2018 is a good year to invest overseas

Have you considered investing in overseas real estate?

Then 2018 might be a good year to do it.

Overseas real estate can be an exceptional addition to your investment portfolio for various reasons, such as diversity, stability, or simply increased returns.

Certainly, Barcelona is one of the top destinations in 2018, especially after the recent political tension is coming to an end as both sides are interested in peaceful solutions.

Location, access and connectivity, cultural diversity, foreign investments, tourism, climate, food and people’s friendliness are some of the key factors that make this city so attractive.

But let’s analyze some of the major points that you should consider when investing in overseas real estate.



If you have all of your money invested in your country, it is inevitable that all of your investments will go down in case of a crisis.

It is therefore advisable, to distribute some of your savings into different “baskets”, and overseas real estate should be at the top of your list.

The strongest aspect of investing in overseas real estate is, indeed, the word overseas: by making an investment abroad you are protecting your money from any instabilities or mishaps that may happen in your country of residence.

This is the nature of any economic and business cycle around the world.

There is another great aspect of investing in overseas real estate. While stocks and bonds are still good ways to get good returns, they carry with them an inherent risk that a real estate investment doesn´t have.

There are for sure many valid reasons behind the common sentence “The value of real estate will never reach 0”.

Real estate is a great investment because it is an investment in a hard asset: hard assets are much more resistant to market fluctuations and they have an inalienable value that will never go away.


Good Returns

Finally, owning overseas real estate is a good move financially. The gains you make from an investment in stocks are basically limited to capital appreciation and dividends.

But think about the gains you can make with overseas real estate. You will certainly see capital appreciation, especially if you buy into a growing market, such as Nicaragua, or, in Europe, Spain and Portugal.

Surely you can make more money with your property overseas by renting it. A rental income on an overseas property is an excellent way to make extra money. And in some cases, the money you would earn in a rental income could be more than the money you would earn from dividends of an equivalent investment.



More than a financial expedient, overseas real estate investments provide a sort of personal stability: a place you can go to if ever the need should come up.

In many cases, purchasing real estate in a foreign country can be the first step to obtaining residency and passport. This is true in Spain, where more and more Chinese and Russians (among others) are buying properties in order to obtain their residency and a valid permit to live and work in the Schengen area.


Contact us for more info and a personal assessment!




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Buy a home in Spain and pay in bitcoins

Buy a house in bitcoins, the most popular cryptocurrency and whose value has increased above 14,000 euros, it is possible as long as certain steps are followed and the purchase is recorded in euros. The question, for the moment, is whether it makes sense to get rid of an asset that has appreciated more than 1,000% and could still maintain its exponential path.

It is not yet a common currency in Spain, but idealistic ads are starting to appear in houses where part of the purchase can be done in bitcoins. The purchase through this payment instrument is totally legal, but must go through several intermediate steps, such as its translation into euros, and is subject by the Tax Agency to prevent money laundering.

The simplest process is to agree with the seller and set the exchange rate of bitcoins and euros. The exchange of bitcoins would be carried out before the public deed at the notary and in the deed would appear the price in euros agreed for the sale. The transaction is nothing more than an ordinary purchase, with only one previous step: the buyer has made the change from bitcoin to euros. The only exception is that the buyer who delivers bitcoins will have to pay for the capital gain that has been reported by the divestment in bitcoin and that, obviously, must prove the legitimate origin of the money.

The only one who would assume a certain risk when accepting bitcoins would be the seller, especially if the bitcoin, a clearly volatile value, depreciates from the moment of the transaction. If you obtain benefits you will have to pay taxes for the capital gain that has been reported to you.

The purchase with cryptocurrencies could be seen as a swap, the exchange of two goods, in which bitcoin would be no more than an instrument of value. However, as it is not reliable money issued by a central bank, notarial writing and management can not be done in bitcoin, but in euros. The notary can establish that the payment has been made in part or in full in bitcoin, although he should inform the Tax Agency if he suspects that bitcoins have illicit origin or not proven enough.

What differentiates a transaction with bitcoin from one to euros is that the receiver of the payment by cryptocurrencies will have to declare and pay taxes for the profits derived from the appreciation of the bitcoin when it diverts, something that in the case of a payment in euros does not happen , since it was not appreciated or devaluated in front of anything.

In cases of purchase with bitcoin, the cryptocurrency can be used basically as if it were cash, since it is totally anonymous. Among individuals, for example, there is no limit on the amount that can be contributed in cash, which could apply in the case of bitcoins. The Treasury, for its part, controls the illicit origin of cryptocurrencies and if they are used to launder capital, while working in a common framework that controls these payment instruments.

