Buying Commercial Property in Galicia: Yields, Licences and Opportunities 2025
Types of commercial premises and their yields
The commercial property market in Galicia offers diverse opportunities for investors seeking rental returns. The most common types are street-level shops, restaurants and bars, offices, industrial units and mixed-use premises. Each has a different yield, risk and management profile.
| Property type | Gross yield | Net yield | Average occupancy | Default risk |
|---|---|---|---|---|
| High street shop | 5.0-7.0% | 3.5-5.0% | 92% | Low |
| Restaurant/bar | 6.5-9.0% | 4.5-6.5% | 85% | Medium |
| Office | 4.5-6.5% | 3.0-4.5% | 88% | Low |
| Industrial unit | 5.5-8.0% | 4.0-6.0% | 90% | Low |
| Shopping centre unit | 4.0-6.0% | 2.5-4.0% | 94% | Low |
Fact: Hospitality premises offer the highest yields but also the highest tenant turnover. In Galicia, 35% of hospitality businesses close within the first two years.
Commercial property prices by area
| Area | Main street price/m² | Secondary area price/m² | Average yield | Liquidity |
|---|---|---|---|---|
| A Coruña centre | 3,000-5,000 € | 1,800-2,800 € | 5.0-6.5% | High |
| Santiago centre | 2,800-4,500 € | 1,500-2,500 € | 5.5-7.0% | High |
| Vigo centre | 2,500-4,200 € | 1,400-2,200 € | 5.5-7.5% | High |
| Pontevedra centre | 1,800-3,000 € | 1,000-1,800 € | 6.0-7.5% | Medium |
| Costa da Morte (Cee) | 800-1,500 € | 400-800 € | 5.5-7.5% | Low |
Activity licences and urban planning requirements
Every commercial premises in Galicia needs an activity licence (licencia de actividad) from the local council. Types include: prior notification for innocuous activities (1-2 weeks, 100-300 €), full activity licence for classified activities (2-6 months, 500-3,000 € plus technical project), and responsible declaration for minor changes.
Taxation for commercial property investors
| Tax concept | Spanish tax resident | Non-resident (EU) | Non-resident (non-EU) |
|---|---|---|---|
| Income tax rate | 19-28% (IRPF bands) | 19% | 24% |
| Expense deductions | Yes (extensive) | No (flat rate) | No (flat rate) |
| IBI (property tax) | 0.4-1.1% cadastral value | Same | Same |
Areas with the greatest investment potential
- A Coruña - Paseo Marítimo: Expanding area. 2,000-3,500 €/m², 5.0-6.5% yield
- Santiago - San Lázaro: Transforming. 1,500-2,500 €/m², 5.5-7.0% yield
- Vigo - Areal: Consolidated commercial area. 2,500-4,200 €/m²
- Cee centre: Costa da Morte gateway. 800-1,500 €/m², 5.5-7.5% yield, high appreciation potential
- Corcubión old town: Historic site. 600-1,200 €/m², ideal for boutique hotel or restaurant
Commercial lease contract essentials
- Minimum duration: 1 year (freely negotiable)
- Deposit: 2 months' rent (deposited with the Xunta)
- Rent review: freely agreed (CPI or fixed percentage)
- Works: tenant may carry out works with owner's authorisation
Checklist for buying commercial premises
- Land Registry nota simple: ownership, charges and encumbrances
- Valid activity licence compatible with intended use
- Energy performance certificate
- Council urban planning report on permitted uses
- If tenanted: current lease, rent payments, deposited deposit
- No-debt certificate from community of owners
- IBI receipt current and cadastral reference
- Installation inspection: electrical, plumbing, gas, structure
- Commercial viability study: footfall, competition, parking
Written by Cristina Vázquez
Real estate agent in Corcubión with over 10 years of experience in the Costa da Morte market.
Contact Cristina →
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