The answer to the question “Where to buy property in Spain?” depends on the buyer’s goals. The choice of region can be determined by various factors: whether the purchase is made for oneself or for investment purposes , what budget the buyer has, what taxes apply in the region, etc.
With a limited budget, the price per square meter of housing or commercial real estate will come first. In second place will be the total amount of taxes and expenses accompanying the purchase and sale transaction, as well as the annual costs of maintaining the property. A large or unlimited budget will allow the buyer to focus on infrastructure, profitability, prestige and safety of the area, etc.
From a tax point of view, it is most profitable to buy real estate in Madrid, but in Catalonia and the Valencian Community, on the contrary, it is unprofitable. At the same time, Andalusia applies a flexible tax policy, a progressive tax scale and a whole system of benefits and deductions that can make the purchase very profitable. In any case, the purchase of any real estate requires preliminary tax planning. Such services are provided by serious real estate companies, consulting firms and lawyers specializing in tax law.
And, nevertheless, the buyer of commercial real estate will be guided by one criteria, and the buyer of residential real estate – by others. At the same time, residential property for yourself and residential property for rent will also require different emphasis.
Where is the best place to buy property in Spain for commercial purposes?
If you plan to purchase real estate in Spain for commercial purposes, the main selection criteria will be the following:
- Location of the object. If your budget allows, it is better to give preference to large cities. If you are on a limited budget and purchasing real estate in small towns, you should first of all pay attention to the main streets of cities and towns, shopping areas, and commercial centers. Sometimes income-generating properties that are in great demand and properties that have been empty for years are separated by only a few tens of meters. Resort towns or areas that are busy in the summer, but practically die out throughout the winter, are also unlikely to deserve attention.
- Liquidity. An analysis of supply and demand, as well as prices for similar objects, will be useful when making a decision. An object purchased at a good price and well located will always remain a liquid asset.
- Profitability. If commercial real estate is purchased not for your own needs, but for rental, you cannot do without assessing profitability. The forecasts will be based on the demand for similar properties, the average rental price per square meter, the ratio of occupied/vacant commercial properties in the same area, etc.
- State of the object. In assessing the condition of a commercial premises, one cannot do without the opinion of a technical architect. It is also important to understand what kind of business can be conducted in this premises. For example, a restaurant located in a residential building may require the installation of an industrial hood and other equipment, to which the general meeting of residents will categorically refuse to consent.
If a tourist property is purchased, the future rentier owner will have to mentally put himself in the place of a potential tenant and set priorities:
- Large cities or resort towns. Both options look attractive: in large cities the tourist flow does not weaken all year round, but prices are high; In resort towns, the low season is not always profitable, but real estate prices are quite affordable.
- Proximity to the sea. If the choice ultimately fell on resort areas, it is better to choose objects located as close as possible to the sea. Tourists, loaded with sun loungers, towels, bags of food and other belongings, do not want to travel kilometers of streets every day in the heat. Tourists want to see the sparkling sea from the balcony and immediately get to the beach from the entrance – ideally. And it is desirable that the beach is not wild, but equipped with everything necessary and with the coveted blue flag on the flagpole – a European symbol of high quality. Leniency can be given to objects on the second and third lines from the sea – for economic reasons. An exception, perhaps, may be remote residential complexes, but provided that their territory has good swimming pools, playgrounds, there are no problems with parking, there is a lot of greenery, etc.
- Infrastructure. Not all families who come to Spain on holiday rent cars. Therefore, good infrastructure will increase the attractiveness of the property: the presence of supermarkets, public transport stops, pharmacies, bars and restaurants, children’s playgrounds and entertainment centers will be a big plus.
- Tourist license. Objects with an already issued tourist license are more expensive, but can save the buyer from unpleasant and lengthy bureaucratic hassle. And in the case of Barcelona, where new tourist licenses have not been issued at all in recent years, the buyer has no choice at all: either buy a property with a license, or rent it out illegally at your own peril and risk, risking tax sanctions or a lawsuit from the housing association . If you nevertheless decide to buy an object without a license and then obtain it yourself, you must first clarify (on your own, or through a realtor or lawyer) how the procedure works in this particular municipality, what documents are required and what is the waiting period for a response from the authorities.
Where is the best place to buy property in Spain for your own residence?
Purchasing property in Spain for your own residence is perhaps the easiest way, because… in this case, you will have to be guided by personal priorities without regard to other people’s opinions and without taking into account other people’s preferences.
Traditionally, areas of the Mediterranean coast of Spain near international airports are in high demand from foreign buyers: Costa Brava, Costa Dorada, Costa Maresme, Costa Blanca and Costa del Sol. Recently, the coast of Murcia, the Costa Cálida, with its unique Small Sea and mud springs, has also been gaining popularity.
If you are looking for the optimal balance between the price per square meter of housing, convenience of location, infrastructure, climate and length of the swimming season, then you should definitely pay attention to the provinces of Alicante and Murcia.
If you put first place the architectural, cultural and historical heritage, vibrant city life, leading medical and educational institutions, then the search vector will shift towards Madrid and Barcelona.