investments – SPAIN

Spain – real estate in Europe's most desirable market

Apartments, villas and premium properties in Spain – in destinations with the highest investment demand, record tourism and sustained value growth

Leader of the European premium real estate market

Spain attracts more foreign buyers of real estate than any other country in Europe. The most prominent areas are markets with deep, diversified demand and a well-established position among investors from around the world.

HIGH TOURISM DEMAND — record that drives rentals

Spain is the most visited country in Europe. The steady flow of tourists for twelve months of the year creates exceptionally stable conditions for short-term rentals in key coastal and urban locations.

The eurozone, EU law and rising real estate prices

As a member of the European Union, Spain offers full legal security for transactions and a transparent real estate register. Property prices have been rising continuously since 2014, with a marked acceleration in recent years.

AVERAGE ANNUAL RATE
RETURN ON RENTAL
PROPERTY PRICES ARE RISING
YEAR TO YEAR
TOURISTS VISITING
SPAIN ANNUALLY
AVERAGE ANNUAL RATE
RETURN ON RENTAL
PROPERTY PRICES ARE RISING
YEAR TO YEAR
TOURISTS VISITING
SPAIN ANNUALLY
Spain real estate from the Costa del Sol drone - white apartments with orange roofs in a residential complex, modern housing estate with swimming pool in the Andalusian mountains, residential investments Spain

Real Estate Spain – What is behind the strength of the Spanish real estate market?

Europe's largest real estate market for foreign investors – check out what's been driving capital here for decades

Find out current trends and analysis of the Spanish real estate market on our blog!

CHECK OUT THE ARTICLES ON THE BLOG
Spain coast crystalline Costa Brava waters - cliff villas with sea views, turquoise Mediterranean waters, luxury bayfront properties with palm trees and pine trees

Sustained value growth – a market that has been breaking records for a decade

Property prices in Spain have been growing for over a decade. In 2024, the Housing Price Index recorded an 11.3% year-on-year increase – the fastest since the pre-financial crisis boom. With a chronic shortage of new supply and a growing population, price pressures remain unabated.

Madrid Parque del Retiro monument to Alfonso XII - Corinthian colonnade with sculptures and a central column, classical Spanish architecture in the park, monumental complex at Estanque del Retiro

Record foreign demand — GROWING interest

In 2024, foreign buyers bought in Spain nearly 93,000 properties all-time record. There are also Poles among the buyers – the number of transactions made by Polish buyers has increased by 70% in just two years, placing Poland in the top ten countries in terms of activity on the Spanish market.

Spain marina with Costa del Sol yachts - luxury marina with white buildings and mountains, exclusive marina in Marbella or Puerto Banús, premium seaside properties

Year-round climate and HIGH-end infrastructure

Costa del Sol, Canary Islands – are markets where the tourist season lasts twelve months of the year. Spain has one of the most modern communication networks in Europe, a high standard of healthcare and extensive infrastructure for expats, which directly affects property values.

Alicante from a bird's eye view Costa Blanca - city panorama with port and marina on the Mediterranean Sea, city center with modern buildings and old town, capital Costa Blanca drone view

Strong economy with highest GDP growth in the euro area

The Spanish economy grew at a rate of 3.2% of GDP – well above the eurozone average in 2024. Growing employment, influx of economic migrants and the expansion of the service sector create a sustainable demand for rentals from residents, not just tourists. This translates into the attractiveness of the property.

Aerial view of an idyllic beach in Spain: turquoise Mediterranean, golden sand, colorful beach umbrellas, palm trees and high rocks with mountains in the background, crowded summer beach on the Costa del Sol.

Luxury market with double-digit growth dynamics

Premium segment in Marbella and Estepona in 2024 up 20% with transactions exceeding €3.2 billion. Foreign buyers of premium properties paid an average of 11.4% more than a year earlier. It is a market where asset value is growing faster than anywhere else in Europe.

Málaga from the Plaza de Toros drone - seaside apartments with a bullfighting arena, modern residential buildings on the Costa del Sol, city panorama with the Mediterranean Sea in the background, real estate in Andalusia

Exceptional range of investment opportunities

Spain offers one of the most of diversified real estate markets in Europe. Costa del Sol and Balearic Islands – premium destinations with high rental potential, Valencia and Alicante – attractive entry points for investors looking for value growth at a lower capital threshold.

