Why is it worth buying property in Spain?
Introduction
For more than two decades, Spain has been attracting property investors from all over the world. Its climate, quality of life and competitive prices compared with other European markets make it a prime destination for buying a primary or secondary residence, or for rental investment. But beyond its charm, Spain has solid economic and strategic arguments that explain why it is still profitable to buy a property there today.
In this article, we take a detailed look at the main factors that make Spanish property so attractive: prices, rental demand, taxation and the prospects for long-term appreciation.
1. Prices that are still competitive compared with Western Europe
Although the Spanish property market has risen sharply since the 2008 crisis, prices are still lower than in France, the UK, Germany and Switzerland.
- The average price per m² in Spain fluctuates between €2,000 and €2,500, with wide regional variations.
- By way of comparison, Paris exceeds €10,000 per square metre, and some major European cities have prices two or three times higher.
Coastal areas such as the Costa Blanca, the Costa del Sol and certain inland towns still offer attractive opportunities with strong potential for value enhancement. For investors, this means the possibility of acquiring quality properties in sought-after locations at a much lower cost than elsewhere in Europe.
2. Strong rental demand, driven by tourism and expatriation
Spain is one of the world's most popular tourist destinations, welcoming over 80 million visitors every year. This influx of visitors is generating strong rental demand, particularly in seaside resorts and major cities such as Barcelona, Madrid and Valencia.
- Seasonal rentals: platforms such as Airbnb and Booking make rental management more accessible and generate high revenues, especially during the peak summer season.
- Long-term rental: the presence of an international community of expatriates and Erasmus students also creates a constant demand for urban accommodation.
By investing in Spanish property, it is therefore possible to combine immediate rental profitability with the prospect of long-term capital gains.
3. Favourable tax treatment for foreign investors
Contrary to certain preconceived ideas, property taxation in Spain remains competitive.
- Tax rates on rental income are reasonable, with a rate of 19% for European residents (after deduction of certain charges).
- Purchasing costs, although to be taken into account (between 12% and 14% of the price of the property), remain comparable or even lower than those charged in other European countries.
- Several Spanish regions offer attractive tax breaks to encourage investment.
For retired Europeans, Spain also has bilateral tax treaties avoiding double taxation, making it even more attractive.
4. A unique living environment that boosts property values
Investing in Spain is not just about buying a property, it's also about enjoying an exceptional lifestyle that attracts new residents every year.
- More than 300 days of sunshine a year in some regions.
- Modern infrastructure: international airports, high-speed rail links, high-performance hospitals.
- A Mediterranean lifestyle based on conviviality, gastronomy and well-being.
All of which adds up to a constant demand for property, whether to buy, rent or resell.
5. Long-term growth prospects
The Spanish property market has been growing steadily since 2015. Although there may be occasional corrections, experts agree that Spain offers solid prospects for value appreciation.
- The return of economic growth after the crisis.
- Increased attractiveness to foreign investors.
- The scarcity of land in certain tourist areas.
All of these factors mean that Spain is still a buoyant market, capable of guaranteeing long-term property appreciation.
Conclusion
Buying a property in Spain is a choice that combines personal pleasure with financial profitability. With consistently attractive prices, strong rental demand, favourable tax treatment and an enviable lifestyle, Spain is one of the most attractive property markets in Europe.
Whether you're looking for a second home in the sun, a profitable rental investment or a permanent move, Spain offers all the guarantees you need for a successful, long-term property project.
