Is it worth buying a holiday home in Spain as a UK citizen?

Considering buying a holiday home in Spain to escape to during the cold season or whenever you feel like it? 

Explore the property market, and potential opportunities, and discover if it's an investment worth your money. 

Keep reading as we offer insights for UK citizens to guide their decision-making of investing in Spain.

What's the property market like when buying a holiday home in Spain?

Buying a holiday home in Spain offers both opportunities and challenges, depending on the location and market trends. 

Despite prevailing economic uncertainties, key locations such as Costa Blanca, Costa Cálida, and Costa del Sol stand out as reliable investment havens. Given their prolonged tourist seasons, these regions are particularly enticing for those eyeing rental properties. 

The Spanish real estate market is expected to grow by 5.5% in 2025, outpacing the country's 2.1% economic growth. This expansion is fueled by declining mortgage rates, making financing more affordable.

Currently at 3.5%, CaixaBank estimates that the Eurozone interest rate equilibrium will settle between 2% and 2.25%. The ECB reducing rates will directly impact the housing market by increasing demand, transactions, and property prices.

Property prices in the UK vs. Spain 

Property prices in Spain are generally more affordable than in many UK cities, making it an attractive option for a diverse range of buyers. 

On average, the prices for an apartment in the UK are up to 50% more expensive than an apartment in Spain, depending on the location and the proximity to the city center.

For a clearer perspective, let's compare property prices between major UK cities and Spain.

Best places to buy a holiday home in Spain

Wondering about the best vacation spots in Spain to buy a house? 

We've compiled a list of 5 locations along with some tips about each one of them. 

#1. Alicante

With its warm and sunny climate, Alicante is a favorite among UK citizens, making it more appealing than many European destinations. This city hosts one of the most substantial British communities, with 300,000 members.

British expats have long favored Benidorm and Torrevieja, a trend likely influenced by the excellent flight connections linking these towns to the UK.

🏠 As of October 2024, Benidorm's average residential property asking price reached 3,129 EUR/m², reflecting a significant 6.90% growth compared to December 2023 (2,927 EUR/m²).

Meanwhile, in Torrevieja, the average residential property was priced at 2,251 EUR/m², showing a 2.88% increase from December 2023's 2,188 EUR/m².

#2. Ibiza

If you have a very active lifestyle and are interested in vibrant nightlife, Ibiza is a great place for fun. Its excellent connectivity to the UK and diverse real estate options make it an even more appealing choice.

British citizens may soon be able to extend the duration of their stay, as the Spanish government has advocated for the removal of the post-Brexit 90-day limit in EU countries. 

🏠 In Ocotber 2024, Ibiza's Marina Botafoch-Platja de Talamanca area area had the highest property asking price at 7,765 EUR/m², while Ses Figueretes-Platja d'en Bossa-Cas Serres had the lowest at 6,016 EUR/m².

#3. Malaga

Compared to many European cities, Malaga stands out with its affordable living and diverse property options, from beachfront apartments to traditional Andalusian homes, offering a rich culinary experience highlighted by its Andalusian cuisine, tapas bars, and fresh seafood.

The city's excellent connectivity to the UK and a well-established British expat community make it even more attractive.

🏠 In October 2024, the average listing price for residential properties in Malaga was 3,656 EUR/m², reflecting a 15.48% increase from December 2023's 3,166 EUR/m2.

#4. Canary Islands

The Canary Islands attract British property buyers with their beautiful beaches, and potential for rental income. The islands' affordability and well-established British expat community make them a favorable choice.

Property prices in Tenerife are more affordable than in Madrid or Barcelona, making it an attractive investment, especially given its popularity as a vacation destination and the tax benefits for rental income.

🏠 In October 2024, properties in the Canarias region had the highest asking price in the province of Santa Cruz de Tenerife at 3,338 EUR/m². In contrast, the province of Las Palmas had the lowest average price at 2,409 EUR/m².

#5. Barcelona

Even though Barcelona is among the places with the most expensive properties to buy in Spain, the price per m² for an apartment in Barcelona can be up to 200% cheaper than in London, depending on its location inside or outside the city center.

Barcelona offers a diverse property market, from chic city center apartments to historic homes in the Gothic Quarter, catering to various preferences and budgets. As a hub for startups and global businesses, the city is an ideal relocation choice for those seeking career opportunities and pleasant weather.

🏠In the last two years, property prices in Barcelona peaked in October 2024 at 4,168 EUR/m². Conversely, the lowest average asking price was in January 2024, at 3,907 EUR/m².

If you're still weighing your location options, continue reading a guide with the best places for a holiday home in Spain, prices, and considerations for non-residents purchasing property. 

Pitfalls of buying property in Spain

When considering buying a property in Spain, it's essential to be aware of potential pitfalls to avoid scams or issues during the purchase process.

• Choose a realtor associated with a reputable organization, like the API Association of Spanish Realtors.
• Hire an English-speaking lawyer who is well-versed in Spanish property regulations.
• Always conduct a property survey; it can uncover construction issues, saving you from costly repairs.
• Be aware of local rental regulations and licensing requirements if you're considering renting out the property when you're not using it.
• Familiarize yourself with the updated regulations regarding visa-free stays in Spain, as the UK is no longer part of the EU.

Is it hard to get a mortgage in Spain as a UK citizen?

Even if the UK is no longer part of the EU, you can obtain a mortgage just like before Brexit. 

It might be complex, with different requirements, but the process is similar for UK citizens as it is for EU citizens. You must meet the requirements set by banks and demonstrate that you have a stable income that allows you to repay the loan within the agreed-upon time between you and the bank. 

If you're interested in securing financing to buy a holiday home in Spain, read how to get a mortgage as a UK citizen to understand the process and prepare everything you need. 

Compare Spanish mortgage offers directly from the UK 

Santander, Sabadell, Caixa, Cajasur, and Bankinter are top Spanish banks providing mortgages to individuals earning in GBP. 

The good news is that you can request offers from these banks through Homevest directly from the UK. 

Homevest is a digital service that works with licensed brokers to help customers apply for mortgages in Spain. It connects applicants with dedicated brokers who guide them through the mortgage application process, ensuring they secure the best deals available.

What should you know about buying property in Spain after Brexit?

While British citizens can continue buying properties in Spain and secure a mortgage, certain aspects have shifted following the UK's exit from the EU. 

These changes include:

• Post-Brexit, UK citizens are treated as non-EU citizens. This means you can stay in Spain for up to 90 days in any 180 days period without a visa. Staying longer requires a visa or residency permit.
• If you purchase a property in Spain with the intent to rent it out, you'll be subject to a 24% tax on rental income, with no allowance for expense deductions.

Beyond the purchase price, UK citizens should be aware of ongoing costs like property taxes, utility bills, and potential increases in these costs for non-EU residents. 

Is it worth buying a holiday home in Spain?

Owning a holiday home in Spain provides the benefits of a warm climate, rich culture, and potential rental income. However, it also comes with challenges, like maintenance costs and fluctuating property values.

Ultimately, the decision is yours.

Keep in mind that there are solutions to facilitate a seamless home-buying journey from the UK. For instance, Homevest can assist you in exploring competitive mortgage offers from top Spanish banks.

Sources used and checked in January 2025:

1. The Spanish real estate market in 2024-2025
2. Property prices comparison between the UK and Spain
3. Property prices comparison between London and Alicante
4. Property prices comparison between Manchester and Barcelona
5. Property prices comparison between Bristol and Malaga
6. Property prices comparison between Edinburgh and Ibiza
7. Property price data in Spain

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.