Month: November 2025

Where to invest in countries with better legal security than Spain?

Where to invest in countries with better legal security than Spain?

When you are a real estate investor, it makes sense to look for a market environment in which there is a high degree of legal certainty and a good protection of property.

Unfortunately, the spanish real estate market presents different dysfunctions that are detrimental to homeowners, both those who buy with the intention of selling at a revalued price, and those who have a housing market with short or long term rentals.

Low legal certainty entails risks for investors: you may have to rent at a lower price than you expected because of the regulations in stressed areas, The process for evicting tenants who are considered vulnerable can be long, or someone squatting in vacant housing can take years to recover it.

In this sense, in this post we are going to show you some of the following investment options more recommendable than Spain if you are looking for maximum protection.

Where to invest in housing beyond Spain?

To make the decision to stop buying homes in Spain and to look for a new home. other real estate markets is very attractive. Many investors are considering getting rid of their homes and even taking up residence in a market with fewer regulations and lower taxes.

When we look for the best places to invest in housing, the same places almost always come to mind: United States, Europe, Asia or Latin America. Here is one list of countries with better legal certainty than Spain for investments.

The problem of investing in housing in the United States is that housing prices are considerably higher than in Spain, so you need a much higher initial capital. Although the legal security against evictions and evictions is high, the initial costs are high.

As far as the Asian market is concerned, there are two main handicapsThe lack of legal certainty regarding real estate and the strong regulations for foreigners. In some countries such as Thailand, Indonesia or the Philippines, foreign nationals are not allowed to own the land where the houses are located, it is only possible to buy condominiums or work with long-term leases under certain conditions, depending on the country.

The same can occur in the European market, especially in some heavily congested cities in the UK, France and Germany, where there are also greater regulations.

In the latin american real estate market, Although housing prices are very affordable, the biggest problem has to do with legal certainty.

Many legal systems do not provide sufficient guarantee of property protection, There is an increased risk of expropriation of housing by the state, or there is a market for the sale and purchase of housing that is not properly registered in a land registry.

However, although the Latin American market still presents numerous challenges, a different issue is some Caribbean countries, The Dominican Republic, for example, offers a perfect combination of affordable housing prices, high revaluations and a sufficient level of regulation and property protection to be able to operate with guarantees in this market.

Legal security in the Dominican Republic, the real estate market where more and more Spaniards are investing

The first thing you should be clear about is that as a foreign real estate investor you have many advantages. No nationality restrictions for foreigners to buy property, as is the case in many Asian countries.

On the other hand, there is a Registration of Titles where the properties are registered at the moment of the purchase of the property. Therefore, for legal purposes it is correctly reflected that you are the owner of the apartment that you have acquired from the moment of the purchase.

The evictions for nonpayment of rent or evictions of squatters The property owners are fully protected, without having to be involved in long and complex legal proceedings, which can last for years, as is the case in the Spanish real estate market. Previously we have already told you about the squatting problem in Spain compared to other countries.

There are also no problems when it comes to inherit properties, even if you are a foreigner; the homes you own will pass to your heirs. This is an outright purchase, not long-term or lifetime leases.

There are also incentives for the acquisition of apartments in tourist areas, thanks to the Confotur Law, The foreigners can benefit from this program. For 15 years you would not have to pay taxes on the income obtained. for your rental properties, as long as they are located in the tourist areas included in the regulation. You would also be exempt from the Real Estate Wealth Tax for a period of 15 years.

From this perspective, buy properties in Dominican Republic is the best alternative to Spain for investing in housing.

In Vivantia we have apartments in fully equipped condominiums, which are covered by the benefits of the Confotur Law, and allow you to achieve returns of more than 10-15% per year. If you are a real estate investor in Spain and you are interested in entering this market, we invite you to talk to us now.

The problem of squatting in Spain vs. other countries

What happens in other countries with better legal certainty?

One of the risks faced by the real estate investors in Spain is the problem of occupancy.

Having one or more vacant homes significantly increases the risk that they will end up being occupied. But renting them also involves a certain risk, since there are people who rent a property and pay the first installments, but then stop doing so and refuse to leave the property.

This ends up leading many owners to find themselves immersed in long and tedious legal proceedings to be able to recover their home, and all while the “squatter” continues to consume resources or even deteriorate the property.

The situation is different in other countries, where the evictions and evictions are executed quickly and owners have greater legal protection.

For what reasons has squatting become a problem in Spain?

Occupancy in Spain is a problem due to the lack of legal certainty for owners.

Police can only evict occupants if they are discovered within the first 48 hours

The Spanish legislation protects homeowners against trespassing when they are residing in a dwelling. But if the property is vacant, authorities can only evict the occupants if they are caught in “flagrante delicto,” which is considered to be about 48 hours after the squatters have entered.

If this time limit is exceeded, the police already have to apply for a court order and the process can take a long time. In this sense, the problem can be greatly aggravated for the owner, with a slow and costly judicial process that can last for years.

The Housing Law is detrimental to homeowners

Another of the problems associated with occupancy that clearly disadvantages the landlord is the possibility that a tenant, with lease agreement, is declared to be in a situation of vulnerability, and a court temporarily suspends the eviction until a new home can be found for him or her. housing alternative.

This can keep your home held up for several months, although the biggest risk is that the tenant becomes squatter, If you do not want to give up your home, stop paying rent and do not want to give up your home.

Strong regulations on vacant housing

Another problem has to do with the use of vacant housing, If it is not used or rented for more than two years, it may be subject to penalties.

Although this does not affect second homes or those being renovated, it is still a problem for large holders in the current context.

What happens in other countries with better legal certainty?

