In recent years, Spain has become one of the most popular tourist destinations for holidaymakers. Whether you’re looking to invest in a cosy villa with stunning views or a chic apartment overlooking the quaint towns, the Spanish property market has a vast range of opportunities for first time investors. The picturesque landscapes and consistent tropical temperatures of Spain make it the perfect investment – attracting custom all year round whilst also being your very own customised holiday home for those much needed escapes.
The Spanish Property Market
Why invest in Spain?
With a stable property market set to progress in years to come, Spanish property is fairly and realistically priced. With one of the fastest growing economies, it is no surprise that the country’s relaxed lifestyle, vibrant nightlife and infamous festivities have drawn more and more people to both live and holiday in Spain. Investment in property for sale in Spain is a highly lucrative and rewarding business venture for those willing to invest their time and effort. Spain is a popular tourist destination all year round, with budget airlines offering low-cost flights and the inexpensive lifestyle while out there, property investment is sure to offer you attractive year-long rental returns.
Types of Property
Once you have become settled in the market, you are hoping to get financial returns that cover your mortgage for a year from the 12 peak weeks in summertime. This way, any additional bookings can cover expenses and then become your profit. Spain is a popular holiday destination all year round and provided you promote your property effectively, you can enjoy rental returns all year long. There are bound to be seasons which are more popular such as school half-terms, but people often also find themselves escaping to Spain in order to avoid those cold, miserable winters.
What type of property should you invest in?
The type of property you decide to invest in will depend on who your ideal guests are and your budget. It is important that whoever you rent your property out to is trustworthy and respectful. Below are a few examples of different guests and the type of property that could suit them:
Families – Families are more than likely going to be looking for a large area of space, potentially a villa. If you aim to attract families then it is important that your property is in a prime location, close to the beach and with restaurants and convenience stores in close walking distance. Families are usually going to be visiting Spain in the summer months rather than all year round so this may need consideration as to whether it is a viable option to solely market your property as a family villa – families will however be expecting to pay a significant amount more for their stay in peak times.
Young couples – Those seeking a more exhilarating holiday experience are likely to look for apartments located in the heart of the city. Choosing a property close to amenities such as pubs, clubs and bars is likely to attract a younger demographic. Again, young couples are going to visit Spain mainly in the summer months; however there is more flexibility that sees millennials visiting from March through to October.
Elderly couples – Older couples are likely going to search for apartments in a quieter region, yet still within close distance to beaches, restaurants and other amenities.
As a home owner in Spain, it is your responsibility to ensure that you have paid all your taxes and that your property is correctly registered.
There are currently no restrictions on who can purchase property in Spain; however, you must make sure that you obtain a ‘financial number’ from a local police station.
Property owners in Spain can now apply for a ‘Golden Visa’. Investors who spend more than €500,000 on a single or multiple property or properties are typically eligible for a residency visa – while this doesn’t give you the right to work in Spain, it does give you the right to reside there indefinitely.
Property investment in Spain is a rewarding opportunity, perfect for first time investors. The stable housing market, growing economy and increasing tourist interest limit the typical risks of overseas property investment. There is a wide range of properties on the market, depending on your ideal guest, budget and overall preference; Spain has something for everyone (and the weathers not too bad either).