Galicia has become a focus of attention for national and international real estate investors, as the autonomous community offers a unique landscape for those seeking to diversify their portfolio with tangible assets.
Galicia has built a diversified and robust economy. Traditional sectors such as fishing and agriculture coexist with a powerful industry and an expanding service sector, acting as a buffer against sectoral crises and providing a solid foundation for the real estate market.
It offers one of the best qualities of life in Spain: spectacular landscapes, world-renowned cuisine, low pollution and crime rates, and a first-class healthcare and education system.
Despite sustained growth in recent years, the average price per square meter in Galicia remains below the Spanish national average, which represents an attractive margin for appreciation.
The Regional Government of Galicia and local councils are promoting energy rehabilitation, digital transformation, and urban regeneration, generating specific investment opportunities in sustainable renovations and projects.
The average price of housing in Galicia is around €1,950 per square meter, with variations between areas. Santiago de Compostela and the coastal areas of A Coruña and Pontevedra exceed €2,500 per square meter, while in inland cities such as Lugo and Ourense, opportunities can be found for less than €1,500 per square meter. The rural market offers lower prices.
Gross rental yields in major cities range between 4.5% and 6.5%. Moderate but steady annual growth in value is expected, between 3% and 5% by 2026-2027, driven by demand, limited new supply in historic city centers, and infrastructure improvements.
Demand is strong and diverse, including students in Santiago, A Coruña, and Vigo looking to rent rooms and small apartments, young professionals and families seeking 2-3 bedroom homes in well-connected areas, digital nomads and remote workers looking for charming properties with good internet connections, and domestic and foreign retirees are concentrated on the coast and in heritage cities, looking for comfortable, accessible apartments with services.
You may be interested in: types of real estate investments.
The most populated city with high and constant demand. Key areas are the Ensanch district, the El Temple neighborhood, and coastal towns in the metropolitan area such as Oleiros and Sada, with high demand for vacation and residential rentals.
The market is dynamic, with a strong industrial and port component. Key areas are the center (Berbés, Teis), the residential neighborhood of Castrelos, and, above all, the coastline of the Rías Baixas, where high-end vacation rentals and second homes offer very attractive returns in high season.
University demand guarantees rentals for 10 months of the year. It is a magnet for tourism and administration. Key areas are the historic center, the expansion district, and areas near university campuses.
They offer opportunities to get started with less money. Lugo and Ourense are seeing a revival of their historic centers and better connections. Ferrol, with its strong shipbuilding industry, has steady demand for workers and professionals.
Areas such as Malpica, Camariñas, and the coast of Lugo attract tourists who want to escape mass tourism. Investment in traditional houses that have been renovated for high-quality vacation rentals is a growing trend with good prospects.
Traditional residential rentals yield 4.5%–6.5% gross annually, while vacation rentals can reach between 7% and 10% gross during peak season. Capital appreciation is expected to average 3%–5% annually through 2026.
In tourist areas, income can be concentrated in 3-4 months. In rural areas, the market can be very limited or non-existent. Urban planning procedures and licenses can be slower than in other communities, and due to the humidity and rainfall in the area, constant maintenance of properties is required to prevent moisture from seeping in or mold from forming.
There are plans to improve the rail network (Atlantic corridor) and roads. Galicia is a leader in wind energy, attracting investment and skilled employment, with a focus on sustainability, mandatory and demanded energy rehabilitation, and has programs to attract teleworkers and digital nomads.
The ITP (Property Transfer Tax) is between 8% and 10% of the purchase price (used property) or 10% VAT (new property). The IBI (Property Tax) varies depending on the municipality.
Rental income is included in the general income tax (for residents) or in the Non-Resident Income Tax (IRNR), with a general rate of 19% (EU/EEA citizens) or 24% (others), and there is a tax on the Increase in Land Value (municipal) on the sale.
Non-residents are taxed under the IRNR (Non-Resident Income Tax). On sales, 19% is applied to the profit. Agreements to avoid double taxation with the country of origin are key.
Galicia has transferred powers in relation to primary residences. There are subsidies and tax breaks for renovation and energy efficiency improvements. Regulations on tourist rentals vary greatly between municipalities, so it is essential to consult local ordinances before investing.
Yes, Galicia is a safe, welcoming region with a stable legal framework within the EU.
You must obtain a NIE, open a Spanish bank account, appoint a tax representative in Spain (mandatory for non-residents), and it is recommended that you have a good local tax and legal advisor to guide you through the process.
Preferred by international capital, especially Portuguese, British, and Nordic, for its climate, cuisine, and opportunities in luxury vacation rentals.
It attracts investors due to its unique character, heritage, and steady university market, popular with French and Italian investors.
It attracts investors seeking authenticity and a more relaxed pace of life, often interested in renovating properties.
Seeking immediate profitability through rental income or long-term appreciation, a residential or vacation property, are options that will determine the area and type of property.
Take note of the light, the noises, the orientation, and the actual state of the community and neighborhood. In Galicia, microzones are very important.
An architect or quantity surveyor to assess the condition of the building, a lawyer specializing in property and local regulations, and a rental or property manager if you will not be living nearby.
A property with a good energy rating (A, B, C) saves costs, rents or sells faster, and may be eligible for subsidies.
Galicia is a market where value accumulates steadily. Patience and good management are usually rewarded.
It depends on the area. For a 60-70 m² apartment in an inland city such as Ourense, you may need from €80,000, plus purchase costs (8-12%). In A Coruña or Vigo, for a similar apartment, the down payment could be €120,000-150,000. In the Rías Baixas, for a vacation rental property, budgets usually start at €200,000.
Yes, especially in major cities and tourist coastal areas. Demand is robust, and entry prices allow for attractive gross returns.
Santiago de Compostela usually offers the highest gross rental yields, closely followed by Vigo and the tourist centers of the Rías Baixas in vacation rentals.
A medium- to long-term investment strategy (minimum 5-8 years) is ideal. It allows you to capture the appreciation and amortize the entry costs.
You may be interested in: investing in tourist apartments.
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Galicia will consolidate its position in 2026 as a real estate opportunity offering competitive returns, still affordable prices, and a quality of life that attracts new demand. It is not a market for quick profits, but rather an option for building wealth with stability and a long-term vision.
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Funded:
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Objective:
742.418,00 €
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