Spain remains one of the most attractive real estate destinations in Europe, thanks to its vibrant lifestyle, strong tourism economy, and Golden Visa program. In 2025, the Spanish property market continues to draw buyers from the EU, UK, US, Middle East, and Asia.

This comprehensive guide covers everything you need to know about buying and selling real estate in Spain in 2025: market trends, legal framework, property types, and which cities offer the best opportunities.

Who Can Buy Real Estate in Spain?

Spain has an open-door policy when it comes to property ownership:

• EU/EEA Citizens: No restrictions.

• Non-EU Citizens: Can freely purchase property.

• Golden Visa Investors: Eligible for residency with property investments over €500,000.

There is no nationality-based restriction on owning real estate in Spain. Even foreigners who don't reside in the country can buy.

Why Buy Property in Spain?

• Strong tourism rental market

• Affordable cost of living (compared to Northern Europe)

• Favorable climate and lifestyle

• Golden Visa opportunity

• Real estate-backed residency or retirement planning

Legal Framework for Buying Real Estate in Spain

Key Steps:

1. Get a NIE (Foreigner ID Number)

2. Hire a lawyer to conduct due diligence

3. Open a Spanish bank account

4. Reserve the property (pay deposit)

5. Sign the purchase agreement (Escritura) before a notary

6. Register with the Land Registry

Taxes & Fees (Approximate):

• Transfer Tax (Resale): 6–10% (depends on region)

• VAT (New builds): 10% + 1.5% stamp duty

• Notary & Registration: ~1% of purchase price

• Lawyer Fees: 1–2%

Annual Costs:

• Property tax (IBI): 0.4% to 1.1% of cadastral value

• Non-resident income tax (if renting): 19%

• Community fees (if applicable)

Can You Get a Mortgage as a Foreigner?

Yes, most Spanish banks offer mortgages to foreigners:

• Up to 70% LTV (Loan-to-Value)

• Interest rates in 2025: ~3.5% fixed, ~2.8% variable

• Proof of income, tax returns, and credit check required

Selling Real Estate in Spain

Foreigners can sell without restrictions. Sellers pay:

• Capital Gains Tax (19–23%)

• Plusvalia Tax (municipal tax on land value increase)

• Agent fees: ~5% (if using a real estate agency)

Who Is Spanish Real Estate Suitable For?

• Vacation home buyers: Especially in coastal and island areas

• Rental investors: High yields in cities like Barcelona and tourist zones

• Retirees: Seeking sun and relaxed lifestyle

• Digital nomads: Especially in Valencia and Malaga

• Families relocating: For international schools and lifestyle

Top Cities for Buying Property in Spain

1. Barcelona

• Urban lifestyle + beach access

• Strong rental market (mid- and long-term)

• International demand and limited supply

Popular Areas: Eixample, Gracia, El Born, Barceloneta

2. Madrid

• Capital city with strong economy

• Ideal for long-term investment and family living

Best Districts: Salamanca, Chamartin, Chamberi, Retiro

3. Valencia

• Great value for money

• Emerging digital nomad hub

• Beach + cultural city blend

Trending Areas: Ruzafa, El Carmen, City of Arts and Sciences

4. Malaga

• Coastal charm with airport access

• Thriving tech and startup scene

• Attracting remote workers and retirees

Top Zones: Centro Historico, La Malagueta, El Limonar

5. Marbella & Costa del Sol

• Luxury real estate hotspot

• Strong demand from UK, Middle East, and Scandinavian buyers

Premium Locations: Golden Mile, Puerto Banus, Nueva Andalucia

6. Alicante

• Affordable coastal living

• Growing international community

Good Picks: Playa San Juan, Albufereta, El Campello

Popular Property Types in Spain

• Apartments (new or resale)

• Villas (especially in coastal or rural areas)

• Townhouses

• New developments (with modern amenities)

• Renovation projects (popular among EU buyers)

Final Thoughts

Spain's real estate market remains one of Europe’s most attractive for both lifestyle and investment in 2025. With clear legal processes, favorable residency options, and a wide choice of cities and property types, it appeals to buyers of all backgrounds.

Whether you are seeking a rental investment, a second home, or a path to European residency, Spain offers the infrastructure, climate, and legal framework to support a long-term property strategy.

Buy smart, consult experts, and Spain can deliver sun, security, and steady returns.