Indonesia vs Spain: Where to buy real estate and where to invest?

When it comes to buying real estate abroad, the question on many people's minds is, "Where to buy real estate - Indonesia or Spain?" These two countries offer unique opportunities for investors, but choosing between them can be a real dilemma. In this article, we will compare the real estate markets of Indonesia and Spain to help you make an informed choice. We will look at current trends, investment returns, legal aspects and the standard of living in each country. In the end, you will be able to decide which country better suits your investment goals and personal preferences.

Indonesia: Real Estate Market

Indonesia is a country where tropical landscapes and exotic culture become the backdrop for profitable investments. In recent years, the real estate market here has shown steady growth, attracting both local and foreign buyers.

Current trends

For 2024-2025, Indonesia offers investors a variety of properties ranging from luxurious Bali villas to modern apartments in Jakarta. Average cost of real estate in Bali is about 1500 euros per square meterThis makes it affordable for many buyers. In the capital, Jakarta, prices are higher, at approx. 2000 euros per square meterbut the demand is more stable.

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Supply and demand dynamics

Demand for Indonesian real estate continues to grow due to the development of tourism infrastructure and the increasing number of international tourists. Foreign investors, mainly from China, Singapore and Australia, are actively investing in resort real estate. Locals are also showing interest in buying homes, especially in developing areas.

Spain: A Mediterranean dream

Spain has always been a popular destination for those who dream of a home by the sea. It combines a rich culture, mild climate and developed infrastructure, which makes the country attractive to investors from all over the world.

Current trends

In Spain, the real estate market is experiencing a revival after the crisis of 2008. Today average cost of housing on the coast The Costa del Sol is approx. 2500 euros per square meterand in Barcelona and Madrid the prices reach 3500 euros per square meter. These figures show a sustained interest in Spanish real estate.

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Supply and demand dynamics

Demand for real estate in Spain is supported by both foreign and local buyers. British, Germans and Scandinavians traditionally make up a significant proportion of foreign buyers, which is due to the favorable climate and high standard of living. Spaniards are actively investing in real estate in major cities and tourist regions.

Overall, both markets offer unique opportunities for investors. Indonesia attracts with its exoticism and relatively low prices, while Spain offers stability and a high standard of living. The choice between these countries depends on your investment objectives and personal preferences.

Comparison of key investment drivers: Indonesia vs. Spain

Choosing between real estate investments in Indonesia and Spain can be a real dilemma for modern investors. Both destinations offer unique opportunities, but differ in many criteria: from the cost per square meter to the standard of living and legal conditions. In this article, we take a closer look at what prospects are open to you in each of these countries and what to look out for when making your choice. Find out where you can expect high returns and where you can expect stability and comfort. We will compare key parameters to help you make an informed choice.

Ultimately, the choice between Indonesia and Spain depends on your priorities: if you are looking for high returns and are willing to take some risks, Indonesia may be an excellent option. However, if safety and standard of living are important to you, Spain would be a better choice.

Nuances when buying a home: Indonesia and Spain

Buying real estate in another country is always a challenge, especially when it comes to legal and financial aspects. Let's take a look at the nuances faced by foreign buyers in Indonesia and Spain.

Indonesia: Documents and complexities

Purchasing real estate in Indonesia requires careful documentation. Foreigners here need to formalize the right to a long-term lease, known as a Hak Pakaior form a joint venture with locals to acquire land. This may take time and require additional legal advice.

Cost of registration the purchase may vary, but on average is about 5% of the object value. This amount includes notary services, registration fees and other legal expenses.

Spain: Procedures and costs

In Spain, the process of buying real estate for foreigners is more simplified. The main documents you will need include NIE (Número de Identificación de Extranjero) - a foreigner identification number, and a Spanish bank account.

Cost of making a purchase here is somewhat higher and can reach 10% of the value of the objectHowever, the process is more transparent and clear, which reduces the risks for the buyer. However, the process is more transparent and clear, which reduces risks for the buyer.

Additional costs

In Indonesia additional costs include property tax and maintenance fees. These costs may vary depending on the region and type of property.

In Spain Property owners also face annual taxes such as IBI (immovable property tax) and capital gains tax on the sale of real estate. Real estate content in Spain may be more expensive, but it is compensated by the high level of service and infrastructure.

Possible difficulties

In Indonesia foreign buyers may face language barriers and differences in the legal system. This requires qualified lawyers and translators to avoid misunderstandings and legal problems.

In Spain The main difficulties are related to bureaucracy and possible delays in processing documents. However, the availability of developed infrastructure and professional real estate agencies simplifies these issues.

Understanding all these nuances will help you avoid unpleasant surprises and make the process of buying real estate in Indonesia or Spain smoother and more successful.