The sale of a house is taxed with the ITPAJD, if it is a used house, or with the VAT, if it is a new house. However, the tax base of these taxes is, in the first case, the real value of the property, and in the second, the total amount of the consideration. Even if the transaction is paid with euros or with bictoins, it does not affect the taxation of the sale on these two taxes.

Another thing is the alteration of the patrimony that becomes evident with the purchase of the house (before it had bitcoins and now a house).

What is clear is that until the bitcoin price stabilizes and investors begin to try to liquidate their holdings through brick investments, it will not be clear to what extent the status, taxation and framework can be clearly defined. legal that affects the bitcoin as a means of payment.



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Property sales and prices in Spain are expected to keep growing in 2018

The forecast for 2018 is that property sales and prices in Spain will continue to rise, as long as there are no sudden economic surprises or changes to the mortgage market.

One of Spain’s biggest real estate providers, Anticipa, expects sales to rise 9.3% next year to 526,000 units.

Over the fourth quarter of 2017, prices for resales and new builds are expected to continue to increase by 5.8%, said the firm in its latest real estate market report, allthough this was compiled before Catalonia declared independence and the national Government took over the administration of the region.

Mark Stucklin of Spanish Property Insight, pointed out that the company’s forecast for 2018 is 85% higher than the nadir of 2013, when only 285,000 homes were sold in Spain. Nevertheless, the report shows that the market is still 42% below its peak of over 900,000 sales back in 2006, before the crisis.

Forecasts could be affected by what will happen in Catalonia with the bid for independency from Spain. The region is considered as the wealthiest in Spain and its capital Barcelona has seen some of the highest property price rises this year.

In fact, with the Madrid Government controlling now the regional government and before the elections on 21st of December there is now a state of wait and see.

Here at Next Door, we believe that the political situation in between Spain and Catalonia is not going to worsen and the property sale for 2018 is set to increase steadily, also supported by the country’s economic growth.


Also check our article:

Market’s indifference to Catalonia-Spain debate: https://wordpress.com/post/nextdoorbcn.wordpress.com/76


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Spain seems to be a Mediterranean heaven for expats

Thanks to a friendly population, relatively low costs and an improving economy, Spain ranks in the top 10 best countries for quality of life in 2017.

According to recent researches published on InterNations, nine in ten expats are satisfied with their life in Spain.

There are many reasons for this: they are overall happy with their personal safety, travel opportunities, and available leisure activities. But the climate and the lifestyle are above all mentioned as key points for their happiness.

Available leisure activities for kids is also another crucial point for expats’ satisfaction: Spain manages to score 8th place out of 45 countries in the Family Life Index in 2017. In particular, parents are quite satisfied with the availability and costs of childcare and education, ranking Spain fourth and eighth in these aspects.

Furthermore, the majority of expat parents in Spain thinks the country is good for their children’s health and safety, and that Spaniards are friendly towards families with kids.

Friendliness seems to be one of the main characteristics of Spainiards and an integral part of Spanish life: at least four in five respondents agree that there’s a friendly attitude in general and toward foreign residents in particular.

Over four-fifths of expats also think it’s easy to get used to the local culture and even felt at home in Spain nearly straight away. This helped Spain to reach sixth place in the Feeling Welcome subcategory of the Ease of Settling In Index.

Obviously, the language is an integral part of culture and local language skills can make it easier for expats to connect with the locals. Fortunately, close to three in five respondents in Spain generally agree that Spanish is quite easy to learn and only a third of respondents say the same about the local language of their respective country of residence.

Last but not least, over four in five rate the cost of living positively in general, and more than double the global average even consider it to be very affordable .

However, low costs are also indicators of other issues in the labour market, signaling limited career paths and less opportunities comparing to other western European countries, at least for now.

Despite these results, Spain has managed to improve its ranking in the Personal Finance Index over the years, to take 41st place out of 65 countries in 2017, compared to 58th out of 64 countries in 2015.

On the other side, future tendecies show that the Spanish economy is growing and show signs of a robust recovery. Many Spaniards who left the country after the crisis in 2008, are returning back to their country.

You can read more about this topic here.

The team of Next Door encourages all to come and spend one month in Barcelona, you will want to stay forever!






