Galicia has become a focus of attention for national and international real estate investors. The autonomous community offers a unique landscape for those seeking to diversify their portfolio with tangible assets.
Galicia has built a diversified and solid economy. Traditional sectors such as fishing and agriculture coexist with a strong industry and an expanding services sector, acting as a cushion against sector-specific 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 levels of pollution and crime, 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, representing 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 renovation and sustainable 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 or 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% through 2026–2027, driven by demand, limited new supply in historic centers, and infrastructure improvements.
Demand is strong and diverse, including students in Santiago, A Coruña, and Vigo seeking rooms and shared apartments; young professionals and families looking for 2–3 bedroom homes in well-connected areas; digital nomads and remote workers seeking properties with charm and good internet connectivity; and domestic and foreign retirees concentrated along the coast and in historic 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 steady demand. Key areas include the Ensanche district, the El Temple neighborhood, and coastal towns in the metropolitan area such as Oleiros and Sada, with strong demand for both vacation and residential rentals.
The market is dynamic, with a strong industrial and port component. Key areas include 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 during peak season.
University demand guarantees rentals for 10 months of the year. It is a major tourism and administrative hub. Key areas include the historic center, the expansion district, and areas near university campuses.
They offer entry opportunities with lower investment. Lugo and Ourense are experiencing a revitalization of their historic centers and improvements in connectivity. Ferrol, with its strong naval industry, maintains steady demand from workers and professionals.
Areas such as Malpica, Camariñas, and the coast of Lugo attract tourism seeking to escape mass tourism. Investment in renovated traditional houses for high-quality vacation rentals is a growing trend with good prospects.
In traditional residential rentals, gross annual yields range from 4.5% to 6.5%; in vacation rentals, they can reach between 7% and 10% during peak season. Capital appreciation is expected to average 3%–5% annually in 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 may be slower than in other communities, and due to the humidity and rainfall in the area, properties require constant maintenance 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 qualified employment, with a focus on sustainability and mandatory, in-demand energy rehabilitation. It also has programs to attract remote workers and digital nomads.
The ITP (Property Transfer Tax) ranges between 8% and 10% of the purchase price (resale property), and VAT is 10% (new property). The IBI (Property Tax) varies depending on the municipality.
Rental income is included in the general income tax (IRPF) for residents or in the Non-Resident Income Tax (IRNR), with a general rate of 19% (EU/EEA residents) or 24% (others). There is also a municipal tax on the Increase in Land Value upon sale.
Non-residents are taxed under the IRNR (Non-Resident Income Tax). On a sale, 19% is applied to the gain. 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 incentives for renovation and energy efficiency improvements. Regulations on tourist rentals vary significantly between municipalities, so it is essential to consult local ordinances before investing.
Yes, Galicia is a safe and 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 to have a trusted local tax and legal advisor to guide you through the process.
Preferred by international capital, especially Portuguese, British, and Nordic investors, for its climate, cuisine, and opportunities in luxury vacation rentals.
It attracts investors due to its unique character, heritage, and stable university market, popular among 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.
Pay attention to the light, the noise levels, the orientation, and the actual condition of the community and neighborhood. In Galicia, micro-areas are very important.
An architect or quantity surveyor to assess the condition of the building, a lawyer specialized 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 qualify 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 may be around €120,000–€150,000. In the Rías Baixas, for a vacation rental property, budgets usually start at €200,000.
Yees, especially in major cities and tourist coastal areas. Demand is strong, 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 for vacation rentals.
It is ideal for a medium- to long-term investment strategy (minimum 5–8 years). It allows you to capture appreciation and amortize entry costs.
You might be interested in: investing in vacation rentals.
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At Domoblock, we currently do not have any investment projects in Galicia, but we do offer real estate opportunities in other key cities in Spain:
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Galicia will consolidate its position in 2026 as a real estate opportunity offering competitive returns, 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.
Funded by:
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Objective:
1.104.596,44 €
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