Most investors tend to choose assets that are in the local market. After all, this is what they know best and what inspires them with the greatest confidence. However, on the other hand, it has risks, as it involves the concentration of the investor’s portfolio in one geographical area. Therefore, before investing, many investors wonder Where to invest in Spain their savings.
Real estate and real estate market
Spain is one of the countries where more investment is made in real estate. We are a country of owners, and not just at the residential level; There are also other uses such as commercial buildings, land, industrial warehouses and other types of buildings to have a certain profitability.
There are different ways to Get profitability by investing in Spain in the real estate marketSuch as buying, selling or renting real estate.
Of course, before doing this, it is important to analyze the market and the location of the property. In addition to a careful analysis of the process from a financial, legal and financial point of view and all associated costs.
In addition, it is essential that you choose your method of investing in real estate. If you do it directly, you will have to incur a high cost, although at the same time you will enjoy a tangible asset that you can even enjoy. However, there are more efficient options for investors such as SOCIMI or real estate crowdfunding.
Although Spain is not a country where passive management has a long tradition, the truth is that in recent years, a gap has opened up within the investment strategies of many savers. Especially thanks to the reception of index funds by the community.
Thanks to these tools, you can invest from Spain in any market around the world.
The normal thing is that over the years, you get a real return of close to 6% per annum, although there are upsides when you can get bigger returns.
In addition, you get access to different options, such as fixed income or stocks, investing in raw materials or cryptocurrencies and different geographies.
ETFs are tools for passive management Similar to index funds, but with somewhat different characteristics.
On the one hand, because they are listed as if they were shares in the market, and on the other hand, because they have different tax treatment, since it is not possible to make transfers between them.
However, ETFs offer a much wider range of possibilities than index funds.
In fact, its appearance in Spain is much older, and there are many more options for investing in the market than those offered by index funds.
Retirement plans are another product for investing your money in Spain.
They have a different legal treatment than other financial instruments, in that it is only possible to recover funds in some very restrictive circumstances (essentially retirement), and contributions are deductible in personal income tax.
But, in addition, there Many options for investing in retirement plansFrom traditional products to indexed pension plans that provide returns similar to index funds. Moreover, the annual profitability of these products has grown in recent years. According to Inverco data, in 10 years, the profitability of retirement plans was 7.65% year on year.
It is one of the newly emerged products to invest in Spain.
Automated investment managers, also known as bot advisors, are a kind of tool that allows you to access different investment options according to your risk profile.
As an investor, you will only have to provide information about the risks you want to take. automatically, The robo advisor will configure the wallet that best fits your profile.
Many investors who have little financial knowledge put their capital into these instruments. These are not just for choosing the best index funds or ETFs that best fit your profile. If not, it also performs a series of additional actions, such as rebalancing the weights.
Conclusions about where to invest in Spain
As we have seen in this article, there are different assets and instruments in which an investor can invest in Spain with different risk profiles and time horizons.
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