All about real estate investment in Spain - buy the right home in the right area - Spanish Real Estate

Buying a property in Spain can be the best investment of your life, but it is important to choose the right house or apartment in the right area. The Costa del Sol for example has stronger tourism than most other areas. In several resorts on the Costa del Sol, thanks to the strong domestic tourism, they broke records in turnover during the pandemic summer 21, despite the fact that foreign tourism during the period, due to restrictions, fell by 80%. A message of strength as good as anything for the area. But far from all areas in southern Spain have high occupancy. There are also many other aspects to be aware of. Did you know, for example, that there are strict restrictions (and even stricter rules are being discussed in 2024) for rentals in areas such as Mallorca, Barcelona and the Canary Islands? There are also other laws and regulations, which regulate rentals, for most Spanish provinces you should follow in order not to risk expensive fines.

Prices continue to increase, although they are now increasing more slowly. The increase for the year as a whole landed at around 5%. However, the inflation/war did not slow down the rising price trend that has been going on since 2014. The price of Spanish housing fell significantly around the crisis in 2008, but in 2024 is still around 22% down compared to the record level in 2007. Since then, a lot of positive things have also happened in the form of regulations in purpose of protecting the buyer, banking regulations, and they have invested heavily in infrastructure, eco-tourism and hiking trails, etc. In the wake of this positive development, several multinational companies have also moved their offices to Spanish cities, and not least Malaga is experiencing a tech boom after Google's state-of-the-art cyber security headquarters were moved to the city recently. In 2023, however, the increase in prices decreased significantly until the end of the year. As it stands now, however, price increases will start to increase faster again in 2024 as inflation falls and interest rate cuts from the ECB are expected during the year.

The construction agency APCSepaña believes that it is mainly the desire for new development that is pushing up prices. With the strong international interest, it is difficult to see anything other than a continued rise in the Spanish housing market. The biggest problem is the lack of housing for sale in the most attractive areas (mainly foreign investors are behind this). This makes prices very resilient. However, there are many sellers who waited to put up for sale during the pandemic and who will now accept lower bids on the starting price for six months or so.

Generally speaking, assessors expect that house prices in Spain will increase by 2-5% during 2024, and then rise quickly and steeply. If energy prices continue to fall more than expected in line with international inflation and interest rates as well, the increase will however be significantly higher. Never before has the international interest in Spain from investors been greater. Nowadays, annually around 140 different nationalities invest in the country.

In the 5 years before Corona, the value of a Spanish home increased by an average of 5% per year and if you count reduced interest costs and the fact that the price of renting increased by 50% during the same period, this meant a return of over 10% for those who bought the right home in the right area at the right time. The value did not decrease significantly, and even increased in some regions, throughout the crisis year 20. This was a strong indication of the future. During autumn 21, turnkey apartments were sold on the eastern Costa del Sol where prices have risen by over 50% since they were sold off plan.

In the first half of 2022, a record was broken in the number of foreign buyers in Spain. 53% more compared to the previous year (domestic sales also increased but "only" by 9%). A total of 72,987 homes were sold involving a foreign buyer. This is the highest figure achieved since measurements began in 2007.

Foreign buyers account for over 20% of all home purchases in Spain. There are many factors at play, but in the case of Andalusia, for example, you can point to the large investments in infrastructure, renovation of beaches and nature parks, large tax reductions and above all the international trend of wanting to work remotely in a place with a lot of sun ( where prices are still considered reasonable). In the first half of 2023, records were also broken in terms of foreign buyers, but the second half slowed down.

Since the new regional government of Andalusia took office in 2019, they have introduced a number of tax changes that have effectively reduced, abolished or suspended several tax rates. As a result of this tax-friendly attitude, Andalusia has become the region in Spain with the lowest taxes (along with Madrid). It goes without saying that this has encouraged huge foreign investment in the region, resulting in capital growth of 40% from 2019 to 2023. The main explanations why Andalusia has become Spain's top real estate investment hotspot and why so many people are getting rich quick: 1. Inheritance tax was abolished in 2019. 2. Gift tax was abolished in 2019. 3. Property transfer tax was reduced in 2021. 4. Stamp duty was reduced by 20% in 2021. 5. Wealth tax was abolished in 2022.

Sales of new development increased by 50% on the Costa del Sol from summer 20 to summer 21. Sales of second-hand homes fell during the same period by 4.6%, which can be explained partly by the stock becoming old and worn, but also by prices only fell by 0.5% despite the crisis (prices rose in the autumn, however). Now there may be a period when sales of new development drop slightly, but not because of a lack of demand, but because many building developers are waiting as prices fluctuate greatly and banks make higher demands during troubled times.

However, it is undoubtedly new development that applies in the future , but there are of course still good buys to be made for those looking for used as well (starting prices do not change in times of crisis, but the negotiation situation does). Although most people are now looking for new homes, the supply is limited. Most of the best of the few projects that come out at the beginning of the year will sell out quickly, and there will be a gap (as many building developers were low during the crisis) until newly produced homes in good locations come out in 2024-2025 ( note then that it is off plan and that moving in takes place no earlier than two years after the start of sales). Also expect that the prices of these will be significantly higher than what is sold this year. The sudden price increases last autumn on projects not yet fully sold underline this. When things normalize, it will happen quickly.

New Development comes into focus for investors

One aspect that is completely different compared to the period after the last crisis is, as I said, that the focus for the next 5-10 years will be on new development (although 2024/2025 will probably see fewer new projects than usual). The housing stock is beginning to wear out, and there are many problems with moisture damage (stronger building standards were only introduced in 2006), etc. Despite this, those who are sitting on homes built before the 2000s do not seem to be willing to lower prices significantly. There was also very little new production built in the decade after the 2008 crisis compared to the decade before. In the mid-2020s, newly produced products will thus enter a golden period similar to that of the early 2000s. Important to keep in mind: The actors who have been active in looking for long-inactive plot owners (who needed a real crisis to finally sell off their coveted plots) and negotiated good prices for plots in good locations in the middle of the crisis - and who also have a good economy and who made it through the meltdown and retained long established teams of architects/project managers and established bank contacts are now facing a unique situation. These are the players you should bet on.

There are some very interesting projects underway in 2024. to get the information before they become public (first we usually send direct mail early in the process to clients we know are actively looking for a certain area, then we publish the projects in the newsletters 1-4 weeks before public release ) subscribe to our newsletters. Newsletter west side (Marbella, Estepona. Nueva Andalucia etc.). Newsletter east side (Nerja, Torrox, Malaga city, etc.).

Investment opportunities after the Corona crisis - 2024 and beyond

It is expected that Spain is in the winner's hole because many, including business travelers, will opt out of hotels and prefer to stay in residences during their stay, while long-distance trips outside Europe will become more expensive with poor frequency of departures, which places Spain in general, and the Costa del Sol in particular, according to most analysts, in a very favorable situation in the long term. , the capital of the area Malaga , thus ended up on Forbes' heavy list of the 20 best destinations in the world to invest in, and to live in. More heavy players who have analyzed the future and concluded that Spain is more than worth investing in are Scandinavian investment company. The largest international portals in Spain are now owned by Scandinavian companies. The most visited Spanish portal Idealista was recently bought for 1.3 billion by the Swedish Venture Capital company EQT. The world-renowned investor Warren Buffet, the "Oracle from Omaha" has also made the same analysis during the crisis and bought up a brokerage firm in Marbella. They aim long-term and believe in a boom in foreign interest, mainly in the Costa del Sol, in the next 10 years. Here you can find culture, sun, nature and infrastructure in combination with relatively low prices for housing in an international comparison. Many will therefore also choose to work remotely from this particular part of Spain, regardless of where in the world they have their workplace. Andalucia, and mainly the coastal resort of Nerja (which already in the midst of a burning crisis began investing in upgrading nature parks, hiking trails, etc.) and Malaga, and not least the suburb of Rincon, have caught the eye. The latter city invests in further marketing itself to international tourists and investors. Malaga already announced in July 2020, that it is now starting "Malaga 2030", the investment that will make the city the most attractive place in Europe to "live, work and invest in".

Interest in investing on the Costa del Sol is expected to increase sharply in the United States after United Airways tripled the number of direct flights to the area. This is likely to open up new opportunities for American investors to explore the real estate market and other investment opportunities on the Costa del Sol. The American airline has chosen the Costa del Sol as the only holiday destination in Spain to which it will fly every day during the high season.

That the willingness to invest from abroad does not only apply to home buyers was clear when Google moved one of its most important offices (cyber security) to the most growing city of all, Malaga, during the year. The city has undergone a substantial development that began already during the last crisis. It is also believed that it is Malaga that will primarily benefit from the Spanish state's new arsenal of tax benefits aimed at foreign Startups.

Please note that Underhand sales are becoming even more common after the Corona crisis. These are therefore homes that have been reduced in price but are not publicly advertised. This procedure has become increasingly common, and has now accelerated after the Corona crisis. The price reductions on these homes may not be published publicly, but we send them via direct mail to clients who have flagged an interest, and who can quickly make a deal. In any case, by 2024, this type of business will be the most common in the most attractive parts of Spain. Note that many have withdrawn their homes from the market, and many others are holding off on selling. There will thus be fewer homes in the public shop window, but greater chances of making a really good purchase for those who are active and can act quickly.

info@spanskafastigheter.se

We will mention Nerja, east of Malaga, and Malaga City on the Costa del Sol many times in this article. There is a reason for that. Nerja has been for some time Spain's undoubtedly the most attractive city to invest in [3/11, 21 figures were also presented that underline this as it appears that Nerja is Spain's leader at provincial level in terms of the recovery towards international tourism after the crisis. During the month of October, the city had a hotel occupancy rate of 87.47%) and we have more actual data from this city (along with Torrevieja) than any other city in Spain. Malaga city is the city with the strongest development in the entire Mediterranean region right now. By the way, bookings of private residences in Spain increased by a mind-boggling 1 million already in the first half of 2017, which means an increase of 33% compared to the same period the year before! A couple of years ago, the rental of private residences, for the first time ever, overtook the hotel industry in some areas.

