Property Market Trends for Foreign Buyers in Spain (Updated 2025)

Spain’s real estate market remains a global hotspot for foreign buyers in 2025—driven by lifestyle appeal, solid investment fundamentals, and evolving regional dynamics. This comprehensive guide explores key trends, regional insights, spending behavior, and growth forecasts to help foreign property owners and investors make informed decisions.

 

Strong Demand from Foreign Buyers Persists

  • 2024 saw a new high: Overseas buyers accounted for 139,102 transactions, up 6% year-on-year, marking one of the best performances ever Spanish Property Insight.
  • Foreign buyers now make up about 20% of the market, slightly down from the 21% peak but still historically strong
  • In the decade since 2015, over 1.07 million international buyers have entered the market, a substantial increase

 

Coastal Concentration & Regional Hotspots

  • Five Mediterranean regions (Cataluña, Valencia, Murcia, Andalucía, Balearic Islands) plus the Canary Islands attracted 82% of foreign purchases in 2024.
  • Andalucía alone had 25,578 foreign buyers in 2024—a 38% surge—mostly in coastal provinces like Málaga, Cádiz, Granada, and Almería.
  • Málaga province remains the top draw, with hotspots including Marbella, Estepona, and Benahavís dominating the regional foreign market.
  • Balearic Islands also remain premium: Q2 2025 saw 28.4% of purchases by foreigners, one of the highest regional shares Fine & Country.

 

Foreign Buyers Spend More — Often Much More

  • Across Spain, foreign buyers paid an average of €2,306/m², a 37.7% premium over domestic buyers (€1,686/m²).
  • Non-resident foreign buyers spend even more, averaging €2,966/m²—76% above the domestic average.
  • In Andalucía, foreign buyer prices averaged €2,515/m²—an 11.7% increase from 2023.

 

Stabilizing Prices & Forecast Growth

  • Q2 2025 saw Spain’s property prices climb 9.8% y-o-y, with a 2.6% quarterly gain and a strong mortgage market comeback.
  • Forecasts expect growth to continue: Fitch projects +4–6% in 2025; CaixaBank sees up to +9–10% in certain markets TS2 Space.
  • There’s a shift from pandemic-level frenzy to more balanced market conditions, supported by improving mortgage terms and tighter supply.

 

Why Foreign Buyers Keep Choosing Spain

  • Lifestyle advantages: climate, safety, gastronomy, and consistent expat satisfaction.
  • A shift toward residency-driven purchases: 40% of British buyers now settle in Spain rather than just owning a second home.
  • Sustainability and technology are enhancing appeal: energy-efficient homes and digital buying platforms drive interest, particularly from Northern Europeans Spain Homes.

 

What It Means for Taxadora Clients

Opportunity

Insight

Long-Term Residences

More foreign buyers are becoming residents—impacting taxes like IRNR and capital gains.

High-Value Transactions

Elevated spend per square meter underscores importance of correct tax filings (Modelo 210, 714).

Regional Focus

Coastal markets find higher demand and prices—vital for valuation and tax calculations.

Growing Market

Continued price increases and demand confirm property retains investment value.

 

Final Thoughts

Spain’s property market remains hot for foreign buyers, with growing numbers, rising prices, and resilient demand in top regions. Coastal areas like Andalucía and the Balearic Islands are clear favourites, with overseas buyers paying significantly more than domestic buyers. The market is expected to remain strong throughout 2025, offering both lifestyle rewards and investment potential.

At Taxadora, we help navigate these trends by ensuring accurate property valuation, tax compliance, and strategic planning for non-resident owners.

👉 If you own a property in Spain, contact Taxadora today to make sure you are compliant with all relevant taxes.

 

vilho

Article written by Vilho Heiskanen

Expert in international taxation for private individuals. He combines deep advisory experience with a passion for building technology that simplifies the complexities of Spanish tax compliance. As the founder of Taxadora, he’s on a mission to modernize cross-border taxation with smart, accessible solutions.

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