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

When it comes to overseas real estateMany people wonder where it is more profitable to invest their money: in real estate in Thailand or real estate in Spain? These two countries attract investors from all over the world due to their climate, culture and vacation opportunities. In this article, we will compare the real estate markets of both countries in detail to help you make an informed choice. We will break down the economic and political factors, key buying conditions, and growth and profitability prospects. This information will be useful for those who want to buy an apartment in Thailandbut also for those who dream buy a villa in Spain.

Analysis of the real estate market in Thailand and Spain

The real estate markets in Thailand and Spain have their own unique features that attract investors from all over the world. Let's take a look into each of them and understand what makes them so attractive.

Thailand

Thailand is not just a land of smiles, but a true paradise for those who want to invest in a real estate in Thailand. The demand for housing here has increased significantly in recent years, especially in cities such as Bangkok and Phuket. People from all over the world are looking to buy an apartment in ThailandTo enjoy the tropical climate and rich culture.

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Thailand's economy is developing steadily, which has a positive impact on the real estate market. The political situation in the country also contributes to the growth of investment. However, it should be borne in mind that foreigners are allowed to own only apartments, and buying land can be fraught with certain difficulties. The average cost per square meter in Bangkok is about 3000 euroswhich makes it affordable for many foreign buyers.

Spain

Spain, in turn, offers a rich choice of real estate for those who want to enjoy European comfort and Mediterranean climate. Real estate in Spain is very popular among Europeans, especially in regions such as Costa Blanca and Costa del Sol. Here you can buy a villa in Spain and enjoy the sea view every day.

Spain's economy is also showing positive trends, which makes it attractive to investors. In recent years, the real estate market in Spain has stabilized after the crisis of 2008, and prices have begun to rise. The average cost per square meter in popular tourist areas is about 2500 euros. This makes Spain an excellent choice for those looking for a stable investment.

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Impact of economics and politics

Economic and political factors play a key role in the real estate market of both countries. In Thailand, stable economic growth and support from the government contribute to the increase in foreign investment. In Spain, after several years of economic instability, the real estate market has started to pick up again, thanks to the government's efforts to attract investors.

Role of foreign investors and growth prospects

Foreign investors play an important role in the development of the real estate market in both Thailand and Spain. In Thailand, foreigners are actively investing in apartments, while in Spain both apartments and villas are popular. Growth Prospects in both countries remain high, especially given the growing interest in rental real estate.

Comparison of Key Investment Factors in Thailand and Spain

When choosing a country to invest in real estate, it is important to consider several key factors such as price per square meter, purchase conditions for foreigners, transaction procedure and the possibility of obtaining a residence permit. Let's look at these aspects for real estate in Thailand and real estate in Spain.

Thus, both Thailand and Spain have their own unique advantages and features that are worth considering when choosing a country for real estate investment. It is important to weigh the pros and cons in order to make an informed decision.

Nuances when buying a home in Thailand and Spain

Buying real estate abroad is not only an investment, but also an opportunity to change your lifestyle. However, before taking this step, it is important to consider certain nuances that may affect your choice. Let's consider the peculiarities of buying real estate in Thailand and real estate in Spain.

Types of real estate available to foreigners

In Thailand foreigners may purchase apartments in condominiums, provided that no more than 49% of all apartments in the complex are owned by foreigners. This means that the choice may be limited, especially in popular neighborhoods. Buy a villa in Thailand possible, but this requires leasing the land for a long period of time or using other legal schemes.

In Spain foreigners are free to buy any kind of real estate, be it an apartment, house or villa. This opens up a wider range of opportunities for investors wishing to buy a villa in Spain or other type of real estate.

Which objects are most in demand among tenants?

In Thailand Apartments in the central districts of Bangkok and Phuket are popular, especially among expats and tourists. Rental property in Thailand can bring a stable income, especially in high seasons, when the flow of tourists increases.

In Spain The most sought-after properties are on the coast and in major cities such as Barcelona and Madrid. Apartments and houses overlooking the sea or near beaches attract both tourists and long-term tenants. This makes rental yield in Spain very attractive.

What pitfalls can buyers expect?

In Thailand one of the main pitfalls is the complexity of legal formalization of the transaction, especially when it comes to buying land. Foreigners are advised to work with experienced lawyers and agents to avoid mistakes.

In Spain buyers may encounter bureaucratic delays and the need to obtain a large number of documents. It is also worth bearing in mind that some older properties may require significant investment in repairs and modernization.

