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Too hot or too cold: Spain’s homes struggle to keep comfortable temperatures

Amid rising temperatures and more extreme weather, new data reveals that a significant proportion of Spaniards are struggling to keep their homes at comfortable temperatures during the winter and summer months.

Too hot or too cold: Spain's homes struggle to keep comfortable temperatures
Murcia is a region where homes are often too hot in summer and too cold in winter. (Photo by FRED SCHEIBER / AFP)

Spaniards are increasingly finding it difficult to keep their houses at comfortable temperatures during the summers and winters, and the problem has grown markedly over the last decade.

This follows new data released from Living Conditions Survey recently published by Spain’s National Statistics Institute (INE), which revealed that over a quarter of families in Spain struggle to heat their homes sufficiently in winter and that a third are too hot in summer.

The percentage of households reporting difficulties in keeping their homes at a comfortable temperature has increased by almost ten percent overall in the last decade.

READ ALSO: Why are Spanish homes so cold?

In the colder months, the proportion that say they can’t keep their property sufficiently warm during winter has grown from 17.9 percent in 2012 to 27.5 percent in 2023.

The summer heat poses an even greater problem for Spaniards. The percentage of households struggling to keep their homes cool enough during the summer months has risen from a quarter (24.8 percent) to over a third (33.6).

READ ALSO: Ten ways to protect your Spanish property against the summer heat

This comes as Spain faces record breaking temperatures year round and rising energy costs. According to Spain’s State Meteorological Agency (Aemet), 2023 was the third hottest summer since records began, surpassed only by 2022 and 2003.

In summer 2023 alone, four official heat waves were recorded, lasting a total of 24 days.

READ ALSO: How the right orientation of your Spanish home can save you hundreds on energy bills

However, though rising temperatures clearly play a role, so too does geography, income, and poor energy efficiency caused by poor insulation.

Murcia is the region where the highest proportion of households have problems keeping their homes cool in the summer, with almost half of families polled saying they are in this situation (46.6 percent). Murcia was followed by Madrid, Andalusia, Catalonia, Aragón and Extremadura, where the figure is 36 percent.

At the other extreme, in the cooler, northern regions of Asturias, Cantabria and Galicia, it is not even 20 percent.

Despite that, it is also the southern regions that struggle the most with keeping their houses warm enough during the winter. Murcia is once again the region where the highest percentage of families are unable to keep their homes at an adequate temperature over the colder months.

40.1 percent of Murcianos say they find it difficult to heat their homes over winter. In Andalusia and Extremadura the figure is almost 35 percent, the other two regions that top the list, meaning the three most southern regions of Spain came out on top.

In contrast, in Navarre, Castilla y León​​, and the Basque Country, less than a fifth (20 percent) of households report problems maintaining a sufficiently warm temperature at home during winter.

Household income also factors into this problem. INE data shows that the proportion of households struggling to maintain an adequate temperature in their homes increases as average income decreases. Among families with the lowest income levels, 38.9 percent say that they are cold in winter and 41.3 percent say that they are too hot in summer.

Of the regions that struggle to keep their homes warm or cool enough, Murcia, Andalusia and Extremadura all have some of the lowest median per capita incomes in the whole country, along with some of the highest levels of poverty.

Equally, the parts of the country where this seems to be less of a problem, such as the Basque Country, Galicia, and Navarre, are some of the wealthiest regions of Spain.

Housing quality and insulation also contribute to poor energy efficiency, which in turn makes temperature control more difficult. Even among households with high incomes, 15 percent say that they are unable to heat their property sufficiently in winter and 24.8 percent struggle to keep it cool enough in summer.

According to INE data, a quarter (25.1 percent) of Spanish households have not made any improvements to their thermal insulation or heating system in the last year, significantly more than the 14.1 percent who have been able to make changes.

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AMERICANS IN SPAIN

Navigating Spain’s real estate market: A guide for American homebuyers

There are some key matters US nationals looking to buy a Spanish home should consider, from legal complexities, to tax, property inspections and the role of buyer's agents. This quick guide by an international lawyer in Spain has you covered.

Navigating Spain's real estate market: A guide for American homebuyers

Buying a residential property in Spain can be an exciting yet complex endeavour, especially for American buyers unfamiliar with the intricacies of the Spanish real estate system.

With varying regulations at the state, regional, and local levels, it is crucial to be well-informed and well-prepared.

In this article, Maryem Essadik, immigration lawyer and head of English-speaking international law firm Marfour, offers US nationals a breakdown of the key considerations when buying a Spanish property.

Legal Complexities

Spain’s legal framework for real estate transactions is multifaceted, involving regulations that differ significantly between the national, regional, and local levels. Therefore, engaging specialized real estate lawyers is highly advisable.

1. State, Regional, and Local Regulations: The Spanish legal system is characterized by its decentralized nature. Each autonomous community in Spain can have distinct laws affecting real estates and property transactions. For example, while some regions may establish restrictions for renting out properties (ie. Limitations or prohibitions on carrying out short-rental activities, limitations on long-term rental prices etc.), others might have significantly varying taxes and fees associated with property purchases, and others can also count with a singular regional Civil Code that regulates in a particular manner important aspects such as the initial down payment contract (“Arras” in Spanish) when buying a property. Municipal regulations can also considerably impact property use and renovations.

READ ALSO: Which cities in Spain have new restrictions on tourist rentals?

