Is Spain right for your strategy?
Lifestyle, diversified rentals and long-term growth
Calculate with your own budget
Enter the planned property price to estimate acquisition costs, gross rent and recurring ownership costs.
Financing for foreign buyers
Non-resident mortgages are available; lower loan-to-value and stronger documentation are typical.
Tax position
Rental income and capital gains are taxable; non-resident treatment depends on residence and treaty position.
Buyer costs at a €1m reference price: €80k–€140k
This common price is used only to compare countries consistently. It is not a minimum or recommended investment amount.
Resale transfer tax varies by autonomous region; estimate includes legal, notary and registration costs.
Markets to compare within Spain
Madrid
Year-round rental depth and liquidity
Barcelona
High demand with tighter regulation
Marbella & Málaga
Prime lifestyle and international demand
Valencia
Value and long-term rental demand
Alicante
Accessible coastal investment
Positive but selective
Opportunity
International demand remains broad across major cities and established coastal markets.
Primary watchpoint
Local short-let rules and transaction taxes differ materially by region and municipality.
Sources and data status
Reference period: latest published 2025–2026 official and established market data available at review. Last editorial verification: 28 September 2026.
Transaction-specific figures must be confirmed with the relevant authority and an independent local adviser before commitment.
2026 snapshot
- Indicative gross long-term yield: 4–7%
- Typical buyer costs: approximately 8–14% of the purchase price
- Foreign-buyer activity: approximately 97,300 transactions in 2025; around 13.8% of registered sales
- Short-term rental position: permitted only where regional, municipal and building rules allow it; restrictions are increasing
- Property-linked residence: no; Spain closed its investor visa programme to new applications on 3 April 2025
Main investment locations
- Madrid: deep long-term rental market and capital-growth focus
- Costa del Sol / Marbella: luxury, lifestyle and international demand
- Costa Blanca / Alicante: high foreign-buyer concentration and broader entry prices
- Barcelona: strong demand but severe tourist-rental restrictions
- Balearic Islands: premium prices, limited supply and strict regulation
- Canary Islands: year-round tourism with island-specific rules
Who can buy?
EU/EEA and non-EU citizens can generally buy residential property. Buyers need a Spanish foreigner identification number (NIE), proof of funds and appropriate anti-money-laundering documentation. Special rules can apply to military or protected zones and rural land. Ownership does not create a right of residence.
Purchase and ownership costs
Resale transfer tax is set regionally and is commonly progressive. New homes normally carry VAT plus stamp duty. Buyers should also budget for notary, land registry, legal representation, valuation and mortgage costs. Seller-paid agency commission is commonly around 3–6%, but the contract must be checked. Ongoing costs include municipal property tax (IBI), community charges, insurance, utilities and non-resident tax filings.
Renting and short-term letting
Long-term letting is widely available but tenancy law is protective and rent controls may apply in declared pressure zones. Holiday letting requires the correct regional and local authorisation. Barcelona plans to phase out tourist-flat licences by 2028, while Madrid, Málaga, Palma and other destinations apply additional constraints. Building communities can also restrict new tourist lets. Never buy on the assumption that an existing listing-platform presence proves legality.
Key risks
Licence uncertainty, illegal alterations, community debt, coastal restrictions, off-plan guarantees and changing tax proposals require careful due diligence. Spain’s proposed additional tax on some non-EU non-resident purchases had not become law by September 2026.
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Method: calculations assume an individual cash buyer acquiring a resale residential property, without mortgage, renovation or buyer-specific relief. Figures are indicative planning ranges, not quotations or promised returns. Read the methodology →