Similarities and peculiarities of the real estate market in both countries

When it comes to real estate in Thailand and real estate in SpainIt is important to realize that despite the differences, these markets have some similarities. Let's take a look at how housing prices are formed, how seasonality affects prices and rents, and what features are characteristic of tourist and residential areas.

Comparison of tourist and residential areas

In Thailand Tourist areas such as Phuket and Samui are characterized by higher real estate prices. Here prices can reach 3500 euros per square meterThis is due to the high demand from tourists. Residential areas in Bangkok, on the other hand, offer more affordable options, especially in the newer areas of the city.

In Spain Tourist areas, such as the Costa del Sol and the Balearic Islands, are also characterized by high real estate prices. Here the cost per square meter can vary from 3000 to 5000 euros. Meanwhile, residential areas in Madrid and Barcelona keep prices high but offer more options for long-term investments.

How is the price of housing formed?

House prices in Thailand are shaped by factors such as proximity to the sea, infrastructure and accessibility to transportation hubs. It is important to take into account that the cost can vary significantly depending on the specific area and type of property.

In Spain the price formation is influenced by proximity to beaches, tourist attractiveness of the region and the level of infrastructure. It is also worth considering that real estate prices in large cities such as Barcelona may be higher due to high demand and limited supply.

Impact of seasonality on cost and rent

Seasonality plays an important role in both Thailandand in Spain. In Thailand, the high tourist season is during the winter months when the flow of tourists increases, leading to higher rental prices. During this period. rental property in Thailand can generate significant revenue.

In Spain, the high season is during the summer months when tourists flock to the coast. This also leads to increased demand for rentals and higher prices. Rental yields in Spain during this period can be particularly high, which makes investment in resort real estate attractive.

Prospects for growth and development of resort real estate

Investments in holiday property have always been attractive to those who are looking for not only a stable income, but also the opportunity to enjoy a vacation in their own homes. Let's take a look at which regions Thailand and Spain are the most promising for such investments and how the market has changed in recent years.

Which regions are the most promising?

In Thailand Phuket, Samui and Krabi remain the most promising regions for investment in resort real estate. These places attract tourists from all over the world due to their beaches and developed infrastructure. Real estate prices here can range from 3000 to 4000 euros per square meterThis makes them attractive to investors looking for a stable rental income.

In Spain resort regions such as Costa Blanca, Costa del Sol and the Balearic Islands continue to be in the center of attention of investors. Here the cost per square meter can reach 5000 eurosEspecially in prestigious areas. These regions are famous for their mild climate and high level of service, which attracts tourists all year round.

How has the market changed over the last 5 years?

Over the past five years, the market has real estate in Thailand showed steady growth, driven by increasing tourist traffic and infrastructure development. The government is also actively supporting investment in the tourism sector, which is contributing to further market growth.

In Spain the real estate market has also stabilized after the 2008 crisis and shows positive dynamics. Economic recovery and active development of tourist infrastructure contribute to the growth of real estate prices and increased demand from foreign investors.

Does the increase in tourism affect price and profitability?

The growth of tourism has a significant impact on real estate prices and rental yields in both Thailand and Spain. In Thailand, the high season attracts many tourists, which increases the demand for rentals and prices. In Spain, due to the year-round flow of tourists, rental yields remain high throughout the year, especially in popular resort areas.

Yield from short-term and long-term leases

Choosing between short-term and long-term leases is an important decision for investors considering a real estate in Thailand and real estate in Spain. Both markets offer unique income opportunities, and understanding them will help determine where the profitability of a rental business is higher.

Where is the profitability of the rental business higher?

In Thailand Short-term rentals, especially in tourist areas such as Phuket and Koh Samui, can generate significant income. During the high season, when the flow of tourists is at its highest, yields can reach 8-10% p.a.. This makes short-term rentals attractive to those who want a quick return on their investment.

In Spain short-term rentals are also popular in tourist regions such as the Costa del Sol and the Balearic Islands. However, due to the stable tourist flow and high demand for long-term rentals, yield can be 5-7% p.a.. This makes Spain a good choice for those looking for a steady income throughout the year.

Average rental income (by region)

In Thailand The average rental income in tourist areas is approx. 1000-1500 euros per month for an apartment of 50-60 square meters. In more remote areas, the income may be lower, but the cost of buying real estate there is much less.

In Spain average rents in popular tourist areas can reach up to 1500-2000 euros per month for a similar apartment. In major cities such as Barcelona and Madrid, rental incomes also remain high, making them attractive for long-term investments.