The difference between the judicial processes of eviction of squatters in Spain compared to other countries is very large.

Spain

In Spain, the real estate legislation greatly protects the tenant, but leaves landlords in a situation of defenselessness in many cases. A law was recently passed to streamline judicial processes, so that evictions from squatted properties can be handled by speedy trial, but these modifications only affect those who have occupied vacant housing, not tenants who have stopped paying rent.

Europa

If in Spain the eviction takes one year to average of 18 to 20 months, In other European countries such as France or Germany, in just 24/48 hours it can be carried out, with prison sentences for the squatters. In countries such as Italy, the police can be informed and a speedy trial is held and the squatters are immediately evicted.

Dominican Republic

In the Dominican Republic, the owner protection has been much more effective than in Spain, both for squatters and inquiokupas.

First of all, the right to property is included in the Constitution, which states in its article 51 that “The State recognizes and guarantees the right to property”. Law 108-05 establishes that real estate must be registered in the Registry of Titles to guarantee the protection of such property rights.

For its part, the legislation establishes that the illegal occupation of properties in the Dominican Republic is a criminal offense, punishable by fines and imprisonment that may vary if it is considered trespassing, or invasion and occupation. A property owner may report an occupation or violation of his property, and he will be evicted.

In the Law 108-05, on Real Estate Registry, Article 49, paragraph 1, states that the occupant is given a deadline to leave the dwelling within 15 days, after which the owner may resort to public force to proceed with the eviction.

If you are real estate investor, The Dominican Republic is an excellent option for buying property, given its excellent legal security and the ease with which foreigners have access to investments, visas and even tax benefits for rental income.

Do you want to invest in real estate in Dominican Republic? Discover our real estate opportunities in Punta Cana.

Countries with better legal security than Spain for real estate investors

A country like Spain may have a high level of legal certainty and a relatively strong rule of law. But that does not mean that there is a strong legal protection for real estate investors.

In fact, there are many criticisms of the spanish real estate market, It is a hyper-regulated sector, where there is no clear defense of private property against occupation or non-payment by tenants in vulnerable situations.

In many cases, the real estate investors in Spain are involved in lengthy and costly legal proceedings to evict those who are squatting illegally. On the other hand, the housing laws themselves impose high restrictions, and in some regions and areas limits are being placed on the price of rent.

This has led many real estate investors to consider changing their outlook, looking for countries with better legal security than Spain to buy homes. Is that your case? We are going to show you some of the alternatives to Spain to invest in real estate.

Which are the countries with better legal security than Spain for investing in housing?

There are a number of countries where the legal conditions for investing in housing generate more confidence among investors to invest in housing. buy apartments.

Dominican Republic

The Dominican Republic, located on the island of Hispaniola, in the Caribbean Sea, is one of the ideal options for those who are looking for alternatives to the real estate market in Spain.

The Dominican Constitution (art. 51) expressly protects private property and prohibits expropriation without prior compensation.

On the other hand, the Real Estate Registry Law The modernization of the title system, with the result that today there are property titles guaranteed by the State and a unified cadastral system.

With respect to occupancy, there is no risk of illegal occupation tolerated by the State; Occupations are treated as crimes and evictions are usually quicker than in Spain.

Foreigners enjoy the same rights as nationals when it comes to investing in housing in the Dominican Republic. And not only that, but they also have the possibility of accessing important tax reductions, thanks to the Confotur Law, with which you can be exempt from Real Estate Property Tax and reside in the Dominican Republic for 15 years without paying taxes on the income from your home.

Panama

Another of the economic spaces that are attracting the attention of the investors is Panama.

In this country there is strong constitutional protection of private property, foreign investors have equal rights and freedom to repatriate capital.

On the other hand, there is a public housing registry very efficient, with property titles guaranteed by the state. There is also no problem of tolerated squatting, as is the case in Spain.

In addition, the Panama's tax framework is very attractive for investors, who can access low real estate taxes and important incentives in special zones.

Costa Rica

It is another of the countries that is attracting the attention of numerous real estate investors. Here, expropriation is only allowed for public utility and with prior compensation.

For its part, there is a system of transparent housing register, based on the notarized public deed.

Foreigners are entitled to the same rights as Costa Ricans when it comes to acquiring property on the country's soil. There is not much regulation regarding residential land use or rental housing, so it can be very attractive for investors.

United States

Some U.S. states also offer excellent protection for foreign investors.

Private property is almost sacred in most states in the USA, although each state's legislation differs in the level of regulation. While Florida, Texas, Arizona or Georgia have a strongly pro-landlord legal framework, facilitating the eviction of squatters and defaulters, other states such as California or New York tend to have a more protective legislation towards the tenant.

The housing registration system is freely accessible and transparent and offers the highest level of legal certainty.

The only drawback of investing in housing in the United States is the legal costs and the high price of housing in many congested areas. We have previously explained the differences between buying a home in Miami vs. Punta Cana.

Mauritius Islands

Although less known, the Mauritius Islands are a small, investor-friendly country, with a high level of protection and legal security for foreign investors.

There are official real estate acquisition programs with full ownership for foreigners.

In addition, it is a country with a large number of political stability and low taxes for foreigners, no strict rent controls, no arbitrary expropriations.

The best alternative to invest in real estate outside Spain

The legal certainty is one of the factors that is leading many investors to set their sights abroad.

The regulatory framework in Spain is not at all favorable to real estate investors and there are more and more regulations affecting real estate holders.

Due to its legal security and value for money, as well as its strategic position and cultural proximity, the Dominican Republic has become the ideal destination for many investors who can acquire better homes and in better legal conditions at lower prices than in Spain.

For more information about opportunities in the Dominican Republic, contact us now.