Buying Property in Spain in 2026: Complete Guide for Foreign Buyers (Costs, Risks, Best Areas & ROI)

Investing in Spanish property is one of the most attractive real estate opportunities in Europe. 

Whether you are looking for a holiday home, a property to relocate to, or an investment property to rent out, Spain offers a unique combination of lifestyle, affordability, and strong rental demand.

Having moved to Spain in 2019, I have worked closely with buyers and investors across the Costa del Sol, including in Marbella, Benalmádena, Fuengirola, Torremolinos, Mijas, Estepona and Sotogrande. 

This guide is designed to provide you with a realistic, expert-level overview of the Spanish property market in 2026.

In this article, you’ll learn:

✅ How to buy property in Spain step-by-step

✅ Real costs, taxes, and hidden risks

✅ The best regions to invest in, with ROI logic

✅ Mortgage options for foreigners

✅ Common mistakes buyers make

✅ Expert tips for buyers in the Costa del Sol

Spain remains one of Europe’s most attractive real estate markets due to:

✅ Lifestyle & Climate

• Over 300 days of sunshine per year
  
• Mediterranean lifestyle and cuisine
  
• High quality of life at lower cost than Northern Europe
  
  

✅ Strong Rental Demand

• Spain is among the world’s top tourist destinations
  
• Short-term and long-term rental demand remains strong
  
• Costa del Sol has year-round occupancy potential
  
  

✅ Property Price Advantage

Compared to other European markets:

• Spain: €2,000–€5,000/m² (average)
  
• France & Italy: significantly higher in prime areas
  
• Germany & UK: limited rental yields
  
  

👉 Result: higher ROI potential for investors.

✅ Passive Income Opportunities

Many Costa del Sol properties already include:

• Tourist licenses
  
• Pools, gyms, concierge services
  
• Professional rental management options
  
  

This makes Spain ideal for semi-passive real estate investments.

Illegal occupation exists in Spain, but it is highly concentrated in poor regions and abandoned properties.

Key facts:

In 2024, 16,426 incidents were reported. The main affected areas were:

• Economically depressed areas
• Abandoned buildings and empty apartments
• Non-gated communities
• Properties without alarms or security

High-risk areas:

• Catalonia (especially Barcelona)
• Madrid metropolitan zones

Very low risk:

• New developments (last 10–15 years)
• Gated communities
• Secured residential complexes
• Active homeowner communities

On the Costa del Sol (Marbella, Benalmádena, Fuengirola, Mijas, Estepona, Sotogrande), okupas in modern complexes are practically unheard of.

Expert tip:

✅ Avoid abandoned properties and unsecured buildings
✅ Buy in gated or secured communities
✅ Always verify legal status before purchase

In Spain, debts are attached to the property, rather than to the owner.

Potential issues:

• Unpaid community fees
• Tax debts
• Mortgages or liens
• Illegal constructions

✅ Solution:

Always conduct legal due diligence (Nota Simple + lawyer review).

There are millions of empty properties in rural Spain.

Risks:

• - Low rental demand
• - No capital appreciation
• - Difficult resale

Investor rule: If there is no tourism, jobs or infrastructure, avoid it.

Here are some areas to avoid if you are looking to invest in Spain:

• Castilla-La Mancha
• Castilla y León
• Extremadura
• Aragón (rural areas)
• La Rioja (outside the main cities).

Since 2022:

• Foreign demand has increased sharply
  
• Prices rising in coastal areas
  
• Good deals disappear fast
  
  

✅ Strategy:
Be prepared financially and act quickly on high-quality properties.

🏙️ Apartments

Best for:

• Rental income
  
• Urban living
  
• Short-term rentals
  

ROI potential: ⭐⭐⭐⭐☆

Strong Demand and Housing Shortage.

🏡 Villas & Houses

Best for:

• Luxury buyers
  
• Holiday rentals
  
• Long-term appreciation
  

ROI potential: ⭐⭐⭐⭐☆

Best for BnB and Tourist Bookings.

🌿 Rural Houses (Fincas)

Best for:

• Lifestyle buyers
  
• Eco-living
  

ROI potential: ⭐⭐☆☆☆

⚠️ Warning: low liquidity and rental demand.

🏖️ New Developments (Off-Plan)

Best for:

• Capital appreciation
  
• Modern lifestyle buyers
  
  

ROI potential: ⭐⭐⭐⭐⭐

📈 Popular on Costa del Sol.

According to the latest property price reports from Idealista, the average housing price in Spain reached around €2,639 per square metre in December 2025. Major cities and coastal regions were significantly above the national average due to strong demand and limited supply.

From an investor perspective, Costa del Sol stands out due to:

• International buyers (UK, Scandinavia, Germany, UAE)
  
• Strong tourism demand
  
• Expanding infrastructure
  
• Stable property appreciation
  
  

📍 Key hotspots:

• Marbella → luxury & high-end ROI
  
• Benalmádena → mid-range investments
  
• Fuengirola → family rentals
  
• Mijas → villas & lifestyle buyers
• Estepona → fast-growing market
• Sotogrande → ultra-luxury segment

✅ Expert insight:
Costa del Sol combines lifestyle + rental yield + capital growth better than most European regions.

To buy property in Spain, you need:

✅ NIE Number

Foreign tax identification number.

✅ Spanish Bank Account

Required for:

• Property payments
  
• Taxes
  
• Utilities
  
  

✅ Legal Representation

Highly recommended.

For Residents:

• Financing: up to 80–90%
  
• Deposit: 10–20%
  
  

For Non-Residents:

• Financing: 60–70%
  
• Deposit: 30–40%
  
  

Interest Rates:

• Average: 3–4%
  
• Fixed or variable (Euribor-linked)
  
  

Major banks:

• Santander
  
• BBVA
  
• CaixaBank
  
• Bankinter
  
  

✅ Tip:
Foreign buyers often get better deals through mortgage brokers.

Expect additional costs of 10–15% on top of the property price.

Example: €220,000 Property

• Notary: €850
  
• Registry: €440
  
• Lawyer: €2200 (usually 1% of the price)
  
• Property tax (ITP): €17,600
  
• Valuation: €440
  
• Miscellaneous: €50
  
  

💰 Total extra costs: ~€22,500

1. Define budget & investment goal
   
2. Choose region and property type
   
3. Legal due diligence
   
4. Reservation contract
   
5. Deposit payment (usually 10%)
   
6. Mortgage approval (if needed)
   
7. Final signing at notary
   
8. Property registration

❌ Not carrying out legal checks before buying

❌ Overestimating rental income

❌ Choosing the wrong location

❌ Ignoring community fees and taxes

❌ Falling for 'too good to be true' deals

✅ Professional guidance can save thousands!

✅ Pros

• Strong lifestyle appeal
  
• High rental demand
  
• Attractive prices vs. Europe
  
• Long-term capital growth
  
• Foreign buyer-friendly laws
  
  

⚠️ Cons

• Legal complexity
  
• Market competition
  
• Regional risks
  
• Regulatory changes (short-term rentals)
  
  

🎯 Verdict:

Yes — if you choose the right location and strategy.

Costa del Sol remains one of the most profitable real estate markets in Europe.

If you are considering buying property in Marbella, Benalmádena, Fuengirola, Mijas, Estepona, or Sotogrande, I can help you:

• ✔️ Identify high-ROI properties
  
• ✔️ Avoid legal and financial risks
  
• ✔️ Optimize your investment strategy
  
• ✔️ Access off-market opportunities
  
  

👉 Book a free consultation with me here.