Similarities and characteristics of the real estate market: Indonesia and Spain

When it comes to choosing between Indonesia and Spain for real estate investment, it is important to consider both the similarities and differences of these markets. Let's take a look at what these countries have in common and what their key differences are.

Similarities

Tourist attraction - is what both countries have in common. Both Indonesia and Spain are popular with tourists, which creates a high demand for resort real estate. In both cases, you can benefit from short-term rentals, especially during the vacation season.

Foreign interest is also characteristic of both markets. In both Indonesia and Spain, a significant proportion of real estate buyers are foreigners, which stimulates the development of infrastructure and improves conditions for investors.

Indonesia: Key Features

Indonesia offers lower entry barriers for investors due to affordable real estate prices. For example, Bali villa price can start at 100,000 eurosThis makes it affordable for a wide range of customers.

Risks and benefits in Indonesia are related to the legal system and economic stability. While the market continues to grow, investors should be prepared for possible changes in the legal and economic situation.

Spain: Key Features

Spain offers high standard of living and developed infrastructure, which makes it attractive for those who are looking not only for investment, but also a comfortable place to live. The average cost of apartments on the coast can be approx. 200,000 euroswhich is relatively affordable for European standards.

Benefits and risks in Spain are associated with a higher cost of living and taxes, but compensated by the stability of the market and the possibility of obtaining a residence permit through the purchase of real estate.

Risks and benefits in each country

Indonesia:

• Advantages: affordable prices, high rental yield potential.
• Risks: legal restrictions on foreigners, economic instability.

Spain:

• Advantagesmarket stability, possibility of obtaining residence permit, high standard of living.
• Risks: higher cost of living, taxes.

Understanding the similarities and characteristics of these markets will help you make an informed choice and select the country that best suits your investment and personal goals.

Prospects for growth and development of resort real estate: Indonesia and Spain

Resort real estate has always been a tidbit for investors, especially in countries with developed tourism infrastructure. Indonesia and Spain continue to attract attention in 2024-2025 due to their unique opportunities and growth prospects.

Indonesia: Exotic and growing interest

Indonesia, with its endless beaches and rainforests, is becoming increasingly popular with tourists from all over the world. Resort regions such as Bali and Lombok are experiencing a boom in new real estate development. Average cost of a villa in Bali can start at 150,000 eurosThis makes it attractive to investors seeking high returns.

Tourism industry plays a key role in the development of the real estate market in Indonesia. With the increasing number of international flights and improved infrastructure, the demand for resort properties is only increasing. This opens up opportunities for investors to earn a stable income from short-term rentals.

Spain: Mediterranean classics

Spain, with its sunny beaches and rich culture, remains one of the most popular destinations for resort real estate investment. Regions such as the Costa del Sol and Costa Blanca offer a wide range of properties from apartments to luxury villas. Cost of real estate on the coast could be about 250,000 euros for apartments and much higher for villas.

Tourism industry in Spain continues to develop, which supports the high demand for resort facilities. Hotels and apartments on the coast are popular both in the summer and winter seasons due to the mild climate and developed infrastructure.

How will demand for real estate change in the coming years?

Indonesia:

• Growth potential: expansion of tourism infrastructure and increase in the number of international tourists.
• Demand: high interest in short-term rentals, especially in popular tourist areas.

Spain:

• Growth potential: stable demand thanks to European tourists and retirees looking for accommodation on the coast.
• Demand: sustained interest in long-term rental and purchase of real estate for permanent residence.

In both cases, investors can look forward to growth prospects and steady income from resort real estate. The choice between Indonesia and Spain will depend on your preferences and willingness to accept different levels of risk and return.

Short-term and long-term rental yields: Indonesia and Spain

Rental real estate is one of the most important aspects for investors seeking stable income. Indonesia and Spain continue to offer attractive rental income opportunities in 2024-2025. Let's take a look at which regions are most profitable and how seasonality affects returns.

Indonesia: Short-term rentals

Indonesia, with its exotic scenery and unique culture, is a magnet for tourists, making short-term rentals particularly lucrative. In BaliFor example, the average rental income from a villa can be as high as 10% p.a.This is due to the high demand from tourists throughout the year.

Short-term rentals here is especially popular in resort areas where tourists prefer to stay in private villas and apartments. This allows property owners not only to cover maintenance costs, but also to earn a stable income.

Spain: Long-term rental under the sun

Spain, with its stable economy and high standard of living, offers long-term rental opportunities for investors. In major cities such as Madrid and Barcelona, long-term rental yield could be about 4-5% p.a.. This makes such investments less risky and more stable.

Long-term lease is particularly sought after by locals and expats looking for comfortable long-term accommodation. This allows property owners to rely on a steady stream of income without the need to change tenants frequently.

