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.