According to Worldometer, as of April 2nd, Spain had 104,118 coronavirus positive cases with the second highest death toll in the world. The coronavirus pandemic has played a role in Spain’s economy drop of 18.5%. Historians claim this economy drop is second to the last economy contraction in 1936 (26.8%) during the Spanish civil war. Spain’s GDP went down because of stricter containment measures to curb coronavirus. To contain the virus, the Spanish government ordered a national lockdown, whereby no one could leave their house except to go to the supermarket, pharmacy, or look after the vulnerable and elderly. Despite of the economy contraction, Spain is still the attractive destination for online investments because of favorable laws and incentives for UK expatriates. Anyone who hopes to diversify their investment portfolio should consider investing in Spain.
Will Spain survive this pandemic?
Spain was recovering from the 2008 financial crisis over the last years. The country depended on the tourism and hospitality industry which contributes to 12.3% of Spain’s GDP and offers 13% of all jobs. But the industry was badly hit because of travel restrictions and border closures. The property rental market which was flourishing at the beginning of 2020 has been affected as well; expats who rely on rental income are looking to sell their properties and relocate but they are stuck in limbo. Buyers are reluctant to invest as well therefore the market is at a standstill.
Investing in Spain
Even with the surging global corona cases altering consumer behavior and impacting cash flows, there are also several opportunities to be taken advantage of. Securing property in Spain is 49% cheaper than in UK. The cost of living is favorable as well and the salary growth levels are average. This makes Spain a favorable place for expats who want to invest abroad. International investors can buy and build property such as beach side villas and cheap motels for tourist accommodation. Besides property investment, starting a business in Spain is not complicated. You are required to employ Spanish citizens and conduct part of the business in the country. The entrepreneur visa allows you to have temporary residency and after five years you get permanent residency. If you stay for five more years, you are eligible for Spanish citizenship. Spain provides a wide range of possibilities for investors.
Is it a good time to invest in Spain?
With the glimmer of hope in the newsreels, we are expecting Spain to relax their strict measures. So, is it a good time to invest in Spain? If you dream of owning a property in Spain, this is a good time to buy a house since the prices are down. Although the future is uncertain, you will buy for a reduced amount and you can sell it for a lot more. The Bank of Spain expects the international investment to find momentum soon. The domestic housing may take longer to recover. Spain is excellent for investments and the demand for Spanish property is expected to rise.
Although Spain is among the worst hit in Europe, Analysts at Capital Economics claim that corona virus is a ‘passing crisis’ and expect a growth rate of 6.8% in 2021. Spain is still the popular and attractive investment haven and will eventually rise to its feet, and anyone who wishes to diversify their investment portfolio should not hesitate to have a piece of the ‘Spanish pie’.