2. Legal Representation: A lawyer with expertise in Spanish real estate law can navigate these complexities, ensuring compliance with all applicable regulations. They can conduct due diligence, verify property titles, and check for any encumbrances or legal issues that could affect the purchase. Legal representation is not just a formality but a necessity in Spain to avoid potential pitfalls.

READ ALSO: What’s the difference between a gestor, a lawyer and a notary in Spain?

3. Immigration legal advice: In connection with the property you want to buy in Spain you should receive the proper immigration law advice. Nationality and Immigration regulations in Spain are a complex but at the same time exciting field to navigate to find the best solution that will be matching your concrete case and circumstances (i.e: Digital Nomad Visas, Non Lucrative visas etc.)

LISTED: The visa options Americans can apply for to live in Spain

Fiscal Considerations

Taxation is another critical area that requires careful attention. Spain’s tax system includes various taxes that can impact the overall cost and benefits of owning a property.

1. Tax Residency: Determining your tax residency status is essential as it influences the taxes you are liable to pay. If you spend more than 183 days in Spain in a calendar year, you are considered a tax resident. You can also qualify as tax resident in Spain if having in this country the centre of your economic interests. Tax residents are subject to Spanish income tax on their worldwide income, while non-residents are taxed only on income generated in Spain.

READ ALSO: Do I have to pay tax twice if I’m an American living in Spain?

2. Income Tax and Wealth Tax: Spain imposes income tax (IRPF) and wealth tax (Impuesto sobre el Patrimonio) differently across its autonomous communities. The rates and allowances can vary, so understanding the specific regulations in the region where you plan to buy is crucial. For instance, some regions might have higher exemptions for wealth tax, impacting the overall cost of owning high-value properties.

3. Rental Income: If you plan to rent out your property, you need to be aware of the taxation rules on rental income. US tax residents are currently taxed for their rental incomes in Spain at a 24 percent flat rate on rental income (not being allowed to deduct any expense), whereas Spanish tax residents include rental income in their general taxable income (with different expenses being tax deductible), which could be taxed at progressive rates. Counting with the appropriate assistance of tax lawyers specialized in American clients and with a full knowledge of the US-Spain Tax Treaty can considerably help you to improve your tax bill.

READ ALSO: What the new Spain-US social security deal means for Americans

4. Special Tax Expats Regime: Implemented at the time that David Beckham joined Real Madrid (and known because of that as “Beckham Regime”), that regime may allow you enjoying the pros of being a tax resident in Spain, by living in this country exceeding 183 days per year, but taking advantage of a 24% flat rate and only making taxable in Spain labour incomes together with other incomes generated in Spain but not being taxable in Spain those sourced abroad. This tax regime has a maximum total 6 years duration and those who are eligible for it they also avoid filing Wealth Tax in Spain for their worldwide wealth.

To properly apply for it, it is always recommendable carrying out a previous tax planning and analysis with specialized Tax Lawyers before buying your property and moving to Spain.

READ MORE: 

Property Inspections

A thorough technical inspection by a qualified architect is advisable to ensure the property meets all regulatory standards and is free from structural defects.

1. Construction Defects: Architects can identify potential issues such as structural integrity, water damage, and compliance with building codes. This is especially important for older properties or those that have undergone renovations.

2. Urban Planning Compliance: The inspection should also verify that the property complies with local urban planning regulations. Non-compliance can result in significant fines or even demolition orders.

READ ALSO: Do I need planning permission in Spain and how do I apply for it?

Buyer’s Agents

Unlike real estate agents who typically represent the seller and defend his interests, buyer’s agents work in the interest of the buyer, offering numerous advantages.

1. Local Market Knowledge: Buyer’s agents are well-versed in the local market conditions and can provide valuable insights into different neighbourhoods, school districts, community amenities etc. This knowledge helps in identifying properties that best match your preferences and needs.

2. Fair Pricing: Buyer’s agents can help negotiate better prices. They are familiar with the local market rates and can prevent the common practice of overpricing properties for foreign buyers.

3. Due Diligence: By conducting thorough market analyses and property evaluations, buyer’s agents can ensure that you make an informed decision. They also handle the negotiation process, striving to secure the best possible deal on your behalf.

READ ALSO:

Financial Advice

Securing favourable financial terms can result in substantial savings, making it essential to seek expert financial advice.

1. Currency Exchange: For American buyers, currency exchange rates can significantly impact the cost of purchasing a property. Working with a reputable currency exchange provider can help you get the best rates, reducing overall expenses.

2. Mortgage Conditions: Comparing mortgage conditions from different lenders is crucial. Spanish banks offer various mortgage products, and an independent financial advisor can help you find the most favourable terms, considering interest rates, repayment periods, and other conditions.

READ ALSO: What non-residents should now about getting a mortgage in Spain

Conclusion

Buying a residential property in Spain involves navigating a complex legal and fiscal landscape.

By engaging specialized lawyers, conducting thorough property inspections, utilizing the services of buyer’s agents, and counting with expert financial advice, American buyers can mitigate risks and make informed decisions.

With careful planning and the right support, purchasing a home in Spain can be a rewarding investment and a gateway to enjoying the country’s rich culture and beautiful landscapes.

This article was written by Maryem Essadik, immigration lawyer and head of English-speaking international law firm in Madrid Marfour (Contact: +34 698 917 840, [email protected]).

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