Many areas in Spain will be affected by the crisis, but Spain is one of the European countries that fared the least during the economic crisis years 22/23. Perhaps the main reason why the country's inflation (the fact is that it has been a long time since Spain was as cheap for a Swede as it is now), GDP and the stock market have not been affected as hard as, for example, Sweden is that it gets its natural gas from North Africa. It was also clear already at the end of June that Andalucia in general and the Costa del Sol in particular will be among the big winners in southern Europe. In part, bookings in Andalucia already increased in connection with the Prime Minister's announcement that tourism will be allowed during the summer and the part of the country became quickly the most booked tourist region in the world , ahead of Florida and the Canary Islands. In addition, municipalities around the Sunshine Coast have decided to get out of this crisis and not repeat the mistake from 2008 when they tightened the seat belt. Marbella has pushed through the construction/renovation of additional luxury hotels and within a few years will have a total of 12 five-star hotels. It already has the most luxury facilities in the whole country. Neighbor Fuengirola is investing heavily in a new port and the giant entertainment project "Intu" in Torremolinos has announced that it has secured the finances and the project is continuing. On the eastern side, Nerja is investing heavily in sustainable tourism, and in building a world-class golf course, as well as a general improvement of beaches and nature parks, etc. The city was also just in time for the opening of the borders to tourists, designated in a study by the European Commission to be "Europe's second best destination". During the last crisis, everything stood still. Spain now and Spain 2008 are two different worlds. Now everything is moving forward, seemingly no matter what.

The most lucrative area is, as I said, the Costa del Sol, and it is new development , due to the lack of new housing in the wake of the long crisis, that is most interesting for housing investors . This applies in particular to the areas where there is still interesting land left to build on. However, land prices rise rapidly, and with each new phase of each construction, prices rise. Should you have newly produced homes in 2024 or beyond, buy now, not later. According to a study carried out by AEV, the Spanish valuation institute, sharp increases in house prices are expected. There are a number of different factors that point towards this, such as the fact that more and more tenants want to own their own home, that Brexit has finally been read into the documents and that most people have now realized that despite everything historically relatively low interest rates are here to stay while inflation rises, and historically housing has always been a safe haven for investors when inflation rises . Furthermore, Spain is the country in Europe where the value of housing is expected to increase the fastest, and in Spain Malaga is expected to have the greatest growth. As early as Q4 21, there were figures showing that, for the first time ever, Malaga overtook Barcelona in the number of newly produced homes sold.

Read our big overview article about new development on the Costa del Sol.

Strong increase in tourism in the Malaga area

The province of Málaga experienced a record year for tourism in 2023, with over 14 million visitors and revenues of more than 19 billion euros, the best figures since the pandemic and surpassing 2019's record. The number of visitors increased by 9.4 percent from 2022 and the income grew by twelve percent to 19.1 billion euros, an increase of five billion compared to 2019.

Air travelers to Málaga increased by 21 percent and cruise travelers by 52 percent compared to 2022, with a total of 522,000 passengers. Hotel and apartment guests increased to 7.8 million, resulting in 29 million overnight stays.

The growth of tourism also has a positive impact on the labor market, with an increase in employment in the service sector by 4.1 percent to 128,430 people. Average revenue per room in Málaga increased to 90.10 euros.

It is mainly Nerja and Torremolinos that make you beat in 2019 as they raise the average. Nerja has the highest occupancy with 94.46% (to be compared with Marbella and other places on the west side which are just over 80%). Nerja also beat all other nearby towns in terms of occupancy at the end of 2023 (over 90%).

While tourism is hitting record highs in many places in the most attractive areas, it is declining in inland areas (note that these areas had a boost during the pandemic, but are now starting to fall back in popularity). Even if you do not intend to rent out your home, you should take the rental statistics into account as it strongly correlates with the price development of housing. Nerja became the best city to invest in already during the last crisis which it got through well and became stronger than before. Nerja municipality's resolute action with all offensive investments in hiking trails, nature parks and infrastructure during the pandemic years means that the city is better equipped than ever during the rest of the 20th century. We've said it before and these numbers make us say it again with added emphasis. If you are going to invest, do it in Nerja or one of the growing parts of Malaga city.

Different types of opportunities for you who want to invest in Spain in 2024

One of our specialties is to look for plots in attractive locations with an attractive price picture and then push construction prices without compromising on either quality or environmental considerations via a proven Spanish project model that is now making a comeback. These are so-called housing cooperative that remove the promoter and its sky-high margins from the equation and lower prices by up to 25%. Read more about housing cooperative in this article.

Several construction developers have moved their headquarters to Malaga as most major investors see the greatest future potential in Malaga and its immediate vicinity. It is mainly the increase in value in the long term that is interesting, but renting in the right areas in Malaga is making the strongest progress of all areas. Malaga City is also not dependent on strong tourism as companies and lawyers/doctors etc. are looking for housing to rent on the market. Between 2013 and 2019, according to the Spanish central bank Banco de España, rental prices increased by 45 percent! They have only continued to increase since then.

Link to our latest homes for sale in Malaga here.

Different types of investments in Spain

Do you want to buy one or a couple of homes for rent? It is our specialty to find exactly these objects and also offer a complete solution for renting (including marketing in international portals, helping with licenses, key management, cleaning and administrative, etc.)
Are you looking for something around a million SEK at most? Many demand renovation objects. However, it is difficult to get hold of good ones. You should also know this: you can make a Swedish tax deduction even on your Spanish house and in Spain it is easy and cheap to renovate your property. You can also lower the Itp (Impuestos de Transmissiones Patrimoniales) tax to 2% if you sell the home within 3 years and do not engage in any rental activities. Read more about houses in need of renovation in a popular village just outside Malaga.
Do you want to buy up land and build a project with 1-50 homes (including construction of individual luxury villas)? Our experienced project manager (based on several of our previous and upcoming construction projects) will help you find land and negotiate a good price. In collaboration with our architects, we then help you design and ensure that the project achieves all requirements to obtain licenses, etc. We also put you in touch with bank managers for financing, as well as insurance companies for guarantees.

The following article will cover the following points:

Best areas to invest in Spain
Best types of homes for a good real estate investment
Important factors for a successful rental business - and pitfalls
Restrictions on renting in the Spanish autonomous regions
About what types of models rental companies offer and about marketing your home on your own
This is how much you can earn per year from renting out your home in Spain (with calculation of all expenses and income as well as increase in value)
About borrowing from a Spanish bank
About the problem (and opportunities) with banking objects
About the Spanish housing market - prices are increasing slowly but steadily after the crisis
Statistics on price history
Summary, about our services and links to further reading

NOTE , the article is continuously updated with new statistics, updates to laws, and other things that touch the subject of investing in real estate in Spain. We gratefully receive opinions, corrections, etc. Write to Info@spanskafastigheter.se

Spanskafastigheter.se is active all over the country and works with the majority of major banks, rental companies/brokerage firms, etc. We therefore receive figures from the majority of different actors around Spain, but no figures even come close to matching Nerja's figures for letting. The relatively low prices for housing in combination with the high occupancy mean that Nerja has the highest ROI (Return of Investment).

It is difficult to say in advance which areas will become new "hotspots", but the safest thing, as with everything else, is to study the history. If you have a documented rental history, you are more secure in your housing investment than 99% of everyone else. We are constantly looking for good areas to invest in, but right now, and for some time to come, Nerja is the best place to invest in Spain. Please note that there are no homes worth investing in for under SEK 1 million in the city, but for investors with a lower budget there are other options (such as Torrevieja on the Costa Blanca, which provides lower income but also costs slightly less to buy in) which we go through in this article. However, really good investments generally cost over SEK 1 million regardless of where in Spain you look. The bank properties are indeed cheap, but are not located in good areas.

Like the majority of brokers, we never recommended our clients to count on any major income by renting out their Spanish residence. These incomes were only seen as a pure bonus. However, this was before we launched our sister site for rentals in Nerja in 2012, and before we got statistics from our own customers (we started in 2008, during the crisis, so it took 4 years for sales to start). The numbers from this part of Spain are enormous and grow every quarter, and thus 9 out of 10 investors seek this particular city which, due to several different reasons, is a uniquely good place to invest in. That is not to say that it is not possible to make a good investment elsewhere in Spain. More about this and more about the rental figures for Nerja (actual figures from different operators), and other areas in Spain, restrictions on rental licenses by region, and other pitfalls and tips you can find in this article. First, a few words about us from our main broker, Anders Larsson:

At spanskafastigheter.se, we focus on finding homes that are good investments both short-term and long-term. They must have a high occupancy rate at market weekly or monthly rates. We have analyzed history from both our own clients' homes, our own rental business and our partners' statistics from the years before the crisis until now. It is clear that in order to make the safest investment possible, you should invest in a home (or an area) with a rental history that stood strong even during the crisis years. Our goal is to make it as smooth and easy as possible for our clients to successfully advertise and make a strong profit on their vacation rentals. We continuously test and analyze which international and Swedish portals/rental companies give the best results for the lowest possible cost/commission. However, it all starts with finding the right home in the right area at the right price . For this purpose, we have bank and lawyer contacts, as well as other independent brokers, who help us scan the market. They know our clients are prepared and ready to pounce when the right item comes along.

- Anders Larsson , main broker spanskafastigheter.se Write to him directly at spanienkontoret@spanskafastigheter.se

Link to page where you can sign up for all our newsletters in Spain ( Nerja and other eastern Costa del Sol, Marbella and other western Costa del Sol, Torrevieja and Costa Blanca, Barcelona and Costa Brava, Canary Islands and Mallorca ).

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That's why the potential rental income for a property is so important

A mistake that many who invest in real estate make is that they only look at the potential value development, and neglect how much/little a property brings in income per year. Instead, they only speculate on the future value of the home. Warren Buffet, who became the world's richest man through real estate investing, said it best:

"If you focus on the potential price development of the home you are targeting, you are speculating. There is nothing wrong with that. However, I know that I myself am not successful in my speculations, and I am skeptical of those who claim to be successful in the long run with this type of speculation”.

According to customer surveys carried out by Tripwell, 7 out of 10 Swedes rent out their foreign residence, in order to cover the costs. However, the right home in Spain can generate much more than just covering costs. However, you should be aware that in most areas of Spain, despite its great popularity, it is difficult to get a good coating at all. But with the right home in the right area (and the right marketing via third parties, or in the right portals on your own) you can make a really good housing investment in Spain.

