Is Spanish property a good investment?
Spain can offer suitable opportunities, but there is no universal return. Performance depends on the municipality, neighbourhood, purchase price, property type, permitted use, operating costs and exit strategy.
An investor may seek:
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regular long-term rental income;
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seasonal income;
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personal use for part of the year;
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long-term capital appreciation;
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a combination of personal use and letting;
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renovation followed by resale.
A beach apartment, canal property with a mooring, family home in a residential area and licensed tourist property serve different markets and carry different costs and risks. The first question is therefore not simply “Where should I buy?” but “What must this investment achieve?”
With 22 years of experience in Roses, Empuriabrava, Castelló d'Empúries and the Alt Empordà, the Jumaros Group helps investors match the property, location and management burden to their objectives.
Can a non-resident invest in Spain?
Yes. British, American, Latin American, German and other foreign investors may buy and let property without becoming Spanish residents. They will need a NIE and must comply with Spanish legal, tax and administrative obligations.
Property ownership, immigration residence and tax residence are separate. Buying a property does not grant an unlimited right to live in Spain and does not automatically make the owner Spanish tax-resident.
Income from Spanish real estate can be taxed in Spain even when the owner lives abroad. The country of residence may also require the property, income or gain to be reported. A tax treaty may provide double-tax relief, but it does not normally eliminate filing obligations in both countries.
Which investment strategy should you choose?
Long-term residential letting
Long-term letting can provide more regular income and less tenant turnover than holiday letting. The property should suit permanent residents: year-round access, heating and insulation, parking, practical room layout, controlled community charges and services outside the tourist season.
In Catalonia, rent controls apply in declared stressed residential-market areas. The Generalitat currently identifies 271 municipalities within this regime and provides the official list and guidance. Depending on the property and landlord, the permitted rent may be affected by the previous contract, statutory updates, the reference index and large-landlord status. The official rent-control guidance must therefore be checked before forecasting income.
Tourist or holiday letting
Tourist letting can concentrate income into high-demand periods but involves more active management: advertising, check-in, cleaning, linen, frequent maintenance, utilities, platform commissions, guest reporting, tourist tax and unoccupied periods.
Not every home can legally be offered as tourist accommodation. In municipalities affected by Catalan Decree-Law 3/2023, a new tourist-use dwelling requires prior municipal planning permission and the relevant tourism authorisation. The official text establishes five-year renewable licences and transitional rules for existing activity; see Catalan Decree-Law 3/2023.
Never buy on the assumption that a tourist licence can be obtained later. An old listing, registration number in an advert or previous rental activity does not by itself prove that the activity may continue after the purchase.
Temporary non-tourist letting
A temporary lease based on a genuine reason—such as study, employment or medical treatment—is not automatically treated as either tourist accommodation or a permanent-home lease. A short duration alone is insufficient. The temporary reason must be genuine, identifiable and properly documented in the contract.
Mixed personal use and letting
An owner can reserve part of the year for personal use and let during other periods, provided the chosen letting model is legal. The investment calculation must remove owner-occupied weeks from available inventory and include IRNR on the personal-use or vacant periods.
Renovation and resale
This strategy depends on acquisition price, works budget, planning permission, construction timescale, purchase taxes, realistic resale value, selling costs and tax on the gain. A cosmetic renovation does not cure a planning irregularity. Legal and technical feasibility should be established before purchase.
Choosing between Roses, Empuriabrava and the Alt Empordà
There is no single “best” investment location.
Roses
Roses combines permanent, holiday and second-home demand. The town centre, Santa Margarida, Puig-Rom, Canyelles, Almadrava and Mas Fumats have different access, seasonality, views, parking, community-cost and rental profiles.
Empuriabrava and Castelló d'Empúries
Empuriabrava attracts an international market through its canals, moorings, beach and developments with pools. An investor should review the canal and mooring characteristics, community condition, lift and parking, distance from services, maintenance costs and exact letting permissions.
Inland villages
Villages in the Alt Empordà can suit permanent letting, a second home or longer-term value strategy. Their tenant demand, seasonality, services and resale liquidity differ from those of the coastal resorts.
Jumaros Immobilier analyses the intended use before selecting properties, while Lucas Gestion checks the administrative and letting position.
How should investment returns be calculated?
