A good investment

MANY of us have dreamt of owning a property in Spain, whether it be as an investment to use during the holidays or as a permanent new home, but what are some of the advan tages of owning a property in Spain?

During times of political in stability, such as the pan demic, war, and high inflation, gold and real estate are safe havens for people and en sure capital. Owning a proper ty in Spain can also stave off inflation as savings sitting in the bank disappear because of rising inflation. Real estate offers a safe way to look after and deposit your life savings.

Real estate is also a tangible asset that is under your control, unlike investments such as cryptocurrency and other ethereal investments that are hard to understand and monitor. Property also offers security, as the laws in Spain give property owners a solid legal framework and with some regions having slashed property tax and stamp duty on buying property.

It’s no secret that, unlike volatile investments such as stocks and bonds, real estate offers a gradual and constant increase in value over time. According to Idealista, property prices in Spain have risen by 16 per cent in the last five years.

You can also generate passive income on your property by renting it out as a holiday home when you are not there.

A lot of people don’t know that Spain offers lenient tax allowances which reduce a landlord’s bill by 70 per cent or more (applies to EU residents only). You can deduct all property maintenance costs, including legal fees (used to compute the rental tax) and mortgage interest! Property provides excellent returns on investment after deductions.

A STUDY undertaken by insurance company Hiscox, suggests that the luxury housing market in Spain is dominated by Malaga Province although it also found that the Balearics, especially Mallorca ran a close second.

On the Costa del Sol there is an area referred to as the ‘Golden Triangle’ which comprises Benahavis, Marbella and Estepona and this area boasts the largest number of luxury homes priced in the millions of euros.

One would have expected major cities such as Barcelona and Madrid to be leading the way, but the main difference is the amount of land still available on the Costa del Sol as compared to the cities which have large numbers of apartments.

This review agrees with a similar in depth study undertaken by influential website Idealista in 2022 which found that more than one third of all properties priced at €3 million or more in Spain (and there were nearly 3,000 of them) were situated in Malaga Province.

Many celebrities have second homes on the Costa del Sol and the latest is Austrian singer, presenter and heiress to the crystals empire, Victoria Swarovski who has snapped up a brand new property in Marbella and this soon after the news that Hollywood star and philanthropist Eva Longoria was also moving to the Costa del Sol.

The great thing about the area is no matter how big or small your bank balance may be, you are sure to find your ideal property.