Spain is now considered to be the world's safest tourist destination, and with many who previously chose Turkey, Greece or Thailand now choosing to holiday in Spain, the country has advanced and passed the US. Spain is now the world's second most popular tourist destination (after France). In 2016, Spain had 75 million visitors, in 2017 there were 82 (!) million foreign visitors. This was the fifth year in a row that the record was broken. A big reason why the numbers are increasing so dramatically is that more and more people are visiting Spain during all months of the year, not just the high season. The most incredible thing is that it is believed that the ceiling is far from being reached, and that the changes in the global tourism pattern post Corona will lead to even stronger tourism for Spain. During the first half of 2022, occupancy was almost as high as in 2019, but more money was brought in as each tourist spent more money than before the pandemic.

Another trend is that international luxury tourists have opened their eyes to the Costa del Sol. Tourism on the Costa Blanca, for example, is also increasing sharply, but it is low-budget tourism that so far prevails in this part of Spain. The three largest regions for international tourism are Andalusia (mainly the Costa del Sol), Valencia and Catalonia. Then follow the Canary Islands and the Balearic Islands (with Mallorca in the lead, which however is falling sharply, and TUI reduced capacity there by 30% already in 2019). Special article luxury houses and exclusive apartments in Spain.

In 2016, building construction accounted for 10% of Spain's GDP. In 2017, it grew significantly and invested €1 billion in new development on the Costa del Sol alone. You will probably never again start building at the same pace as you did in 2007, before the crisis. But clearly there are many construction projects underway from 2024 (however, some have been delayed to 2025 due to increased prices) and beyond, and it is speculated that within just a few years they will be at a production rate of 400,000 newly built homes per year.

The Malaga area in focus for international film production

Nerja, along with Málaga and Marbella, has in the last year become a popular location for film production, thanks to its beautiful scenery and excellent weather. After a downturn during the COVID-19 pandemic, the Málaga region has rebounded strongly in the film industry. According to the Málaga Film Office and its partners in Andalusia, local production companies have been at the heart of this recovery, but the area has also attracted over 20 British and several German film projects.

Nerja has particularly attracted international interest. American director Tosca Musk, sister of Elon Musk, has chosen the city for the filming of her new romantic comedy 'Wallbanger', calling the coastal resort "the best location in Europe for filming".

Additionally, before the pandemic, it was reported that George Clooney and other producers were interested in buying Malaga's football club, as part of a larger plan to make Malaga the "new Hollywood" of Europe. This now seems to be coming true.

The flourishing Spanish tourism, the good infrastructure and the low prices of high-quality housing have made Spain highly attractive to international investors. But tourism, and the quality of housing, in Spain varies greatly by region, city and neighbourhood. Let's therefore take a closer look at different Spanish areas.

Buy a house or apartment in Spain - good areas

Andalucia – The Costa del Sol rules

The largest international site Spain-Holiday has compiled a list of the 10 most requested places in Spain for holiday rental (note that the bottom half of the list has less than half the number of requests as the top 3.)

Marbella *
Nerja
Calpe
Barcelona
Benalmadena
Lloret de Mar
Moraira
Seated
Fuengirola
Almunecar

* Please note that "Marbella" for many is a broad term that also includes nearby areas, as far down as Estepona. This means that you have a stretch of approximately 8 miles (Malaga to Estepona) where all towns more or less "cannibalize" each other's occupancy. We ourselves have for several years tried with rental activities in the Marbella area, but it is very difficult to get a high occupancy as the area is so spread out, and few can distinguish the different locations from each other. Because the area is fuzzy geographically, you also don't have as many repeat guests (just repeat guests are the best customers, and you want them to amount to 30% or more of the bookings). One year they live in Mijas, and the next in Fuengirola, etc. If you are going to invest in or around Marbella, invest mainly in the luxury segment in and around Puerto Banus or Nueva Andalucia which is also an excellent option. It is a more clearly framed segment. The problem with Banus is that most of the luxury homes that were for sale at heavily reduced prices have been sold. There is still a price difference, even for these most exclusive properties, compared to 2007, but it is not nearly as marked. Read an overview of the most affordable purchases of newly produced homes on the Costa del Sol ( updated continuously).

The coastal regions, Costa del Sol , Costa Tropical and Costa de la Luz are the most sought after areas of Andalusia. These areas are popular tourist destinations during the summer. The most sought after cities are above all Nerja, which also has strong winter tourism, (east of Malaga) and Marbella, followed by Benalmadena, Fuengirola (although the latter city has been in decline for a long time) and to some extent Almuñecar (the great interest in Nerja spilling over in the direction of Almuñecar). Malaga city is a highly interesting option on the Sunshine Coast (interest in both buying and renting is steadily increasing). Also keep an eye out for new development in the areas between Malaga Airport and Nerja. The land is cheaper than other places on the coast and these areas may attract more and more tourists in the next 5 years (more and more people see proximity to the airport as a big plus, as well as wanting to spend the holidays in a fresh, newly built home).

Sign up for our newsletter for the eastern Costa del Sol (mostly Nerja, but also Almuñecar/La Herradura, Rincon and Torrox when something interesting comes up.)

Relatively sought-after areas around Marbella are between San Pedro and Estepona (and also between Marbella and Elviria), as well as Nueva Andalucia (also called golf valley) north of Puerto Banus. However, these areas do not have anywhere near as strong rental figures as Nerja or Puerto Banus.

Between Marbella and Puerto Banus, and especially in the central parts of the latter area, prices are markedly higher. However, there are good investments to be made here as well, but in higher price ranges.

Our newsletter for the West Costa del Sol (Mostly Marbella and surrounding areas).

Destinations on the rise in Andalusia : Malaga city , Cadiz (such as Sotogrande , Chiclana de la Frontera and Zahara de los Atunes have a promising, but uncertain development). The Huelva area, on the Costa de la Luz, which is also close to the airport in Faro, is also expected to develop strongly with increased tourism. However, we are not yet completely convinced of this. However, the prices in Huelva are the best in Spain right now (in relation to how much beachfront housing you get for the money) and are comparable to the first wave of bank properties that came after the crisis years. A finger of warning should also be raised for Benalmadena where there is too much construction in relation to demand at the moment. The same applies to Estepona.

But the investors' big favorite on the Solkusten (the fact is that this city has long been number one with Swedish investors, and the international ones have also now opened their eyes to its potential) is, as I said, Nerja, because of a very good rental and relatively low prices for housing. In recent years, it has won or finished high in several international polls. The international attention surrounding the small Spanish town led Euroweekly to write "With the awards reportedly judged on the increases in positive reviews, searches and booking interests, they merely demonstrate the growth of the town's appeal..." See the best deals in Nerja right now. (updated weekly). Overview article new development in Nerja.

If you have your sights set on the areas west of Malaga, you should consider buying a property with a well-documented rental history . Although tourism is breaking all records and only growing stronger on the Costa del Sol overall, there are still too many unsold homes in many areas west of Malaga. It's not optimal.

Costa Blanca

The market is growing strongly but revenues are low compared to the Costa del Sol (see more in the reported figures further down in the article) as winter tourism is not as strong (albeit good compared to most other areas in Spain), while here too is very empty, which depresses the coating.

In the long run, however, it can be a really good buy to bet on the Costa Blanca, and especially around the city of Torrevieja's most popular beaches (avoid the city itself). There are a lot of bank properties in and around Torrevieja, but these are rarely of a high standard, and are (incorrectly) located by motorways, etc. On the other hand, a 2-bedroom apartment in a good location only costs from just over a million SEK and upwards, but note that it is becoming increasingly difficult to find good accommodation in a good location in this price range even around Torrevieja. There is also a lot of new construction that is still relatively affordable.

Other areas that are popular include Calpe, Altea and Denia. However, housing prices are higher here and tourism is not as extensive (albeit more cash-intensive) as in, for example, Torrevieja.

As for the main towns in the region, Alicante and Valencia, there are still quite a few bank properties available. However, it is more common for tourists to book hotels than apartments/houses in these cities.

Other areas, further south, including Costa Calida, are more difficult to get hold of. Above all, it is the lack of flights from Sweden that is a problem. It is true that there are many unspoilt and very scenic areas between Torrevieja and Almeria (some areas are growing in popularity, however), but for most of the year tourism is basically non-existent.

Our top recommendation is this unique project with beach apartments on one of the last 15 real beach plots in Spain that can be built on. Located in Almerimar.

Catalonia (Barcelona, Sitges, Lloret del Mar and Girona)

Barcelona is by far the most visited city in Spain. The weather in winter does not attract tourists, but the pulse of Barcelona attracts all year round. However, smaller investors (although the luxury segment and larger investment properties still attract foreign buyers) are avoiding Barcelona at the moment, and it seems they will do so for some time to come. In order to slow down the galloping tourism, the city has decided to completely stop handing out rental licenses for tourist apartments. There is still no date set for when, or if, this decision is intended to be reversed. Since October 2017, there has also been great uncertainty throughout Catalonia due to the great disorder in connection with the declaration of independence. Although it would calm down in time, the damage was already done and hundreds of companies have left Catalonia, such as several major banks and beer giant San Miguel (which moved its headquarters to the growing Malaga area).

There are also license restrictions for rentals in popular Girona and Lloret del Mar, and the rest of the Costa Brava, but these are not as strict as in Barcelona. However, we cannot in good conscience advise anyone to invest in Catalonia. Bet on the Costa del Sol instead., (most focus on Barcelona and Sitges).

Mallorca and the Canary Islands

Prices never dropped as much on these popular islands as they did on the mainland, prompting most to botanize the supply of foreclosed homes.
Please note, however, that there are no bank facilities in the most popular and highly touristic areas; such as Playa del Inglés, Maspalomas, etc. In the Canary Islands, the best choice is to choose a residence in a location that has good connections with one of the most popular locations on Gran Canaria and Tenerife respectively.

Also note that the restrictions on renting out homes are very strict (and fines for non-compliance can be as much as €60,000) in both the Canary Islands and Mallorca. This most likely has to do with the fact that the strong hotel industry (not least when exclusive all-inclusive) resorts feel threatened by cheap and easily accessible vacation homes. In Mallorca, it also seems that there will be even stricter laws in the future. The area is not recommended for a real estate investment, [Update] For some years now it has been forbidden to rent out private apartments in Palma, and AirBnb has also been banned.

