Purchasing a holiday home in Spain provides you with a delightful vacation spot, an opportunity to earn rental income, and the potential for property value appreciation, all while enjoying the country's favorable weather and vibrant culture. Explore our guide for the best places, prices, and considerations for non-residents purchasing property.
Buying a holiday home in Spain is growing in popularity, and it's easy to see why: living for three months a year in a sunny, relaxed place sounds ideal. Plus, renting out the property can make it a smart investment.
If you're contemplating this but are still weighing your location options, read on.
We've compiled information about the best places in Spain to invest in a holiday home.
Spain is a prime destination for holiday home buyers, particularly those from the UK, Germany, and Scandinavia.
In October 2023, there were big differences in house prices across different parts of Spain. In Alicante, the average price was 2,377 EUR for every m². In Barcelona, it was around 2,467 EUR. Málaga had the highest prices at 2,996 EUR.
However, the most pronounced price variations were witnessed in the Balearic Islands. Formentera showcased soaring prices at 8,439 EUR per m², contrasting with Petra, where prices averaged 1,556 EUR per m².
These differences are more pronounced in high-demand locations such as coastal areas, islands, and culturally rich cities, where premium prices are the norm.
Investing in a Spanish holiday home offers a convenient vacation spot, rental income, and an increase in property value in a location known for its culture and pleasant weather.
It also comes with ongoing costs, market and legal challenges, and the effort of managing properties.
However, renting out an apartment in popular tourist cities can offer stable income due to ongoing demand from expats and locals. If you’re interested in exploring more, continue reading everything you need when buying a property in Spain to let.
So, which is the best place to buy a holiday home in Spain?
Here’s a list of 5 of the most popular options, including helpful info on prices, pros and cons, and anything else you need to know.
Barcelona is a city where you can enjoy nature, eat tasty food, and experience different cultures. It's a tourist hotspot and offers an excellent environment for living and working.
However, it's also one of the most expensive places in Spain to buy property.
In October 2023, the most expensive houses for sale in Barcelona were in the Sarrià-Sant Gervasi area, costing an average of 5,314 EUR/m².
The cheapest ones were in the Nou Barris area, with prices averaging 2,465 EUR/m².
District | Price per m² |
---|---|
Gràcia | 4,482 EUR |
Sants-Montjuïc | 3,555 EUR |
Sant Andreu, La Sagrera, Navas, El Bon Pastor | 3,098 EUR |
Sant Martí | 3,865 EUR |
Ciutat Vella | 4,179 EUR |
Horta-Guinardó | 3,206 EUR |
Eixample | 4,708 EUR |
Les Corts, La Maternitat-Sant Ramon | 5,079 EUR |
✈️ Numerous UK and German airports offer several flights to Barcelona daily, making travel between these locations highly accessible and convenient. Similarly, big US cities like New York and Los Angeles have many flights to Barcelona.
Taxes in Spain vary based on property type. A 10% Value Added Tax (IVA) and a Stamp Duty between 0.5% - 2% apply for new properties bought directly from developers. A Transfer Tax (ITP) ranging from 6% to 10% is charged for second-hand properties, varying by region.
If you're considering buying a property in Barcelona for living or rental, continue reading a guide to find essential info to help kickstart your home-buying journey.
Madrid is a popular place to buy a holiday home, being lively, full of culture, centrally located in Spain, and offering a variety of property options. It's also a convenient base for exploring the country.
In October 2023, properties in the Chamberí area had the highest asking prices, averaging 6,083 EUR/m2 while the Villaverde area had the lowest, with prices averaging 1,924 EUR/m2.
District | Price per m² |
---|---|
Fuencarral-El Pardo | 3,871 EUR |
Villa de Vallecas | 2,638 EUR |
Salamanca | 6,058 EUR |
Puente de Vallecas | 2,199 EUR |
Moncloa-Aravaca | 4,307 EUR |
Usera | 2,281 EUR |
Ciudad Lineal | 3,338 EUR |
Vicálvaro | 2,645 EUR |
✈️ There are many flights from the UK, particularly from London to Madrid, available through various airline options—the same in Germany.
You’ll require an NIE—an identification for foreign buyers that serves as your tax number. Securing an NIE is mandatory for purchasing property or accessing a mortgage in Spain, as it enables local authorities to process your annual tax; without it, such transactions and processes cannot be completed.
Buying a holiday home in Madrid can be an excellent choice if it suits your budget and way of living, but it’s important to think about the high costs and talk to someone who knows the local market well.
Tenerife is the largest Canary Island and has many different places to visit, from beautiful natural spots to popular beach resorts. Costa Adeje and Playa de las Américas in the south are especially popular.
Plus, there are lower property prices compared to Madrid or Barcelona.
In October 2023, properties in the Centro-Ifara area of Santa Cruz de Tenerife had the highest listed prices, at 2,457 EUR/m2.
In contrast, the Ofra-Costa Sur area recorded the lowest average prices, at 1,199 EUR/m2.
District | Price per m² |
---|---|
Salud-La Salle | 1,950 EUR |
Suroeste | 1,388 EUR |
Área de Anaga | 1,471 EUR |
Puerto de la Cruz | 2,452 EUR |
San Sebastián de La Gomera | 2,002 EUR |
Tijarafe | 2,306 EUR |
✈️ Tenerife is a favored vacation spot for people from the UK, with many airlines providing a range of direct and connecting flights, including standard and budget-friendly options.