Tax burden on rental business

Tax policy is an important aspect to consider when planning a rental business. В Thailand tax on rental income is approximately 5-10%Depending on the amount of income and other factors. It is important to note that tax rates may vary depending on the region and type of property.

In Spain tax on rental income may be up to 19-24% for residents of other EU countries and even higher for non-residents. However, there are various tax exemptions and deductions that can help reduce the overall tax burden.

Economy and life in Thailand and Spain

When choosing a country for real estate investment, it is important to consider not only the market, but also the general living conditions in the country. Let's compare the standard of living, salaries, prices, safety and quality of infrastructure in the Thailand and Spain.

Standard of living, wages, prices

In Thailand The standard of living varies from region to region. In large cities, such as Bangkok, the average salary is approx. 800-1000 euros per month. Prices for products and services here are lower than in Europe, making life more affordable for expats. For example, a dinner at a mid-range restaurant will cost you approx. 15-20 euros.

In Spain the standard of living is higher, which is reflected in salaries and prices. The average salary in large cities such as Madrid and Barcelona is about 1500-2000 euros per month. Prices for products and services are also higher, but this is offset by a higher standard of living. A dinner in a similar restaurant will cost about 30-40 euros.

Safety, environment, quality of infrastructure

Thailand is renowned for its hospitality and safety, especially in tourist areas. The country's environmental situation is improving, although air pollution levels can be high in major cities such as Bangkok. Infrastructure in tourist areas is well developed, making life comfortable for expats.

Spain also offers a high level of security and quality infrastructure. The environmental situation in the country is generally favorable, especially in the regions far from major cities. Spain is actively developing green technologies and striving to improve the environmental situation.

Development of the business environment

In Thailand the business environment is actively developing, which attracts foreign investors. The government supports initiatives aimed at improving the business climate, which contributes to economic growth and job creation.

In Spain The business environment is also booming. The country is actively attracting foreign investment, especially in tourism and real estate. Spain offers many business opportunities, which makes it attractive to investors from all over the world.

Education and medicine

Moving to another country is not only a real estate investment, but also an important decision for the whole family. Education and medical care play a key role in choosing a country to live in. Let's compare the accessibility of international schools, universities and the level of medical care in Thailand and Spain.

Accessibility to international schools and universities

In Thailand There are many international schools, especially in major cities such as Bangkok and Phuket. These schools offer international programs such as IB and Cambridge, making them popular with expats. The cost of studying at an international school can be approx. 10,000-15,000 euros per year.

Universities in Thailand also offer programs in English, which attracts international students. For example, Chulalongkorn University in Bangkok is known for its business and engineering programs.

In Spain There is also a wide range of international schools, especially in major cities and tourist areas. Here, tuition fees can be as high as 15,000-20,000 euros per yearDepending on the school and program. Spanish universities, such as the University of Barcelona and the University of Madrid, offer high quality education and are recognized internationally.

Level of medical care

Thailand is known for its high level of medical services, especially in private clinics. Medical tourism is one of the growing industries and many foreigners come here for quality medical services at affordable prices. Insurance for expats can cost approx. 500-1000 euros per yeardepending on coverage.

In Spain the health care system is also at a high level. Public clinics offer free services for residents, while private clinics provide a wider range of services. Health insurance in Spain can cost in the following amounts 700-1500 euros per yearDepending on the plan you choose.

Comparison of tuition and medical costs

In Thailand education and medical costs can be lower than in Europe, making the country attractive for family moves. However, it is important to keep in mind that the quality of services may vary from region to region.

In Spain education and medical costs are higher, but this is offset by the high quality of services and the availability of international programs and insurance plans.

Roads and transportation

Ease of transportation plays an important role in choosing a country to live and invest in real estate. A well-developed transportation infrastructure facilitates access to key facilities and increases the attractiveness of a region. Let's take a look at how transportation works in Thailand and Spain.

Ease of travel within and outside the country

In Thailand transportation infrastructure is actively developing, especially in the major cities. Bangkok has a modern public transportation system, including the subway and the BTS elevated train, which makes getting around the city fast and convenient. The cost of public transportation is low, at approx. 1 euro for the trip.

Intercity buses and trains connect the main tourist and business centers of the country. However, it should be borne in mind that transportation infrastructure may be less developed in remote regions.

In Spain transportation system is considered one of the best in Europe. AVE high-speed trains connect major cities such as Madrid, Barcelona and Sevilleallowing you to travel quickly and comfortably. The cost of a train ticket can vary from 30 to 100 eurosdepending on the route and class.