What type of housing should you invest in in Spain?

These aspects are most important if you want to be able to rent out your home:

How the apartment or villa performs on the rental market (or how much income the commercial property actually generates) also largely determines how much it is worth in the long run. Do not look so much at factors such as how much it is valued in connection with the loan of the home (the valuation for the bank these days is strikingly often lower than the actual market value), or price per square meter, whose curves look like an EKG over relatively short periods of time.

How much predictable income the property generates is the most important aspect of how a property develops in price over time. Also factors such as how long it takes to sell similar properties in the area, how much has been completed in the area, which target group you mainly rent to (the low-budget segment and the most expensive segment are the least stable target groups), the stability of the rental company (are there alternatives if it goes bankrupt?), etc. affect the increase in value.

Important factors for renting:

A sea view is not a must, but a big plus in most cities. A terrace or balcony is desirable (especially if you are marketing to Scandinavian tourists).
1-3 bedrooms. The most popular accommodation types, in terms of international tourists' preferences, are 1. Villa. 2. Apartment 3. Terraced house. 4. Penthouse. 5. Country houses 6. Studios (but they should have a kitchenette/kitchen). When it comes to villas, it is important that they have a good location. It is easier to get a high occupancy of an apartment, even if it is not in a really good location (due to the lower price per night). But the right villa in the right area is in most cases the housing type that generally brings in the highest income.
That the area is well maintained and that it is walking distance to the beach (in some areas this factor is more important than in others. It depends on what the area otherwise offers).
Under an hour's drive to the nearest airport. There is a pain point at 50-60 minutes, and interest drops markedly the further away from the airport you have to get.
Good communications overall. It is a big advantage if it is a place where you don't need a car to get around, and that the bus network is well developed.
You also want entertainment, service facilities, restaurants, etc. within easy walking distance (no one wants to need a rental car/taxi to get to the nearest restaurant).
No one wants to live near a motorway or major thoroughfare as this is perceived as disturbing to say the least.
As for B&Bs, interest in this type of accommodation is very low these days, even internationally. Why live spartanly when you can live in your own house or apartment for almost the same amount?

Top five key factors for international tourists are:

1. A washing machine 2. Terrace or balcony. 3. Access to pool. 4. A/C. 5. Sea view. Factors such as cable TV, parking, dishwasher, jacuzzi, heating, pet-friendly, and properties adapted for the disabled (these are all new buildings in Spain) are also included in the top ten list of important features for a rental property. Most important, however, is ALWAYS the location.

Focus on quality, but realize that this does not necessarily mean newly produced homes with the highest construction standards. The location is the most important thing. There are homes of a very high standard, located near the sea, at good prices, but for which there is no demand at all. These can be found around Alicante, but also around Marbella, down towards Gibraltar. These homes are more suitable (especially when large and newly built bank repossessed blocks located in new areas that lack life, movement and history) as the cheapest possible home for own use . However, don't count on anyone wanting to rent them during the holidays, or that the value will rise significantly in the long run.

There are "horror examples" along the Solkusten, homes that on the surface appear to work very well that are not rented out at all. A Swedish buyer we spoke to recently bought a brand new 2 bedroom apartment, roof terrace with pool, located right on the sea in an area towards Estepona on the west Costa del Sol last year. Despite this, he only had 9 days of occupancy during the year!

There are several newly built complexes (both on the west Costa del Sol and Costa Blanca) close to the sea, with a rooftop pool and seemingly everything people want on holiday that don't even reach a month's occupancy. In this case, these home owners are forced to rent out their apartment to long-term guests, which leads to poor income. Don't buy in areas with lots of vacant homes. This puts considerable pressure on rental prices. The big incomes are in renting out the home for 1-4 weeks at a time, especially during the high season.

The segment that works best in Nerja (which is therefore the Spanish city that attracts the most investors) is 1-2 bedrooms, relatively central, terrace or balcony with a view of the sea. So downtown, Burriana Beach, Capistrano and surrounding area, Parador, and a few more areas are safe cards, so to speak. Our broker in the area, Anders Larsson, has a handle on the address level.

The value of a property is determined by a number of different factors, and no two homes are exactly alike. Sometimes it is decisive which neighborhood it is located in (if there are restaurants and shops etc.), communications, overall condition, (and if it has some unique interior details), size and location of the terrace, view, direction, quality of nearby beaches, traffic noise, green areas, infrastructure, planned and (mainly) existing marinas, golf courses and other sights or attractions.

The important thing, as I said, is not to stare blindly at individual factors such as price per square meter, sea view and condition of building materials/kitchen, etc. Also, don't forget that the old axiom "if it seems too cheap to be true, it probably isn't true ” applies still and forever.

Above all, be vigilant about investing in existing, or upcoming (a lot is happening now that sales have picked up and even Americans and Chinese have shown great interest in investing in homes in Spain) newly produced projects that are located in areas with no history in terms of renting . Whose responsibility is it, for example, to market and establish a completely newly built urbanization between Alicante and Torrevieja (or in private land between Marbella and Gibraltar)? If nothing made tourists seek it out before, what's to say they will now? The developers and the municipality do not spend money on the marketing, and the residential area (urbanization) itself lacks the means/competence to do so. This is how ghost towns come about, building in off-the-beaten-track areas without a plan to attract tourists. The "build it and they will come" mantra is poetic and beautiful, but rarely works in reality.

The three most requested types of vacation rentals based on type of vacation:

Beach holiday.
Family holiday.
Luxury accommodation.

Then there are golf trips, country holidays, budget holidays, weekend trips to big cities and skiing holidays.

7 good basic tips for success with renting a Spanish holiday home

If you manage everything yourself (otherwise the rental company takes care of these details):

Take photos that clearly show both the interior and exterior and focus mainly on details such as the sea view from the terrace, the garden if there is one, the kitchen and its equipment, the bathroom, as well as bedding etc.
Make the headlines on your website/ad portal as inviting as possible, focusing on what makes your home unique (location, price, etc.). Include as much as possible in the description. Nowadays, people want as much information as possible before making a decision and booking.
Respond quickly to inquiries, and preferably have a phone number they can call. About 10% of your potential customers prefer to use the phone rather than email, and those who use the phone also tend to book directly to a higher extent than others.
Keep copies of all communications. Always notify in connection with booking via rules (including cancellation rules) that apply to your home and area.
Always keep your booking calendar well updated.
Collect your customers in an email list (such as the free service Mailchimp) and inform them about discounts, etc.
Be flexible. Change prices, add equipment, renovate a bit, etc if necessary to drum up interest. If you have poor occupancy, if you get a poor response to your advertising, or if your rental company does not deliver, be prepared to quickly change strategy or hire someone who knows the market, who can quickly get your rental on its feet (however, you have not followed our advice and bought a home located in an area where no one wants to rent, there's honestly not much to do).

Don't forget the small but important details in your home

Even if you have a residence in the budget class or in the slightly more luxurious segment, you have a lot to gain from, like the large luxury hotel chains, putting a little soul and thought into the small details. There are always people willing to pay extra for quality!

In addition, transforming an everyday home in the crowd into the most attractive option for the increasingly discerning Scandinavian/Western Europe does not require as much as one might think.

