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

When it comes to buying real estate abroad, Spain and Georgia are often in the spotlight. These two countries attract investors with their unique offerings and diverse opportunities. Spain is known for its sunny beaches and rich culture, while Georgia beckons with affordable prices and a rapidly developing market. Buyers are not only looking for investment opportunities, but also considering relocation or vacation options. Let's explore what makes these destinations so attractive to investors.

Analysis of the real estate market in Spain and Georgia

When it comes to real estate, Spain and Georgia offer very different but equally interesting opportunities. Let's dive into the details and see what's happening in these markets.

Spain: A sunny dream

When I first came to Barcelona, I was struck not only by Gaudi's architecture, but also by the diversity in the housing market. Average price of 1 m² in Barcelona is about 4,500 euros. It's certainly not cheap, but the sun and sea are worth it, aren't they?

Over the past five years, real estate prices in Spain have been steadily increasing. For example, in Valencia, which has become a real magnet for foreigners, the growth amounted to about 5% per year. The tourist flow, of course, affects the market: in summer, rental prices soar, as if on a roller coaster in PortAventura.

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Mortgages in Spain are available but require careful preparation. Banks offer loans up to 70% of the value of the home for foreigners. However, keep in mind that you will need a good credit rating and a stable income.

Georgia: Prospects on the horizon

Now let's move on to Tbilisi, a city I've grown to love for its wine bars and warm people. Here average cost of 1 m² is much more affordable and is approx. 900 euros. This makes Georgia attractive to those looking for more budget-friendly investments.

Real estate prices in Georgia also demonstrate positive dynamics. In recent years, the growth has amounted to about 7% per year. Tourism in Georgia is gaining momentum, especially in places like Batumi, where the tourist season lasts almost all year round.

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When it comes to mortgages, Georgian banks offer loans with more flexible terms than in Spain. However, interest rates can be higher, so it is worth carefully weighing the pros and cons.

Comparison of key factors of investment in Spain and Georgia

When it comes to choosing between Spain and Georgia for real estate investment, it's important to consider a few key factors. Let's take a look at what each of these countries has to offer.

Here is a comparative table of the key factors of real estate investment in Spain and Georgia:

Georgia looks more accessible to investors, especially in terms of taxes and payback, while Spain is a more prestigious but expensive market with a high level of stability.

Nuances when buying a home in Spain and Georgia

Buying real estate abroad is always a bit scary, but knowing the process and possible pitfalls can make the task much easier. Let's find out what nuances should be taken into account when buying a home in Spain and Georgia.

Spain: Process with a focus on bureaucracy

Let's start with Spain. Here the process of buying real estate can seem a bit confusing due to the large number of documents. The main stages of the purchase include:

1. Site selection and price negotiation.
2. Signing a preliminary contract (Contrato de Arras) and making a deposit, usually about 10% of the value of the property.
3. Registration of a mortgage (if necessary).
4. Signing of the main sales contract at a notary.

Don't forget about hidden costs: real estate transfer tax (about 10% of the value), notary fees and registrar fees. These costs can add up to 12-15% to the purchase price.

In Spain, it is important to carefully check documents for ownership and debts. Risks such as unscrupulous developers or infrastructure problems can be avoided by contacting an experienced lawyer.

Georgia: Easier than it looks

Now on to Georgia. The process of buying real estate here is much more straightforward. The main stages of the purchase include:

1. Finding a facility and discussing terms and conditions.
2. Signing of the sale and purchase agreement in the presence of a notary.
3. Registration of ownership in the public registry.

As for hidden costsThey include notary fees and registration fees, which usually do not exceed the following 1% of the property value.

In Georgia, it is also worth paying attention to legal aspects such as encumbrances on the property. However, in general, the buying process here is less bureaucratic than in Spain.

Similarities and peculiarities of the real estate market in Spain and Georgia

When it comes to the real estate market, Spain and Georgia offer unique opportunities and their own peculiarities. Let's understand what they have in common and what makes each country unique.

