For investors, there gets a time when the idea of starting to expand the investments by buying a property overseas or creating a business in a different country starts to appear, because diversifying the income, and having easy access to Europe and other places is always a great advantage.
Among the countries that attract the most international investors, Spain has been gaining popularity, especially thanks to its Golden Visa program, which bypasses the barriers and difficulties of obtaining a proper residency visa in Spain or the other countries that offer the program.
One thing that results very attractive of Spain, is that it’s a country of relevance, which is now recovering from a crisis, and Spanish real estate prices are increasing, making renting a good business. And Madrid, the Spanish capital, is still one of the best cities in Spain to invest in.
Why to invest in Madrid?
As opposed to other countries, where only the capital is relevant for international investors; Spain has several cities that are very important for the country and for Europe. This is a good thing, because it gives us more options, but could also makes it hard to make a decision.
However, Madrid continues to be a great option to invest in Spain, and these are some for the reasons for this:
It’s a large city in Europe
The city of Madrid is the sixth largest city in Europe by population, while the metropolitan area of Madrid is in between the 3rd or 4th place. Yet, Madrid has a considerably lower population, making it less overwhelming than cities like London or Istanbul.
Real estate prices are lower than other cities
Even after the bubble burst in 2008, now that Spain is recovering from the crisis, and economy seems to be on the good track, so Spanish real estate does, and in Madrid, prices are considerably lower than other important European cities such as London or Paris, making it much more affordable, and still giving the possibilities of investing in an important city.
Things to consider when investing in Madrid from a long distance
For those considering investing in Madrid from a long distance, especially those who are not from Europe. There are good things to take into account when investing in real estate or other investments in Madrid from a long distance.
Learn about the Spanish tax system
Taxes in Spain are lower than in other European countries, but at first, understanding the taxation system of a foreign country might be complex or intimidating.
Spanish tax system has its own set of nuances, but the most important thing is to learn how to determine whether you are a tax resident or not. And in case of doubt or uncertainty, you can always get advice from a Spanish tax professional.
Consider hiring a property manager
There exist agencies of professional property managers or individuals, whether you know them already and they are willing to relocate, or you may find online, willing to take care of your property in Madrid from a long distance.
A property manager will help you with the tasks otherwise you would have to do yourself, and you can stay in touch with them online without travelling to Madrid. Their rates tend to be low as they work with quantities, but for a more personalized property management, you could have to pay more.
Be willing to travel to Madrid at least once per year
With technology and a property manager, you can manage your investment in Madrid from a long distance. However, it’s probably still a good idea to travel for at least a couple days to Madrid to experience firsthand how things are going with your property in Madrid. And it’s a good excuse to spend some days in this charming city.