Gross yield
The basic comparison is:
Gross yield = annual rent ÷ purchase price × 100
For a €200,000 property producing €12,000 annual rent, the gross yield is 6%. This is a comparison tool, not the return actually received.
Net yield
Net yield = net annual rental income ÷ total cash invested × 100
Total investment should include:
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purchase price and acquisition taxes;
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notarial, registry and administrative costs;
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financing and valuation costs;
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refurbishment, furniture and equipment;
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licensing or compliance work.
Annual income should be reduced by:
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IBI and local charges;
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owners' association fees;
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insurance;
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maintenance and repairs;
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property-management and platform commissions;
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utilities paid by the owner;
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vacant periods and bad-debt allowance;
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Spanish tax on the rental income;
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furniture and equipment replacement.
For a mixed-use property, personal-use periods must also be treated as unavailable rental time. A prudent forecast should compare a base case, a weaker-occupancy case and the cash result after tax and financing.
What purchase costs apply in Catalonia?
Resale property
The general Catalan ITP scale is progressive:
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10% up to €600,000;
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11% from €600,000 to €900,000;
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12% from €900,000 to €1,500,000;
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13% above €1,500,000.
The Catalan Tax Agency publishes the current rates, including special 20% cases that can affect certain acquisitions of complete residential buildings or purchases by large landlords. The specific purchaser and transaction must be checked.
New property
The first transfer by a developer is generally subject to 10% VAT for an ordinary home plus AJD, commonly 1.5% in Catalonia for the relevant notarial transaction.
For a conventional resale home, allowing approximately 12% to 15% above the price can be a prudent preliminary estimate before refurbishment, but it is not a quotation. Lucas Gestion prepares a transaction-specific estimate before the investor commits.
What must be checked before investing?
The legal and commercial review should cover:
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registered owner and Land Registry charges;
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consistency between the Land Registry, Cadastre, deed and physical reality;
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planning status and legality of alterations;
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valid cédula de habitabilidad and energy certificate;
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community charges, debts, approved works and statutes;
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tenancy or occupant rights;
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legally permitted rental use;
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tourist-authorisation status and transfer procedure;
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rent legally applicable to a residential contract;
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maintenance and insurance costs;
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realistic rental demand and seasonality;
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resale prospects.
The Spanish notary verifies essential aspects of the deed and registered position, but an investor should not assume that the notary is providing a full technical, planning, rental-business or profitability audit.
Lucas Gestion collects and reviews the administrative documents and coordinates the file before completion.
How are non-resident investors taxed?
Qualifying EU/EEA residents
Rental income is generally taxed in Spain at 19%. Directly related, properly evidenced expenses may generally be deducted under the applicable rules. The Spanish Tax Agency explains the treatment of rental income and deductions.
UK investors
Following Brexit, a UK-resident individual is generally taxed at 24% on gross Spanish rental income without the ordinary expense deductions available to qualifying EU/EEA residents. The Spanish Tax Agency confirms this change in its Brexit guidance.
A UK resident should also examine UK reporting. HMRC states that foreign rental income and overseas gains normally enter the foreign-income reporting framework; see HMRC guidance.
US and Latin American investors
An investor resident in the United States or Latin America is generally taxed in Spain at 24% on gross rental income, without the ordinary deductions available to qualifying EU/EEA residents. Home-country reporting and the relevant treaty must also be reviewed. The IRS explains the possible Foreign Tax Credit for qualifying Spanish income taxes, subject to US rules.
Periods without tenants
A non-resident individual can also owe IRNR on imputed property income for periods when an urban property is available for personal use or vacant. The Spanish Tax Agency explains the imputed-income rules.
Owners must also budget for IBI, refuse charges where applicable, community costs, tourist tax for qualifying stays and tax consequences on resale. Lucas Gestion coordinates the Spanish administrative and tax procedures and, where necessary, liaises with a specialist tax adviser.
Why invest through the Jumaros Group?
The Jumaros Group coordinates the project as a whole: investment objectives, area selection, property search, price analysis, realistic rental potential, authorised use, tourist-licence review, acquisition costs, offer and negotiation, documents, notary, registration, ownership changes, insurance quotation, non-resident filings and property management according to the owner's needs.
This combined approach connects the purchase decision with regulation, taxation, ongoing management and eventual resale.