"My savings no longer yield anything" - a sigh we hear more and more often. With historically low savings rates and rising inflation, more and more Belgians are looking for alternatives for their assets. Property in Spain often comes to mind as interesting option. But what are the real returns and risks? We list the figures, but get plenty of advice when making financial decisions.

The reality of saving in 2025

The traditional savings book is under pressure:

• Savings rates between 1% and 3%*
• Inflation of around 4%*
• Real negative return after inflation
  However, full flexibility and state guarantee up to €100,000

* Figures accessed 20/01/2025

Real estate as an investment alternative: the numbers

The Spanish property market shows interesting figures:

• Value development:
  • Average annual increase in value: 5%
  • Top locations such as Estepona: to 16.87% in 2024
  • Stable growth in luxury segment, especially at the Costa del Sol
• Rental income:
  • Realistic rental period: 10-12 weeks per year
  • Net rental yield: 1.5-2.5% annually
  • Commission rental offices: 15-25%

Note: since 2025, there have been new rules for rental licences. Inform yourself well about the requirements before making an investment.

Costs to consider

A real estate investment involves several costs:

• One-off cost:
  • New construction: 10% VAT + 0.5-2.5% stamp duty
  • Existing house: 6-11% transfer tax
  • Notary and administration fees
• Recurring costs:
  • Annual property tax (IBI): 0.3-1.5%
  • Wealth tax as of €700,000 net assets
  • Maintenance costs and insurance

Case study: investment of €300,000

Let's scrutinise a €300,000 investment.

Savings account:

• Annual interest (2%): €6,000
• Loss due to inflation (4%): -€12.000
• Net result: -€6.000
• Advantage: immediately available

Property Costa del Sol:

• Average increase in value (5%): €15,000
• Rental income (2% net): €6,000
• Minus annual cost (1%): -€3.000
• Net result: €18,000
• Disadvantage: not readily available

Disclaimer: this is a fictitious numerical example based on static figures. Inform yourself thoroughly and/or get advice from a financial expert when making financial decisions.

More than just returns

A property investment in Spain offers many more advantages than just the financial picture. After all, you also invest in a high-quality lifestyle that appeals to an increasing number of Belgians. With your own holiday home on the Costa del Sol, you create a personal spot in the sun that you can enjoy all year round. Especially for those considering winter this offers unprecedented opportunities to escape the Belgian winter cold.

The region is also known for its excellent golfing opportunities, which is an important consideration for many owners. Add to this the fact that the overall lifespan in Spain is some 20% lower than in Belgium, and you can see why more and more people are opting for this combination of investment and quality of life.

Personalised advice by Alness

Are you ready to make the switch from saving to smart investing in Spanish property? At Alness, we understand that this is an important decision. That's why we offer you a no-obligation personal consultation in which we will discuss, among other things:

• Mapping out your financial goals
• Discuss options in different regions
• Going through the various financing options

Get in touch for a personal discussion about the possibilities in both the Costa del Sol and Costa Blanca.