Investing in Spanish Property

The peak real estate selling season is in the fall, and usually September, October, and November are often the best months for sales. Due to a substantial post-pandemic rise in prices, Spain is currently experiencing a real estate boom.


For all types of resale property, capital appreciation has increased by 8.5%, while new construction has increased by over 10%.


Large Spanish cities like Barcelona and coastal areas have seen a double-digit increase in home prices. The bottom conclusion is that Spanish real estate prices have increased to historic highs!


Additionally, rental yields are increasing by double digits annually. Short-term rentals are much more profitable, providing a two-digit return, while long-term rentals only offer a net yield of 4.5% annually.


A total yield of more than 10% annually results from the combination of capital growth and rising rental yields. Compared to other investment assets, this yields a high rate of return.


To promote an economic recovery following the pandemic, regional officials have (dramatically) decreased the taxes related to purchasing real estate in several regions of Spain.


For instance, Andalusia lowered its tax on off-plan homes by 20% and on resales by 13% to 30% (depending on the asking price; the higher the price, the more tax you save!). In fact, this is a fantastic time to take advantage of the chance and avoid paying thousands in taxes!


Despite interest rate fluctuations, Spanish real estate is expected to experience combined two-digit gains over the coming year, easily outpacing alternative investments (bonds, commodities, cryptocurrencies, gold).

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