At Blue Gecko Estates, we like to inform and educate potential buyers about the market we live and work in. It’s not just about blasting you with adverts for properties all the time. So, we thought it was important to talk about the economic benefits of buying property in Spain, because not only is it a fantastic place to live, with its natural beauty, beaches and climate, there are some very real economic benefits of living here. Spain is a developed country that has a stable and growing economy, which can provide confidence to property investors regarding the security of their investments. Read on and see some of the economic advantages of purchasing property in Spain.
Affordability
Compared to many other Western European countries, Spain offers relatively affordable property prices, allowing buyers to get more for their money. Although we see the cost of living rising worldwide, Spain is still a relatively affordable place to live.
Property Appreciation
Historically, property values in Spain have appreciated over time, especially in prime locations like the Costa del Sol, and major cities. This potential for capital appreciation can add to a valuable long-term investment. In addition, well-located and well-maintained properties in Spain often have good resale potential, allowing owners to realize capital gains when selling. There are still solid profitable opportunities to refurbish or build new for resale.
Visa Programmes
Spain offers a few options for non-European Union (EU) nationals, of which the Golden Visa can be available for those investing a certain amount in real estate or a business opportunity. This programme grants residency and visa privileges, which can be advantageous for investors seeking to live in or travel within the EU. Other Visa options include a Digital Nomad Visa which is relatively new in Spain, or a non-lucrative Visa. We will discuss these in follow up blogs, but these also provide a means to live in Spain if you are a non-EU national.
Potential for Rental Income
Around the globe, Spain is renowned as one of the world's top tourist destinations, therefore having the foot traffic to benefit from. Considering buying in a popular tourist destination or city then naturally gives you the potential to generate rental income by leasing your property to tourists, helping offset your ownership costs. Check the local regulations relating to tourist rentals though, as Spanish laws are slightly different from autonomous region to region.
Tax Benefits
It may not be obvious at first, but Spain has tax incentives for property owners, such as reduced capital gains tax rates after three years of ownership and deductions for certain property-related expenses. Consult with a local property lawyer to find out what the situation is when considering investing.
Mortgage Financing
Financing options are available for property purchases, and interest rates in Spain have historically been competitive, making it more accessible for buyers to secure a mortgage. Currently, the economic world stage sees interest rates climbing, however banks in Spain are still motivated to lend to individuals who have the means to finance repayments. See more information on using a Mortgage Advisor in Spain.
Retirement and Relocation
Spain is a popular destination for retirees due to its favourable climate and lower cost of living compared to some other European countries. Buying property in Spain can be a cost-effective way to retire or relocate. Best to check your options in healthcare if retiring as there are rules associated.
While there are many economic benefits to buying property in Spain, it's essential to conduct thorough research, understand local regulations, and seek advice from legal and financial experts to make informed investment decisions. Additionally, market conditions can vary widely across regions in Spain, so it's important to consider the specific location and property type when evaluating the economic advantages.
So, what are you waiting for? If you would like to know more about buying in Spain, please get in touch with us at info@bluegeckoestates.com or call or message us via WhatsApp on +34 625 416523.
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