Public transportation in the cities is also well developed, including subways, buses and streetcars. This makes getting around the cities convenient and affordable.

Accessibility of international airports and their impact on the market

Thailand has several international airports, including Suvarnabhumi in Bangkok and Phuket Airport. This provides good transportation accessibility and attracts tourists from all over the world, which has a positive impact on the real estate market.

In Spain international airports, such as Barajas in Madrid and El Prat in Barcelona, provide convenient direct flights to most major cities in the world. This contributes to the growth of tourism and maintains a stable demand for real estate in Spain.

Development of public transportation

Public transportation in Thailand is actively developing, especially in large cities. However, in some regions it may be necessary to rent a car for comfortable transportation.

In Spain Public transportation is well developed and accessible in most cities and regions. This makes life in the country comfortable and convenient for locals and expats.

Legal and tax specifics

Buying real estate abroad requires special attention to legal and tax aspects. It is important to understand what laws apply to foreign buyers in Thailand and Spainand how they can affect your buying decision.

Can a foreigner take full ownership of real estate?

In Thailand foreigners can purchase apartments in full ownership, but with a restriction: no more than 49% apartments in one condominium can be owned by foreigners. This means that demand for such apartments can be high and it is worth checking availability in advance. Buy a villa in Thailand Not possible directly, but it is possible to lease land for a long term or use other legal schemes.

In Spain foreigners can freely purchase any real estate, including apartments, houses and villas, in full ownership. This makes the purchase process easier and more attractive for foreign investors.

What taxes do the buyer, owner, and landlord pay?

In Thailand the purchaser of the real estate pays real estate transfer tax, which is usually about 2% from the cost. The property owner also pays an annual property tax, which varies depending on the type and value of the property. Landlords are required to declare rental income and pay income tax, which can range from 5 to 10%.

In Spain the buyer pays transfer tax, which can range from 6 to 10% depending on the region. A property owner also pays an annual property tax (IBI), which depends on the cadastral value of the property. Landlords are required to declare rental income and pay income tax, which can reach up to 19-24% for EU residents and higher for non-residents.

Peculiarities of inheritance and sale of real estate

In Thailand inheritance of real estate by foreigners is possible, but requires compliance with certain legal procedures. It is important to consult a lawyer in advance to avoid complications. The sale of real estate also requires the execution of all necessary documents and the payment of taxes.

In Spain The process of inheriting real estate is simpler and more transparent, but may require the payment of inheritance tax, which varies by region and degree of kinship. The sale of real estate is also subject to capital gains tax, which can be as follows 19-23%.

What should an investor choose? Final comparison

When it comes to choosing between real estate in Thailand and real estate in Spain, investors are faced with a number of factors that may influence their decision. Let's summarize and consider where it is more profitable to invest in real estate, what to choose: rental income or capital growth, and what are the prospects for development in the next 5-10 years.

Where is it more profitable to invest in real estate?

Thailand offers attractive investment opportunities, especially in tourist areas such as Phuket and Koh Samui. Here you can expect high rental yieldEspecially in the high season, when the flow of tourists is maximum. However, it is worth considering the restrictions on land ownership and the need to rent.

SpainOn the other hand, it offers a more stable market, where you can count on both rental income and the capital growth. Golden Visa program makes the country particularly attractive to those considering long-term residence and residency.

Which to choose: rental income or capital growth?

The choice between rental income and capital growth depends on your investment goals. В Thailand you can get high returns on short-term rentals, especially in tourist areas. It is a good choice for those who want a quick return on their investment.

In Spain you can count on a stable rental income and a gradual increase in the value of real estate. This makes the country attractive for long-term investments and those looking for stability and reliability.

What are the prospects for development in the next 5-10 years?

Market development prospects real estate in Thailand remain high due to the growing tourist flow and support from the government. It is important to keep in mind that the market may be more volatile due to political and economic factors.

Spain continues to develop steadily and the real estate market demonstrates positive dynamics. Economic recovery and active development of tourist infrastructure contribute to the growth of real estate prices and increased demand from foreign investors.

Conclusion

The choice between real estate in Thailand and real estate in Spain depends on your personal preferences and investment objectives. Both countries offer unique investment opportunities, and it is important to thoroughly research the market and consider all factors before making a final decision. If you still have questions or would like more information, do not hesitate to contact our experts. We are always ready to help you make the right choice and ensure a successful real estate investment abroad.