Spain: Diversity and prestige

In Spain you will find a wide range of real estate properties: apartments, villas, townhouses and apartments. For example, buying an apartment in Barcelona can cost an average of approx. 300,000 euros for a one-bedroom apartment. Villas on the Costa Blanca can cost from 500,000 euros and higher, depending on location and comfort level.

Popular areas for living and investment include Barcelona, Madrid, Valencia and the Costa del Sol. These regions attract not only tourists but also those looking for a prestigious place to live.

The number of transactions with foreigners in Spain is consistently high, which indicates the attractiveness of the country for international investors. However, it is worth bearing in mind that there are certain ownership restrictionsFor example, for the purchase of agricultural land.

Georgia: Accessibility and Prospects

Georgia, on the other hand, offers more affordable options. Here you can also find apartments, houses and apartmentsBut their cost is much lower. For example, buying an apartment in Tbilisi can cost about 70,000 eurosand in the resort town of Batumi - about 50,000 euros.

Popular areas for investment include Tbilisi and Batumi, where there is a steady increase in tourist traffic and, consequently, demand for housing. The number of transactions with foreigners in Georgia is also growing, which confirms the interest in the country from international investors.

Unlike Spain, in Georgia. real estate title less restrictive, making it more attractive to investors looking for flexible terms.

Prospects for growth and development of resort real estate

Resort real estate has always been in the center of attention of investors, and Spain and Georgia are certainly no exception. Let's take a look at how this segment is developing in both countries.

Spain: Eternal summer and stable investments

Spain, with its endless beaches and mild climate, has always been a magnet for those who dream of a home by the sea. Real estate market in tourist areas Spain continues to develop, especially on the Costa del Sol and Costa Blanca. Prices for resort real estate here range from 200,000 to 1,000,000 eurosDepending on the location and class of the object.

Infrastructure projects, such as the development of new airports and improvements to the transportation network, have a significant impact on housing values. For example, the expansion of Málaga International Airport has led to a 10% increase in real estate prices in the region in recent years.

Seasonality plays an important role in the formation of demand: in summer prices for rent and purchase are traditionally higher. But the stable flow of tourists makes investments in resort real estate in Spain reliable and promising.

Georgia: A new player in the resort arena

Georgia, with its picturesque mountains and Black Sea coastline, is becoming an increasingly popular destination for vacation and investment. Real estate market in tourist areas Georgia, such as Batumi and Kobuleti, is actively developing. Here, prices for resort real estate are significantly lower than in Spain - from 50,000 to 200,000 euros.

Georgia is also implementing large-scale infrastructure projects, such as the construction of new roads and the development of tourist zones, which contributes to the growth of housing costs. For example, the opening of a new resort complex on the coast can increase demand and real estate prices in the region by 15-20%.

Seasonality in Georgia is less pronounced than in Spain, due to the variety of tourist offers, including ski resorts. This makes investment in Georgian resort real estate particularly attractive.

Yield from short-term and long-term leases

Investors considering real estate in Spain and Georgia often wonder about rental yields. Let's take a look at what these countries offer in terms of short and long term rentals.

Spain: Tourist Magnet

Spain, thanks to its climate and cultural attractions, is one of the top tourist destinations in Europe. This makes short-term rentals in Spain is a very lucrative business. In popular tourist cities such as Barcelona and Madrid, the average income from short-term rentals can be as high as up to 2,000 euros a month for a two-bedroom apartment.

Seasonal price fluctuations are quite noticeable here: in summer and during the New Year holidays rental prices can increase by 20-30%. However, the tax burden on the rental business in Spain is quite high, and this should be taken into account when planning income.

For renting out homes, popular platforms are. Airbnb and Booking.comThe company offers a wide range of rental management and customer relations services.

Georgia: Growing interest

Georgia, with its booming tourism sector, also offers interesting rental opportunities. Yield from short-term rentals in Georgia in places such as Tbilisi and Batumi, can amount to 500 to 1,500 euros per monthdepending on location and season.

