Guide to Buying Property in Spain in 2025: 9 Essential Steps

The Spanish property market remains resilient, with a forecasted price increase of 5-6% in 2025. The highest demand continues in coastal areas, major cities, and secondary urban centers.

• Coastal areas: The Costa del Sol, Costa Blanca, and Costa Brava remain hotspots, especially for foreign buyers. These areas attract tourists and retirees, ensuring a high demand for holiday rentals.
• Luxury markets: The Balearic Islands (Mallorca, Ibiza) command premium prices, exceeding €3,600/m². Demand is driven by high-net-worth buyers, but taxation (11-13% for properties over €1M) can be a consideration.
• Major cities: Madrid and Barcelona continue to grow, with Madrid reaching an average price of €3,550/m². Rental laws in Barcelona are stricter, impacting short-term rental investments.
• Emerging secondary cities: Cities like Valencia, Málaga, and Bilbao offer excellent quality of life and affordability compared to Madrid and Barcelona. Infrastructure improvements and growing job markets make these cities increasingly attractive.

International buyers continue to play a crucial role, representing over 20% of total transactions. British, German, French, and Scandinavian buyers remain the most active. However, Spain is discussing potential restrictions on foreign property purchases, which may affect future buyers.

When budgeting, buyers must consider:

• Property price
• Taxes and fees (10-15% of property price, depending on the region and property type)
• Mortgage costs (if applicable)
• Ongoing expenses (property taxes, utilities, maintenance, etc.)

Both residents and non-residents can apply for Spanish mortgages, but terms vary:

• Interest rates: As of 2025, mortgage rates average 3-4% for fixed-rate loans and 3.9%+ for variable rates (linked to Euribor).
• Pre-approval: Obtaining a mortgage pre-approval strengthens your offer. Lenders assess your income, debts, and credit history before determining eligibility.
• Currency exchange: If buying from abroad, consider a currency specialist to mitigate exchange rate fluctuations.

• Location: City, coastal, rural, or suburban?
• Property Type: Apartment, villa, townhouse, finca, or new build?
• Intended Use: Holiday home, permanent residence, or rental investment?

Use online portals such as:

• Idealista – The largest real estate platform in Spain.
• Fotocasa – Popular for local listings.
• Kyero – Geared toward foreign buyers.
• Rightmove Overseas – UK-based site listing Spanish properties.

Additionally, work with local real estate agents for access to off-market properties and expert insights.

A qualified property lawyer (abogado) ensures a smooth transaction by:
✔ Checking the Nota Simple (Land Registry extract) to verify ownership.
✔ Ensuring the property has no outstanding debts or legal issues.
✔ Reviewing contracts before signing any agreements.

All foreign buyers need an NIE number for tax purposes. Apply at a Spanish police station or consulate abroad.

For rural or renovated properties, verify that all building permits are in order. Ensure water, electricity, and internet connections are legally registered.

• Most properties sell below the asking price – expect to negotiate.
• A 10% discount is common in slower markets, while competitive areas may allow little negotiation.

• Typically 10% of the property price is paid as a good-faith deposit.
• If the buyer pulls out, they lose their deposit. If the seller withdraws, they must return double the deposit.

• Sign the Escritura (Deed) at the Notary
• Pay the remaining balance (usually via a Spanish bank cheque).
• Receive the keys and all legal documents.

• Register the property at the Land Registry.
• Update utility accounts (electricity, water, internet, etc.).
• Set up direct debits for taxes and community fees.

Owning property does not grant automatic residency. Non-EU buyers must apply for:
✔ Non-Lucrative Visa – For retirees and those with passive income.
✔ Digital Nomad Visa – For remote workers earning from outside Spain.

• The Golden Visa (for €500K+ property buyers) is being phased out in 2025.
• Buyers should explore alternative visa options if planning long-term stays.

• Spain is considering a ban or higher taxes on non-EU, non-resident buyers.
• Keep updated on policy changes that may affect eligibility.

Buying property in Spain in 2025 is an exciting opportunity but requires careful planning and legal diligence. By following these nine steps, you can ensure a secure investment and a smooth purchasing process.

Whether for a holiday retreat, investment, or permanent move, Spain continues to offer diverse and rewarding real estate options. If you plan to buy, consult real estate professionals and stay informed about market trends and legal requirements.

🔹 Thinking of buying in Spain? Start with research, secure financing, and get expert legal guidance to make your Spanish property dream a reality.