These are the two markets where Lora Galeva operates. They’re similar in some ways—and very different in others. This is the comparison you only get from working in both.
Why comparing Italy and Spain makes sense
More and more buyers—both domestic and international—are considering Spain and Italy as parallel or sequential real estate investment options. Both countries share attractive fundamentals: strong tourism demand, areas with significant appreciation potential, high quality of life, and legal frameworks that—when properly advised—offer sufficient security.
But the differences are meaningful. The purchase process is different. Taxation is different. Rental markets behave differently. And each market comes with its own specific risks.
Returns: rental works differently in each country
In Spain, the long-term rental market is deep in major cities. Madrid has structurally strong demand for residential rentals, which translates into very low vacancy rates in well-located properties.
In Italy, the most attractive returns often come from short-term holiday rentals in tourist areas—Tuscany, Puglia, the lakes, coastal regions—where yields can be significantly higher than traditional residential lets. But this requires more active management, and short-term rental regulation has tightened in many areas in recent years.
The buying process: differences that matter
| Aspect | Spain | Italy |
|---|---|---|
| Tax ID | NIE | Codice Fiscal |
| Preliminary agreement | Contrato de arras (5-10%) | Compromesso (10-30%) |
| Role of the notary | Formalises the transaction | Active legal verification + due diligence |
| Transfer tax (resale) | ITP 6-10% (depending on region) | Imposta di Registro 9% (or 2% for primary residence) |
| Land registry | Immediate after signing | Requires post-completion registration |
| Non-resident financing | Typically 60-70% LTV | Typically 50-60% LTV |
Market-specific risks
◆ Spain
The main risk in Spain is regulatory uncertainty around rentals. The Housing Law and its regional developments have introduced rent caps in designated “stressed areas” in some cities. Madrid, for now, has no such zones, which sets it apart from Barcelona and Catalonia more broadly.
◆ Italy
In Italy, the main risk for international buyers is process complexity and market opacity in certain areas. The historical practice of declaring a lower value than the real purchase price can have tax and legal implications that need to be clearly understood beforehand. Market fragmentation is also key: differences between cities and regions are significant.
Spain or Italy? It depends on your objective
If you’re looking for liquidity, a consolidated market, and stable long-term rental income → Madrid is more predictable.
If you’re looking for lifestyle assets, strong intrinsic value, short-term rental potential, or lower entry prices with upside in emerging areas → Italy offers opportunities that Spain no longer does under the same conditions.
Many of Lora Galeva’s clients end up investing in both countries—with different objectives in each market. They’re not mutually exclusive.