Golden Visa: Spanish for the grace of the brick

This year more than 2,000 foreigners will become Spanish residents almost at the same time they sign their property purchase contract. With a minimum of half a million euros in residential investments, a non-EU citizen can obtain a Spanish passport: a great advantage for those who want to live in the sun or transit through the European Union freely.
Since 2013, Spain has in force the so-called “golden visa program”, a procedure that grants a quick residency for non-EU people with a special talent or who invest a minimum of 500,000 euros in the real estate sector. According to data from the State Secretariat of Commerce, in 2016, 2,236 people have benefited from this visa program, with 2,157 million euros in investment, three times the money invested in the first year of the program.
Chinese and Russian citizens are the main applicants to this fast track towards Spanish residence, which over time can be translated into the granting of Spanish citizenship. In the Chinese case, this type of dual nationality has served in the past for the exit of the so-called “hot money”, capital that the wealthiest Chinese take out of the country to avoid controls in operations such as gambling in casinos and reduce risks.
The good reception that the “golden visa” program has had, is leading real estate and legal advisory companies to offer information services for those who want to bring their money to Spain, buy a home and at the same time apply for Spanish residence.
The Spanish real estate sector shows clear signs of recovery, the Spanish residential sector is particularly attractive for young families and retirees from non-EU countries, as they can easily access Spanish schools, universities and the health system.
Investors who want to open their way to becoming Spaniards by the grace of the brick now benefit, in addition, from a rising real estate market, which also allows easy rental of property in tourist areas, which lowers the financial threshold for those who want to make the leap.
*This is a translation from the original IDEALISTA in Spanish by Next Door Bcn*

Spain is one of the preferred locations for students. How is the rental marked influenced by that?

“Apartment for rent. Only students, preferably Erasmus. ”

This type of advertising is increasingly common in Spanish university cities, as the owners realize the advantages offered by renting their homes to foreign students who are only a few months in the country.

In fact, leading rental platform for student housing internationally, have quadrupled their activity in the last year in Spain.

According to a report of the HousErasmus+, 75% of international students visiting Spain stay in shared flats.
Each year, Spain receives 42,000 Erasmus students, which makes the country the favorite destination for European students. However, according to this same study, Spain is one of the countries that offers fewer residences for students, with only 90,000 seats compared to 375,000 in France or 113,000 in the Netherlands (a country that has almost three times less population).

In addition, the average price of these accommodations is high: around 650 euros a month for a room in public residences and about 800 euros in private ones. In contrast, renting a room in a student flat costs an average of 420 euros per month, so most foreigners choose this option.

Specifically, 75% of international students visiting Spain stay in shared apartments, 19% in studios or individual apartments, 4% in student residences and only 2% in family homes or other accommodations. These last options are used mostly at the beginning of the stay, as Erasmus often spend a few weeks in a residence or with a family while they find a shared flat.

The “ideal” tenants for landlords

For their part, Spanish owners are increasingly interested in renting their homes to foreign students, for various reasons. The main one is that they make short stays (an average of 3 months), compared to the 3 years of duration that has a conventional rental; they pay market prices or even slightly higher (422.06 euros per average room, although prices skyrocket in cities such as Madrid or Barcelona); and in general they are not conflicting. This allows owners to rent their homes with the flexibility of being able to dispose of them after a few months, adjust rental prices based on the evolution of the market to obtain greater profitability, and avoid problems such as those generated by rent tourist.

Here at Next Door BCN, we believe that Spain, and Barcelona in particular, is the favorite destination for international students and homeowners are realizing the potential that this segment offers”.

This, of course, has many other implications on the market prices.

What do you think about this topic?


Translated from http://bit.ly/2juHovj by Next Door Bcn


Who and why is purchasing luxury properties in Barcelona?

According to Living, a Real Estate Consulting in Barcelona, the 65% of the buyers of luxury properties are Spanish nationals.

Another 35% is composed by a 12% of British nationals, 8% French, 5% Russian, 4% Chinese and a mix of other nationalities form the leaving 4%, including single buyers and investments funds.

The Commercial Director of Living says that “international buyers have more and more interest in purchasing luxury properties in Barcelona. For this reason, in central districts like Eixample, the demand has already surpasseed the supply”

What are the main motivations for purchasing a luxury property in Barcelona?

Investment is the first reason, the second is having a second home and just a small percentage wants the have the luxury property for living.

“This sector doesn’t know crisis” continues the Commercial Director of Living.

Here at Next Door, we surely believe that one of the main factors for investing in a luxury property in Barcelona is having a second home in such a wonderful city with a high quality of life.

And what do you think?



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