Buy fresh furniture, cutlery and glasses and some simple, but nice interior details in the form of, for example, oil paintings and beautiful vases, decorative pillows and throws, etc.
The absolutely most important detail, and this is a strongly growing trend within the international travel industry in almost all segments, is to invest in high-quality bedding.
Egyptian cotton with the name Öko tex (these non-toxic, environmentally friendly quality fabrics don't have to cost much either, and the durability is very good) or real linen sheets are for many an argument in themselves to choose your particular home (avoid silk as it is a material that does not hold up to regular machine washes).
Do like the luxury hotels and opt for 100% fine-combed Egyptian cotton with 300-400 thread count, which is the golden mean between maximum comfort and durability, and choose exclusively white sets. This signals luxury and unbeatable comfort. This trend was started by Westin Hotels & Resort when they introduced their "Heavenly Bed" in 1999. Since then, it has become standard for luxury hotels (and nowadays also many budget hotels) to use high quality bed linen in white.
Also, don't forget to offer a nice set of towels (including a bath towel). Your guests appreciate this very much, and it makes them want to return year after year. It is very important to build a strong circle of returning customers for any type of rental business. These also carry you through possibly harder times.
In some cases, rental companies are responsible for all bedding etc., but this is something we think you should take care of yourself, or ask them to focus on quality.
Everyday luxury attracts the middle class like never before. Restrictions on rental licenses in Spain If you invest in an apartment for rent, you must first of all make sure that the residence has all the papers in order, mainly the residence license: Licencia de Primera Ocupación (also called Cédula de Habitabilidad). Without this, you cannot apply for a permit to rent out your home to tourists (not all areas of Spain require this type of license). It is the lawyer's job to make sure these papers are in order. In other words, do NOT make any purchases in Spain without a lawyer. Since 2011, the decision on regulation of the rental market rests with the 17 autonomous regions in Spain. Therefore, it is of the utmost importance that before making a purchase for investment purposes, you have an overview of the obligations and rights that apply in the region where you are making your home purchase. In the areas where no special laws have been introduced, the general law LAU (rental laws in urban areas) applies. Many regions in Spain have recently tightened their rules. However, this is only positive in most cases (in some regions, however, it is unfortunately the case that lobbying from the hotel industry has completely reduced the ability of individuals to rent out their home). The reason for the new laws is that they want to ensure the tenants' safety, level of well-being, and to ensure that foreign home owners pay tax and that they have insurance (there is an additional insurance you can take out in your home insurance) that covers the eventualities that may arise when you has tenants. In general, and this applies to all countries within the EU, they want to have better control of tourism, of which individuals are in the country during a given time.
The price for the rental license is a one-time cost and varies from region to region. In some regions it is a fixed cost depending on the local area. In other regions, it depends on how many guests your home can accommodate. Licenses cost from just under €200 to €500. NOTE: In many cases, new laws and regulations can be avoided, such as requiring the tenant to be registered with a passport number (something that is becoming increasingly common within the EU) by adding their residence to a registered rental company, which in turn takes care of all this. Andalucia We start with the relatively new laws for Andalucia, and write some extra paragraphs because it is to this region (read: Costa del Sol) that most investors look.
Andalusia's ambition is to become a world leader in tourism, and then the quality of the offer in terms of housing for rent must be raised. However, the laws here are not aimed at stopping the renting of private residences, as the latter's interest organization is much stronger (there are more private residences than hotel beds on the Costa del Sol). In addition, laws are required to regulate this growing million-dollar industry. We know individuals who pull in so much money on a couple of properties that they live off of them alone. The most successful of our clients welcome the laws and are convinced that they will lead to even stronger revenue (as you can start charging higher prices) while also weeding out rogue players who have given certain areas an undeserved bad reputation. The new laws, viviendas con fines turísticos, came into force from 11/5 2016. Our corporate lawyer, Francisco López Vera, was involved in the process when the lawyers in Nerja presented their views to the authorities' first draft. He thus has a solid grasp of the fine print. If you rent out your home to other than friends and acquaintances (and you don't charge for it), you have to register the home with the authorities ( registration is free in Andalusia ), which means that each home also gets a unique ID, which among other things must appear in advertising. The following requirements are placed on a residence for rent: Newly built properties must comply with current national and regional laws regarding safety, health regulations, laws affecting people with disabilities, etc. Rooms must be properly ventilated, and be equipped with curtains or blinds, if necessary . The rooms must be equipped with a proportional number of furniture for their size Between May and September there must be A/C in each bedroom and the living room (portable units do not count). When the homes are rented out between October and April, they must be equipped with heating. A First Aid Kit must be in every home. The apartment owners must assist with documents, printed material or in digital format, showing the guest where the nearest pharmacy, hospital, parking lots, restaurants, shopping centers are located, as well as a map of the immediate surroundings, and general tourist guides (available for free in principle everywhere, everything else we can help our clients with). A notebook where the tenants can write down any complaints, as well as a highly visible sign informing the residents of the book's existence. It is a requirement that the home be cleaned before and after each new tenant. Fresh bed linen, as well as a spare pair. Instructions on how the kitchen appliances work. A contact number for a person (post this on a third party) who can deal with any complaints or concerns from the tenant, so it can be dealt with as quickly as possible. You must also clearly inform your guests about the rules that apply in your home regarding pets and smoking, as well as any special laws in the immediate area. Note, the WiFi requirement was removed from the first draft law. We still recommend that you offer some form of Internet (even if it's only via a refillable stick) to your tenants. One thing to note. You may not rent to more than 15 people at a time. We interpret this as making it easier to run a B&B business. As long as you do not have more than 15 residents, you do not need a special license in addition to the one that all home owners who rent out must have regardless. If you own more than 3 homes within a kilometer radius that you want to rent out, you must register as "Empresa" (company). Then there is also some regulation and standard setting regarding payment, cancellation, check-in and check-out, etc. This and information on how to easily register the home will be explained by our broker at a later stage of the process. In connection with the purchase, our lawyer also ensures that you follow up on the requirements of the authorities. The fines for not following the laws are from €1,500 and up. However, we see no reason not to follow the laws. Aragon (Zaragoza) In this province, since recently, it is required that you register in Viviendas Turisticas, and that you take on the responsibility of keeping track of who you rent to, etc. (the easiest thing, as I said, is to let the rental company handle this with a passport number etc.).
The authorities in the area are quite zealous and fines can amount to as much as €90,000 if you don't follow them. Since 2017, there are new requirements for the home to be registered for rental. The application is made via the local tourism office. Asturias (Oviedo ) Here, one-room residences are not valid for renting out to tourists. The Balearic Islands (Mallorca, Ibiza and Menorca) The Balearic Islands have complicated rules. You can apply for a rental license if you own a villa or terraced house, but not for an apartment. Many assessors believe that instead of easing these rules, they will be made even tougher. Among other things, there is a proposal that you must have the permission of the neighbors to get a license for renting. Lobbyism among hotel chains is unfortunately very strong in Mallorca. The authorities have also flagged that they will actively seek out those who avoid tax by making use of the LAU (the law on renting in urban areas) by, for example, not registering their residence and advertising in "non-tourist oriented" portals. However, you are obliged to pay tax regardless. Basque Country You must have your home registered in the "Registro de Empresas Turisticas" to be able to rent it out. Changes in the law are expected, but right now you have to own 2 homes for rent to get a license (alternatively to register the individual home with a registered rental company). Cantabria (Santander) This region has among the strictest laws in Spain. In order to get a license for your home, which is classified as "non-hotel accommodation", you must, among other things, meet certain requirements for the disabled. There are also complicated rules for marketing, declaration to authorities for each guest, etc. Castile-La Mancha (Toledo) They have flagged for a change, but at the time of writing you cannot get a license to rent out your home in this province. The exception is residences in the countryside that can obtain a Vivienda Rural license. Castille and León (Valladolid) It is not allowed to rent out your private residence to tourists. But the home owner has the right to rent out in accordance with the LAU. However, you may not advertise these homes in tourist portals/channels. Extremedura (Mérida) See above. Galicia (Santiago de Compostela) A new law came into force in June 2015, and it is now allowed to rent out one's private residence to tourists. However, one must follow certain guidelines according to the regional regulation. Canary Islands (Gran Canaria, Tenerife) The latest law regarding rental licenses excluded about 95% of all holiday homes. There are now restrictions on renting out housing in "tourist areas", tourist quarters", or in a "mix of residential developments and tourist quarters". This means that home owners and rental agents must analyze which areas can be counted as "tourist areas". During the summer of 2015, when the law came into force, the authorities announced that they will actively ensure that they are followed, and that the fine may amount to €60,000. That said, lobbying from the hotel industry in the Canary Islands is very strong. Catalonia (Barcelona) In the center of Barcelona, in an effort to curb tourism in the area, they have completely stopped handing out tourist licenses (however, the law allows you to rent out your apartment for up to 3 leases per year provided that each tenant stays at least 32 days Shorter time than that counts as short-term rental and then a license is required). However, there are homes that already have licenses to buy (our man in Barcelona is aware of these). In the rest of Barcelona, you can apply for a rental license, but there are very arbitrary fees and taxes from the respective town halls. Some urbanizations in the Barcelona area also prohibit homeowners in the neighborhood from renting out their homes. In these areas you cannot under any circumstances get a license. Many smaller investors have therefore instead turned their eyes to other parts of Spain (mainly the Costa del Sol), while this does not worry larger investors. There is still a lot of money to be made from different types of property in Barcelona (then not least in nearby Sitges ). It should also be noted that the laws are much more lenient for those who only want to rent out a room or two while staying in the home at the same time as the guest. The rest of Catalonia (Lloret del Mar, Girona, etc.) also requires registration at the town hall, as well as many other rules, such as that the tenant must be registered with the police within 24 hours of arrival, and that the tenant must have a contact number that can be reached 24 hours a day. On the other hand, stays longer than 31 days are not counted as tourist rentals. Read more about the housing market in Barcelona. Madrid The new laws came into effect about a year ago. The main thing to keep in mind is that you cannot rent out just one room, and that you must rent out (the whole) home for at least 5 days in a row. However, it is lobbying hard to remove the latter rule. Murcia In the autonomous region of Murcia, there are no clear restrictions, but new laws are expected soon as the neighboring areas have introduced clearer laws and regulations. Navarra (Pamplona) Here, two different licenses apply depending on the type of residence you have. If it is a home built in a traditional architectural style, it is "Casa Rural" that applies. The other option is a license for an "Apartamento Turistico" which is valid for a regular apartment, bungalow or house. Valencia (including Alicante, Castellon, Torrevieja, etc.) Anyone who wants to rent out their home in the region must register it in the "Registro de Empresas Establecimientos y Profisones Turisticas". When you receive your license number, it must be clearly displayed in all marketing contexts. You must be issued a so-called habitability certificate, which an architect issues for you (costs around €200), as well as a registration fee from the municipality. In Torrevieja, it was as late as the beginning of last year at €17:50. If you own more than 5 homes that you want to rent out, you must register as "Empresa" (company). Different models among the rental companies in Spain Which rental company we recommend depends a little on what and where you buy, etc. In Nerja and the surrounding area, however, many people choose to go to our partner's site, which is also marketed in Great Britain and most other countries in Western Europe. But there are several options, and the client decides for himself in which rental company he or she wants to place his or her home. There are several different aspects, and costs, involved in renting out your Spanish home to take into account. Let's start with a clear and concise example: Your average cost per week (it should vary depending on whether it's low, mid, or high season) for rental is €400. You rent out the home 40 weeks in a year. 400 x 40 = €16,000. You have chosen to hand over the keys etc. as well as marketing the home to a rental company, which charges 20% of your income for this (cleaning the home is not included in the example as it falls to a third party and depends on factors such as how long res. short bookings your tenants make on average, but the cost of cleaning is not high). 16000 x 0.20 = 3200 16000 – 3200 = 12800 The tax in Spain (note, you may deduct expenses that can be derived from the rental business, so it will not be as much tax in reality) is 19%. 