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.