Investment in Real Estate in Spain – Profit, Rental, Taxes

Investing in real estate abroad has long attracted those seeking stable and predictable profits. Spain, particularly Costa Blanca, has become one of the favorite destinations for Polish investors looking not only for a place to relax but also for a way to protect their capital and generate passive income.

In this article, we analyze real investment opportunities in real estate in Spain, considering: prices, rental options, taxes, and potential return on investment (ROI).

Why do investors choose Spain?

✅ Market Stability

Steady increase in property prices since 2015
Strong domestic and international demand
Secure property rights and registration system

☀️ Climate and Tourism

300+ sunny days a year
High number of tourists year-round (especially in Alicante, Torrevieja, Orihuela Costa)
Attractive lifestyle for renters

🏠 Properties from 200,000 euros

New turnkey apartments and villas with pools and terraces
Developer warranty
Low operating costs compared to Poland

Types of Real Estate Investments in Spain

1. Short-term rental (vacation)

High profitability: 6–8% per year (gross)
Peak interest: June – September, but also winter tourists
Tourist license required (we assist in obtaining)

2. Long-term rental

Lower profit, but stable occupancy
Typically 500–800 € per month for an apartment
Popular among students, remote workers, and retirees

3. Flipping / resale after value increase

Purchase of a new property under construction
Sale upon project completion (profit during price increase phase)
Completion time: 12–24 months

Sample Investment Scenario (2025):

Purchase of an apartment for 210,000 € in Orihuela Costa

Additional costs (VAT, notary, registration): approx. 23,000 €
Total investment cost: 233,000 €

Short-term rental:

Average daily rate: 90 €
Occupancy: 180 days a year
Annual income: 16,200 €
Gross ROI: approx. 6.95%

(Management, maintenance, and tax costs not included)

What taxes does an investor pay?

💰 IRNR (Non-Residents Income Tax)

For non-residents renting
19% on income (possible deductions for costs if you have EU residency)

🏦 IBI (local tax)

Approx. 200–300 € per year depending on the municipality

📅 Property tax at the time of purchase

New properties: 10% VAT (IVA)
From the secondary market: 8–10% ITP (property transfer tax)

Do I need a company to rent?

You do not have to manage the property yourself. We offer:

Professional rental management
Photography and property marketing
Bookings, cleaning, guest communication
Full investment performance reporting

Who is this for?

✅ Ideal investor profiles:

Poles wanting to protect capital from inflation
Individuals seeking passive income
Families considering a second home with rental options
Long-term investors focused on value growth

🚀 Start investing in Costa Blanca with us

We offer properties only from verified developers, exclusively new projects from 200,000 €. Every client receives full support:

Selection of offers according to investment goals
Assistance with formalities and taxes
ROI analysis
Rental management and turnkey service

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