The thriving Spanish economy, developed infrastructure, prime real estate market, and access to the European Union make Spain an attractive destination for investments. Additionally, Spain’s Golden Visa program welcomes non-EU citizens to make foreign direct investments in the country and obtain a Spain residency permit in return.
This article looks at why you should consider investing in Spain and how to successfully navigate the Spanish market while gaining residency in one of the most prominent countries in Europe.
Why Invest in Spain?
Spain has long served as a magnet for foreign investors with an eye on the European Union seeking business opportunities overseas or invest in foreign properties. One of the primary reasons for Spain’s popularity is the Spanish government actively supports foreign direct investment opportunities.
Since the 2008 financial crash, the government has introduced initiatives to boost the country’s economy. Part of its success is with foreign investments in real estate, foreign companies, and cash injections in debt securities through investment visas like the Spain Golden Visa.
Seven reasons to invest in the Spain’s economy:
- Economic stability: Spain has a developed and diversified economy. The largest exchange in the Spanish stock market, Bolsa de Madrid (Madrid stock exchange), is one of the biggest and oldest in Europe. This makes Spain an attractive destination for foreign investors seeking reliability.
- Strategic location: The country is strategically located within the EU and Europe’s Schengen zone, providing easy access to other European markets. Several international airports serve as hubs for flights to North America, Latin America, and North Africa.
- Infrastructure development: Spanish residents benefit from Spain’s well-developed transport networks and infrastructure, including modern highways, links, and high-speed railways, facilitating business operations.
- Tourism industry: Destinations like Barcelona, the Canary Islands, and Ibiza place Spain as one of the world’s top tourist destinations, offering significant opportunities for investing money in tourism services, such as hospitality.
- Quality of life: The country is known for its high quality of life, providing a range of options for places to live, diverse climates, and delicious food. This makes it an appealing location for all individuals, from digital nomads to retirees.
- Real estate market: The Spanish real estate market presents opportunities for both residential and commercial investments, particularly in major cities and tourist areas. Furthermore, an international investment in real estate can serve as a qualifying investment for the Spanish Golden Visa program, allowing real estate investors to gain a residency permit.
- Cultural and culinary appeal: Spain’s rich cultural heritage and culinary excellence speaks for itself, attracting tourists and foreign investors alike. Expats living in Spain will enjoy the local culture and cuisine, which consistently captivates tourists and visitors.
Investment Opportunities
Investing in Spain can be worthwhile if you’re considering diversifying your foreign investment portfolio. Some key sectors to invest in include the stock market, Spanish businesses, and real estate.
Here’s the list of main investment opportunities in Spain:
- Tourism sector
- Real estate sector
- Chemical sector
- Biotechnology sector
- Automobile and aerospace industries
- Naval construction
- Textile and leather industry
- Wine and food-processing industry
- Telecommunications and infrastructure
- Energy and green technologies
- Stocks and shares
- Investment funds
Where to invest in Spain?
Real estate
Energy sector
Biotechnology
Agriculture sector
Tourism
Stocks and shares
Investment funds
Where to invest in Spain depends on your inventions and long-term goals. If you plan to retire in Spain, a real estate purchase on the south coast may be your desired choice. In contrast, establishing a Spanish company in a big city like Madrid may suit your investment goals.
Investments in Spanish stocks through online investment platforms can provide lucrative opportunities for foreign traders.
- Real estate
Many people invest in real estate in Spain for several reasons. The real estate market is growing, with skyrocketing housing prices and rent, and properties are undergoing progressive re-evaluation. Many who invest in real estate in Spain either buy property to let, such as a vacation rental, or renovate properties for resale. A key advantage of investing in real estate is it serves as a qualifying investment in the Spanish economy, allowing non-EU nationals to gain legal residency. One of the investment options for the Spain Golden Visa is buying a Spanish property with a purchase price of at least €500,000.
- Energy sector
Spain’s energy has strong growth potential as the Spanish government is turning toward renewable energy sources. An impact investment, like technological innovation in sustainable energy, is considered a rewarding opportunity and could provide substantial financial returns while contributing positively to social and environmental change.
- Biotechnology
The biotechnology sector is growing at an annual rate of more than 25 percent, making Spain the fourth biggest contributor in the world in the biotech industry. Data provided by The Global Economy ranks Spain as one of the world’s top countries concerning the least restrictive regulations.
- Agriculture sector
Spain is one of the largest European producers of organic produce in Europe, holding the top legumes, nuts, and seafood products. With its fertile soil and affordable rates, the country presents a prime opportunity for agricultural investment.
- Tourism
Spain is considered the ultimate European destination for tourists looking to soak up some sun, enjoy Spanish cuisine, and marvel at the art, culture, and diverse landscapes. With over 80 million visitors annually, international investment in tourism has been growing.
- Stocks and shares
Investing in stocks and shares in Spain offers opportunities to capitalize on the growth of both domestic and international companies. The Spanish stock market, primarily represented by the IBEX 35 index, includes leading firms in sectors such as banking, telecommunications, and energy. Investors benefit from a well-regulated market, with oversight provided by the National Securities Market Commission (CNMV). While the potential for substantial returns exists, it’s crucial to consider the market’s volatility, influenced by economic and political factors within Spain and the broader Eurozone. Diversifying investments and staying informed about market trends are key strategies for mitigating risks and maximizing gains.
- Investment funds
Investing in investment funds in Spain provides a diversified and professionally managed way to access various asset classes, including equities, bonds, and real estate. Spanish investment funds are regulated by the National Securities Market Commission (CNMV), ensuring a level of protection and transparency for investors. These funds allow investors to spread risk across different sectors and markets, both domestically and internationally, without needing extensive market knowledge. With options ranging from low-risk bond funds to higher-risk equity funds, investors can choose a fund that aligns with their risk tolerance and financial goals, making it a versatile investment option.