Seasonal price fluctuations in Georgia are less pronounced than in Spain, but the demand for rentals is growing due to an increase in the number of tourists and business travelers. The tax burden on the rental business in Georgia is less significant, which is a plus for investors.

Local platforms such as MyHome and SS.ge are actively used for rental housing and offer convenient tools for property management.

Economy and Life: Spain vs Georgia

When it comes to choosing a country for investment or relocation, it is important to consider not only the real estate market, but also the overall economic situation and quality of life. Spain and Georgia offer different conditions, and let's figure out what is what.

Spain: Developed economy and high standard of living

Spain, one of the largest economies in Europe, offers a high standard of living and developed infrastructure. Average salary in Spain is about 2,000 euros a monthThis allows you to live comfortably and enjoy all the advantages of the country.

Cost of living in Spain varies depending on the region. For example, in Madrid and Barcelona life is more expensive, but in Valencia or Seville you can find more affordable options. The unemployment rate in Spain has decreased in recent years and is around 14%, which is still above the EU average, but the economy continues to grow steadily.

Spain offers many business and investment opportunities, especially in the tourism and agricultural sectors, making it attractive to entrepreneurs.

Georgia: Growing Economy and Affordable Living

Georgia, with its booming economy, offers a more affordable standard of living. Average salary in Georgia is about 400 euros a monthwhich is considerably lower than in Spain, but also cost of living in Georgia much more affordable. For example, renting an apartment in Tbilisi can cost up to 200-300 euros a month.

The unemployment rate in Georgia is about 11%, but the country is actively attracting foreign investment and developing new economic sectors such as IT and tourism. This creates additional business and investment opportunities.

Georgia offers favorable conditions for doing business due to low taxes and simplified company registration procedures. This makes it attractive for foreign entrepreneurs.

Education and Medicine: Spain vs Georgia

When choosing a country to live or invest in, important aspects such as education and medicine cannot be overlooked. These areas play a key role in the quality of life and can be decisive factors for many families.

Spain: Quality and diversity

Spain offers high quality education in both private and public institutions. Accessibility and quality of private and public schools In addition, international schools offer education in English, which is convenient for expats. Private school fees range from 5,000 to 15,000 euros per year.

Higher education in Spain is also popular, with prestigious universities such as the University of Barcelona and Complutense University of Madrid. A wide range of programs in English are offered to students, making Spain attractive to international students.

As for level of medicineSpain is one of the leading countries in Europe. Medical care is available both through the public health care system and private clinics. Health insurance for foreigners can cost from 50 to 200 euros per monthdepending on age and health status.

Georgia: Development and accessibility

Georgia is actively developing its education system, offering both public and private schools. Quality of education in private schools is improving and they are becoming more and more popular among local and foreign families. The cost of tuition in private schools in Georgia is significantly lower than in Spain and is approx. 2,000-5,000 euros per year.

Higher education in Georgia is also developing, with an emphasis on international cooperation and exchange programs. Tbilisi State University and Ilia University offer programs in English, which attracts students from abroad.

Level of medicine in Georgia is still under development, but private clinics offer quality care at affordable prices. Health insurance in Georgia can cost from 20 to 100 euros per monthmaking it affordable for most residents and expats.

Roads and transportation: Spain vs Georgia

Transportation infrastructure and road quality are important aspects that can significantly affect the comfort of life and investment attractiveness of a region. Let's take a look at what Spain and Georgia offer in this respect.

Spain: Well-established network and convenience

Spain has one of the most developed transportation systems in Europe. Quality of roads and public transportation is of a high standard here. Highways and expressways connect all major cities, providing comfortable travel around the country. Toll roads can be charged from 5 to 30 eurosdepending on the distance.

Public transportation in Spain, including buses, subways and trains, is frequent and convenient. In major cities such as Barcelona and Madrid, the metro runs until late in the evening and fares are about 2 euros for the trip.