In Tenerife, buyers of second-hand properties are subject to a Property Transfer Tax (Impuesto de Transmisión Patrimonial), a set rate of 6.5%. This progressive tax typically ranges between 6.5% to 10% in other regions, depending on the property's value.
If you’re ready to buy a holiday home in Tenerife, continue reading a guide that covers the process, requirements, and tips to make an informed decision.
Mallorca draws numerous international buyers with its attractive property market, housing options, and quality of life, enhanced by a vibrant expat community.
Its easy accessibility from major European cities makes it a preferred location for holiday homes and permanent residences.
In October 2023, the average asking price for residential properties for sale was 4,125 EUR/m2, reflecting an increase of 22.88% compared to October 2022, when it was 3,357 EUR/m2.
District | Price per m² |
---|---|
Nord | 3,114 EUR |
Platja de Palma | 4,520 EUR |
Centre | 5,412 EUR |
Ponent | 4,891 EUR |
Llevant | 2,899 EUR |
✈️ Mallorca is well-connected to major European cities through regular flights, making it convenient for property owners to travel to and from the island.
Foreigners are welcome to buy property in Mallorca as Spain has an open real estate market that embraces international buyers. Continue reading to discover tips and steps for buying property in Mallorca as a non-resident.
Situated on Costa Blanca, Alicante is known for its beautiful beaches and rich history. It is also a popular spot for British citizens wanting to buy holiday homes in Spain.
In October 2023, properties in the province of Alicante had the highest asking price in Benissa, at 3,611 EUR/m2, while Tollos had the lowest, with an average of 294 EUR/m2.
District | Price per m² |
---|---|
Alicante - Alacant | 1,920 EUR |
Altea | 3,161 EUR |
Jávea - Xàbia | 3,478 EUR |
Torrevieja | 2,173 EUR |
Villajoyosa - La Vila Joiosa | 2,814 EUR |
If you're looking to buy a holiday home from abroad, Homevest can be a helpful solution, particularly if you're planning to acquire a property in Spain through a mortgage.
Homevest puts you in touch with leading banks in Spain that provide financing to non-residents. By consolidating documents in one place, you save time and can more easily request and compare bank offers from CaixaBank, Sabadell, Santander, Unicaja, or Cajasur.
It’s essential to note that in Spain, negotiating the mortgage interest rate is common, so having a comprehensive view of the current rates is essential to secure the best deal for you.
Stefan and Vivien, a German couple, decided to purchase a holiday home in Empuriabrava on the Costa Brava. After signing the initial purchase agreement, they encountered challenges dealing with two banks independently. Banks caused delays, and negotiations didn't progress well. That's when Homevest stepped in, securing the loan in just 6 weeks.
Homevest's role was to assist Stefan and Vivien in obtaining the best loan for their property investment. Stefan prioritized a rapid process, and we identified the most suitable bank to secure the most competitive deal in a short timeframe.
The customers saved nearly 3,000 EUR by negotiating a reduced commitment fee, not to mention the competitive interest rate margin of 0.95%, which will lead to long-term savings for the client. Continue reading the full case study on obtaining a mortgage in Spain from Germany.
Sabadell, CaixaBank, Santander, Unicaja, Cajasur, BBVA, Bankinter, and UCI offer loans to non-residents interested in buying a holiday home in Spain.
Below, you will find the key characteristics of the 8 banks discussed in this article:
Lender | Ideal for | Pro | Con |
---|---|---|---|
Sabadell | Non-residents desiring a quick, straightforward application process, without any administration or property registration fees | Homevest ranks Sabadell among the best deals for customers | Minimum property purchase of 150,000 EUR |
CaixaBank | Non-residents seeking competitive banking options | Attractive fixed-term offers; rates as low as 3.06% with bundled services | A 35% fixed debt ratio could limit eligibility for lower-income borrowers |
Santander | Non-residents purchasing property under 100,000 EUR | Mundo Mortgage: Flexible terms up to 20 years, minimum loan amount of 100,000 EUR | Generally higher costs compared to other banks |
Unicaja | Non-residents, including EU and US citizens and UK expats, seeking flexible lending | Entirely online, except for the notary office visit | Less competitive fixed-rate options for long-term mortgages |
Cajasur | Non-residents buying in Costa del Sol or Andalusia | Loans up to 1.000.000 EUR | Minimum property price of 120,000 EUR to qualify |
BBVA | Non-residents from eurozone countries | Mortgages from 100,000 to 2,000,000 EUR | Services are limited to earners in euros |
Bankinter | Non-residents earning at least 2,500 EUR monthly, seeking variable mortgages | Repayment up to 25 years | May lack competitiveness in specific loan categories, especially long-term |
UCI | Non-residents purchasing and renovating second-hand property | Covers purchase and up to 30% of renovation costs, disbursed progressively | Generally higher-priced offerings |
Keep reading to learn more about getting a mortgage in Spain, including requirements, interest rates, and info for non-resident buyers.
Sources used in November 2023:
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
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