What is profitable to invest in?", "What is the return on investment in Spain?", "How to invest in real estate?", "What do I need to buy a small profitable cafe?" - we often hear similar questions from our potential clients and those compatriots who have enlisted our service support.
Spain is a country of "old" Europe, it is understandable for investors with its laws and living conditions. It is a country with a favorable environment and climate, with affordable housing prices. In addition, Spain is very popular among tourists. All this attracts investors.
However, to understand how to invest safely and reliably in Spain, UCBI experts have prepared several tips and tricks.
What are the most invested spheres?
According to the Foreign Investment Registry of the State Secretariat for Trade of the Kingdom of Spain, DataInvex, foreign investment in Spain in the first quarter of 2023 increased by more than 20% compared to the same period last year.
Business investments. The largest share of foreign business investment in Spain is in trade, construction and tourism. Each industry has a wide range of attractive investment opportunities.
Real estate investment. Investments in real estate, both commercial and residential, continue to be a hot topic. Even 100-150 thousand euros of investment allows the owner to count on 5-7% annual profit.
Investments in securities and cryptocurrencies. Spain is becoming increasingly popular in the financial market. The Madrid Stock Exchange is the largest securities market in Spain. It provides financing to the private sector, state and local authorities in Spain through fixed-income transactions. The exchange trades warrants, certificates, and exchange-traded funds (ETFs), as well as futures and options, including the IBEX35 Index (which includes the 35 most liquid traded stocks) and various European stock indices. For example, it is there that you can buy shares of Inditex, the owner of large clothing retail chains, or shares of the banking giants BBVA and Banco Santander.
The amount of investments in cryptocurrencies in Spain is quite significant, but due to tax requirements and control over crypto wallets by the country's authorities over their owners, analysts do not note a large increase in investment in this segment.
Ideas for investments in Spain
If we consider a small amount of investment in the field of small business, we offer some ideas to start your own business in Spain or buy an existing business.
Gastronomic tourism. Setting up a small local catering or fast food establishment can be a good business option, as it does not require a lot of capital. Gastronomic tourism is a segment that always attracts the attention of tourists, who are increasingly increasing in number in Spain every year.
Online sales.. The technological progress we have made in recent years has made it possible to develop a variety of businesses on the Internet. Websites selling various goods or services, promotion and online support. All of this is a huge space for making a profit.
Cleaning services. Buying a franchise of a Spanish cleaning company or organizing your own business in this niche will always allow you to get your client, as the demand for cleaning services is quite stable in any region of the country.
Car repair. The majority of Spaniards and tourists arriving in the country use their own or rented vehicles to move around the country comfortably. At the same time, the number of car repair shops has decreased by 10-15% over the past few years. Opening or purchasing a service station in a suburban area is a good idea to get a stream of customers.
Electronics repair. Mobile phones, tablets, laptops, and computers - owners of these things will always be looking for the necessary fast service, as authorized centers can keep their gadgets under warranty for several months. Opening such a workshop in a shopping center guarantees business success.
Acquisition of a bankrupt company. Buying a company that has debts, but also equipment, permits, certificates, and everything else necessary for business activity is quite a good idea. The main advantage is that the business is already established. It is necessary to reconfigure business processes so that the business becomes a great economic opportunity from which to make a profit again.
Music and art shops. Many people in Spain appreciate art. Selling products that allow customers to develop their artistic skills can be a good, profitable business under certain conditions.
A shop selling handmade goods. Demand for eco-friendly, recycled, or handmade goods is growing rapidly around the world. Starting a small business in this segment will be doomed to success.
Why is it profitable to invest in Spain?
- Reasonable prices for real estate
- High return on investment
- Investment in real estate allows you to obtain a residence permit and the prospect of permanent residence
- Easy and quick sale of assets if necessary
- Climate and comfort of living
- Lower tax rates compared to some EU countries
- High level of medical services
- Transparent and understandable legislation
How to invest in Spain and not lose money?
This usually requires an expert who will help you determine the amount of investment, check the idea, select the most relevant options for its implementation, and help with transactions and their support.
If you need the necessary expertise or service support for your business ideas, please contact the Ukrainian Consulting Office in Spain. UCBI experts will always help.
