Second-hand houses increased 4.86% in May

Second-hand houses increased 4.86% in May

The average price of second-hand housing in Spain in the month of May 2022 was 1,923 euros per square meter. This figure represented a rise of 0.91% compared to April, when the price was 1,906 euros per square meter. The rise compared to May 2021 was 4.86%, since the average price of homes for sale in Spain a year ago stood at 1,834 euros per square meter.

As inflation continues to grow, house prices are continuing to increase in price too. “Although the price of second-hand real estate maintains a certain distance with respect to the CPI, access to property is just as complicated for the population, given that salaries have hardly improved“, said Ferran Font, director of studies at This gap between the income of the Spanish and the price of residential property hardens access to buying. Font also indicates that “the selling of the current home does not solve a problem because the cost increase to take the next step is now larger“.

This situation benefits, according to Font, other profiles: “After the return to normality, many decided to buy a better home than the one they had. This replenishment is running out, leaving investors alone.” In this sense, the spokesman for the real estate portal points out that transactions are going to moderate. “Uncertainty drives housing as a defensive asset in the face of loss of purchasing power, but if repositories disappear and those who buy for the first time must wait for more favourable economic conditions, we will see how sales in 2022 do not reach the figures for the previous year“.

38 Capitals Saw Prices Increase

The most expensive regions in May 2022 were the Balearic Islands (€3,376 p/m²), Madrid (€3,254 p/m²) and the Basque Country (€2,878 p/m²) and the cheapest were Extremadura (€806 p/m²), Castilla-La Mancha ( €839 p/m²) and Murcia (€1,107 p/m²). Year-on-year, the most striking increases occurred in Madrid (7.20%), Valencia (7.06%) and Murcia (6.42%). The only negative variations were seen in Asturias (-1.18%) and Extremadura (-0.87%).

In Andalucia, the average price per square metre reached €1,430.

The Balearic Islands was the most expensive province with €3,376 per square meter, followed by Madrid (€3,254 p/m²) and Guipúzcoa (€3,229 p/m²). On the opposite side was Ciudad Real, which closed the month on 644 euros per square meter. Other cheaper provinces were Jaén (€693 p/m²) and Cuenca (€720 p/m²). The largest increases from one year to another were located in Alicante (9.84%), Guadalajara (8.89%) and Lleida (8.51%). The most pronounced decreases were recorded by Palencia (-9.38%), Zamora (-2.62%) and Jaén (-2.47%).

The most expensive capital was Donostia-San Sebastián, with 5,742 euros per square meter. Behind were Barcelona (€4,450 p/m²) and Madrid (€4,338 p/m²). Jaén was the most affordable, with a price of 1,070 euros per square meter. Other cheap capitals were Ciudad Real (€1,093 p/m²) and Ávila (€1,141 p/m²). The most intense increases compared to May 2021 occurred in Alicante (15.14%), Palma de Mallorca (11.14%) and Murcia (9.68%). The ones that fell the most were Palencia (-11.06%), Huesca (-10.67%) and Pontevedra (-6.69%).