Foreigners buy up stately manor houses in northern Spain

Many Galician pazos were built more than 300 years ago and some even date as far back as the 15th century. As well as the main house, these palatial-style homes typically have attached chapels, outbuildings, granaries (hórreos) and large gardens.

Their history, unique architecture and price tag has now begun to attract buyers from abroad, particularly among those from the Americas such as the US and Mexico, but also Europeans such as the Germans, a new report in local daily El Faro de Vigo suggests.

READ ALSO: Americans and Mexicans buy property in Spain at record levels

It is estimated that the northwestern region of Galicia has around 900 pazos and more than 170 of these are up for sale, according to Aldeas Abandonadas, a real estate company specialising in these types of properties.

While buying a pazo might be out of reach for the average Spaniard, those with higher salaries from abroad are finding that they can grab these types of properties for a bargain price when compared with back home.

According to Aldeas Abandonadas prices for pazos start at €1 million, but can go up to €5 million or more.

Most foreign buyers are seeking to buy pazos as private residences, but there are some investors who are preserving these pieces of history to turn into businesses such as agrotourism, rural hotels and wineries.

“The Galician market has become a showcase not only nationally but also internationally. The combining history, natural surroundings, and prices, position it as a leading real estate destination,” explains company director Elvira Fafian.

READ ALSO: The pros and cons of living in Spain's Galicia region

There is, however, an emerging client base of local buyers who are attracted by smaller, versions of pazos in rural locations called solariegas, which have been laid empty and abandoned for years. These can be purchased for around €100,000 with a further investment of €200,000 for renovations, estimates Fafian.

The trend began around the time of the pandemic, when Galician families began to notice interest in manor houses in rural areas. Rising housing prices in cities and their surrounding areas have made buying in those areas a nearly impossible task for many.

Given the unstoppable rise in residential property prices and the appeal of the tranquillity of the countryside, manor houses have emerged as a new business niche, with the local market as the main investor. "They are sought after in rural settings, especially in the provinces of Pontevedra and A Coruña and near Santiago," explains Fafian.

Affluent foreigners have been partly blamed for driving up housing prices and rents in Spain, especially in cities.

The Spanish government axed the golden visa in April, a scheme whereby non-EU nationals could gain residency by purchasing a property over €500,000.

Prime Minister Pedro Sánchez has also proposed a 100 percent property tax for non-EU residents to try and deter foreign investors, meaning that they would have to pay double the price for a Galician pazo as an EU or Spanish resident.

READ ALSO: Who exactly would have to pay Spain's 100 percent property tax?

While this doesn’t seem to have deterred foreign buyers so far, when or if it finally comes into force, we could see Germans top the list instead of Americans or Mexicans or purchases from foreign residents in Spain instead.