12800 x 0.19 = 2432.0 12800 – 2432 = €10368 Your passive income (in this example the rental company takes care of everything) on this home is thus over €10,000 a year. If you have a million SEK in loans on the home (interest deductions are not taken into account in the example) with an interest rate of around 3% (however, it is an even lower percentage on Spanish loans at the moment) and pay off the house in 20 years, you have a monthly cost of the loan of SEK 5,526 per month, SEK 66,312 per year. Then, of course, there are also other costs, such as water, electricity, area maintenance, property tax, etc. However, these are lower in Spain than compared to Sweden, but vary greatly depending on how many pools etc. are maintained in the area, etc. No matter how you turn and turns it around: if you buy the right type of home in the right area and location in Spain, the rental will finance loan costs as well as other costs - and there will be money left over. Then there is the increase in value in the long term , of course. How high it gets is largely dependent on how well it is rented out. The safest thing is to invest in a home in an area that is well known. Many areas do still have affordable housing, but many neighborhoods sit empty a decade after they were built, and will continue to do so for a long time to come. It is almost impossible to rent these other than for a low sum to students etc. Prices do not rise for housing in this type of area, other than possibly. in the final stages of a runaway housing market. In Spain's most lucrative market Nerja, on the eastern Costa del Sol, several assessors expect a development similar to that which followed in Sweden after our housing crisis in the early 90s, i.e. an increase in prices for 15-20 years (there are a reason why both we and Spain's largest bank Holabank coordinate their international investment from this particular city). Several markets in Spain will follow a similar curve, but many (mainly new) areas will also fail completely. It is important, as we have now hammered home several times, to invest in areas that have some form of history to lean on. Admittedly, the collective memory is short, and bubbles burst, only to be inflated again faster than expected, but Spain, like Sweden, has controlled the banking system, which seems to extend the timeline for the next housing bubble. Different models for rental companies and pros and cons of doing everything yourself Some of our most successful clients market themselves in 1-4 marketing portals (Swedish as well as foreign) and let a rental company take care of key collection, as well as administration of cleaning, and that the rental company also stands for 24-hour on-call staff in case something breaks in the home. For this, the rental company takes a commission of 10% of the booking sum. Quality sheets and towels last for many washes and are not a major expense. Cleaning is extra, but it does not cost many Euros (around €30-60 in weekly cleaning fee. If you have several homes or a larger apartment building with several rooms, it is recommended that you choose the slightly more expensive option with a larger cleaning company as opposed to having someone carry out it a little cheaper as an extra job). If the rental company is also responsible for all marketing (a hybrid between the 2 models is common), i.e. pulls the client in, they take 20% of the booking amount. Some booking companies take 40 percent. Sheets, cleaning, to some extent also furniture, etc. are then included.
These actors also have their own apartments with a uniform type of furniture, towels etc. and function more or less like a hotel. However, in our opinion, this is not a financial arrangement for the individual home owner. As for our clients, i.e. those who have made a purchase through us, or who have a home we are happy to rent out, we discuss on a case-by-case basis which models suit you and your home best. After we published this article, we received an email from a client who bought an apartment in one of Nerja's most popular areas nine months earlier (around €250,000, 2 bedrooms): Hi, Anders. Thanks for the interesting PM regarding residential investment in Spain. It confirms that it was a good item you found for us! Regarding the rental, it is very easy here in Nerja, just as you describe. Since we started in June, we have mostly been fully rented, apart from a few weeks. The fact that it was not rented then was more due to us, our demand for change on Saturdays was not liked by everyone. We have now booked until mid-April 2017. Summer and autumn booking 2017 has also started. Sees no obstacles to getting fully rented 50+ weeks in the future. We run our own website with booking and payment. Advertisement on Blocket and Homeaway. Eurosur helps with keys, cleaning, checking, etc, Works well. We did a small make-over of the apartment last spring. Also read: Tips for those who want to rent out your home all by themselves, as well as a bit of general information about renting a Spanish home. About insurance etc. for the home If the tenant should accidentally break something in your home, the rental company will deduct the costs incurred for repair/replacement from the tenant's credit card (it is a requirement that the person concerned uses a valid credit card when booking). If you rent out entirely yourself, make sure you have booking conditions that cover different types of eventualities. We help our clients with this. You must also ensure that damage that can be caused by occupants is covered by your home insurance . We work with a bank that offers this (but there are several options, and the costs of this type of insurance are generally not high). In areas/cities that we recommend for renting, where you also make the most money from your home, it is extremely rare for the tenant to break something. This is more of a problem if you rent out your home in areas where mainly partying young people stay. Incidentally, British booking companies have very strict rules. For example, the company we mainly work with does not allow x number of people of the same sex to rent the same, or nearby, homes. Of course, they often ignore this rule, but it's still a booking condition they have so they can refuse certain types of tenants if they suspect trouble. About taxes on rental income in Spain Also remember that you must pay Spanish tax on your rental income. Read more about that tax and much more in the following article: Frequently asked questions and answers about how to buy a home in Spain. From 2016, the tax on income from renting out housing is 19% (for EU citizens). It used to be 24.75% for a long time, to go down to 20%, and then it was reduced by another 1 percentage point (and all expenses attributable to the rental business, including the interest on the Spanish bank loan, are deductible). Note, this minimum tax only applies to EU or EEA citizens. For citizens of other nationalities, 24% applies. Otherwise, always consult the Swedish Tax Agency and your accountant about any tax-technical questions regarding the purchase of a home abroad. This is not part of our mission. Final words about licenses and rental companies: We only have close collaborations with rental companies (we get access to statistics on which homes/areas work best, etc.) in the areas that bring the best income (and where the prices of homes fell during the crisis years), and which have reasonable restrictions and laws. This includes the Costa del Sol and Costa Blanca, but excludes Mallorca and the Canary Islands. Link to our Facebook page where we post the item of the month, etc. This is how much you can earn per year renting out your home in Spain Many people aim for the rental income to cover the expenses for the home, while others have 2-4 homes whose income they can support themselves on. First of all, you should determine your goal. How many weeks per year do you want to live in your home yourself and how many weeks do you want to rent out your Spanish home? If your goal is for the rental to pay for all the costs that the home entails, including amortization and interest and area fees, then you can adopt the following model: If you own a house with a monthly amortization of €1,000 and rent the villa for €1,000 a week, you therefore need only rent it out 12 weeks a year to cover the amortization (€1000 is quite a high weekly cost, but many homes in popular areas can be rented out for this amount, or higher, in high season). If you want to cover all costs, you should work out how high they are and how many weeks you should rent it out. If you rent out through a third party, you can count on a certain percentage going to them (see above), and then tax is added. Assume, grossly simplified, that you need to rent out your home for around 20 weeks per year in any case to cover all costs. With the right home in the right area and the right marketing, 20 weeks is not at all difficult to achieve. Approximate income per area Well-known documentary series "A Place in the Sun" has a calculator for how much you can expect to earn from a certain type of housing in a certain area in Spain. This calculator is, of course, very "between the thumb and the forefinger", but still gives a good idea of the possibilities. The figures that we have compiled ourselves in recent years do not apply to as many areas in Spain, but they are, on the other hand, much more precise as they are actual figures from our subsidiary, from our partners on both the Costa del Sol and Costa Blanca, as well as from banks. We do not discuss Mallorca (including Ibiza and Menorca), the Canary Islands and Catalonia (Barcelona and Costa Brava) in this paragraph as, as we mentioned earlier, there are strict restrictions on rental licenses there, making these areas unattractive for rental investment (more about rental restrictions by region further down in the article). An apartment with a license in Barcelona, according to the figures we have seen, does NOT bring in more than a significantly cheaper apartment in Nerja anyway. A Place in the Sun calculates in its examples 15 weeks of occupancy, which is a fairly normal occupancy for most holiday areas in Spain. However, some areas have much higher occupancy than that. However, it is mainly about finding the right home (condition, view, etc.) in the right neighborhood for the highest occupancy! The highest occupancy we know of is Nerja, which has 45 weeks (actual figures from previous clients and our subsidiary site, as well as the largest international booking firm in the area) for several different areas of the city (even the outskirts are approaching this occupancy, and some of the most the popular areas land on basically 100% this year). Figures from A Place in the Sun (all examples apply to a 2-bedroom apartment): On the Costa del Sol, on average, €279 per week is charged in the low season and €741 in the high season. On average, according to statistics from A Place in the Sun, a 2-bedroom apartment brings in around €7,000 per year. However, this is a gross simplification of a very large area, with large regional differences. On the eastern Costa del Sol lies Nerja, as you know. According to the international portal Think Spain, the number of rental inquiries in Nerja increased by 96% in the month of February 2016, compared to 2015. Already in 2016, the hotel industry reported that they had 96 (!)% occupancy in the month of August, and the same figures were achieved during the Easter weekend ( well above average for the Costa del Sol – Nerja is now a year-round town) earlier this year. In August 2016, the number of hotel nights booked in the city increased by another 0.5%, breaking the record set in 2006. Figures from a 3-bedroom apartment in Nerja (fresh, but not newly built and not sea view, community pool) on the beach in Burriana (but still not "first line"): in 2002 it brought in 10510 Euro, 2003: 13414 €, 2004: 14855 €, 2005: 12765 €, 2006: 14614 €, 2007: 14339 €, 2008: 11858 € 2009: 16057 € 2010 : 14900 € 2011: €13835 2012: €11635 2013: €12245, 2014: €14696. Until 18/2 2015, it had already been booked for a total of €8,500 (then we sold it. Price €240,000). Total €179,658. This was marketed only towards Holland with its own website. Despite this limitation, the figures are very good. Current owners, considering how strong the occupancy has become, and with wider marketing, should be able to pull in around €25,000-30,000 a year for this apartment without too much trouble. A one-bedroom apartment in popular Capistrano Village (costing around €150,000) brings in an average of €10,000-15,000 a year. A 2 bedroom apartment, depending on condition and view, over €20,000. Apartments in the luxury segment, for example at Carabeo, bring in over €50,000 a year. Houses in central locations also attract similar sums. For several years we had a rental business on the western Costa del Sol (mostly Marbella and the surrounding area, Fuengirola, etc.) but had a very difficult time getting any occupancy. The bottom line is that just because a resort is on the Costa del Sol (which, after all, has been breaking Spanish records for hotel overnight stays for each season in recent years) doesn't mean it's a good investment. Areas where possible should be a bit wary of (from a pure investment point of view): Mijas Costa and Fuengirola. The city is not what it used to be. Areas to watch: apartments in the neighborhoods around the port and the historic quarters, centro and Limonar in Malaga (the weekly rent for an apartment, in good condition, with 1 bedroom located in the right part of the center is on average over €1000), the area between Torrox and Nerja the areas between Malaga airport and Nerja, as well as Almuñecar ( our archive of properties on the Costa Tropical ). We are a little more skeptical about Torre del Mar, just east of Malaga airport. Time will tell if this area can also become popular for Scandinavians, but as it looks now, it is rather Almunecar and the rest of the Costa Tropical that will grow, and not least the Penoncillo area between Torrox and Nerja. Among other things, a new marina is planned in the area . This was underway before the crisis, and then created strong pressure from investors. The risk right now, however, is that too much new development in a short time. Northern Costa Blanca , Javea, Moraira and Denia: €326 per week in low season res. 592 during high season. However, the prices of housing here are generally high and occupancy is not, according to the information we have received, high during the low season. Northern Costa Blanca , Altea area. See above (slightly lower numbers here though). Costa Blanca, Alicante: €213 for low season, res. €548 for high season. Good occupancy requires a good location and a high standard. High competition from low-cost alternatives. Clever market. Costa Blanca, Torrevieja region (which is the most popular seaside resort in the area): €174 in low season, €330 in high season. According to actual figures from our partners, the average occupancy of an apartment close to the beach is 22 weeks a year (according to the latest report they are approaching 25 weeks, partly due to many people who have previously holidayed in Turkey choosing the Costa Blanca as a new low-cost destination). This figure can be improved by contributing tenants yourself through advertising or through the circle of acquaintances. The annual income is on average (figures directly from the large rental company we work with) at just over €5,000. This is a perfectly fine figure, and should be seen as a nice bonus for those who buy a home in Torrevieja and the surrounding area. The figures in the picture below are based on 4 different scenarios; if you rent the apartment for 15, 22, 30 weeks (22-25 weeks is therefore the average, but if you help yourself with, for example, Blocket ads, you will increase the occupancy) or if you choose to rent it long-term:

Murcia, Costa Calida . €258 per week in low season, and €451 in high season. Coverage in these areas is good during the summer months, but it is difficult to get coverage the rest of the year.

Valencia, Costa del Azahar. €225 in low season, €572 in high season. Occupancy is unclear around Valencia, but in any case market your home around here abroad. Interest from Scandinavia is relatively low.

This is how much you should take out per week for your home

In high-priority areas, we have statistics from our own pages and our partners' rental operations. If the home you want to buy has no statistics, we look at similar homes in the area. If it is a new development in a new urbanization, we use the local expertise of the rental companies as a basis for our estimate of your occupancy and how much you can rent per week, alternatively for long-term rentals (the major bank we work with has homes for long-term rentals over all of Spain, so we can use their numbers as a basis). The best thing is to settle on a price level that is based on the prices of neighboring homes (also take into account their furniture and extra details such as Wifi and kitchen equipment). If you lay down too high, there is a risk that you will lose significantly in coverage. Which brings us to the next point:

One of our most successful clients, a Swede in Nerja, decided to renovate and furnish one of his homes to go up a notch in quality. The result was brilliant. Although he significantly increased the cost per week, he landed on 44 weeks of occupancy and stated laconically: "There are always those who are willing to pay for quality". This applies in particular to areas such as Nerja or Puerto Banus, where many of the visitors are well-off. Betting on the luxury segment in, for example, Mijas Costa or Torrevieja can be a bit trickier (but there are always exceptions that prove the rule).

The prices should be set (in some places in Spain there is a law that the price per night must appear in advertising) per night, per week and per month, and possibly "winter discount" on bookings 3 months or longer. A model that is quite common is to set a per night price that is approximately 1/5-1/6 of the weekly price. The monthly price is usually about the same price as a week costs during the high season. However, this is not recommended in high occupancy areas. In these areas, you only need to offer some form of "long stay discount" between October and March - if even that.

In many cases it is also recommended that your guests must book 5-7 days as a minimum. Exceptions are typical weekend cities such as Valencia, Seville or Malaga.

Renting out for a longer period to a permanent tenant in principle always generates less income. In the vast majority of cases, you actually bring in more money if you only rent out the apartment during the high season. However, if you have problems getting high occupancy even during the high season, in many cases a permanent tenant is the best solution. How much monthly rent you can afford depends, of course, on a wide range of factors. However, a 2-bedroom apartment in a relatively popular area in southern Spain has a rent of €300-500 per month. If the tenant himself pays electricity, garbage collection, etc., you can expect to keep, after taxes, etc., a sum of €3000-5000 a year.

About borrowing from a Spanish bank

Until just a few years ago, we advised all our clients against borrowing from a Spanish bank. The banking system was a complete failure, which was a major cause of the crisis. Now, however, Spain has introduced regulations on the banking market, as Sweden did after its major housing crisis in the 90s. The terms are good, and the interest rates are basically as low as in Sweden. The Spanish banks place roughly the same high demands on your finances as the Swedish banks do. We cooperate with one of Europe's largest banks, La Caixa (Holabank), which, among other things, has a Swedish-speaking bank manager , and via spanskafastigheter.se you can apply online and get a loan promise before you come to Spain. We used to work with a number of banks, but nowadays we send most of them to Holabank as our clients have given them by far the best feedback in terms of both conditions and treatment (however, it can take a little time in between so be there in good time) so now send most of us directly there. Read more about borrowing from a Spanish bank here.

How much can you borrow in a Spanish bank?

It depends on what the property costs. If it costs one million, you can usually get a 70% loan of this amount. By law, the banks have an independent company appraise the property. They may then value it at SEK 800,000, but even if the price is one million, you can borrow a maximum of 70% of SEK 800,000. If, on the other hand, they value it at one and a half million, you will still only get a loan at a set price. Loans are always given for the lowest sum, regardless of whether it is the price or the valuation that determines the final sum (also note that nowadays the valuation is strikingly often lower than the actual market value ). In the past, all banks had their own valuation teams, but now the state has regulated this, so an independent third party must do the valuation. It is therefore no idea, as was done in the past, to go to different banks and choose the bank with the highest valuation.

NOTE . Note that you cannot borrow for fees and taxes on the home. These amount to 10-14% of the total sum of a home. You therefore need at least 40% in equity.

Scenario 1 : You have found an apartment that is a good investment, Let's say two bedrooms, reasonably close to the beach, sea view. It is priced at SEK 1,000,000 and is also valued at SEK 1,000,000 (however, keep in mind that VAT and other fees are added that you may not borrow against). You then need approximately SEK 400,000 as a cash deposit and can borrow SEK 600,000 from the bank.

Note, you don't need to borrow as much as 70 percent unless you need to. The bank that we primarily work with has no requirements that you have to borrow x number of Euros, as so many other (especially Nordic) competitors do.

Scenario 2: You have 1 million in equity. The home costs 1.7 million, but is valued at 1.5 million. However, remember that the bank gives loans for the lowest amount, regardless of whether it is valued higher or not. Since the price in this case is set at one million, you get to borrow 70% of 1.5 million (minus fees and taxes, about 10-14%).

Scenario 3. You want to invest in a commercial business (B&B, hotel, bar, etc.) or maybe buy up an entire resort that has gone to the bank, or buy a larger piece of land. Here there are no given rules . How much you can borrow depends on a number of different factors. We can help set up a contact with the bank, partly for loans, partly for land and objects, for example. We have the experience, contacts and experience necessary for investments of this magnitude.

About the problem (and opportunities) with banking objects

A few banks still have a lot of affordable housing, but the fact is that there are rarely bank properties in distinct, affluent resort areas; such as Puerto Rico, Mas Palomas or Nerja. The further we get from the crisis, the fewer bank items come out. At the end of 2023, the banking system announced that there are a record few bank repossessed objects in the country.

If you are not too picky about the location of your apartment, and just want the cheapest holiday home possible, there are still a lot of good buys to be had (in some areas, such as Mijas Costa, there are also newly produced apartments) . But if you are looking for an investment, location is, as you know, the most important aspect of them all. The big problem with bank properties is that they are bank properties for a reason - if they are not in great need of renovation, they are conspicuously often out of the way, or by motorways etc. Read more about buying bank properties in Spain here.

Questions? Write to info@spanskafastigheter.se and we will get back to you as soon as we can.

The Spanish housing market - property prices are increasing but are still misleading in many cases

According to official figures from the authorities, prices for second-hand homes rose by just over 7% in 2018 (on new development prices rose by 6.1%). This was the highest increase since the third quarter of 2007. Prices also rose in 2019, and were more or less flat in 2020 – after all, and then rose to be somewhat flat during the energy crisis. In the first half of the year, more homes were bought by foreigners in Spain than ever before. According to most analysts, the number of purchases by foreigners will break records again as early as 2024. The first thing that is required is that we get out of the energy crisis and that interest rates start to drop again.

Keep in mind that the figures refer to the Spanish housing market as a whole. In the most popular areas, the price increase is completely different and it can differ greatly between regions/cities/neighborhoods.

However, it should be noted that the price picture compared to how it looked before the 2008 crisis is still very good. The price level in 2019 was 36% lower compared to 2007, when prices were at a record high. Sales are increasing fastest on the Costa del Sol and Costa Blanca. Valencia, the Canary Islands and Mallorca are also seeing a relatively rapid increase in house prices. The most important thing to know is that the price increases mainly take place in the most attractive segments. The housing market as a whole is not increasing at the same high pace, but then most homes are also located in areas that you simply do not want to invest in. The big problem in the attractive areas is not that prices increase quickly, it is that homes in good areas simply sell out, while there is no land to build new homes on.

Incidentally, about 5% of all foreign property purchases in Spain are made by a Swede and we are now the sixth largest property buyer on the Spanish market. In the first three months of 2016, Swedes bought 1,004 houses or apartments in Spain (in the first half of 2018, more homes were sold to Swedes than ever before, while 2019 was a bit quieter mainly due to the weak krona). This can be compared to 2009, when Swedes bought a total of 429 homes in the country (in the first quarter of 2017 alone, the number of Swedish purchases increased by 15.9% when nearly 1,000 Swedes bought homes in Spain at the beginning of the year). Emigration from Sweden to Spain increased just a few years ago by over 21% and is expected to increase even more in the future. Read more about last year's figures and expectations for this year in our article on the Spanish housing market .

Statistics on price history in Nerja and Barcelona as examples

In 2007, prices were at their highest in Barcelona and the average price per m2 was then €4732. Prices were at their lowest in 2013 with an average price of €2957. That is, a reduction of approximately 40%. Between 2013 and the first half of 2016, prices rose around 6-7%. Then this development slowed down somewhat in connection with the unrest during the autumn of 2017.

What must be emphasized when studying statistics regarding the Spanish housing market is that it is based on all homes within a given area. That is, there are no separate statistics regarding investment objects located in good areas. These increase, for natural reasons, faster in price.

