Contradictory figures for domestic sales in August help to turbulently muddy the market.

 

Spanish home sales went up and down in August, the Spanish press reports. As is common, the reporting mixes different data sets and makes the public confused about the direction of the market.

In recent days, the Spanish press reported that domestic sales rose by 6.8 percent in August and decreased by 12.6 percent, as shown on the example above. It can't have done both now, obviously. Two different data sets are mixed in headlines that overlook the difference between them and send mixed messages that are confusing the public. This careless reporting disturbs the waters and makes them look even less transparent than they actually are in the Spanish property market. qatar real estate

The two main sources of official data, 1) the Association of Spanish Notaries based on their monthly sales and 2) the Institute of National Statistics (INE) based on the country registers sales by the Association of Spanish State Registrars, are the main sources of official data. I explain the difference in the blue box below between the two sources.

The registrars have recently started publishing their data monthly, so we need not wait until the INE publish the same figures more or less a month later.

A two-set account

Spanish home sales market August 2020

The sales of homes change according to notaries

Spanish home sales property market August 2020

Home sales change by the registrars

Home sales increased in August due to higher demand

Given that notary figures are more timely, this means Spain's home sales actually increased 6.8% to 33,201 in August, compared to the same month last year. They also report that house prices in Spain have dropped by 7.3% to 1.271 €/m2.

However, even if they look back, registrar figures are helpful because they provide more detail, for example on regional sales. From the following table the slump in the Valencian region (-24.9 percent) and Catalonia (-22.5 percent) may seem worse than Andalusia (14.2 percent) and the Balearic Islands (-3.6 percent ).

Spanish home sales property market August 2020

Home sales increased in August, with Spain experiencing Europe's deepest coronavirus crisis, with GDP forecast declining by 12.8% by 2020 according to the IMF (figure below)? The most likely reply is due to steady demand, which was suppressed and delayed until August during lockdown. I think the overall demand is declining, but the disruption of Covid-19 deteriorates the distribution of sales over time.

In the last quarter, I expect sales reported by notaries to decline considerably, and some months later INE and registry figures will follow. Even the headlines will agree that the Spanish domestic sales go one way.

Just to remind British citizens in Spain that they have to ask for their Tarjeta de Identidad de Extranjero card, and it may be wise to do so before this year ends.

In the run-up to Brexit, UK residents in Spain were able, as other EU nationals, to live here with a green registration card and, more recently, a user-friendly EU citizens' registration card, which is easier to carry. All that was changed by Brexit.

Under the terms of the withdrawal agreement, the United Kingdom has now to get a "Residential Document" for replacement of its EU registration document, known in Spanish as Tarjeta de Identidad de Extranjero (ID card for foreigners).

The application procedure opened on 6 July and, in theory, does not end at the end of the transition period, but my advice will not take any opportunity to apply before the end of the year. While the advice of the Spanish Government says that "Replacement applications can be submitted at any time for the registration certificate already in your possession, including after the transition period is over," why wait, take a chance if you can do so now? The rules can change and can change.

I intended to apply since the process started in July, but the whole of the drama this year has gone by, and we are in October now and it will be Christmas before we know it. I don't think I'm alone.

With Covid-19 all interactions with the Spanish bureaucracy are slower and more painful than usual, so it might be difficult to get an appointment.

While I live in Barcelona, I couldn't get a date in the city soon, but I managed to get an appointment in an out-of-town city ten days from now with the help of the Barcelona Relocation Services (BRS) experts, who know how the system works. This isn't convenient, but it's coming soon.

The application is relatively simple and La Moncloa's Brexit Guide – the Office of the Spanish President – explains how it works. Here you can read the guide.

The application form Modelo EX23 can be downloaded here.

One of the documents you need to include is a patron certificate of not more than 3 months old from your local authority. You can ask one person or on the telephone, depending on where you live, but it may take you a couple of days to reach this document. For Barcelona, I looked for an appointment or postal delivery from 7 to 10 and it was too late for my immigration department appointment. You may be able to download a digital certificate immediately in the form of a 'volante de residencia' that worked for me.

You must also pay €21 44 fee when you present a form you can fill in and download here (The procedure that you must select is '.TIE, which documents the authorisation of a long-term residence or of a long-term residence-EU.'). I paid this fee on my bank using the document that I downloaded with the barcode. Just select 'En efectivo' from the payment terms, log in and pay the fee by using the bar code number. Print the payment proof and bring it to the appointment.

If you live in Spain and plan to stay, then my advice is to get your application for the TIE card done sooner rather than later, preferably before the transition period ends on 31 December. You never know about Brexit's next corner, so much safer than sorry.