Spain Property Investment Options: Expected 5–8% Annual Yields, Residency, and Schengen Travel
May 7, 2024 · Spain · 7 min read
Spain’s real estate market continues to grow, offering a diverse range of investment options and strong return potential.
Amid ongoing global volatility, Spain remains one of Europe’s most stable destinations and one of its strongest economies. As a result, its real estate market has continued to grow, and Spain property investment offers a diverse range of options with strong return potential.
At the time of writing, the Spain Golden Visa was one of Europe’s earliest and most popular residency programs. Designed to attract foreign investors, it allowed them to obtain a Spanish residence permit through a real estate investment, with a minimum investment of €500,000 (approximately US$560,000) and no restrictions on property type or location, unlike some other European programs.
Spain rental yields: income-focused property investment options
Under other European residency programs based on real estate investment, expected rental yields average only around 3–5% per year. At the time of writing, however, IMM Group was offering several new property options in Spain with the potential to generate cash flow and relatively high yields by European market standards.
1. Commercial property with long-term leases
- Expected yield: 5–6% per year.
- Ownership of commercial premises already leased to tenants such as supermarkets, dental clinics, and EV charging stations on long-term 10–20-year contracts.
- Notably, some premises are leased to major brands such as the French supermarket chain Carrefour.
2. JoyLiving
- Expected yield: 7–8% per year.
- Ownership of existing apartments renovated for student rentals, with a management company handling the leasing.
- The apartments are selected in densely populated, well-connected areas that appeal to a range of tenant profiles, which supports rental demand and future resale potential.
3. Land leased to gas station operators
- Expected yield: around 5% per year.
- Ownership of land already under lease agreements with fuel companies to build and operate gas stations. These leases typically run 20–30 years because the investment in infrastructure, such as pipelines, storage tanks, and equipment, is very high, and there is potential for them to be renewed long term.
Spain Golden Visa: a gateway to European property investment and residency
Although the Spain program required a higher investment amount than other European Golden Visa programs, Spain is a large country with a strong economy, well-developed education and healthcare systems, a widely spoken language, and a rich culture. At the time of writing, it therefore remained an option worth considering, particularly as other programs were raising their investment thresholds or closing.
Through the Golden Visa program offered by the Spanish government, investors and their families gained a range of benefits, including:
- Visa-free travel across the 29 Schengen countries (stays of up to 90 days in any 180-day period).
- The freedom to live, study, and work anywhere in Spain.
- Access to Spain’s public healthcare system, subject to Spanish eligibility rules.
- Free education for children at public schools from primary through high school, with university tuition at roughly one-third to one-half of the rate paid by international students.
- A pathway to permanent residence and to citizenship through naturalization once the legal requirements are met.
In 2024, the Spanish passport was among the world’s highest-ranked passports, ranking joint first with visa-free access to 194 destinations. With Spanish citizenship, investors and their families also gain the right to travel and live freely in any of the 27 member states of the European Union (EU).
As of May 2024, the Spanish government was considering ending its Golden Visa program. Interested investors were therefore advised to invest and submit their applications as early as possible.
If you are interested in the Spain Golden Visa program, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess whether your case meets the program requirements. We keep your personal data confidential and use the information you provide only to advise on your family’s case.
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