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50 positive factors for investment in Spain

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Particularities of the real estate market

In this first edition of the report “50 positive factors for investment in Spain: particularities of the real estate market, we have included a list of factors taking into account those that influence decisions on “relocation in Spain” and ultimately investment in our country.

As a result of the study and our experience, we have identified the 50 reasons why Spain is an attractive country as the country of reference when buying a property for holidays, or as a new life project and establishing your permanent residence.

The high degree of stability, both economic and socio-political, and a geostrategic location, as well as other factors related to the quality of life, the health system, culture, gastronomy, entertainment and leisure, facilitate adaptation to our country and place Spain among the main tourist destinations in the world.

The aim of this small but serious publication is to provide up-to-date and clear information that promotes the comparative advantages that Spain has, as well as explaining in a practical way everything that Spain can offer to anyone who wants to invest or establish their residence.

  1. Spain is the second country in the world and first in Europe in terms of life expectancy according to the OECD, with high levels of social support and one of the best health systems in the world. All our foreign clients expressly inform us and value favorably the functioning of the Spanish health system, considering that it works quite well or very well.
  2. Spain is among the most efficient countries in terms of health, ranking third overall in health efficiency according to Bloomberg.
  3. The level of health and hospital care in Spain, both public and private, is very high, with numerous and very good medical centers.
  4. The Spanish State Health Service provides good medical care to all citizens. All the neighborhoods have their own health center (outpatient) where a general practitioner (family doctor) is assigned and a pediatrician in the case of children. Consultations operate on an appointment system, and the general practitioner is responsible for referring you to the various specialists.
  5. Emergency medical care in Spain is very good and the best specialists are on par with their colleagues anywhere in the world.
  6. There are many private health care entities that, in exchange for affordable annual fees, provide all kinds of private medical services to the displaced worker and his/her family.
  7. There are certain Bilateral Social Security Agreements between Spain and other countries that regulate the effects on Spanish public benefits of periods of contribution to the social security of other States.
  8. Spain has been the absolute leader in transplants over the last 27 years.
  9. The price of medicines in Spain is lower than in neighboring countries. S
  10. According to various international reports on economic aspects, experiences and family, Spain ranks 17th among 46 nations in the preferences of expatriates, occupying the top places in the ranking in terms of health, quality of life, culture, social life, ease of making friends or integration.
  11. Spain is one of the OECD countries in which a better work-life balance can be achieved (4th), taking into account both the average time dedicated to work and especially the quality of time dedicated to leisure or personal and family care.
  12. The homicide rate in Spain is the third lowest in the European Union, with figures almost 40% lower than the Community average, one of the safest regions in Europe.
  13. According to the Global Peace Index, Spain is part of the select group of 25 countries with the highest state of peace.
  14. Spain, with 46 sites, is the third country in the world and the second European country with the highest number of UNESCO World Heritage Sites.
  15. Spain is the absolute world leader in Biosphere Reserves.
  16. Spain ranks first in tourism according to the World Economic Forum, surpassing the rest of 135 economies worldwide in those factors and policies that allow for sustainable development in the tourism and travel sector, thanks to a successful mix of cultural and natural resources, combined with excellent tourism services and infrastructure, air connectivity and government support.
  17. Spain reaches the second position in the world in terms of tourist arrivals, behind France.
  18. Spain is the most tolerant country in the world with respect to homosexuality, according to the Pew Research Center, and one of the world’s leading countries in terms of moral freedom.
  19. The foreign population in Spain exceeds six million (13% of the total), one of the largest absolute stocks in the European Union and the OECD (fourth and seventh, respectively).
  20. Since 2000, the foreign population in Spain has multiplied by three, an unprecedented development within the OECD, as is the integration of this population into Spanish society and the absence of associated conflict, a fact that provides Spain with maximum levels of openness and tolerance in Europe and the world.
  21. Spain appears as the world leader in terms of shopping basket quality and price.
  22. Spain is the leader in high-speed rail in terms of extension, innovation, punctuality and fleet versatility, having the second largest high-speed network in the OECD and the first in the EU, with nearly 3,000 km of track in service.
  23. In air traffic, Spain ranks third in the European Union in terms of incoming and outgoing passengers.
  24. Excellent infrastructure and communications network: The extensive network of roads and railroads, as well as the number and location of ports and airports, provide Spain with an exceptional communication network that favors both trade and tourism.
  25. Spain ranks 13th in the world in terms of the importance of its economy, 11th in terms of the size of its GDP, 11th as an issuer of FDI and 9th as an exporter of commercial services. It is an international center of innovation favored by the existence of a young, highly qualified population that is proactive and has competitive costs within the framework of Western Europe, specifically among university graduates.
  26. Spain leads the way in terms of ease of access to foreign investment; it belongs to the group of the 10 countries with the most open regulations, ranking ninth out of the 50 countries included in the comparisons.
  27. Setting up a company in Spain is simple. The types of companies are in line with those existing in OECD countries and there is also a wide range of possibilities, capable of responding to the needs of the different types of investors who wish to invest in Spain, or from Spain. Apart from the above, it is worth noting the practically total liberalization that governs foreign investment and exchange control, in line with EU regulations.
  28. The Spanish real estate market is dynamic and stable. The increase in real estate investment seems to be settled in certain areas such as the Valencian Community -Costa Blanca- , Barcelona, Costa del Sol, Balearic Islands and Madrid.
  29. The price of housing is undoubtedly one of the main thermometers to measure the health of the real estate market. Thus, in 2019, prices have continued to rise, but in a stable and moderate manner, and the number of sales made by foreign investors has also increased.
