When you are an investor you are always looking to grow your investments, and sometimes a good idea is to buy property abroad or set up a business in another country, because this way you can diversify your income, and having easy access to Europe and elsewhere is always a great advantage.
The Golden Visa program has made it possible to streamline many processes and to avoid the barriers and difficulties of obtaining a proper residence visa in Spain or in the other countries offering the programme. As a result, Spain has gained popularity among the countries with the most international investors.
On the other hand, Spain is recovering from a crisis, which means that property prices are rising considerably, rents are once again a good business and therefore it is a very attractive country for international investors. And Madrid, the Spanish capital, remains one of the best cities in Spain to invest in.
Why to invest in Madrid?
As opposed to other countries, where only the capital is relevant for international investors; Spain has several cities that are very important for the country and for Europe. This is a good thing, because it gives us more options, but could also makes it hard to make a decision.
However, Madrid continues to be a great option to invest in Spain, and these are some for the reasons for this:
It’s a large city in Europe
The city of Madrid is the sixth largest city in Europe by population, while the metropolitan area of Madrid is in between the 3rd or 4th place. Yet, Madrid has a considerably lower population, making it less overwhelming than cities like London or Istanbul.
Real estate prices are lower than other cities
Even after the bubble burst in 2008, now that Spain is recovering from the crisis, and economy seems to be on the good track, so Spanish real estate does, and in Madrid, prices are considerably lower than other important European cities such as London or Paris, making it much more affordable, and still giving the possibilities of investing in an important city.
The property market is constantly growing which means that for now you can find properties at a very attractive price and with the potential to increase in value in the future.
Things to consider when investing in Madrid from a long distance
For those considering investing in Madrid from a long distance, especially those who are not from Europe. There are good things to take into account when investing in real estate or other investments in Madrid from a long distance.
Learn about the Spanish tax system
Taxes in Spain are lower than in other European countries, and understanding foreign tax systems can be complicated or overwhelming at first.
The Spanish tax system has its own nuances, but the most important thing is to determine whether you are a tax resident. If in doubt or unsure, you can always seek advice from a Spanish tax professional.
Consider hiring a property manager
There are professional or private real estate agencies, whether you already know them and are willing to move, or you find them on the Internet, they are willing to take care of your property in Madrid remotely.
The property manager will help you complete tasks that you would otherwise have to do yourself and you can keep in touch with them online without having to travel to Madrid. Their rates are usually low because they work on a volume basis, but for more personalised property management, you may have to pay more.
Be willing to travel to Madrid at least once per year
With technology and a property manager, you can manage your investment in Madrid from a long distance. However, it’s probably still a good idea to travel for at least a couple days to Madrid to experience firsthand how things are going with your property in Madrid. And it’s a good excuse to spend some days in this charming city.