July 2021 News
Contents
Foreigners are returning to the market
Startup law and freelancer visa
100 expensive locations
Skyscrapers for everyone
Spaniards returned to mortgages
12 children to save the city
1. Foreigners are returning to the market
In the summer of 2021, Spanish real estate market analysts recorded a gradual recovery to pre-COVID levels, particularly noting the return of foreign buyers. According to Idealista, in Q2 2021, foreign investors participated in 11.3% of all real estate transactions in Spain.
German buyers preferred Valencia and Spanish archipelagos (Balearic and Canary Islands). French investors chose Catalonia, while British buyers favored Andalusia and Costa Blanca. They were followed by American, Italian, and Swiss investors. Costa Blanca traditionally remained popular among Russian-speaking buyers.
2. Startup law and freelancer visa
In July, the Spanish government announced the “Startups Bill,” which had been in development for three years. It aims to attract young innovative companies and digital specialists. The law defines startups as companies up to 7 years old with turnover up to €5,000,000, not publicly traded, with more than half of their employees working in Spain.
Among the benefits are a reduction in corporate tax from 25% to 15% for four years and tax payment deferrals. Authorities planned to issue “freelancer visas” for remote workers, which could potentially become a way to obtain Spanish residency. Among existing popular residency options are the “Golden Visa” for investors and No Lucrativa permits for financially independent individuals.
3. 100 expensive locations
Idealista compiled a ranking of the most expensive municipalities in Spain for Q2 2021. Benahavis (near Malaga) topped the list with an average purchase price of €1.5 million. Second place went to Calvià in western Mallorca with €1,081,932.
Luxury locations are concentrated in the Balearic Islands, as well as in the provinces of Barcelona, Malaga, and Alicante.
4. Skyscrapers for everyone
In Benidorm, construction of the 187-meter residential skyscraper Intempo was completed after 17 years of work. Developers claim that the building has the fastest elevator in Spain: the journey from the first to the 47th floor takes 52 seconds. Two-bedroom apartments start from €236,000 (fifth floor) and reach €1.8 million on the upper floors.
The ongoing construction of skyscrapers has adjusted prices for secondary apartments downward. The Kronos Benidorm project offered small apartments from €87,000, 15 minutes from the sea.
5. Spaniards returned to mortgages
According to Spain’s National Institute of Statistics, 35,225 mortgage applications were submitted in May 2021 — 37.4% more than in May 2020; growth continued for three consecutive months.
The average loan amount increased to €133,611 (+5.4%). The highest number of applications was recorded in Madrid, Barcelona, and Andalusia.
6. 12 children to save the city
The village of Griegos (Teruel province) invited families with children to relocate, offering three months of free accommodation. The settlement had 132 residents; authorities were looking for twelve students to preserve the local school (at that time, nine children were enrolled).
The administration provided subsequent rent for €225 per month with a €50 deduction for each school-age child. Vacancies were available at the Paladar de Aragón restaurant and Griegos hotel. The village is located at 1,600 meters above sea level and attracts mountain recreation enthusiasts.