Spain is one of the most popular tourist destinations in the world. The tourism industry represents an important part of the Spanish economy and offers many opportunities for investment, especially in areas such as hotels, restaurants and real estate.
In recent years Spain has become a popular destination for buying property, especially in coastal areas. Of course, the first place is retained by areas that are developed with plenty of jobs such as Madrid, Barcelona, Valencia and Malaga. According to data from the Spanish Real Estate Association (Asociación Española de Análisis de Valor – AEV), property prices in Spain will increase by 8.1% in 2021 compared to 2020.
The residential property market is well developed and still offers a good investment. However, property prices can vary significantly depending on the region and location, the specific city but also on the quality of construction. Some areas still offer relatively affordable properties, while in other “popular” areas prices can be very high. However, prices for properties by the sea in areas such as Torrevieja, Alicante, Orihuela and others are still very interesting.
The demand for property in Spain is growing year on year as many people from all over the world are looking for coastal property for their second home. This is because of the stable weather, the quality of the Mediterranean diet, the importance of plenty of sunny days and the opportunity to play sports and exercise all year round.
Movement is an essential part of the way of life here. Every day you see many people taking long walks along the sea. Golf is not seen as a rich man’s luxury here. Many seniors have memberships just in golf clubs. The beautiful historical places but also the national parks are just crying out to be explored and visited. The beautiful wide sandy beaches in turn call for rest and relaxation by the sea, soaking up the sun’s rays.
On your walks you will no longer hear only local Spaniards, but many English, Germans, Poles, Czechs and Slovaks. Many people, especially seniors, choose this destination because the health care here is of a good standard, they don’t need to spend so much on heating energy, feeling that they live healthier by the sea and in the sun. Food prices in restaurants are close to those in our main cities.
However, you definitely need to take into account the taxes and fees that are attached to the property whether you have a detached house, an apartment or a property in a residential urbanisation.
To mention just a few, for example, the property tax in Spain is called Impuesto sobre Bienes Inmuebles (IBI). It is a local tax levied by municipalities based on the value of the property. Each municipality in Spain can set its own tax rates and therefore they can vary depending on where the property is located. The property tax rate is calculated as a percentage of the value of the property. This percentage is determined on the basis of the so-called ‘valor catastral’ (cadastral value) of the property, which is set by the tax office. Usually, the rates vary between 0.4% and 1.1% of the cadastral value. In addition, the property may be subject to other local taxes, such as the waste tax (Impuesto sobre el Tratamiento de Residuos), which is usually set as a fixed amount per year.
Of course, each property has its own specificities and we will be happy to provide you with full information on this.
Please contact our specialist for Spain