Natalie For the best places to buy property in Spain, expect a large choice of Spanish towns, cities, and coastal resorts that bring something unique to international real estate markets. With buyers coming from many European countries, including British, German, Italian, French, Romanian, Belgian, and Swedish nationalities, Spain’s housing market revolves all year round.
Madrid, the largest city, often does well with those looking for job opportunities, while retirees and wannabe holiday homeowners like the coastal resorts, rural towns of the mainland, and places like the Canary Islands. Indeed, your decision on foreign property ownership will depend on your lifestyle preferences and budget. But below, we list popular choices and why they stand out.
Best Places to Buy Property in Spain
1: Alicante Region: Most Popular Place
Coming in at first place, Alicante, whose name translates into “city of lights,” is a popular place for foreign buyers and digital nomads. Sitting on Spain’s south-eastern coastline, the palm tree boulevards, stunning beaches, and blended modern and traditional influences are hard to ignore. According to official statistics, 15% of the population are foreigners belonging to the famous Costa Blanca. This region has 200 kilometres of sandy beaches and hidden coves and authentic lifestyles.
Buying a house in Alicante’s city centre means tapping into an outdoor lifestyle and that all-important dreamy climate. The diversity of leisure activities suits everyone, young and old. Think of 18 world-class golf courses, surfing, jet skiing, and other water sports. But despite the onslaught of modern life, heritage still exists in Alicante’s old town, and the harbour hosts various seafood restaurants serving time-honoured dishes.
Notable beaches include Playa Del Postiguet, San Juan, and Albufereta, and a reliable public transport system runs between them all. Perhaps the biggest lure for British house buyers is that Alicante is easy to get to. The transfer time from the airport to the city centre is just 30 minutes, making this, the perfect year-round destination.
2: Andalusia and the Costal Del Sol
This autonomous community is second on the list of popular destinations. Covering the entire southern tip, hot summers explain the reputation as an ideal beach holiday place. Still, second to tourism, the strong fishing industry is also vital.
The Mediterranean Costa Del Sol is famous for Blue-Flag beaches. As a tourism hub, renowned seaside resorts include Nerja, Torremolinos, and Marbella. Fuengirola attracts attention thanks to the international school and San Pedro de Alcantara area, which offer competitive pricing.
However, look to city life in Seville and Malaga for an urban lifestyle Malaga. These beautiful cities have excellent shopping, nightlife, arts, and cultural scenes. Otherwise, go to Cordoba and Jaen inland to get off the beaten track.
Property markets throughout the Andalusia province and favourite cities for foreigners are solid, and annual returns are decent. However, check local regulations and restrictions before considering rental properties for sale.
3: Murcia: Best for Budget Buyers
When analysing national average prices, Spain is proving a worthwhile contender for cheap property. Rural inland communities present the lowest prices per square metre, but there are various options in the Spanish property market.
Murcia, home to Mar Menor saltwater Lake, is famed for its excellent tapas. Neighbourhoods like San Pedro del Pinatar and Mil Palmeras are a short walk from sandy beaches of the south-eastern coastline. Even though the region has 250 kilometres of beaches called the Costa Calida, it escapes the hordes and masses regarding tourism.
La Manga del Mar Menor, San Pedro del Pinatar, Cartagena, and Mazarron are gorgeous beachside destinations. Other major regional tourist destinations include Archena, Caravaca de la Cruz, La Union, Lorca, Los Alcazares, and the city centre, which all have the same name.
4: Andalusia and Valencia Regions for Rental Property
As the world’s second most popular tourist destination, buy-to-let investors often turn to the market, hoping to make money through rental prices and investment property. The Catalonia region, including high-profile places like the Costa Brava, is a famous coastal region for rental income but commands high prices per square meter. Instead, buyers seek affordable properties in the Andalusia and Valencia regions, easily accessible via the airport to several tourist destinations.
Tip: Investigate the finer details if buying a rental home with a mortgage. Check that mortgage payments align with average rents and consider potential guest profiles. A small city apartment won’t appeal to large families looking for facilities to entertain kids. Marketing skills need to be top-notch, including maintenance, upkeep, legal fees, and paying taxes.
5: Valencia For Gorgeous Beachfront Destinations
When buyers approach us, most want beachfront property, whether purchasing a holiday home or having retirement plans to move to Spain. The good news is that Spain’s coastline destinations make a beach-side lifestyle the norm. However, 5000 miles of coastline and 550 blue-flag beaches make the choice mind-boggling, so where should you look?
