Water Fountain
 

 

 




Business opportunities in Galica (Spain) and Costa Verde (Portugal)

Developing the grounds of this property for business are covered here: Development / Tourism.

Being on the border with a road crossing bridge literally a few minutes away, you are able to work or run a business in Portugal or Spain. If you have a Spanish pay as you go mobile and open a post office box in Spain, you can get private health care insurance there, plus have a mailing address in Spain rather than Portugal. If you buy or rent a small apartment (or have a good friend who will let you use their address, or rent a low cost virtual office) in Spain, you can base some beneficial tax affairs there; modern apartments rent from around €200/month in Spain. If you do not have / want a residential address in Spain, you can of course start your own tax non-resident business in Spain as a resident of Portugal, but you would pay all taxes in Portugal that way. By having a business address in Spain, you can dramatically your tax liabilities while benefiting from Portugal's Non-Habitual tax residency program. New cars in Spain cost about 40% less than they do in Portugal! If you buy or lease / rent the car in your Spanish business' name, you are legally allowed to drive that car for personal use in Portugal (you simply notify the Portuguese tax authority and provide proof / details that you are a "cross-border worker" with a Spanish company registered car - see: EU Cross Border Workers & Company Cars).

Of course, you can work / operate a business in Portugal, and in many cases this makes sense. But there are some business types that attract a much lower tax burden in Spain than Portugal. The thing is, you can decide. Here you can enjoy the benefits of certain business advantages in Spain, plus lower property rates / taxes and better building controls in Portugal. If you want to offer rooms or cabins to tourists for example, Portugal leads the way with immediate tourism licenses. However, if you base your reservations, tours service, cleaning service (for your Portuguese holiday business) in Spain, you can benefit from all the business / operational tax advantages Spain has to offer, including much cheaper vehicles (if they are leased / rented for the tour aspect).

Four minutes drive to the West, on the Portuguese side of the River Minho border with Spain is the new Minho Park Monção, a 90 hectare business park for 54 businesses, 15 services (research facilities, football field, tennis courts, day care centre, etc) and 11 warehouses, with parking and a Burger King. Due for completion in 2016, the Minho Park Monção should create over 1,000 jobs locally, thus likely pushing house prices higher.

Not far across the border / river from this property but far enough / mostly hidden from view due to International river conservation regulations (agreed to by both Spain and Portugal), is the site of the new low level, low impact and crucially low noise by Vigo dry port area known as "PLISAN " or Salvaterra-As Neves Logistical Platform. It is unlikely that you will be able to see or hear anything at all from the property, not least as South Easterly / Atlantic system winds are the norm.

The Vigo Dry Port has drawn interest from Mitsubishi Motors and Citroën Peugeot for a possible plant furthest away from the river (such plants would be located in zones "L.E." and "M.I" on the Vigo Port Authorities map). Such high tech manufacturing, logisitics and support based business will obviously flood the area with economic wealth and well paid jobs, probably several for native foreign (English, German, French, etc. speaking employees). The nearby Portuguese and Spanish small towns will only benefit, and so will the local inhabitants. Any senior management connected with that project and / or the companies which will be using it, will find this quinta's location and proximity to the dry port impossible to better as it takes just 10 minutes to drive to PLISAN via the nearby road bridge. The point we make is that building restrictions and river conservation regulations absolutely mean this quinta will not be affected detrimentally but will enjoy the benefits of such economic prosperity. And property prices will soar.

See Google Earth area map here.

PLISAN has been delayed / beset with legal problems relating to how much was paid to local land owners for the compulsory purchase of their land, but this has now been resolved. Despite the recession in Spain, which admittedly saw the original main contractor for the Vigo Dry Port go bust, Vigo is a a boom city and the port authority is crying out for work to be finished. When finished, PLISAN will be the largest business park of the Galicia-Northern Portugal region; it is owned jointly by the Vigo Port Authority and the Xunta de Galicia (IGVS). Such compulsory purchasing should send shivers down anyone's spine, but the fact is, PLISAN is in Spain; Portugal has much stricter building regulations and no cause to build its own industrial parks in this region. And PLISAN will almost fully be out of sight and ear-shot of this villa, while being close enough to dramatically increase its resale value.

