Where to buy luxury Real Estate in Spain: Top trending locations for high-end property investments?

A woman wonders which are the taxes to pay for Real Estate in Spain when buying a property in Spain.

If you are looking to buy luxury Real Estate in Spain, you have come to the right place. At Golden Partners, we understand that purchasing an exclusive property requires detailed analysis and strategic planning. In this article, we tell you essential keys to making a successful Real Estate investment this year 2024. From an analysis of the real estate market to the best locations with potential for appreciation, and the legal and tax aspects to consider, we offer you all the information you need to make informed decisions. Discover how trends in design, sustainability and technology can influence your next real estate purchase.

Luxury Real Estate in Madrid in a sunny day.

Analysis of the luxury Real Estate market in 2024

The luxury Real Estate market in Spain in 2024 continues to consolidate itself as a privileged destination for high-level investors from around the world, standing out for its stability and global appeal.

The increase in foreign investment in this sector has been notable, driven by factors such as Spain’s economic strength and the diversification of investor origin. According to official data, total foreign investment in Spain exceeded €28.2 billion in 2023, demonstrating the confidence of international investors in the Spanish economy.

The nationalities that invest the most in luxury properties in Spain are the British, Germans and French, according to recent reports from BBVA Research and Idealista.

This growth in foreign investment has been particularly reflected in the luxury Real Estate sector, with a 12% increase in investment projects aimed at increasing productive capacity and employment in Spain, according to the Spanish Ministry of Economy itself. 

Regions such as Madrid, Barcelona and the Costa del Sol remain the most sought after due to their combination of exclusivity, quality of life and opportunities for long-term appreciation. This dynamism makes Spain a key destination for investors looking to diversify their portfolios in safe and profitable assets.

Premium areas with the greatest potential for appreciation

The luxury Real Estate market in Spain continues to evolve, with certain luxury areas emerging as real investment hotspots.

These areas not only stand out for their current attractiveness, but also for their great potential for appreciation in the medium and long term, becoming key targets for investors looking to maximise the value of their investments in 2024.

Below, we analyse the locations with the greatest potential, from the dynamic cities of Madrid and Barcelona to the most exclusive enclaves such as Marbella and the Balearic Islands.

Madrid: the financial and cultural heart

Madrid remains a central pillar in the luxury real estate market in Spain, especially in areas such as Barrio de Salamanca, Chamberí, and El Viso. These areas not only offer a prime location close to financial and cultural centers, but also properties that combine modernity and tradition. International demand, especially from American and European investors, has driven the revaluation of these neighborhoods, with a sustained increase in prices due to limited supply and high demand for exclusive homes. According to data from the Spanish government, Madrid is the main recipient of foreign investment in Spain, which reinforces its growth potential.

Barcelona: innovation and modernity

Barcelona, with its rich architectural heritage and vibrant cultural life, continues to be a magnet for luxury investors. Areas such as Pedralbes, Sarrià-Sant Gervasi, and Eixample have stood out for their ability to attract international buyers looking for both primary and second homes. The city combines an innovative environment with a strategic location on the Mediterranean, which increases its attractiveness and long-term appreciation potential. The stability of the real estate market in Barcelona, together with the growing demand for premium properties, ensure that it remains a key investment hotspot in 2024.

Marbella: the exclusivity of Golden Hills

Marbella, and in particular developments such as Golden Hills, represent the pinnacle of luxury property investment on the Costa del Sol. This exclusive project, offering high-end villas with stunning views and first-class services, has captured the attention of global investors. Golden Hills’ strategic location on the New Golden Mile, together with its modern design and focus on sustainability, position it as a highly-appreciated investment.

Marbella remains a sought-after destination due to its privileged climate, luxury infrastructure and an environment that combines tranquility and sophistication, making Golden Hills a jewel for any luxury real estate portfolio.

The Balearic Islands: a refuge in the Mediterranean

The Balearic Islands, including Mallorca and Ibiza, continue to stand out as prime destinations for luxury investment, thanks to their unrivalled natural surroundings and exclusivity. These islands have seen a significant increase in demand for luxury properties, driven by investors seeking privacy and a Mediterranean lifestyle.

Properties on these islands not only offer an idyllic setting, but also guarantee high appreciation, especially in areas such as Son Vida in Mallorca and Es Cubells in Ibiza. Limited space and strict building regulations contribute to keeping property values high, thus ensuring their long-term appeal.

These premium areas of Spain present a unique attraction for investors in 2024, with strong appreciation potential supported by international demand and quality of life.

Legal and tax aspects to buy luxury Real Estate in Spain this 2024

In 2024, buying luxury properties in Spain remains an attractive investment, but it is essential to consider the common tax issues that affect this type of transaction. The most relevant taxes include Non-Resident Income Tax (IRNR), Wealth Tax, and Transfer Tax (ITP) or VAT, depending on whether the property is second-hand or new. In addition, the obligations to declare assets abroad using (form 720) continue to be a crucial aspect for investors, who must be aware of these regulations to avoid penalties and optimize their financial situation.

Luxury appartments in Marbella are always a good option for rental in Spain.

To optimize your investment from a tax perspective, it may be advantageous to consider the Beckham Law, which allows those who move to Spain for work to be taxed favorably on their global income, significantly reducing their tax burden.

Likewise, the Golden Visa program remains an attractive option in 2024, as it grants residency in Spain to investors who make a significant investment in real estate, generally from €500,000 or higher amounts in other types of investments (commercial, Spanish public debt securities, etc.). This program not only facilitates residency, but can also offer additional tax benefits. Having a specialized tax advisor is essential to guide you in taking advantage of these opportunities and ensuring compliance with current regulations.

Contact us

Whether you plan to reside in Spain permanently or just to make an investment, it is essential that your lawyer arranges for you to hire a specialist property management service. A professional manager will take care of maintenance, leasing if you wish, and other logistics, ensuring that your investment is well managed and generating income efficiently.

If you are considering to buy luxury Real Estate in Spain, do not hesitate to contact Golden Partners. We have extensive experience in the Spanish property market and are ready to guide you through every stage of the acquisition process. Whether you are exploring options, have decided to purchase a specific property, or have already started the purchase process and need expert advice, we are here to help.

You can contact us through our contact form without obligation.

Contact The Golden Partners
Specialists in Real Estate and Immigration Law
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