The northern La Concha beach is the most famous, but that means compromising on the gorgeous weather. Instead, the highest concentration of blue-flag beaches are in in Valencia, Galicia, Catalonia, Andalusia, and the Balearic Islands. Famous beaches in Valencia include La Malvarrosa, El Saler, Port Saplaya, Sagunto, and Cullera. Another prominent place for budget hunters is Grant Alacant. As foreigners have moved away from main tourist hubs in recent years, the area has grown yet is still close to facilities like the airport.
The region consists of 25 small neighbourhoods between Santa Pola and Alicante, and building restrictions prevent tall skyscrapers from being built. Areas around the blue-flag destinations of Carabassi Playa and Playas De Elche are also prime for beachfront homes and average property prices.
6: Costa Blanca for Golfing
Golf is a top leisure sport, and the housing industry has sprung up around it. World-class championship courses and an ideal climate make Spain a golfer’s haven and perfect for investment. Three top golf areas are the Costa Blanca and Costa Del Sol, and in recent years, Murcia has upped its profile. Gorgeous beaches and water sports intersect with championship golf courses. Many large housing complexes built nearby include social facilities like swimming pools, gyms, and beautiful scenery.
El Soto, La Cala Golf Resort, and Santa Maria courses are attractive options for European neighbours. Built with Mediterranean architecture, the homes feature large terraces for alfresco-style dining. To be near golf courses, but for other features, consider Javea old town district. While Benidorm, a time-honoured British expat community, specialises in water sports and nightlife.
7: Lesser-Known Costa Dorada
Although not as well known, Costa Dorada offers a beach life and a relaxed lifestyle. Belonging to Spain’s Catalonia region, southwest of Barcelona, expats still have the sunny climate and investment options. Over the last five years, the area has shown exponential growth, yet it isn’t the first choice, making it ideal for those who want traditional influences away from most foreigners.
Look at Cunit, Calafell, Comarruga and Tamarit for affordable options and beautiful beaches. All offer a dream lifestyle on the Northeast Coast instead of the South. This is an ideal destination for people looking to get away from the popular foreign hotspots and aren’t bothered about rental profitability.
8: Puerto Banus for Luxurious property
If average costs aren’t your concern, and you instead want to know about desirable destinations, look first at Puerto Banus, which has a select community of owners. As the pride of this beautiful country, the house prices and coastal villas are enough to make you blink twice, but to understand the appeal, this is a favourite haunt of international celebrities. The luxury property here matches the shopping, nightlife and entertainment scenes. Known as high-end real estate investing, even Saudi Royalty drops from time to time.
9: Delightful Villamartin
Villamartin belongs to the Costa Blanca and offers a small traditional village with central squares and narrow streets filled with colourful flower pots. With good transport links to places like Alicante City and Torrevieja, Villamartin is an alternative to less crowded places. Covering 210 square meters, the area belongs to the Orihuela region and brings worldwide golfers. There are two 18-hole golf courses, including Club de Golf Villamartin and the newer Las Ramblas de Orihuela. With just an hour’s transfer from Alicante airport, Villa Martin is attracting more attention by the month.
What about the Balearic Islands?
Although not as popular as mainland Spain, some people opt for the Canary or Balearic Islands instead, with the latter attracting more attention. It is easy to access any of these islands from the mainland of Spain. Flights are active throughout summer, but only Mallorca is connected during winter. Otherwise, the inter-island ferries connect locals with the mainland.
Divided into Gimnesias in the North and Pitiusas in the South-West, four of the chief Islands—Menorca, Ibiza, Mallorca, and Formentera—sit in each corner of Spain. Each island has distinct characteristics.
- Menorca: Menorca, with its modern resorts, includes the capital town, Moa, which has one of the deepest harbours and a small port named Ciutadella. Menorca offers serene atmospheres, with meandering trails and ancient stone monuments.
- Ibiza: Ibiza is unique, but the capital town has an entire history. The island easily accommodates clubbers and people with a bohemian character. It is renowned for its nightlife scenes and boasts hidden coves and pine-clad hills.
- Mallorca: Mallorca, the best-known and most significant island, is mostly sunny, and consists of clichés, Palma resorts, and the east coast. Expect groups of old towns, coves, and Palma city, as well as dramatic cliffs and beautiful villages.