Rental seasonality and its impact on profit

Indonesia:

• SeasonalityThe high season is during the summer months and holidays, when the demand for short-term rentals increases dramatically.
• Profit: owners can set higher prices in high season, which increases profitability.

Spain:

• SeasonalityThe summer season attracts tourists, which increases the demand for short-term rentals on the coast.
• Profit: long-term leases remain stable throughout the year, providing a steady income.

In both countries, rental properties offer different strategies for generating profits, depending on your goals and preferences. Short-term rentals in Indonesia can offer higher returns, but require active management. Long-term rentals in Spain offer stability and predictability, making them attractive to more conservative investors.

Economy and Life: Comparing Indonesia and Spain

Economic stability and quality of life are key factors that influence the decision to buy real estate abroad. Indonesia and Spain continue to be attractive destinations for investors in 2024-2025, but each country offers unique conditions and advantages.

Indonesia: Exotic and affordable

Standard of living Indonesia is significantly lower than Europe, making it attractive to those looking for more affordable housing. Cost of living here is also relatively low: monthly expenditures per person can amount to approx. 500 eurosincluding rent, food and transportation.

Economic stability Indonesia continues to strengthen due to the development of the tourism industry and foreign investment. However, investors should consider certain risks associated with the political situation and currency fluctuations.

Spain: Comfort and stability

Standard of living in Spain The cost of living and the quality of services are significantly higher. For example, the monthly cost per person in Madrid can be as high as 1000-1200 euroswhich includes rent, food and transportation.

Economic stability Spain makes it one of the most attractive markets for real estate investment in Europe. The country has a well-developed infrastructure, high quality medical services and education, making it an ideal place to live with your family.

Availability of goods and services

Indonesia:

• Advantages: low cost of everyday goods and services.
• Disadvantages: limited access to some imported goods and less developed infrastructure outside major cities.

Spain:

• Advantages: a wide range of quality goods and services, well-developed infrastructure and transportation system.
• Disadvantages: higher cost of living compared to Indonesia.

Ultimately, the choice between Indonesia and Spain will depend on your personal preferences and finances. If you are looking for affordable accommodation in an exotic location with a low cost of living, Indonesia can be a great choice. If you prefer stability, high standard of living and developed infrastructure, Spain will be more suitable for you.

Education and medicine: Indonesia and Spain

When it comes to living abroad, the quality of education and health care is crucial, especially for families with children. Indonesia and Spain offer different opportunities in these areas in 2024-2025, and understanding them will help you make the right choice.

Indonesia: Exoticism and Development

Education in Indonesia is growing rapidly, and foreigners can find international schools in major cities and popular resorts such as Jakarta and Bali. Cost of training in such schools can be about 5,000-10,000 euros per yearmaking them affordable for most expats.

Medicine in Indonesia is also improving, especially in private clinics and hospitals. However, the quality of care can vary and many expats opt for health insurance to have access to better services. Cost of health insurance can start at 500 euros a yeardepending on coverage.

Spain: Quality and affordability

Education in Spain is renowned for its high standard. Both public and private international schools are available here, which offer instruction in English. Cost of training in private schools can reach 10,000-15,000 euros per yearwhich makes them more expensive, but also more prestigious.

Medicine in Spain is considered one of the best in Europe. Public hospitals provide quality services, while private clinics offer a high level of comfort. Cost of health insurance here can range from 700 to 1,500 euros per yearDepending on the plan you choose.

Is the country suitable for living with a family?

Indonesia:

• Advantages: affordable education and medical services, exotic nature.
• Disadvantages: varying quality of health care, limited choice of international schools.

Spain:

• Advantages: high level of education and medicine, developed infrastructure.
• Disadvantages: higher cost of living and educational services.

When choosing between Indonesia and Spain to live with your family, it is important to consider your priorities and budget. Indonesia may offer a more affordable environment, while Spain provides a high level of comfort and quality of life.

Roads and transport infrastructure: Indonesia and Spain

The transportation system and availability of public transport play an important role in choosing a country to live and invest in. Between 2024 and 2025, Indonesia and Spain continue to develop their transportation networks to offer different levels of convenience and efficiency.

Indonesia: Development and Challenges

Transportation infrastructure in Indonesia is being actively developed, especially in major cities and tourist areas. However, outside these regions, roads may be less developed. Cost of renting a car in Bali, for example, starts at 20 euros a dayThis makes transportation more convenient for tourists and expats.

Public transportation in Indonesia is represented by buses, trains and local shuttle buses (angkot). Jakarta has recently introduced a rapid transit corridor (BRT) system, which has greatly improved mobility in the city. However, in general, public transportation can be crowded and is not always reliable.

