Buying a house or apartment in Spain will be a good investment of your money. With proper property rental, the owner has a good source of annual income – in 2019 for Spain, this number is 5% of the cost of buying a house or apartment. The rent completely overlaps the tax and utility payments, the amounts for servicing the territory of the housing complex.
Trends of the rental market in Spain
On the well-known Spanish portal published information that 22% of housing in the country is under rent. Previously, young Spaniards tried to acquire their own housing, but now these conservative views have receded to the desire to be mobile, not tied to a particular area. So more than 27% of Spaniards up to 29 years old rent apartments or villas. The number of tenants is also increasing due to the development of tourism. Foreign travelers for the summer months book about 90% of rented properties in Valencia, Alicante, Benidorm, Altea.
For the first time in many years, the value of Spanish propertyhas a tendency to constant growth. There is a demand – prices are rising. In 2019, the cost of one month of long-term rental of a two-room apartment in Alicante, Altea, Benidorm starts from 600 euros.
Popular housing for rent
If your goal is to buy a house or apartment for rent, then you need to consider the following factors for a successful choice:
- Location. For tourists, important infrastructure, a small distance from the coast, the presence of a number of attractions. If you are buying an apartment in a student city (for example, in Valencia, where the Erasmus exchange program works), find out if there are libraries, museums, stops or the metro nearby.
- Type of housing. If there is a calculation for the tourist season – take a look at the villas with a pool or apartments on the sea front. For long-term rent apartments with 1-3 bedrooms are in demand in Spain.
- Regional legal features. For renting out for a short time in popular regions, a tenant must have a tourist license. Our agency will help you in its design.
How to rent out a property
Without knowing the Spanish language and not knowing the legal subtleties, features of the real estate market in the area, do not risk to act independently. Contact a professional agency.
When buying property in Spain, you must consider the main items of expenditure:
- IBI – annual property tax on individuals is equal to 2% of the cadastral value.
- Gastos de la comunidad – invoice issued to apartment owners or bungalows in residential complexes. The cost may vary depending on whether there is a 24-hour security guard, a well-kept garden and a swimming pool within the complex.
- Property insurance – in the case of a mortgage, this condition is managed by the bank.
Even with the Spanish property rental tax of 24% of the amount received, the annual income averages 5% of the market value of the apartment or house. So if you rent an apartment in the coastal area, and its average market price is 100-300 thousand euro, then the passive income after deducting all expenses will be 5 thousand euro per year. Such an investment is profitable even in the case of a mortgage – the income will be 1-2%.