Authentic Spanish Finca: A Secluded Getaway with Investment Potential Worth Your Attention!
Dreaming of starting a new chapter of your life in the picturesque surroundings of the Spanish countryside? Looking to reinvent yourself by living a blissful rural life under the Costa Blanca sun that won't disappoint you 316 days a year? Or maybe you're looking for a great summer spot with a secluded terrace, olive grove and garden, tempting you with memories of sunsets by the pool until your next holiday?
Perhaps you want to rent out your retreat when you can't be there; passive rental income is the strongest motivation to buy. One thing is certain: find a good investment for the future! If your vision includes a rustic home in the Spanish countryside, discover more about fincas. This article will discuss this property type and its investment potential.
What Is a Finca?
A finca is a sizable rural area, usually containing modest residential or commercial buildings. The word "finca" suggests that there is a development, but it refers to a piece of land. Around the main building are often smaller ones – such as barns, stables and sheds for storing crops, farm tools and animal husbandry. Fincas have existed for centuries. The older they are, the more beautiful their style and construction.
The term "Finca" is derived from the word "fundus," which means estate in Latin.
They are typically more than 300 years old with a rich history. New houses are also built in the finca style, especially in the Balearic Islands (and the Costa Blanca). Their concept dates back to the Middle Ages, when feudal lords needed more space to raise cattle. To meet the growing demand for food and income, they settled in the countryside and cultivated every bit of land surrounding their home to maximise resources.
Originally fincas were intended for agricultural purposes; today, they are considered attractive tourist and recreational destinations in the Spanish countryside. Thus, they can prove to be an extremely profitable investment!
The typical fincas you'll find in real estate agency listings are stately country houses or building complexes with large gardens (often with fruit trees, olive groves and vineyards) and huge windows that provide great views of the surrounding countryside. These buildings are often arranged around an open courtyard. Fincas are known for their character, original elements, wooden ceiling beams, thick natural stone walls, beautiful wooden door or window trim, marble floors and a stunning covered naya (terrace). Since they are usually located on a large plot of land, they offer peace and privacy. Many fincas also allow for raising animals, such as goats, chickens and sheep.
A countryside finca is more common, but they can also be found in the suburbs of a Spanish city.
Types of Finca Properties:
Rural properties classified as finca vary (depending on the land type registered in the Spanish Land Registry).
A finca Urbana is a residential property on urban land. The building code specifies building requirements. It may also detail the number of stories, the style and size of the buildings. When buying a Finca Urbana, you should consider these restrictions. However, obtaining permits should not be a problem if you plan to expand and meet the requirements.
Finca Rústica - an agricultural property in a rural area. Finca Rústica or Rural refers to rural land that can be used for agricultural purposes or as a residence but is registered only for agricultural or forestry purposes. These are usually agricultural parcels, forests, floodplain areas and (protected) nature reserves. This type of land cannot be divided into individual plots. Nor can you build on them without obtaining the appropriate permit and paying any required fees. Obtaining a permit to build a residence on this type of land can be complicated.
Finca Rústicas are often isolated from other developments and surrounded by beautiful landscapes, making them a fantastic place to escape civilisation. You can also raise livestock, such as goats, chickens and sheep.
Finca Urbanizable (mixed). Finca Urbanizable is a Finca Rustica that can be converted into a Finca Urbana. While the property is registered for agricultural use, the government allows you to use it for residential and non-agricultural purposes (unofficially). Conversion and expansion are permitted under certain conditions.
To turn a Finca Urbanizable into a Finca Urbana, you must submit a plan (Plan Parcial). This is a large-scale finca development plan that includes all construction projects. The Plan Parcial usually includes new roads, public spaces, parking, landscaping, etc.
Where Can You Find Fincas?
You can find fincas on the Spanish mainland, the Balearic and Canary Islands, and Spanish-speaking Latin American countries. Similar rural properties can be found in Italy under a different name. Popular areas to buy a finca are:
Costa del Sol in cities such as Marbella, Torremolinos and Nerja.
Costa Blanca in cities such as Calpe, Dénia and Alicante.
Costa Brava in cities such as Blanes, Lloret de Mar.
They are also common in the Canary Islands, the Balearic Islands and Andalusia.
Growing Popularity of Fincas!
Fincas are extremely popular with international visitors for their rustic charm and secluded location. They are considered ideal holiday homes, and many people buy or rent this type of property to enjoy an idyllic and intimate atmosphere with family or friends. Others want to live in them permanently while working remotely or after retirement.
Some see great investment potential. If that's your goal, fincas can generate a decent return. Better yet, you can enjoy them even when there are no guests!
Why Costa Blanca?
Spain's Costa Blanca has some of the most beautiful beaches in Europe. It is an excellent location for investment due to its wide range of landscapes and tourist attractions. I wrote about the investment advantages of the Murcia area HERE. In this ARTICLE, I explained how to calculate the return on planned investment. Here, I'll give two examples of fincas in Murcia (you'll find both properties among the listings on my website, etbspain.com). One requires more investment (but the end result can become your 100% dream and custom-designed habitat), and the other just needs a refresh and a good marketing plan (more about that HERE) to start generating rental income. I'll give you the monthly rental rates for rural properties with similar conditions and locations on Airbnb below.
