Is Buying Property in Spain a Good Idea in 2026?

You know what struck me when I was looking for my own place in Spain? That most people get completely lost in photos of sun-drenched balconies with sea views — and totally overlook everything that happens before you sign on the dotted line. And there's quite a lot that happens. Taxes, notary fees, different types of market, mortgages for foreigners... So let's sit down with a coffee and talk about how it all really works.

Why Spain?

Let's start with the basics. My clients often ask whether Spain is just a trend — something that'll pass. The short answer is: no. Spain is the fourth largest economy in the European Union, accounting for 8.37% of EU GDP. This isn't an emerging market. It's stable, mature, and well-established.

Then there's tourism. Spain consistently ranks in the top 3 most visited countries in the world. Tourism accounts for an average of 11.8% of GDP — and that's no coincidence. In 2023, Spain welcomed 85 million tourists, 19% more than the year before. Those millions of people need somewhere to stay.

And that's exactly where the opportunity lies for property owners.

What do the numbers say?

The 2025 figures speak for themselves. The average price per square metre in the first quarter of 2025 reached 2,033 EUR/m². Property prices rose by an average of 10–12% compared to the previous year. In the province of Málaga — Costa del Sol — growth hit 13.8%, with prices reaching 3,842 EUR/m². In Marbella, the segment attracting more affluent buyers reached 5,258 EUR/m².

Forecasts for 2026? BBVA Research predicts growth of around 7% per year, CaixaBank Research estimates 6.3%, and Singular Bank points to a combined increase of up to 9% for the 2025–2026 period. These aren't speculative spikes. This is a solid, predictable trend.

How can you make money?

Buying property in Spain isn't just about having your own little piece of sunshine. It's a concrete financial model — and you've got several paths to choose from.

Holiday rentals

The most popular choice. Particularly on the Costa del Sol and Costa Blanca, properties close to the beach are in demand for most of the year — not just summer. Tourists from northern Europe come in winter and spring to escape the cold. Average net returns from short-term rentals are around 5–8% per year. A great option if you want to use the property a few times a year and earn from it the rest of the time.

Long-term rentals

If managing a constant stream of guests doesn't appeal to you, there's another way. Renting to a company or long-term corporate tenant gives you steady, regular income without getting involved in day-to-day operations. Calm cash flow, less stress.

Off-plan purchases

Properties under construction are cheaper than completed ones. The value grows at every stage — and peaks once the building is handed over. You buy early at a lower price and sell later. It requires patience — typically 1–2 years until completion — but for investors thinking long-term, it's a genuinely interesting option.

What does buying property in Spain actually cost?

I remember going through this myself — the moment I saw the full breakdown of costs and thought: "hang on, this isn't just the price in the listing." And that's exactly right. On top of the property price, there are purchase-related costs you really need to know about in advance.

Resale market

Property Transfer Tax (ITP): 6–10% of the value — depends on the region
Notary fees and Land Registry entry: around 1–2%
Legal fees (optional): a few hundred to a few thousand EUR

New build (from a developer)

VAT (IVA): 10% — 7% in the Canary Islands
Stamp Duty (AJD): 0.5–1.5% — depends on the region
Notary fees and Land Registry entry: around 1–2%

All in all — budget around 10–15% of the property value in additional purchase costs. It's not a nasty surprise if you know about it upfront.

Annual taxes for owners

Once you're an owner, there are two main ongoing obligations. The first is IBI — the local property tax paid to the municipality. The amount depends on the cadastral value, which is usually lower than the market value. Typically you're looking at around 300–1,500 EUR per year, depending on size and location.

The second is IRNR — the non-resident income tax. If you don't live in Spain permanently, you'll either declare a notional income (around 1.1–2% of the cadastral value per year) or your actual rental income.

Financing — you don't need to have it all upfront

Foreigners can get a mortgage in Spain. The typical deposit required is 30–40%. For new builds, developers often offer flexible payment plans, which can be a convenient alternative.

One important change you need to know about: the Golden Visa programme — which allowed residency through property purchases of at least 500,000 EUR — came to an end on 3 April 2025. New applications are no longer accepted. But if you're a citizen of Poland or another EU country, you don't need a Golden Visa anyway. You can buy property and live in Spain under the standard rules that apply to EU citizens.

💬 Got questions? Message Kasia on WhatsApp — she'll get back to you quickly, no strings attached.

What do you get when you work with me?

My clients often say the biggest relief was knowing that someone was handling all the moving pieces for them — and speaking their language. That's exactly what I aim to give you.

Before the purchase, we work out together what you're looking for and what genuinely makes sense for your situation. My team checks the legal status of the property, its legal history, and that all documentation is in order. All contracts and formalities come with full legal support.

After the purchase, I help with opening a bank account, getting your NIE (tax identification number), and setting up utilities. If you'd like — we also handle interior design and furnishing. For off-plan purchases, we monitor the build throughout.

And if you want your property to earn money — we manage short- or long-term rentals, cleaning, financial reports, and tax returns. We look after your home when you're not there.

You have direct access to me the whole time. You can message, call, ask anything.

Is now a good time?

The property market has its cycles — but experts suggest that 2025–2026 is a strong window for buyers with available capital. Limited supply of new homes, strong demand from international buyers, and steady price growth all point to solid fundamentals. No speculative spikes, no bubble.

The right time to buy isn't a date on the calendar. It's the moment when you have a clear goal, a stable financial situation, and a place you genuinely love.

Are you buying to live in? To earn from rentals? Thinking about retiring in the sun? All of that shapes what to look for and where.