Spain: Convenience and modernization

Transportation system in Spain is considered one of the most developed in Europe. The country offers high-speed AVE trains that connect major cities, as well as an extensive network of buses and subways. Fare by public transportation in Madrid or Barcelona is about 1.5 euros per tripwhich makes it affordable and convenient.

Accessibility of public transportation makes it easy to get around the country and between regions. Spain is also actively developing infrastructure for electric vehicles, making it attractive to environmentally responsible investors and residents.

Ease of travel and convenience for expats

Indonesia:

• Advantages: affordable car rentals, development of new transportation projects.
• Disadvantages: less developed infrastructure outside major cities, overcrowded public transportation.

Spain:

• Advantages: developed and convenient transportation system, availability of high-speed trains.
• Disadvantages: higher cost of car rental and fuel.

Choosing between Indonesia and Spain in terms of transportation infrastructure depends on your preferences and lifestyle. Indonesia offers more affordable transportation options, while Spain provides a high level of comfort and convenience for residents and tourists.

Legal and tax specificities: Indonesia and Spain

When investing in real estate abroad, it is important to consider legal and tax aspects that can significantly affect your return and the security of your investment. Indonesia and Spain continue to offer different conditions for foreign investors in 2024-2025.

Indonesia: Legal restrictions and taxes

Laws for foreign investors In Indonesia, there are certain restrictions. Foreigners cannot own land directly, but they can purchase property through long-term leases (Hak Pakai) or form joint ventures with locals. This requires careful consideration of all legal aspects and consultation with local lawyers.

Taxes on the purchase of real estate in Indonesia include property transfer tax and land tax. The average transfer tax rate is about 5% of the object value. Owners are also required to pay an annual property tax, which depends on the location and value of the property.

Spain: Transparency and stability

Laws regulating the real estate market in Spain, are more transparent and stable. Foreign investors are free to purchase real estate, making the process easier and safer. Purchase of real estate for an amount from 500,000 euros can qualify for a residence permit, making Spain attractive to those planning to relocate.

Taxes on the purchase of real estate in Spain include property transfer tax (ITP) and capital gains tax on sale. The ITP rate can vary from 6% to 10% depending on the region. Annual property taxes (IBI) also depend on location and can be approx. 0.4% of the cadastral value of the object.

Pitfalls for foreign investors

Indonesia:

• Advantages: affordable tax rates, growing market.
• Risks: legal restrictions for foreigners, need to consult with lawyers.

Spain:

• Advantages: transparent legal system, possibility of obtaining residence permit.
• Risks: higher tax rates, the need to take into account regional differences in taxation.

Understanding the legal and tax specifics of each country will help you make an informed choice and minimize the risks of investing in real estate. Indonesia offers more affordable terms, but requires careful legal research, while Spain offers stability and transparency, but with higher taxes.

What should an investor choose: Indonesia or Spain?

Investing in real estate is not only a way to preserve and grow capital, but also an opportunity to change your lifestyle. Indonesia and Spain offer unique conditions for investors in 2024-2025, and the choice between them depends on your priorities and expectations.

Indonesia: When is it a favorable choice?

Indonesia can be an excellent choice for investors looking for a high profitability and affordable prices. If you want to invest in exotic real estate and are ready for certain legal complexities, Indonesia is your option. Cost of a villa in Bali can start at 150,000 euroswhich makes it accessible to a wide range of investors.

• Beneficial if: you are looking for high short-term rental yields, are willing to research local legal conditions and want to invest in a growing market.

Spain: When is it the best choice?

Spain is suitable for those who appreciate stability and high standard of living. It is an excellent option for long-term investment and obtaining residence permit through the purchase of real estate. Cost of apartments in Barcelona could be about 250,000 eurosThis makes them attractive to European investors.

• Beneficial if: you are looking for stability, transparent legal conditions, the possibility of obtaining a residence permit and a high standard of living.

Conclusion

In conclusion, the choice between Indonesia and Spain for real estate investment depends on your personal goals and preferences. Indonesia attracts investors with its exoticism, affordable prices and high yield potential, especially in resort areas. However, it requires more careful consideration of the legal aspects and a willingness to take certain risks.

On the other hand, Spain offers stability, a high standard of living and transparent legal conditions, which makes it attractive for long-term investments and comfortable living. The possibility of obtaining a residence permit through the purchase of real estate also adds points in the eyes of investors.

Whichever country you choose, it is important to carefully weigh the pros and cons, take into account your financial capabilities and personal priorities. Our specialists are always ready to help you with your choice and provide detailed advice on all issues related to buying real estate abroad.

If you still have questions or would like a personalized consultation, please contact us.