With over 12 million tourists flocking to the Canary Islands annually, the archipelago has become a hotspot for both vacationers and investors. Beyond the picturesque landscapes and favorable climate, the Canaries present a myriad of investment opportunities, ranging from real estate to the thriving travel industry.
WEATHER AND LIFESTYLE:
The Canaries’ mild climate, constant ocean temperatures, and low humidity create an idyllic environment for both travel and living. These conditions contribute to a longer life expectancy, making it an attractive destination for those seeking a healthier lifestyle.
Apart from the weather, the local taxation system further enhances the appeal of the Canary Islands. With the application of IGIC (Impuesto General Indirecto Canario) at a rate of 7%, as opposed to mainland Spain’s 21% VAT, the cost of living and investing in the Canaries becomes significantly more affordable. This favorable tax structure opens up multiple investment avenues.
- Under-construction Property:
- Equity participation in construction yields profitable returns, with property values increasing by 30-40% during the two-year construction period.
- A flexible payment structure allows buyers to secure a property with a reservation fee, followed by staged payments.
- Opting for a mortgage loan covers the remaining cost, making real estate ownership accessible.
- Existing Property:
- Purchasing existing real estate is a common and lucrative option, with a high demand for apartment rentals.
- Accessible mortgages for 70% of the property value and lower tax rates make this investment attractive.
- The Canaries offer benefits like obtaining residence, extended stay rights, and rental income potential.
- Travel Industry:
- Tourism contributes significantly to the local economy, accounting for approximately 30% of the GDP.
- Investing in the travel industry, including hotels, resorts, and car rentals, promises substantial returns.
- The year-round tourist season ensures a steady income for businesses in this sector.
- Commercial Real Estate:
- Purchasing retail spaces, restaurants, or bars in the Canaries is a lucrative venture due to high demand for rentals.
- Long-term investments in constructing commercial real estate respond to the increasing need for retail space, especially in key tourist areas.
The Canary Islands not only captivate tourists with their natural beauty but also offer a diverse range of investment opportunities. Whether it’s real estate, the travel industry, or commercial ventures, the archipelago’s unique blend of favorable conditions makes it an attractive destination for savvy investors seeking both financial returns and a slice of paradise.