Concrete price examples from Nerja, Costa del Sol

A specific apartment, we know well, with 2 bedrooms, 2 bathrooms and a terrace in the popular area of Capistrano Village in Nerja in the late 70s cost approx. €25,000. It cost in the golden years (around 2005) €250-260,000, and a few years after the downturn it cost €190,000 (prices for similar homes are now over €200,000).

At the beginning of 2015, a 1-bedroom apartment in Capistrano Village cost 100,000-120,000 and in the beginning of summer 2016 they were sold for 148,500 €.

Another example: Capistrano Playa, a few years ago 1 bedroom apartments there cost about €140,000. In early June 2015, a Swedish family sold a 1-bedroom apartment there for €240,000. However, this was overpriced for a 1-bedroom apartment, but prices have since stabilized at around €225,000.

An apartment in Ladera del Mar, just outside Nerja, cost €194,000 in the summer of 2014. It was then sold in the second quarter of 2015 for €239,000. Prices have been over €300,000 there for a few years now.

As there is still so much empty space around Torrevieja and the rest of the Costa Blanca (also applies to large parts of the Costa del Sol, such as Mijas Costa, which has a lot of "ghost neighborhoods" in the wake of the crisis), we do not yet have corresponding figures. However, we have received reports of clients buying renovation properties in popular areas such as Punta Prima in Torrevieja, fixing them up and quickly selling them for around 25% more to Scandinavian clients. However, there are very few of this type of in-demand renovation object these days. Soon, what is interesting from an investment point of view in Torrevieja will mostly be about new development .

Note, our broker in Nerja works with all the biggest players in the area. It is the only way we can offer the best objects, to collaborate with the best Spanish and British actors, small and large. The price to the customer is never affected. In addition, we work with the banks directly at regional manager level, so when their customers want to sell, they send them on to us. The same thing if a bank object appears, but it rarely does in Nerja. In any case, we are in a very favorable position in the city and its surroundings, but despite this, there is not much we can do about the declining supply of objects in the "lower" price ranges. But, there are still, from time to time, apartments with 1 bedroom that cost just over a million SEK.

A few words about return on investment (ROI)

The direct yield (Return of investment, abbreviated ROI) is the annual surplus that the home generates via its rental/operations, and you put this income in relation to the purchase price of the property.

In Sweden, the ROI for a rental property is generally 5% (note that the income from a Spanish residence that is rented out to the tourist market is generally significantly higher than to regular tenants).

There are no ROI figures for Spain as a whole. But before the crisis, you normally expected around 10% or even higher for an attractive home on the Costa del Sol. However, anything above 5% in predictable earnings is attractive to investors.

Since the recovery, the numbers have started to approach these levels again, and we have also in more and more cases noted higher numbers than that. Mainly in Nerja, where it is now at an all-time high and breaking records every quarter, largely due to the fact that the city, as I said, has now become a year-round destination. Our rental to Sweden alone increased by 50% in the first quarter of 2016 compared to the first quarter of 2016!

In the ROI calculation, you normally include the gross payments for the property, as well as deductions for operation, maintenance and other things that can be derived from the business. However, many realtors in Spain look at the final price in relation to how much the home brings in in a year to arrive at the ROI.

However, accounting depreciation is not taken into account when calculating ROI.

The easiest is simply to study the historical occupancy rate, the average rental price during the year, as well as annual fees.

Conclusion/Summary:

Spain has many factors on its side. They have a modern infrastructure, with modern highways, high-speed trains, and a well-developed healthcare system. The country is also considered, for some time now, to be the world's safest tourist destination. Mainly, Spain has soft factors that you can never take away from them on your side. It has its rich history and culture, its food, the ever-present sun, the varied nature, the sea and its long coasts. Spain is the world's third largest tourist country, and tourism is in a strong expansion phase, and perhaps the most exciting thing for investors is that the country is attracting an increasingly money-rich international tourism, which it didn't really have before.
Housing prices fell by almost 50% during the crisis years. Since a couple of years ago, in some regions more, in others less, they have started to increase again slowly but surely (prices are increasing mostly in Madrid, Catalonia and Mallorca), but the Corona crisis temporarily slowed down the development. This means that there are still uniquely good chances to make a very good housing investment in Spain. However, we cannot stress enough how the big problem right now is NOT the price increases, but the lack of attractive housing in really attractive areas. In some areas it is pointless to discuss price increases as there is hardly anything left to buy at all.
If you need a loan for your Spanish home purchase, you can borrow up to 70% from a Spanish bank. However, keep in mind that in practice you need 40% in equity as you are not allowed to borrow for taxes etc. You can get a loan promise online, if you apply through us , before you come down. However, the bank wants to know in broad terms what type of home you want to buy, where to buy it, and how much you want to borrow. They also want a clear timeline: when do you come down and look at homes, when do you plan to make the purchase.
To make sure that you are making a safe investment, study the rental history in the area (in both the town and the housing block, preferably the individual history of the housing, although this is rarely a possibility).
Homes that work best on the rental market are those that are within 60 minutes' drive from the airport, that have a terrace/balcony and access to a pool nearby, that are in fresh condition - preferably with a sea view. It is above all important that the home is not located on a heavily trafficked thoroughfare. Even details such as interior design, furniture, A/C, washing machine, etc. are important.
However, a much more important aspect is the geographical location . The Costa del Sol in particular has a very high occupancy rate, which also only grows every year and is increasingly oriented towards the exclusive. The best occupancy, due to several different factors, is on the eastern Costa del Sol, in Nerja ( 42-48+ week occupancy) . Even the capital on the Costa del Sol, Malaga, has a population that is growing strongly and which most people believe will become one of Europe's biggest "Weekend cities". The Costa Blanca is also a growth area, although there is not yet a high year-round occupancy rate. It is mainly Torrevieja (22-25 week occupancy) that attracts tourists, at least to a certain extent, even during the low season.
The Canary Islands, Mallorca and Barcelona do have a strong tourism industry. But the opportunities to make a good rental investment are limited, or in some cases completely choked off, by restrictions . If you don't follow the law, the fines can be very high. Note, however, that it is possible to buy homes with approved tourist licenses in Barcelona. In addition, not all nearby regions are as tightly regulated, such as the trendy resort of Sitges.
Most popular holiday areas in Spain have good occupancy during the high season. On average, according to several assessors, you can count on 15 weeks of occupancy per year. In most cases, only renting out the home during Also note that some areas, even if they have a strong tourism overall, may be more or less impossible to rent out their home in. That said: study the history carefully and choose an actor who has established channels to market your home in.
There are different rental models if you don't want to manage marketing etc. yourself. It is customary for the rental company to take 20% of the revenue (10% if you bring the customer yourself). A hybrid model, where you bring in some customers yourself (via marketing or the circle of acquaintances), is becoming more and more common. Far from all areas in Spain have well-functioning rental companies. You should also consider this if you are not prepared to take care of everything yourself, such as fixing a cleaning company, guard horses on call, solution for key delivery, payment solution, marketing, etc.
Unfortunately, many brokers (also Swedish) claim that they will help with your rental and that there are "no problems. We will fix it." Then nothing happens. Check out their rental business BEFORE you buy through them (and what options are there in the area you intend to buy). Ask them to show you statistics from Google, how many unique visitors they have per week, ask them to explain which portals, national and international, they advertise in. Ask them to present a plan for how best to market your property. Most brokers do not have exclusive rights to properties for sale in Spain so you do n't have to feel tied to a broker who can't meet all your requirements, both before and after the purchase.

We can help with this for those of you who want to invest in Spain

We do not scan the market for, for example, cheap bank properties that we know will not work in the rental market. Our partners (lawyers, banks, developers, local Spanish brokers, etc.) also know that we are not interested in as "cheap vacation homes" as possible. They thus send us what they judge to be good investments, homes with the numbers on their side . Of course, upon request, we can look up what we judge to be a really cheap, simple, but nice home for you. But we must be clear that there is a big difference between a "good investment" compared to a "cheap home in the sun as possible".

We ensure that:

Help you:

to find the best home for rent (we analyze figures from our daughter site, partners' daughter sites, etc). Together with the manager of the respective rental company, if there are no documented figures, we can make a qualified estimate of what income you can conceivably draw in from your property.
finding the right lawyer . Our corporate lawyer also works with housing-related disputes. He is well known and respected, and comes from a family that has been lawyers for several generations and thus has a completely unique network of contacts. He also helps us find special investments, such as B&B, small hotels, commercial plots, etc. Most of these purchases are handled through lawyer contacts.
to get a loan from a Spanish bank , and a possible loan promise before you come down (as well as a Swedish-speaking bank manager, which means you don't have to translate all documents with an authorized Spanish translator).
to comply with all the laws and regulations that apply in the region (note, we cannot help in all Spanish provinces, but this is something serious rental companies should be able to help with) for renting where you bought your home.
with all the usual after-service, such as water and electricity supplier, community registration, property tax, etc.
to find rental companies that take care of everything, or certain parts, such as key delivery, cleaning, marketing, booking and payment. There are several options for how to post this.
with advertising of individual homes for rent in our store at Blocket, and possibly directly on our website, on our Facebook channel (including via paid Facebook ads), sister sites and so on.
As time permits, our marketing manager can help create and market a website for you (at a heavily discounted price compared to if you turn to a web agency) with the market's most affordable and flexible rental booking system, (which we ourselves use ) as well as methods to appear high in Google etc.
to find good construction companies for renovation (you are well aware, by the way, that it is still possible to make a Swedish root deduction even for one's Spanish residence). The managers of the rental companies will be happy to provide opinions on how best to renovate to get the best occupancy possible. It is also in their interest that you can rent it out as much as possible.
with proven strategies from our most successful clients who have chosen to do everything on their own, a blueprint of which national and international portals work best (only a few are required) and how to get the cheapest price of various ancillary services, and other should consider if you rent out your home entirely yourself.
we can also offer advice regarding other aspects such as insurance and payment solutions . (there is a Swedish, flexible payment solution we recommend that offers the client the option to pay online or via OCR on a paper invoice).
We are involved from beginning to end through the entire purchase process, and we make sure to be involved and translate everything into Swedish, etc.
Write to info@spanskafastigheter.se or spanienkontoret@spanskafastigheter.se Telephone number for our main broker Anders Larsson: 0034 669 738 682

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