Spain’s thriving economy, top infrastructure, and prime real estate market make investing in Spain an attractive option. To top it off, Spain’s Golden Visa Program welcomes investors to invest in the country, and in turn, obtain legal residency in Spain. This guide takes a look at why you should invest in Spain as well as how to successfully invest in the country.
Why invest in Spain?
Spain has long served as a magnet for foreign investors looking to set up a business or invest in properties. One of the primary reasons for this is that the Spanish government actively supports foreign investment opportunities with a number of schemes like the Spain Golden Visa.
Here are ten reasons to invest in Spain:
- Invest in Spain and get residency in two months for yourself and your family
- As Spain is part of the EU, investors get instant access to the European market
- Investor-friendly policies to support startup businesses
- Excellent geographical positioning with North African, Latin American, and the Middle Eastern markets
- Fantastic infrastructure and logistics
- Developed maritime sector
- Local Spanish authorities actively involved in attracting foreign investors to Spain
- Country globally ranks 9th in terms of openness to foreign investments
- Some of the world’s top 100 companies have set up shop in Spain
- Developed tourism industry with a surge in renting short-term properties
Investment opportunities in Spain
If you’re thinking of diversifying your investment portfolio, then consider Spain, a haven for foreign investors. Some of the main sectors to invest in include stocks, Spanish businesses, or real estate.
Main investment opportunities in Spain:
- Tourism sector
- Real estate sector
- Chemical sector
- Biotechnology sector
- Automobile and aerospace industries
- Naval construction
- Textile and leather industry
- Wine and food-processing industry
- Telecommunications and infrastructure
- Energy and green technologies
Where to invest in Spain?
Where to invest in Spain depends on where you’ll get the biggest return for your investment, as well as what sector is profitable and fits your objectives.
Invest in real estate in Spain
Most people choose to invest in real estate in Spain for several reasons. The real estate market itself is growing, rental prices are skyrocketing, and properties are undergoing progressive revaluation. Most who invest in real estate in Spain either buy a property to rent it, purchase a property for vacation rental, or refurbish real estate and sell it again. A key advantage of investing in real estate in Spain is that non-EU nationals can gain legal residency in a few short months, provided that they buy a property worth at least €500K.
Invest in the energy sector
In the energy sector, there is strong growth potential because the Spanish government is turning toward renewable energies. So an opportunity to invest in technological innovation is considered a rewarding opportunity.
Invest in the biotechnology sector
The biotechnology sector is growing at a rate of more than 25% per year, making Spain the fourth biggest contributor in the world in the biotechnology sector. External trade, the chemical, pharmaceutical, and plastics industry represent fantastic investment opportunities.
Invest in the agricultural sector
You can also invest in the agrarian sector since Spain is the largest European producer of organic produce. It hosts a top market in the EU for legumes, nuts, and seafood products.
Invest in the tourism industry
Spain is considered the ultimate European destination for expats looking to soak up some sun, eat tasty food, and marvel at the art, culture, and diverse landscapes. With over 80 million tourists visiting each year, foreign investors have been quick to identify potential in the sector. At present, foreign investors can invest in real estate and turn it into short-term rental properties. You can also invest in buildings, hotels, hostels, luxurious beachside villas, and bed and breakfasts. The choice is yours.
Invest in the food industry
Spain’s delicious cuisine has created a trend among distinguished food bloggers and Michelin star chefs who’ve flocked to the nation to learn from the Spanish chef masters themselves. This has generated plenty of opportunities to invest in a restaurant business or hospitality company, with cities like Barcelona and San Sebastian boasting world-class food experiences.
Best places to invest in Spain
The best places to invest in Spain, according to foreign investors themselves are Barcelona, Madrid, Ibiza, Costa Blanca, Majorca, and Marbella. And the best type of investment to make is through a property investment. This is because investors can receive competitive returns in a top-performing housing market, with international buyers already making up around 20% of all property transactions in Spain.
For property investment, the Balearic Islands of Mallorca, Menorca and Ibiza are considered one of the best places to invest in Spain because of the significant number of tourists they attract each year. Meanwhile, Costa Blanca is a favorite for investors looking to make an affordable investment, with an apartment costing around €40,000 and above, with big investment potential in golf courses and amenities.
The absolute best place to invest in Spain
As the capital city of Spain, Madrid is considered the absolute best place to invest in Spain. Serving as a key investment point in the country, more and more investors are interested in logistic assets as well as property investment.
