Given the constant rise in real estate prices in Israel and the volatility of the stock market and the low-interest rates in the Israeli economy, many Israelis are looking for new investment channels, mainly in real estate abroad. It is worth noting that many Israelis recently discovered the real estate market in Spain, and they flock to the country to buy properties that are sold at low prices, with the forecast predicting a high rise in property prices in Spain in the coming years.
Why invest in real estate in Spain?
The global economic crisis in 2008 caused local banks huge losses, the unemployment rate jumped to 25%, and real estate prices were cut in major cities such as Madrid and Barcelona to 40%, causing the Spanish government to attract foreign investor. Indeed, many Israelis have discovered the feasibility of investment in real estate in Spain. After the local market experienced huge declines now, it can be seen that the real estate prices began to rise in Spain, so it is better to quickly invest now to enjoy a good return in a short time.
Real estate prices in Spain will return to peak prices before the economic crisis, according to various experts, as the local real estate market is showing signs of recovery in the major cities. It is worthwhile to look for attractive properties, mainly in the center of Barcelona and Madrid, and to enjoy an attractive investment channel and high returns. The improvement in the local economy contributes to the fact that many young people are looking for rental apartments in the centers of large cities and rental rates are increasing.
Before you rush to buy property in Spain, you should study and study the local market, and you should distinguish between buying a new feature and buying an old property. It is also important to know that a foreign investor is required to deduct 3% of the price of the property he wants to buy and transfer the tax to the Spanish tax authority. Also, the cost of the purchase should be considered as bank financing costs, attorney, property registration, notary, and other costs If the buyer of the property is a foreign resident, he must pay personal income tax, whether he rented the property or not.
To make the deal worthwhile and attractive for the Israeli investor, it is worth knowing that there are advantages in obtaining Spanish citizenship. After the amendment to the Spanish Citizenship Law, there are many Israelis who can obtain local citizenship and Spanish passports, which provide many advantages, among other things, easing the purchase of real estate through bank financing and taxes are reduced compared with taxes collected from foreign residents.
High demand for rent
The real estate market in Spain is showing signs of recovery, and the local economy is beginning to grow. As a result, there is a high demand for rentals in the main cities of Spain. The purchase of new or second-hand property, and many other advantages such as entry into countries that do not have relations with Israel, obtaining an automatic visa to the US, receiving bank financing for the purchase of property in Spain on favorable terms, and a variety of valuable and worthwhile advantages.