  30. Home prices: Low interest rates in the Euro zone have driven home purchases because housing generates higher returns than many of the other alternatives; between 3-5 % average net returns offered by the Spanish residential market are perceived as more interesting than those offered by bank deposits, the fixed income market, in addition to being an asset with less risk than shares.
  31. Revaluation in consolidated areas: direct investment in real estate assets located in central and premium locations in major cities and tourist centers with greater demand continues to be a suitable alternative.
  32. High return on investment: Currently the Spanish real estate market offers the highest value in terms of return on investment (ROI) in history. Very few markets in Europe offer a higher ROI than in our country. Investing in real estate in Spain is the best place due to the country’s robust tourism industry mentioned above and the high rental returns.
  33. Growth in sales and purchases: The price and sale of homes has recorded the highest growth in the last decade with figures from last year of 517,000 sales transactions and a price increase of 8.2% year-on-year.
  34. Climate and quality of life: Spain is the leading country in Europe in terms of quality of life for foreigners living in our country and the third in the world. Modern and excellent quality health system, stable and rigorous framework for business and citizenship, rich historical and cultural heritage and unique cuisine of international renown.
  35. Among the main attractions for property investors in Spain is undoubtedly the landscape with 8,000 km. (4,970 miles) of coast, beautiful beaches and the excellent climate with more than 300 days of sunshine a year that make Spain the best Mediterranean climate in Europe. No wonder that the Spanish life expectancy is the fifth highest in Europe and 7th in the world. Spain enjoys more than three thousand hours of sunshine, making it one of the warmest countries in Europe.
  36. Privileged position on the map: In the world of the globalized economy, there is no doubt that location plays an important role when it comes to investment decisions. Spain, at this level, is one of the best destinations due to its privileged geographical location for conducting international business, not only because it belongs to the EU, but also because it represents a fundamental point of contact with South America and at the same time a gateway to the African continent, in addition to direct connections with Europe.
  37. As for foreigners with a driving license issued by an EU country, no additional examination will be necessary. In the case of permits issued by a non-EU country, it will be necessary to study the existence of a bilateral agreement that allows the validation of such a permit. Otherwise, once the residence in Spain has been acquired, it will be necessary to obtain the Spanish driving license.
  38. Education is compulsory up to the age of 16, with English being the most widely studied foreign language in schools and college.
  39. There are numerous educational centers in Spain, up to a total of 30,048 (of which 9,513 are subsidized and private) that provide general (non-university) and special education, with many bilingual schools of different nationalities; this reality makes the integration of foreign students in Spain possible, as evidenced by the fact that there are currently 87.2 foreign students enrolled for every 1,000 Spanish students.
  40. In addition to the Spanish banks, which occupy important positions in Europe (Banco Santander and BBVA), important entities of global relevance operate in Spain (e.g. Deutsche Bank, Barclays Bank, UBS, etc.) as well as large investment banks.
  41. Spain is the third largest tourist destination in the world in terms of number of tourists and the second largest in terms of income. It has almost 8,000 kilometers of coastline, abundant opportunities to practice sports and a great variety of social events; all of which are presided over by the diversity of cultural heritages.
  42. The Spanish coast receives approximately up to 700 Blue Flags every year, the highest number worldwide of this ecological qualification. The Blue Flag is an ecological rating granted to 4,023 beaches and marinas in 48 countries on 5 continents.
  43. Spain has a wide range of leisure and entertainment options for all ages (zoos, safaris, nature trails, etc.). In recent decades, a wide range of large theme parks has emerged: Terra Mítica in Benidorm, Port Aventura in Tarragona, Warner Bros Park in Madrid. In addition, a wide range of children’s leisure activities has also emerged, more focused on contact with the environment and science.
  44. Spain has an extensive network of libraries and museums throughout the country. These include the National Library, with more than 20 million copies, the Prado Museum, the Reina Sofía Museum and the Thyssen-Bornemisza Museum, among others.
  45. The great cultural diversity in Spain gives rise to a gastronomic wealth that is recognized worldwide.
  46. The official language of the State is Spanish, which coexists with other languages in certain Autonomous Communities.
  47. The predominant religion is Catholic, but it should be noted that Spain is a constitutionally non-confessional state in which all other religions coexist in good harmony.
  48. Spain occupies an area of about 504,782 square kilometers in southwestern Europe. The territory covers most of the Iberian Peninsula, which it shares with Portugal, including the Balearic Islands in the Mediterranean, the Canary Islands in the Atlantic Ocean, the North African cities of Ceuta and Melilla and several islands and islets.
  49. The annual average temperatures range from 2º in January to 36º in August depending on the region of Spain. The North of Spain is colder in the winter and more continental in the summer. This mild climate makes Spain a very attractive tourist destination, as well as an ideal place to buy and enjoy a second home, especially for those who have finished their working life. Likewise, the climatic conditions from which Spain benefits are a factor that foreign investors particularly value when making their decisions regarding the location of their factories or other work centers.
  50. The Spanish tax system is modern and competitive. The tax burden in Spain (measured as the percentage of taxes and social security contributions to GDP) is approximately five points below that of surrounding countries (EU-tax reforms have been carried out to simplify the tax obligations of taxpayers and, in general, to reduce their tax burden. This modification has mainly affected Corporate Tax, Personal Income Tax, Non-Resident Income Tax and Value Added Tax, among others.

In summary, these 50 reasons serve to highlight the country’s attractiveness and why it is important to select Spain as a place to invest and/or move your residence, both for retirement, second home, and to start a new business.

We understand that the 50 factors expressed will be maintained almost in their entirety due to the great strength and sacrifice of the Spanish people, their capacity to face adversity and their human quality, which deflect any tragic situation by facing it with perseverance, joy and positivism.


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