Therefore, chemical, pharmaceutical, and plastics industry investments represent fantastic investment opportunities. Investing in short-term rental properties is an attractive option for foreign nationals looking to invest in Spain, in addition to purchases of commercial buildings like hotels, beachside villas, and bed and breakfasts.
Best Places to Invest in Spain
According to foreign investors, the best places in Spain are Barcelona, Madrid, Ibiza, Costa Blanca, Majorca, and Marbella. The best type of investment in Spain to make is in a property. This is because Spain has one of the top-performing housing markets with competitive returns.
For investments in property to generate income, the Balearic Islands of Mallorca, Menorca, and Ibiza are a few of the best places to purchase property due to the many tourists they attract each year. These regions offer a perfect blend of Spanish culture and attractive tourist destinations.
The capital city of Madrid is, of course, high on the list of Spain’s top destinations for foreign investment and business. It stands as a pivotal investment hub and business center in the country, housing critical financial institutions such as the central bank and the largest stock exchange, as well as the headquarters of several large foreign companies. It’s important to note that Madrid, compared to other cities in Spain, will have the highest prices of real estate.
Invest in Spain and Get Residency
Spain is one of several EU countries providing non-EU nationals with a residency permit in exchange for foreign direct investment in the country’s economy. The Spain Golden Visa is geared toward investors outside the EU who wish to purchase real estate, establish new Spanish businesses, expand foreign companies, or invest in public debt securities. Main investor can also make refundable bank despots to qualify for the visa.
Under the scheme, applicants and their family members can invest in Spain and obtain a long-term residency permit through a minimum investment of €500,000 in real estate. After five years, visa holders can relinquish their investment and apply for permanent residency.
Why you should invest in Spain and get residency:
- You gain a second home and a residency permit, allowing you to travel freely within the Schengen zone.
- The Spain Golden Visa is a step towards permanent residency and Spanish citizenship.
- You don’t need to live in Spain to maintain your Golden Visa.
- Your family members are eligible for residence permits.
- Spain offers a fantastic quality of life, with affordable living standards and world-class healthcare.
For more information on investing in Spain for residency, check out our ultimate guide to the Spain Golden Visa.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
Frequently Asked Questions about Investing in Spain
Is buying property in Spain a good investment?
Buying property in Spain is considered an excellent investment for several reasons. The Spanish real estate market is experiencing significant growth; rental prices are high, and a huge volume of tourists visit Spain yearly. Foreign investments in property also qualify buyers for the Spanish Golden Visa program.
How does investment for residency work?
The way investment in Spain for residency works is you must make a foreign investment in one of Spain’s eligible investment options to qualify for the Golden Visa. The options include real estate purchases, bank deposits, and buying stocks. How much to invest in Spain to get residency depends on the investment option you choose. A €500,000 real estate purchase is the qualifying investment for property investments.
If I invest, do I get citizenship?
It may be possible to invest in Spain for citizenship. However, the path to citizenship isn’t direct. You must first acquire a Spain Golden Visa through investment and maintain your qualifying investment until you can apply for permanent residence.
After obtaining permanent residency and living in the country for a total of ten years, you may be eligible to apply for a Spanish passport.
What investment companies operate in Spain?
Several investment companies are operating in Spain, namely Aresbank, Banco Pastor, and Advanza Capital.
How do you invest in Spain?
The best way to invest in Spain depends on your chosen investment path. You can follow the guidance of a local real estate agent to invest in Spanish real estate. You can use reputable online brokerage firms with a European operating license to buy stocks of Spanish companies.
Foreign investment in the impact investment market through industries, such as biotech and renewable energy, may require additional steps. This can include due diligence on local regulations and potential partnerships with established entities, as well as engaging with legal experts well-versed in Spanish investment law and seeking advice from industry-specific consultants.
How do you invest in real estate?
How to invest in real estate in Spain is a relatively straightforward process. When you have found a property you like, both parties must agree on the price, and you must ask for proof that the seller owns the property and it is free of charges, including any outstanding mortgages.
In Spain, debts are charged to the property, so you must ensure no debts are inherited. After a completed sale, you must prove you have officially acquired the property through a certificate issued by the Spanish Land Registry.
Paying taxes on the sale of property is also a requirement. This usually includes the buyer’s Plusvalia (property sales tax) and the seller’s Capital Gains Tax. In addition to capital gains, owners of Spanish property may also be required to pay a wealth tax, depending on the property’s value.
Is it good to invest in Spain?
Spain is often regarded as a favorable destination for investment. The country boasts a stable and developed economy, offering a strategic location within Europe to access global markets. Additionally, investments such as real estate or creating a new business can qualify investors for Spain’s Golden Visa program, which proves residency in exchange for economic investment.
Can a US citizen start a business in Spain?
A US citizen can start a business in Spain. The nation has an open and welcoming business environment for foreign entrepreneurs. The country offers several business structures, including sole proprietorships, partnerships, and limited liability companies. Furthermore, establishing an enterprise in Spain that provides jobs for Spanish can qualify investors for long-term residency through the country’s Golden Visa program.
How to apply for the Golden Visa through investment?
You can apply for the Spanish Golden Visa after buying real estate that costs €500,000 minimum, by investing one million euros in a Spanish business, or by contributing two million euros in public debt securities. You also need to have a clean criminal record, valid medical insurance, and proof of your investment.
It’s important to note that Spain will make significant changes in the near future.
