Spain is the Eurozone country that has most strongly recovered from the economic crisis, growing by close to 3% every year since 2015, compared with 1.8% for the Eurozone on average.
Spain is also Eurozone’s best country to invest, particularly in real estate, according to major international rankings such as AT Kearney, Cushman Wakefield, etc. In 2016, foreign direct investment into Spain reached € 17 billion, one of the largest in the entire Eurozone.
Real estate prices are now picking up in Spain, after declining by 35% on average since 2008 (by 50-60% in some regions). Since its bottom in late 2014, real estate prices have grown by 6% on average in 2015-17 in Spain. It is the refore the best time to invest in Spanish real estate in more than a decade.
Besides, Spain is a full member of the European Union, the Schengen Treaty and the Euro Zone, thus benefitting from free movement of goods, people and capital. EU membership and a network of bilateral investment treaties with foreign countries provide sound protection to overseas investors.
What Advantages are attached to the Spanish Residence?
Acquiring residency in Spain means joining the SCHENGEN TERRITORY, formed by 26 countries, comprising the main and most popular European countries (Germany, France, Italy, etc.). Spanish Residence allows for free circulation throughout the entire Schengen Area.
To make a comparison with countries that have approved residence rules for investment, the case of Cyprus or the United Kingdom of instance are not part of the Schengen territory.
Spain remains an affordable Alternative for Property Investors.
Spain property prices are starting to rise again after almost a decade of uninterrupted declines. However, average property prices in Spain remain very low compared with other European countries and even emerging market capitals such as Moscow, Beijing, etc.
With the minimum investment for residency in Spain (500,000 €) one can afford properties of the following sizes according to prevailing market prices :
|Average size of property affordable with € 500,000||Sq. M./m2||Sq. Ft.|
Why Spain and Not another country of European Union?
There are many factors that are favourable to Spain:
- WEATHER: In Spain you will find the weather you have always dreamed of, with warm winters and sunny summers, unlike the northern European countries.
- CITIZEN SECURITY AND CLEAN AIR: Spain is a very safe country with low pollution levels.
- WIDE VARIETY OF PROPERTIES: compared with smaller countries with investment residency programs like Portugal or Cyprus, Spain has a wider variety of properties to choose. Investors may buy flats in large lively cities like Madrid or Barcelona, acquire an apartment at a ski resort by the mountains or a villa on the seaside of the Mediterranean or Canary Islands.
- PROFITABILITY: Spain is the 2nd country in the world in number of tourists, with 50 million visitors per year. The properties can be rented by season and thus obtain a return if the investor does not plan to reside effectively in Spain.
- FUTURE PERFORMANCE: Spain has been one of the EU countries with the biggest drop in real estate prices, along with Latvia, Estonia, Hungary and Portugal. With this situation, the prospects for a rise in prices, which is already starting, are very encouraging.