Some people decide to live in their country of origin, either for a season, several years or forever; due to bad circumstances, such as social, economic or political instability; to receive a better education, or to look for better opportunities for themselves and their families.
Preparing for retirement can be a complex task and for that reason, it is necessary to choose in advance the place to retire. It can be Spain or one of the countries where you have worked before. In any case, the first thing to do is to make sure you meet the requirements of the Social Security system.
However, some expatriates relocate partially or completely to another country to look for investment opportunities abroad. Their decision to invest in the country is based on many different factors; but in general, a common objective is: profitability, appreciation, good return on investment (ROI) and and good passive income generation.
For those expatriates in Spain, this is an exciting time for real estate investment, especially given the Golden Visa program. Spain is the second European country in attracting international investors and encouraging foreigners to buy real estate.
7 reasons for investing in Spain as an expat
Globalization and the economic situation are driving up the rates of employees and managers who are temporarily posted to other countries.
You may have come to Spain as an expatriate in search of work and educational opportunities, as do many people from outside the EU/EEA and Switzerland. But it may also be that investors see Spain as their new home and, of course, it is also a new place for their business.
No matter which position you fall in, many expats are investing in real estate in Spain thanks to the Golden Visa program; which has been successful on attracting international investment to Spain, offering an easier path to residency, with the possibility of upgrading to a permanent residency, and eventually a citizenship.
Some of the reasons for expats to decide investing in Spain are:
- Competitive property prices compared to other European countries
- Renting prices are growing
- The Spanish economy, once in crisis, is now recovering
- Spain is a highly popular country for tourists all over the world
- Most Spaniards are moving towards the entrepreneurial world
- Obtain a Golden Visa is relatively easy
- Investors don’t need to live primarily in Spain to keep their residency (Visiting Spain once a year is enough at least investor wants to get a citizenship)
These reasons, have convinced many expats to invest in Spain, but in regards to what is the best investment; the answer is usually Spanish real estate, but why?
In 2008, the prices of real estate dramatically fell, and now that economy is back in the good track, prices are slowly recovering, which makes it still very affordable to acquire a good property in a good zone in important cities.
Spain is especially attractive for the British, German and, in general, European markets, and the interest of large Latin American investors is becoming more and more relevant.
For those wanting to generate passive income for renting, owning a property in Spain is also a great opportunity, as largest cities cannot meet the demand for houses, and many people rely on renting.
Expat in Spain: Best cities to invest in Spain
If looking to invest in Spain, its capital Madrid will probably your first option, and with good reason, as Madrid is an important economic center in Europe, but there are other cities that are great for international investors. The most popular ones, apart from Madrid, are:
- Las Palmas (Canary Islands)
Depending on your business or your target market, choosing one city or the other might have a significant impact. For areas with a lot of population, youth and people looking for renting, Madrid, Barcelona y Valencia are great Spanish cities for expats to invest in.