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Sector Overview

Real Estate Investment

Spain
Real Estate Investment

1Introduction

Spanish property attracts international investors with a combination of lifestyle, tourism demand, rental income and long-term price growth.

We help Indian and international investors buy residential and commercial property. This includes sourcing, due diligence, legal coordination and completion, plus setting up rental management.

2Turnover & Scalability

Market size & growth

705,000+Home sales in Spain, 2025 (highest since 2008)
13.8%Share bought by foreigners
+9.5%Average price rise in 2025 (€2,354/m²)

Spain recorded more than 705,000 home sales in 2025, up 10.4% and the highest since 2008. Foreign buyers made about 97,300 purchases (13.8%). Average prices rose 9.5% to €2,354 per m². Andalusia, Valencia, Catalonia and Madrid account for 65% of sales.

Indicative business potential

Rental income
≈ 4% – 6% gross a year (indicative)
Long-term rentals in major cities; often higher in secondary cities
Growth
Capital appreciation + portfolio
Grow from one unit to a portfolio held in a Spanish SL

Indicative estimates by Think Euro International. Actual results depend on capital invested, pricing, buyers and execution.

How the business scales

  1. Start with one well-located rental property
  2. Hold properties through a Spanish SL as the portfolio grows
  3. Add value through renovation and resale
  4. Move into build-to-rent or commercial units
  5. Reinvest rental income

3Taxation

Import duty / property taxesPurchase taxes instead of import duty. Resale homes: Transfer Tax (ITP) 6% – 11% by region (Catalonia 10%, 11% above €1M). New homes: 10% VAT plus Stamp Duty (AJD, Catalonia 1.5%). Annual property tax (IBI). Non-residents pay 19% (EU/EEA) or 24% (others) on rental income, and 19% on capital gains.
Spanish VAT (IVA)New homes 10%; commercial premises 21%; resale homes: no VAT (ITP applies)
Spanish corporate taxSpanish SL: 25% standard rate. Reduced 2026 rates: 19% on the first €50,000 of profit and 21% on the rest for companies with turnover under €1M; 23% for turnover under €10M; 15% for the first two profitable years of a newly created company.

4Required Licences & Registrations

We coordinate company formation, registrations and licensing end-to-end with our legal and customs partners.

Interested in Real Estate Investment?

Talk to our team about sourcing, market entry, licensing and setting up your business in Spain.

Figures and rates are for general information (updated September 2026) and can change. Duty rates depend on the exact customs (TARIC) code, and tax depends on your specific situation. Please confirm with us before making investment decisions. This page is not legal or tax advice.