Real Estate in Madrid
- יפעת צאיג
- Apr 26
- 2 min read
Madrid, the capital of Spain, is one of the largest cities in Europe. Madrid boasts a combination of modern developments and historical properties, offering a wide variety of options for potential buyers and renters.
Renting a Property in Madrid
The rental market in Madrid is competitive, especially in popular neighborhoods and central locations. Prices can vary significantly depending on the area, type of property, and size.
Rental Contract
Most contracts are standard, depending on the rental period.
Short-term Contract – Lasts less than one year.
Long-term Contract – One year or more. In this case, the tenant has the option to extend for 5 years if the landlord is a private individual or 7 years if the landlord is a company.
Negotiation of terms for shorter or longer periods is possible.
As with any contract, it is important to read and understand the terms and restrictions before signing.
The role of a real estate agent is very significant in the rental process. They write the contract, take photos, mediate between the tenant and the landlord, and even assist in transferring bills.
When working with an agent, it is highly recommended (and advisable) to involve a lawyer.
In addition to the monthly rent, it is common to pay a deposit (usually one to two months' rent) and agency fees (usually one month's rent plus VAT) if using a real estate agent.
A law passed in the last year mandates that the service fee is paid only by the person requesting the service, but there are specific local regulations.
When it comes to relocation, tenants often do not have a financial or employment history in Spain, making it difficult to find a suitable property.
In such cases, a good agent can be of great help.
Buying Property in Madrid
Madrid’s property market offers a mix of apartments, townhouses, and villas. Prices can vary greatly depending on the neighborhood and size of the property.
Apartments are the most common type of property in the city, with varying sizes and amenities. Townhouses and villas are more common in the outskirts of Madrid.
Most properties for sale are represented by agents. A good agent can make buying much easier.
In addition to the property price, buyers should budget for additional costs, including notary fees, registration fees, and taxes. These additional costs can total up to about 10% of the transaction value.
When submitting an offer to buy a property, you sign the Contrato de Arras, which obligates the offeror to transfer 10% of the property value if the offer is accepted.
This offer is binding, so it is very important to consult with a Spanish lawyer who specializes in real estate before signing the Contrato de Arras or any other document.
If a mortgage is needed to purchase the property, it is important to note that banks do not allow mortgages without at least one year of experience in Spain, and additional requirements must be met.
A financial history originating from Israel is not relevant for the Spanish bank.
Websites for Property Search in Spain
Properties for Sale and Rent:
Short-Term Rentals:
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