Accessibility of cities and tourist areas is also at the top of its game, thanks to a well-developed network of airports and rail connections. AVE high-speed trains allow you to get from Madrid to Barcelona in just 2.5 hours.

Georgia: Development and accessibility

Georgia is actively developing its transportation infrastructure. Road quality in the country is improving, especially on the main routes connecting Tbilisi with other regions. However, in some rural areas, roads still need improvement.

Public transportation in Georgia, including buses and shuttle buses, is fairly affordable but can be less comfortable than in Spain. The cost of public transportation in Tbilisi is about 0.20 euroswhich makes it extremely affordable.

Accessibility of cities and tourist areas is improving due to the reconstruction of airports and improvement of the railway network. International flights to Tbilisi and Batumi are becoming more frequent, which contributes to the increase in tourist flow.

Legal and tax specifics: Spain vs Georgia

The legal and tax aspects of buying and owning real estate can significantly affect your decision to choose a country for investment. Let's see what Spain and Georgia offer in this regard.

Spain: Strict regulations and tax burden

Spain is known for its strict real estate regulations. Main taxes when buying and owning real estate include:

• Property transfer tax (Impuesto de Transmisiones Patrimoniales) - approx. 8-10% of the value of the property.
• Property tax (Impuesto sobre Bienes Inmuebles) - approx. 0.4-1.1% of cadastral value per year.
• Capital gains tax on the sale of real estate.

Rules for obtaining residence permit through investments in Spain require a minimum investment in real estate in the amount of 500,000 euros. This entitles you to a "Golden Visa", which gives you access to residence and movement within the EU.

The legislation in the field of renting and selling real estate in Spain is also strictly regulated. Landlords are obliged to comply with the terms of long-term leases and provide tenants with all the necessary facilities.

Georgia: Loyal conditions and low taxes

Georgia offers more loyal conditions for investors. Main taxes when buying and owning real estate it's considerably lower here:

• There is no property transfer tax on the transfer of property.
• Real estate tax - approx. 0.1-1% of market value per yearDepending on the location and type of property.

Georgia does not yet have an official Golden Visa program, but the rules for applying for residence permit through investments are quite simple: the purchase of real estate in the amount of from 100,000 euros can be the basis for obtaining a residence permit.

The laws for renting and selling real estate in Georgia are more flexible, making it attractive to investors looking for simplicity and tax savings.

What should an investor choose? Final comparison of Spain and Georgia

To summarize, let's take another look at the key criteria that will help you decide between investing in Spain and Georgia. Each of these countries offers its own unique advantages and challenges.

Spain: Stability and prestige

1. Investments and residence permits: Spain offers a "Golden Visa" for investments from 500,000 euroswhich opens the door to Europe.
2. Yield: High short-term rental yield potential, especially in tourist areas.
3. Taxes: High tax burden of buying and owning real estate, which requires careful planning.
4. Quality of Life: High standard of living, developed infrastructure, quality education and medicine.
5. Risk and stability: Spain offers stability and predictability but requires significant investment.

Georgia: Accessibility and Prospects

1. Investments and residence permits: Residence permit is available for investments from 100,000 euroswhich makes Georgia more accessible for entry.
2. Yield: A growing market, especially in tourist areas, with the prospect of rapid price increases.
3. Taxes: Low tax burden and flexible real estate ownership terms.
4. Quality of Life: Affordable cost of living, growing infrastructure and a promising job market.
5. Risk and innovation: Opportunity for high returns in an emerging market, but with a higher level of risk.

Conclusion

Choosing between Spain and Georgia for real estate investment depends on your personal goals and financial capabilities. If you seek stability and quality of life, Spain may be your choice. If, however, you are looking for an affordable investment with high growth potential, Georgia can offer you interesting opportunities. Regardless of your choice, it is important to research the market thoroughly and consult with professionals. For more information and assistance with your choice, please contact our team of experts, ready to answer all your questions and help with your investment plans.