1. Finca with a building permit in Lo Capitan Torremendo
Price: €119,995
Bedrooms: 2
Bathrooms: 1
Plot size: 34000 M²
Property size: 64 M²
Distance to the beach: 34 min
Distance to airport: 42 min
A 1980s building, south-facing, fully legal with an energy certificate, in a rural area. It has a tank that supplies water to the property and irrigation. The land has a permit for the construction of a 500m2 villa. Electricity and a septic tank will need to be installed, and permission has been granted for mains or solar panels.
Torremendo is a small, quiet, authentic village with 580 residents. It is surrounded by a typical rugged and diverse landscape. The area is exceptional for nature lovers, cyclists and equestrian sports enthusiasts. The famous "Embalse de la Pedrera" reservoir is 1 km from the village toward Orihuela. It is bordered by a beautiful nature reserve where you can watch a spectacular sunset.
The village has a health centre, pharmacy, car repair shop, gas station, several small stores, bars and restaurants. A small market is held once a week. In the nearby larger village of San Miquel de Salinas, just a 10-minute drive away, there is a large supermarket and a sizeable market open once a week.
There are several beaches about 18 km away and golf courses within walking distance. Easy access to major highways leads to cities such as Orihuela, Bigastro, Alicante, Murcia and Torrevieja. Road quality in the area is good. Alicante and Murcia airports are within easy reach.
2. Detached Finca in Cañadas de San Pedro Murcia
Price: €170,000
Bedrooms: 3
Bathrooms: 1
Plot size: 1744 M²
Property size: 123 M²
Distance to the beach: 22 min
Distance to airport: 37 min
This detached finca is located on the border of Murcia, in Cañadas de San Pedro. It consists of three bedrooms and one bathroom on the southeast side. It was built in 1982. It is already connected to the water and electricity networks. It also has a working septic tank. The access road is smooth and paved with a small 500-meter dirt road.
A wonderful terrace at the front provides plenty of shade in the summer months. The separate kitchen is fully equipped with integrated appliances, upper and lower cabinets, and access to the rear garden. The living room is surrounded by three double bedrooms, including a family bathroom and bathtub. The master bedroom is equipped with air conditioning. The building is partially furnished with air conditioning, a fireplace, mosquito nets, electric wall heaters, ceiling fans and satellite wifi.
In the garden, there is a private pool and relaxation terrace. There is an enclosed garage and covered off-road parking at the side of the property. The plot has mature fir trees that provide plenty of privacy.
Places offering major shopping and entertainment – such as Sucina, Beniel and the city of Murcia – are a 10-minute drive away. In the Cañadas de San Pedro neighbourhood are the remains of the Cabezo del Moro castle located at the foot of the Altaona and Escalona mountains and the port of San Pedro. This is a transition zone between Huerta de Murcia and the peasant region of the Mar Menor, which forms the border with the Kingdom of Aragon.
Sample Monthly Rental Prices for Similar Properties via Airbnb:
Here are some useful tips for hunting down fincas in Spain:
Find out if it's new or old construction – older properties have a higher chance of being an illegal build. Even new constructions can be at odds with the law and don't meet the latest standards set by Spanish regulations. Meticulously verify the documents and only take further action if the property is legal. Dishonest sellers may offer illegal properties at a very low price. Beware of suspiciously favourable bargains (e.g., if a seller claims that owning a property without registration will save you tax).
Some fincas owners do not have all the documents required for the legal transfer of property (sometimes ensuring that they will be handed over as soon as payment is made). Providing access to utilities is impossible without the documents, so review all original property documentation before making any payment. Fincas for sale are often owned by multiple family members (e.g., due to inheritance). In such cases, all owners of the property (or their lawyer(s)) must be parties to a validly executed contract of sale (I elaborate on this topic in the article: 9 most common and costly mistakes made when buying property in Spain).
Before buying fincas off plan, familiarise yourself with the building license. Find out if the seller has a copy of the construction project license, the final signature issued by the local authorities, photos taken during construction, etc. Any development activity requires a development license application and compliance with applicable regulations.
Be sure to inspect the property for structural defects thoroughly. Even if you're buying a ruin for a complete renovation, it's good to know what you're dealing with (for example, whether unsafe materials were used during construction, requiring professional services for demolition, etc.).
Once you have fincas property, mark or fence the property's boundaries to prevent possible problems with neighbours.
It is always safer to buy a property with residential buildings. Since this type of property already has a building permit, it is more likely to get permission for expansion. An additional pool, bedroom or terrace expansion will be more achievable when the basic property is legally approved.
If you plan to raise animals or grow trees, ensure the property has all the necessary requirements.
The best time to buy a finca is spring or autumn, when prices drop significantly. Another good time to buy is before the foreclosure date, when banks become motivated to sell their fincas.
Stock up on modern solar systems. The Costa Blanca gives you solar opportunities all year round! The coast enjoys almost constant sunshine. This fact, combined with advances in solar energy and recent government regulations, makes it an obvious choice. Additionally, there are still large areas of Spain that are not connected to the electricity grid. This is a good start if you want to create a greener home supplied with sustainable electricity without any restrictions.
Remember to hire a reputable agency, lawyer and surveyor with experience in rural real estate. Specialists will help you through the entire process and avoid costly mistakes, such as buying a property without a building permit, encroaching on protected areas, and problems with water or electricity.
Contact me if you have more questions. I’d be happy to help!
Edyta
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