Spain is one of the most attractive and competitive corporate markets in the EU (EU). Aside from that, the country has the third-largest investment market in Europe. Because of this, Spain's legislative body offered good and financially beneficial incentives to the business sector.
As a result, the foreign investors' confidence has been increased. The acts of the legislative body, Spanish investments are now the second largest receiver of Foreign Direct Investments (Inversiones Extranjero Directas). They're just a few of the things that can help Spain attract international investment. In this article, we have listed the safe investments with high returns in Spain.
Real Estate
If you're looking to invest in Spanish real estate, the outlook for 2021 is excellent (+5.6%). These returns are likely to grow over the previous year, according to the El Banco de España (Spanish Central Bank).
Gross rental yields and capital gain increases account for the percentage rise. The fact that mortgage rates are at 1.8 percent, the lowest level in history, will be welcomed by many investors. There is a good correlation between real estate and financial markets. The pandemic's economic impact on Spain and the rest of the world are being closely monitored.
Buying Spanish Businesses
In Spain, any legal citizen can invest in a business. Except for foreigners who aspire to become citizens of Spain, the legal steps to owning a firm are almost identical for everyone. If you're considering buying a business in Spain, you'll need to do your research.
With a working or self-employed visa, foreigners can buy enterprises. Obtaining a work permit and applying for visas is contingent upon your company plan's contribution to the improvement of Spain. One of the easiest ways for EU citizens to buy businesses is to create a partnership or operate as a single trader.
Spanish Bonds
STRIPS, or Treasury Bills, are Spanish government securities. Separate Trading of Registered Interest and Principal of Securities (STRIPS) is the abbreviation for this. Economic growth benefits from STRIPS bonds include:
Treasury bonds can be bought and sold separately by investors.
On a specific future day, the payments are scheduled to be made.
Purchase and holding of STRIPS are carried out by financial institutions and government security brokers, respectively.
Bonds with a maturity of 2 to 5 years pay interest. Unlike long-term bonds, Spain's discount bonds have a maturity of 3 to 12 months.