As the business center of Spain, there are plenty of business opportunities to take advantage of in the capital city. It remains a pivotal region for setting up businesses, with the Madrid Chamber of Commerce setting up several investment-friendly plans to attract foreign companies in the capital. From I.T consultancy startups to medium-sized firms, foreign investment in Madrid is considered the best option for investors.
Invest in Spain and get residency
Expats can invest in Spain and get residency through the Spain Golden Visa Program. The Spain Golden Visa is geared toward investors outside the EU who wish to either invest in real estate, job generation, or public debts. Under the scheme, investors and their family members can obtain temporary residency permits in under two months, provided that they make a minimum qualifying investment of €500,000.
Why invest in Spain and get residency:
- Gain a second home and a residency permit, allowing you to travel freely within the Schengen Zone
- Spain Golden Visa is a step towards permanent residency and even citizenship (after 10 years)
- You don’t need to live in Spain to keep your Golden Visa
- Family members eligible for residence permits
- Spain offers a fantastic quality of life, with affordable living standards and world-class healthcare
For more information on investing in Spain for residency, check out our ultimate guide to the Spain Golden Visa below.
Invest in Spain, get citizenship
It’s possible to make a foreign investment in Spain of €500,000 and get citizenship. It’s important to note though that the only way to do this is to first go through Spain’s Golden Visa Program, become a permanent resident after five years of maintaining your investment, and then live an additional five years in the country. A Spanish passport is typically granted ten years from the date you make a foreign investment in Spain.
Speak to a Global Citizen Solutions Specialist
Interested in investing in Spain for residency or citizenship? Get in touch with our Golden Visa consultants, who can assist you in all matters related to pursuing a residency in Spain as a non-EU national.
Who are we? We are a boutique consultancy firm with years of experience delivering bespoke residence and citizenship-by-investment solutions for international families. With offices worldwide and an experienced, hands-on team, we help clients from around the world acquire Golden Visas or homes while diversifying their portfolio with robust investments.
Frequently asked questions about why invest in Spain
Is buying property in Spain a good investment?
Buying property in Spain is considered an excellent investment for several reasons. The Spanish real estate market is experiencing significant growth, rental prices are high, and a huge volume of tourists are visiting Spain each year so there’s a big market for short-term holiday rentals.
What’s the best place to invest in real estate in Spain?
The best place to invest in real estate in Spain is Madrid. The capital city is considered a top target for people moving to Spain and for investors, with high potential in investment returns.
What are the best investments in Spain?
The best foreign investments in Spain to make include investments in biotechnology, real estate, tourism, agriculture, and the food industry.
What investment property for sale in Spain will get me residency?
Any investment property for sale in Spain will get you residency. Under the Spain Golden Visa Program, there are no restrictions on the type of property you pick, as long as the investment is at least €500K.
How does the investment in Spain for residency work?
The way investment in Spain for residency works is, you must make a qualifying property investment of €500K in order to gain a residency permit in Spain. Provided that you maintain your investment for five years and fulfill the Spain Golden Visa Program requirements, you can get permanent residency after five years, and citizenship after ten years.
If I invest in Spain, do I get citizenship?
If you invest in Spain, you certainly can get citizenship. However, the path to citizenship isn’t direct. You must first apply for the Spain Golden Visa Program and keep your qualifying investment for the duration of your Golden Visa. You must then procure permanent residence and live in the country for an additional five years ( a total of 10 years), for you to get a Spanish passport.
What investment companies operate in Spain?
There are several investment companies operating in Spain, namely Aresbank, Banco Pastor, and Advanza Capital.
How to invest in Spain?
How to invest in Spain depends on what investment path you choose. In general, though, property investments are the most popular among expats looking to diversify their portfolio and gain a profit in returns. If you choose to invest in real estate, it is recommended that you select an independent buyer’s agent with a track record of success. They’ll assist with property sourcing and acquisition and can advise on best areas to buy a property.
How to invest in real estate in Spain?
How to invest in real estate in Spain is a relatively straightforward process. When you have found a property you like, both parties must agree on the price, and you must ask for proof that the seller owns the property and it is free of charges, including any outstanding mortgages. In Spain, debts are charged to the property, so you must make sure you don’t inherit any debt. When this is agreed upon and proof is provided, both must sign a contract.
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