- Formentera: The smallest of the four, Formentera, is famed for its beaches but lacks cultural heritage. Known for the natural beauty and whitewashed houses, the islands suits those looking for quiet lives. (About the best Balearic Islands.)
Helpful tips on Knowing Where to Buy Property
Housing Types: Consider what type of home you want for investment potential. Spanish townhouses differ from villas and are ideal for middle-class retirees. Beachfront houses often cost more money simply because of their location, but many foreigners look at an apartment for sale. The choice is endless.
Extra Costs: Remember to factor in buying costs, especially if you’re getting a mortgage. We advise on annual property taxes and give all our customers a payment plan so they know what upfront costs to pay and when to pay them. The costs vary between new and resale homes. New properties include VAT and stamp duty called IVA & Actos Jurídicos Documentados. For resale homes, buyers pay Impuesto Sobre Transmisiones Patrimoniales and income tax if buying from a non-resident.
Annual Yield: Some people want to rent for a return on investment or to cover additional costs. However, remember that this is an entirely different endeavour, and fees range from licenses to income tax. For example, San Sebastian, near the French border, doesn’t rate highly for rental yields yet offers higher occupancy rates. Please speak to an agent if you want buy-to-let homes.
Costs of Living and Maintenance: Plan for future inflation for daily amenities and utilities. Properties require regular updating and maintenance. Either do it yourself or hire professionals. Home insurance is another thing to consider.
Return on Investment and Liquidity: While that rural country cottage might be your ideal home, the liquidity will make it hard to sell later. Stick to popular regions and major cities for short term investments. Remember older properties require modernisation and show less potential investment growth.
Avoid the Common Pitfalls
Tales of home purchases gone wrong are rare, but there are some things to know beforehand to minimise your stress and ensure a more straightforward process. Follow the guidelines and don’t cut corners, to be confident of a worthy purchase.
Property Tax: When declaring the tax value of properties, there are two prices: the valuation estimation and the market price. Buyers pay tax if the valuation is higher than the market price. Authorities can claim the difference later and add fines if you don’t.
Currency and Contracts: Currency fluctuations are crucial if your income is in a currency different from the Euro. This makes budgeting harder. Additionally, sometimes, buyers don’t sit down and read the contract. Check that you are not paying the costs or taxes that the seller should.
Complex Maintenance: When buying a villa or apartment in a complex, owners pay yearly maintenance fees to upkeep communal facilities. Failure to pay might result in court action. Make sure your lawyer checks that there are no maintenance debts.
Renovations: With older homes, there is a chance there has been an extension or renovation in the past, like the addition of swimming pools. Ensure your lawyer checks that the previous owners obtain a licence for this.
Rental Incomes: Real estate investors planning to generate tourism rent income should research regions because many places are saturated with short-term holiday lets. Also, find out if there are any local, regional, and country-wide restrictions on tourism.
Off-Plan Properties: The Spanish government introduced laws to protect purchasers of off-plan properties, so only use developers with bank guarantees.
NIE number and Bank Account: Get your NIE number first for a smoother purchase. (This is a foreign identification tax number.) Also, open a Spanish bank account for a paper trail of payments and costs and to pay future bills.
Investment Opportunities & Advice
To discuss investing in Spanish homes further, contact us to chat with a sales representative. As an established international agent, we guide buyers through the Spanish real estate industry. Also, see our wide range of homes for sale and fill in the enquiry form to receive details about any specific listing. Our off-plan construction appeals to investors, but we list new builds and resale homes in Spanish cities and coastal towns.
People Also Ask
Where in Spain are the cheapest properties?
Currently, records by Endeksa that track price per square meter across regions based on current house sales show that the cheapest places are Ciudad Real, Cuenca, Jaén, Ávila, Toledo, Teruel, Cáceres and Zamora in that order. However, do consider more than the increase in property prices when buying. For example, prices are lower in Northern Spain, but most foreigners buy in southern Spain. Additionally, due to age, property conditions and housing construction standards play a large part.
Can I live in Spain permanently if I buy a house?
The Spanish property buying and residency processes are separate from those in other countries. If you meet the criteria for Spanish residency, you can move to Spain permanently. There is also the Spanish residency through an investment program, nicknamed the golden visa, for permanent residency. Foreigners can only stay for three months—any time after this goes into the residency factor.
Our Spanish Area Guides: Our area guides discuss attractive destinations and why international buyers like them. Put together by our property experts to make a sound real estate investment, they can help you choose the best places to buy property in Spain.
