Parking Spaces: Spain's Overlooked Investment
While most foreign buyers focus on apartments and villas, parking spaces and garages in Spain can be surprisingly profitable investments. In busy coastal towns where street parking is scarce, a well-located garage can generate steady rental income with minimal maintenance.
Types of Parking Properties
- Plaza de garaje: A standard parking space in an underground garage, usually 12 to 15 sqm. The most common type.
- Garage individual: An enclosed, lockable garage unit. More expensive but offers storage space and added security.
- Parking lot space: An open-air space in a designated parking area. Cheapest option but least protected.
Prices on the Costa del Sol
Parking space prices depend heavily on location:
- Inland towns: 8,000 to 15,000 EUR per space
- Coastal residential areas: 15,000 to 30,000 EUR
- Town centres (Malaga, Marbella): 25,000 to 50,000 EUR
- Premium locations (Puerto Banus, beachfront): 40,000 to 80,000 EUR
- Enclosed garages: Add 30 to 50% to the above prices
Rental Yields
This is where garages shine. Monthly rental rates in popular areas range from 80 to 200 EUR. On a 20,000 EUR parking space rented at 120 EUR per month, that is a gross yield of 7.2%. This comfortably outperforms most residential property in terms of yield percentage.
In Malaga city centre, demand for parking is constant. Waiting lists for garage rentals in some buildings are months long.
Tax Considerations
When buying a garage separately from a property (not as an annex), the transfer tax differs:
- Linked to a property purchase: 7% ITP (same as the property)
- Standalone purchase (resale): 7% ITP in Andalusia
- New build garage: 21% IVA (not the reduced 10% rate that applies to homes)
The 21% VAT on new build garages is a key consideration. It makes resale garages significantly more attractive from a tax perspective.
Practical Tips
- Buy in areas with high parking demand: old town centres, beachfront zones and areas with narrow streets.
- Check the space dimensions. Some older garages are too small for modern SUVs and large cars.
- Verify that the garage has its own separate property deed (escritura). Some are registered as annexes to apartments.
- Consider buying two adjacent spaces for higher rental appeal or to accommodate larger vehicles.
Costs and Fees
Purchase costs follow the same structure as residential property: transfer tax, notary fees, registry fees and lawyer fees. On a 25,000 EUR garage, expect around 2,500 to 3,000 EUR in total purchase costs. Use our free calculator to estimate your total costs for any property type, including garages.