real-estateTorrevieja

How to open a real estate agency in Spain

2 November
How to open a real estate agency in Spain
How to open a real e... image

To open a real estate agency in Spain, especially in the regions of Alicante and Torrevieja, it is important to familiarize yourself with the legal requirements, the competitive environment and current market trends. In this article, we will take a detailed look at how to open a real estate agency, the necessary steps to start a business, as well as the prospects and features of working in one of the most popular regions for foreign buyers.

Basic steps to open a real estate agency in Spain

The first step to creating an agency is choosing a form of ownership. In Spain, the most popular option for small and medium-sized businesses is a limited liability company (SL), similar to an LLC. To register a company, you will need an NIE (Número de Identificación de Extranjero) - an identification number for a foreigner, which is received by all founders and shareholders of the company. The further procedure includes registration in the Spanish Trade Register (Registro Mercantil) and obtaining a license to operate.

Opening a real estate agency in Spain

Real estate licensing in Spain varies by region. Some provinces, including Alicante, require a special license, while others allow you to open a business without one, but with mandatory registration with the municipality. In addition, it is necessary to obtain professional liability insurance, which covers possible claims from clients and protects the business from financial losses.

Opening a bank account and financial requirements

To fully operate, the agency will need to open a bank account with a Spanish bank. Spanish banks offer separate business accounts that allow you to keep transparent records and prepare tax reports. The turnover of real estate agencies in the Torrevieja and Alicante area depends on the focus of the business, but with a successful start, you can expect a steady inflow of funds. According to experts, agencies focused on the sale and rental of luxury real estate can generate an annual income of 100,000 to 300,000 euros, while agencies working with the mass market can expect incomes of around 50,000–150,000 euros depending on the volume of transactions and commission.

Real estate market in Alicante and Torrevieja: what to consider

The real estate market in the regions of Alicante and Torrevieja is very popular among foreign buyers, especially from the UK, Germany and Northern European countries. This explains the high demand for properties for both purchase and rental, which makes the real estate business here profitable and promising. In recent years, there has been an increase in interest in buying housing in Spain among investors from Russia and the CIS countries, as well as the USA and Canada, which opens up new opportunities for agencies.

Agency positioning and marketing

Effective promotion of a real estate agency includes the active use of digital tools. In a highly competitive environment, it is important to invest in SEO and SMM to ensure agency visibility on popular platforms such as Google and Facebook. Local companies that actively work with foreign clients also use multilingual websites, which makes it easier to interact with clients from different countries. Virtual tours, video presentations of properties and online consultations have become industry standards, and their implementation allows agencies to compete effectively and attract clients remotely.

Types of property and main agency services

Most real estate agencies in Alicante and Torrevieja offer the following services:

  • Sale and rental of residential property: includes the sale of apartments, houses, villas and apartments. Properties in the coastal area are in the greatest demand, as many buyers are looking for holiday homes and investment properties.
  • Commercial property: assistance in buying and renting premises for shops, restaurants and offices. This segment is in demand among businessmen wishing to open their own business in Spain.
  • Property management: Owners who buy properties to rent out often require management services. This includes rental monitoring, property maintenance and tenant welfare.

Real estate agency financials in 2024

The average turnover of real estate agencies in Alicante and Torrevieja varies depending on their client base and property type. Agencies working with the premium segment can expect high income thanks to large transactions with luxury properties. According to Spanish analysts, the average agency has an annual income of 100,000-300,000 euros, and a business profitability of around 15-25%.

For agencies focused on the mass market and rentals, typical income is between 50,000 and 150,000 euros, depending on the volume of transactions and rental rates. Agencies specializing in commercial real estate can earn more, given the higher commission for transactions with commercial properties.

Advantages and challenges of running a real estate business in Spain

Spain remains attractive for real estate investments, especially in coastal regions such as the Costa Blanca, where Alicante and Torrevieja are located. The advantages include high interest from foreign investors and stable demand for rentals, especially during the summer tourist season. However, it is important for entrepreneurs to consider a number of difficulties, such as the need to comply with Spanish legislation, high requirements for transparency of transactions and competition with large market players.

Support and franchising as a way to quickly enter the market

For aspiring entrepreneurs, franchising can be the best way to open a real estate agency. The company SPAININTER offers support and training, which greatly simplifies the process of starting a business. Franchises provide not only a well-known name, but also access to CRM systems that allow you to effectively manage your client base, as well as marketing support. The initial investment in a franchise is usually between 20,000 and 50,000 euros, depending on the brand and the terms of the agreement.

Opening a real estate agency in Spain

Opening a real estate agency in Spain, particularly in Alicante and Torrevieja, can be a profitable business with the right approach. To successfully start, you need to take into account the specifics of the local market, legal requirements and prepare a digital marketing strategy to attract customers. The region offers high demand for the purchase and rental of real estate, especially among foreign investors, which makes Alicante and Torrevieja attractive for the real estate business.