Spain has for years attracted Polish investors with beautiful weather, picturesque landscapes and comparatively attractive property prices. Poles are increasingly eager to invest their savings in Spanish apartments and homes, hoping for unchangeable profits from rental or a peaceful retirement. However, the Spanish Government is planning to introduce a controversial taxation that can change current investment trends.
Spain – Poland's favourite investment direction
In 2024 Poles purchased in Spain over 1.3 1000 real estatewhich is simply a evidence score. Regions specified as Alicante, Valencia is Barcelona For years they have attracted investors with their climate and dynamically rising prices. In Alicante in the last decade property prices have increased by 130%which makes them 1 of the most profitable regions in Europe.
Investment benefits, specified as the anticipation to rent apartments to tourists or unchangeable value of the property, make Spain 1 of the most popular investment destinations among Poles. Moreover, many Poles treat the acquisition of property as a long-term investment – a place to quit or financial safety for the future.
The fresh taxation will hit abroad investors
Spanish Government led by Prime Minister Pedro Sánchez announced the introduction of a fresh property taxation to cover investors outside the European Union. taxation rate 100% of property value to effectively discourage abroad buyers from investing capital in Spain.
The intent of these changes is to defend the local marketplace from speculation and the conversion of housing into tourist property, which leads to difficulties in accessing housing for the Spanish. Prime Minister Sánchez stressed that "Spain must be a country for people, not for speculative capital".
Problems in the Spanish real property market
The rising real property prices and the limited availability of rental housing are the biggest challenges facing the Spanish market. In 2024, the average price per square metre in Barcelona reached EUR 5 000which makes this city 1 of the most costly in Europe.
In consequence to increasing social discontent, the Spanish government announced improvement social construction, which is now simply 2.5% of the real property market. The aim is to increase the availability of housing for local residents, especially young families, who are increasingly having difficulty buying their own apartment.
In cities specified as Barcelona and Madrid, social opposition to short-term mass rentals is besides increasing. More and more often, slogans like “Tourists go home” and local authorities restrict the rent of apartments to tourists.
Impact of the fresh taxation on Polish investors
Poles who have so far been willing to invest in Spain may be forced to change their plans. The introduction of a fresh taxation will make the acquisition of the property much little profitable. For many investors, cost analysis and the search for alternate investment directions will be a key issue.
Experts foretell that Poles can now draw their attention to another countries offering favourable investment conditions, specified as Portugal, Bulgaria is Croatiawhich inactive offer attractive real property prices and more friendly taxation regulations.
What about the real property marketplace in Spain?
The introduction of a fresh taxation may reduce the interest of abroad investors, but at the same time make more opportunities for local residents. The Spanish authorities hope that the regulations will stabilise the real property marketplace and hinder price increases.
For Poles who are considering buying real property abroad, it will be crucial to track changes in the marketplace and adapt their investment plans to fresh realities.
Continued here:
New property tax. Poles will pay the fortune
