Profitability of property investment on the Costa Brava: our tips for success

The Costa Brava is a region of Spain that fascinates many foreign investors with its natural beauty, sunny climate and festive atmosphere. You're planning to buy a flat or house here, whether to live, work or invest. How can you make the most of your property investment in the Costa Brava? What type of rental should you choose? What price should you expect?

Why invest in property on the Costa Brava?

Investing in property on the Costa Brava has a number of advantages. First and foremost, it is a popular destination that attracts millions of travellers every year, particularly from France, who come to enjoy its beaches, landscapes, gastronomy and culture. Demand for tourist rentals is fairly strong, so you can enjoy a high occupancy rate.

Despite a significant rise in property prices over the last decade, they remain competitive and attractive. Spain's major cities such as Barcelona have less affordable properties, with prices per square metre that can reach around €4,000 depending on the area, which is not the case in other regions such as the Costa Brava, which offer more affordable options with costs ranging from €2,700 to €3,100 per square metre. This is still much cheaper than the coastal regions of France. Prices become even more attractive as you move further away from the coastal areas, particularly in the villages where you can find properties with amenities such as swimming pools, gardens and garages.

In addition, the Costa Brava is a dynamic region that offers many economic opportunities, particularly in the tourism, agriculture and service sectors. With sustained demand for residential rentals, you can benefit from a low vacancy rate, and collect regular rental income. To take advantage of this, don't hesitate to buy a property like this apartment for sale in Rosas, a town north of the bay whose name it inspired. You'll be able to take advantage of the good profitability of property in Catalonia.

Also, the Costa Brava benefits from good road, rail and air links. You can easily get there from France or Spain's main cities, such as Madrid or Barcelona. And don't hesitate to take advantage of the proximity of Catalonia, which offers a pleasant living environment and advantageous tax rates.

What type of rental should you choose to benefit from the profitability of property investment on the Costa Brava?

In order to ensure a profitable property investment in a country like Spain in general and on the Costa Brava in particular, it is essential to think carefully about the type of rental that suits your profile and your project. In this area, there are two main categories: tourist and residential rentals.

The tourist rental involves renting your property to holidaymakers for a short period, usually a few days to a few weeks. This allows you to benefit from a high rental yield and advantageous taxation.

As for residential rental, this involves renting your property to residents for a long period, usually from several months to several years. This allows you to benefit from a stable return on your property investment in the Costa Brava and legal certainty insofar as you can sign a lease contract with your tenant.

To choose between these two types of rental and take advantage of the profitability of property on the Costa Brava, you need to consider several criteria, such as the location of your property, its availability and its management. You should choose a property located in a tourist area that offers natural, cultural or festive attractions. Preferably choose a property located in a residential area that offers amenities, services or infrastructure.

Côavailability, choose a property that you can vacate easily and that you do not use as your primary or secondary residence. You should choose a property that you can occupy occasionally or that you don't use at all, if you opt for residential rental.

How profitable is property investment in Costa Brava?

If you know the advantages and disadvantages of living in Spain or on the Costa Brava, do you know what rental yield to expect from a property investment in a town in this region? The rentability is particularly attractive in Spain thanks to tourism, which is not very conducive to rental holidays.

On the Costa Brava, rentals are constantly on the rise. In 2017 alone, prices rose by between 5% and 15%. A rental investment in this region can be very profitable especially in the summer period. As a landlord, you can expect an average annual return of between 4% and 6% on your purchase. Rental periods are more intense in the high season.

As far as your initial investment is concerned, this will depend mainly on the towns in which you wish to invest on the Costa Brava. Prices per m² in Roses, Tossa de Mar, Blanes and Begur, for example, are 2,353, 3,237, 2,479 and 3,501 euros respectively.

And if you're wondering about taxation, it varies from region to region in Spain. However, there are two taxes to bear in mind. The first and most important is the ITP (Impuesto de Transmisiones Patrimoniales) or wealth transfer tax. As an investor, you are obliged to pay this when you acquire your property. In Catalonia, the rate is 10%. In the case of mortgages, you must pay a tax on legal acts: AJD (Impuesto de Actos Juridicos Documentados). On the Costa Brava, this is set at 1.5%.

Trust Immo365 for your property transactions on the Costa Brava

Despite price rises in recent years, the property market remains attractive on the Costa Brava in Spain, with a very good value for money. To take full advantage of this, you need to know the pitfalls to avoid when buying in Spain and find out how to make a smart purchase.

For this reason, we are making the services of our estate agency available to you. The Catalan coast is home to our extensive and diverse portfolio of properties. They are all strategically positioned in prime locations. Our team, made up of people from diverse cultural backgrounds, is committed to efficiently locating the ideal property that suits your needs so that you can benefit from the profitability of real estate in Catalonia.

In addition, we provide full legal and tax assistance in several languages (French, English, Catalan, German, Spanish, Russian, Dutch) for your convenience and peace of mind. Whether you're selling or buying, the professionals at our innovative real estate agency on the Costa Brava are at your complete disposal. For example, we offer a photo, video, drone and 3D virtual tour service to speed up the buying/selling process.