The rise in worldwide political instability, owing to trade disputes between China and the United States, the United Kingdom’s withdrawal from the European Union, and the emergence of wars in Latin America, makes Spain, particularly Madrid, an attractive investment target. Since 2015, growth has been approximately 3.0% of GDP, and while estimates for next year suggest that it will be lower, it will always be higher than the national average and several Eurozone nations. It also has significant financial power and a globally significant stock and derivatives market, fact that makes it very attractive investing in Madrid
One of Europe’s most visited cities, the Spanish capital receives about 7 million tourists a year, and is one of the cities with the fastest population increase. Internal migrations have kept the capital in perpetual motion, promoting the city’s economic, political, and social development. Home to 72% of the 2,000 major multinational enterprises that have set up shop in Spain, Madrid sees a big influx of not only visitors but also those looking to live and work in the city to advance their careers, and is fast becoming one of the most important European cities for hosting international events.
What to know about Madrid
Strategically placed in the heart of the peninsula, it is highly accessible from anywhere in Spain, making it an ideal location for business headquarters. Its geographically equidistant location allows it to develop and manage distribution networks with the rest of the country efficiently. Madrid also houses the country’s most significant government buildings, courts, embassies, and other national and international institutions as the country’s capital. This has an impact on the large number of civil officials who live in the capital, thus encouraging real estate development, public buildings, and a political hotspot that draws investment and improves the economy.
It features one of Europe’s busiest airports and a well-connected network of highways and rails that connects it to the rest of the country. Madrid’s public transportation system is one of the greatest in the world, with the metro connecting communities in Madrid and making living more simpler. The trains and buses are excellent, and the costs are relatively reasonable when compared to other cities throughout the world.
City real estate market
Investing in Madrid is less expensive when choosing between renting and buying a home. Real estate values are 4-5 times cheaper than those of Paris or London, with an average rent that is considerably closer to these figures. Furthermore, Madrid has the lowest investment taxes in Spain. Madrid has a 6-7% real estate tax, compared to 10-12% in Barcelona and Valencia.
Investing in real estate in Madrid has shown to be a rewarding and secure business throughout history. It provides greater returns than bank savings while posing a lesser risk than the stock market. Madrid is a desirable city for real estate investment, with promising future possibilities.
For a few years now, the real estate market in Madrid has been booming, which means houses at extremely reasonable rates are easily available particularly when compared to other European cities, but with strong odds of their value increasing in the future.
The city’s real estate market offers a diverse range of investment and purchasing opportunities. There are houses in Madrid to suit all likes and budgets. New construction, resale flats or homes, properties in need of total renovation, luxury and premium real estate, and more economical housing are all available.
A big number of transient residents, such as students and professionals stay in Madrid, and many younger individuals unable to own a home seek out rental flats. This creates a steady demand for rental properties, making owning a house or apartment to rent an extremely successful business.
How to apply for Spanish residence with the Golden Visa
Foreign individuals interested in investing in real estate in Spain are also eligible for residency which may eventually lead to citizenship via the Golden Visa programme. The Golden Visa allows individuals and their relatives to live and work legally in Spain without having to visit more than once a year. This visa also permits you to move freely within the Schengen Area.
The Golden Visa requires a €500,000 real estate investment. The visa can be renewed every two years, and after five years, permanent residency is attainable. After ten years, foreign nationals can apply for citizenship. To keep and renew the residence permit, it is not essential to live in Spain.
To apply for the Golden Visa, one must satisfy the following requirements:
- At least 18 years old.
- Have no criminal record in Spain or the countries where they have lived during the previous five years for criminal acts outlined by Spanish law.
- Not be subject to a travel warning issued for the aim of preventing access into the territorial space of countries with which Spain has signed a treaty.
- Have health insurance coverage from a licensed firm in Spain.
- Have adequate financial means to support themselves and their families throughout their stay in Spain.
- Paid the visa processing fee.
If you are unsure about investing in real estate in Madrid, Orience has a team of legal consultants who can answer your questions, offer expert advice and support on Citizenship and Residence by Investment Programmes worldwide.