The Sunny Kingdom has always been considered one of the most attractive countries for investment in premises and buildings for business.
It is not surprising – after all, prices in Spain are relatively affordable for Europe, tourism is well developed, and the country’s policy favours small and medium-sized entrepreneurs.
Buying a buy villa in Denia, Lloret de Mar or any other city can be a profitable investment. But with the advent of the pandemic, many people are asking a fair question – has the situation changed during the coronavirus period? Is it worth investing right now in Spanish commercial real estate and how to buy it most profitably?
Which regions and cities are best to pay attention to and how to correctly calculate profitability and all maintenance costs? What documents to check and prepare for the final transaction at the notary?
Do local banks give loans for this type of property and for what amount? Are there visa benefits when a non EU resident takes over?
Local commercial or Spanish commercial properties
The term includes any real estate that is not intended for habitation and is acquired for the purpose of making a profit by further renting it or for running a personal business.
Its status can always be checked by an extract from the Register of Owners, Nota Simple.
If you later want to use them as a living space, you will have to request the necessary certificate of technical conformity (cedula de habitabilidad) from the municipal authorities; otherwise, there is a risk of being fined a considerable amount. It is also illegal to turn a house or apartment into a local commercial without obtaining permission from the mayor’s office.
Commercial Spanish real estate
All real estate can be classified according to the type of activity that is legally allowed to be carried out on their territory:
- Offices, business centres.
- Restaurants, cafes, bars.
- Hotel and health buildings.
- Service sector: salons, gyms, schools, workshops.
- Warehouses and logistics places.
- Shops, kiosks, markets.
- Garages.
- Gas station.
- Income houses.
The most win-win option for investments is traditionally the premises associated with the hotel, tourism, restaurant business and trade.
Their profitability is especially high in large cities and in the popular seaside resorts of the Kingdom, e.g., Denia. Denia is a small picturesque town in the middle between Valencia and Alicante, a popular family holiday destination on some of the best beaches in Spain, the pearl of the Costa Blanca.
A cosy old town with countless restaurants, a central shady plane alley, an ancient fortress on a hill and one of the largest ports on the coast with regular flights to Ibiza and Mallorca.
What type of properties and where is better to buy
Experts believe that now is the time for profitable investments, and the service sector and tourism will never lose their relevance in this country for a long time.
Thanks to the pandemic, the acquisition of warehouses and logistics centres, as well as space that can be converted into a medical laboratory or pharmacy, is becoming a new trend.
Speaking about offices, entrepreneurs are now interested in small spaces: after all, they can be successfully rented out for business meetings and events several times a week to those companies where working remotely has become the norm for employees.
Compared to 2019, first-line stores in the central areas of large cities have seriously fallen in price. So, in Barcelona there is an active change of ownership on elite streets, like Passeig de Gracia or Rambla Catalunya.
As before, the tourist areas of the regional capitals and, of course, seaside resorts (Madrid, Valencia, the coast of Alicante, San Sebastian, Malaga) remain the most profitable for investments.
Local commercial: what benefits does it provide after purchase
What are the main advantages of commercial real estate in Spain? First of all:
- high profitability,
- the ability to have a permanent source of income through rent,
- a flexible and long-term contract with the tenant (at least seven years).
If you are planning to develop your business, then this is a chance to create a space in accordance with your personal vision and taste.
It is also an opportunity to feel independent and in a new way, moving into an entrepreneurial caste in one of the most cosmopolitan countries in Europe.
Trying to do this in the Sunny Kingdom is a good idea, if only because the culture of small trading shops and markets, going to specialized shops and restaurants is historically developed here, and small and medium-sized businesses are very welcome.
Real estate in Spain
If you’re looking to invest in real estate in Spain, then check out Spain-Real.Estate to help you find properties. They have a really large database with a wide choice of real estate located in different parts of Spain.