Given the management / professionals that will be flooding into the area, building one or more additional properties, or even renting the property out singularly becomes a very viable buy/develop to rent investment opportunity. But, even if you want this property solely as your family home, the increased wealth and escalating property prices in the area are only going to serve you. With the first businesses due to occupy their PLISAN premises in 2017, now is the time to buy, before the current owners of this property put their prices up!

Galica (Spain) and Costa Verde (Portugal) are actually booming as a result of this and other nearby commercial expansion, creating many opportunities for expatriates. There are also many sourceable items in the area both sides of the river to make a thriving eBay / internet business for someone. For example, many British, German and French brand name clothes are made in Portugal, such as for River Island and Next. Many of these clothes are available in Portugal at a fraction of the cost as overruns, etc. either from local market traders or the manufacturers and wholesalers direct. Even if you do not want to sell them on, being able to buy such items at around a quarter or less of the retail price is certainly good shopping (up market El Corte Inglés department store chain have a store in Vigo and a dicount / end of season outlet store in nearby Porriño).

Although the Costa Verde region of Portugal is meant to be rurally poor, there are a lot of wealthy people in the area both from Spain and migrants who work in Lisbon, France, etc. who spend as much time as they can back home near the River Minho. On the Spanish side of the river, Vigo is a very affluent city with thriving port and fishing industries, while Porriño is a massive industrial, technological and commercial area. Many opportunities for English, German, etc. speaking executives and skilled workers exist nearby.

The current owners toyed with the idea of starting an export business here several times; the fine solid wood furniture export business holds a great deal of opportunity. One of the showrooms they bought their furniture from regularly sends their truck fully laden to Spain and France. On the ferry from the UK to Santander / Bilbao, you will undoubtedly see English furniture shop vans and trucks on their way or back from Portugal; hiring Portuguese drivers, trucks or firms is likely to be a lot less expensive than the other way around. The north of Portugal and Galicia are home to forests of oak, chestnut, cherry, walnut and pine. While chestnut and walnut are the woods of choice for fine furniture here, oak and cherry timber prices make it hard not to look; we buy oak logs for our fireplace, 120 to 130 Euros a truckload. This is not to suggest the local firewood would make fine furniture but simply to illustrate the potential as "Solid oak furniture" is a sales label many people hard to resist in North Europe.

Another market which is wide open to a foreigner exploiting here is real estate and vacation lets. Although there are a lot of estate agents / realtors in the area, very few speak English and know how to market themselves on the Internet; just take a look (search) on Google and see how many you can actually find. One British expatriate in the area currently runs a holiday rental and real estate business but is semi-retired already and looking to stop completely very soon.

On from that is property development. It is perhaps strange that the Portuguese and to a lesser extent the Spanish like modern houses, near to / overlooking others. The number of old stone buildings which would make perfect restoration projects in the area to sell on to Northern Europeans is quite incredible. In the town of Monção there are ancient, tiny, terraced one (room) down, one room up stone built houses ripe for development for sale from 16,000 Euros; Monção is a wonderful place for a summer town home. Old quintas / farmhouses also hold superb potential for conversion to apartments to sell or time share out to foreigners, as the Portuguese like their just outside center, modern concrete 3 or 4 storey blocks.

Vigo and Porto are both large ports and gateways to the rest of Europe for imported items. Portuguese Alvarinho / Spanish Albarino wine is well known and consumed in fair quantity in France, but not in other Northern European countries. English is now a compulsory subject in schools but there is a shortage locally of qualified teachers; English night school places are over-subscribed.

 

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