Sustained value growth – a market that has been breaking records for a decade

Spain coast crystalline Costa Brava waters - cliff villas with sea views, turquoise Mediterranean waters, luxury bayfront properties with palm trees and pine trees

Property prices in Spain have been growing for over a decade. In 2024, the Housing Price Index recorded an 11.3% year-on-year increase – the fastest since the pre-financial crisis boom. With a chronic shortage of new supply and a growing population, price pressures remain unabated.

Record foreign demand — GROWING interest

Madrid Parque del Retiro monument to Alfonso XII - Corinthian colonnade with sculptures and a central column, classical Spanish architecture in the park, monumental complex at Estanque del Retiro

In 2024, foreign buyers bought in Spain nearly 93,000 properties all-time record. There are also Poles among the buyers – the number of transactions made by Polish buyers has increased by 70% in just two years, placing Poland in the top ten countries in terms of activity on the Spanish market.

Year-round climate and HIGH-end infrastructure

Spain marina with Costa del Sol yachts - luxury marina with white buildings and mountains, exclusive marina in Marbella or Puerto Banús, premium seaside properties

Costa del Sol, Canary Islands – are markets where the tourist season lasts twelve months of the year. Spain has one of the most modern communication networks in Europe, a high standard of healthcare and extensive infrastructure for expats, which directly affects property values.

Strong economy with highest GDP growth in the euro area

Alicante from a bird's eye view Costa Blanca - city panorama with port and marina on the Mediterranean Sea, city center with modern buildings and old town, capital Costa Blanca drone view

The Spanish economy grew at a rate of 3.2% of GDP – well above the eurozone average in 2024. Growing employment, influx of economic migrants and the expansion of the service sector create a sustainable demand for rentals from residents, not just tourists. This translates into the attractiveness of the property.

Luxury market with double-digit growth dynamics

Aerial view of an idyllic beach in Spain: turquoise Mediterranean, golden sand, colorful beach umbrellas, palm trees and high rocks with mountains in the background, crowded summer beach on the Costa del Sol.

The premium segment in Marbella and Estepona saw growth of 20% in 2024 with transactions exceeding €3.2 billion. Foreign buyers of premium properties paid an average of 11.4% more than a year earlier. It is a market where asset value is growing faster than anywhere else in Europe.

Exceptional range of investment opportunities

Málaga from the Plaza de Toros drone - seaside apartments with a bullfighting arena, modern residential buildings on the Costa del Sol, city panorama with the Mediterranean Sea in the background, real estate in Andalusia

Spain offers one of the most of diversified real estate markets in Europe. Costa del Sol and Balearic Islands – premium destinations with high rental potential, Valencia and Alicante – attractive entry points for investors looking for value growth at a lower capital threshold.

investments – SPAIN

Our offers

Our portfolio includes exclusive villas in the most desirable locations of the Iberian Peninsula, apartments from the primary market in modern development investments and apartments in key destinations – from the Costa del Sol to the Costa Blanca. Contact us for current offers tailored to your investment profile.
Spain modern villa with pool - minimalist architecture with large glazing and terrace, luxury villa contemporary with garden, exclusive Costa del Sol property with clean lines
Contact us, or arrange a consultation to talk about available properties that meet your needs and requirements.
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Schedule an online meeting

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Apartment Spain with sea views for sale - modern interior with panoramic windows to the Mediterranean, luxury living room with designer furniture, exclusive apartment with terrace
Apartment Spain terrace with sea views - modern balcony with coastal panorama and glass balustrade, luxury outdoor space with teak furniture, exclusive Costa del Sol apartment with bay views
investments – SPAIN

Our offers

Our portfolio includes exclusive villas in the most desirable locations of the Iberian Peninsula, apartments from the primary market in modern development investments and apartments in key destinations – from the Costa del Sol to the Costa Blanca. Contact us for current offers tailored to your investment profile.
Spain modern villa with pool - minimalist architecture with large glazing and terrace, luxury villa contemporary with garden, exclusive Costa del Sol property with clean lines
Contact us, or arrange a consultation to talk about available properties that meet your needs and requirements.
Contact usSchedule an online meeting
Apartment Spain terrace with sea views - modern balcony with coastal panorama and glass balustrade, luxury outdoor space with teak furniture, exclusive Costa del Sol apartment with bay views

Subscribe to our newsletter and receive information about new investment opportunities in foreign markets!

Apartment Spain with sea views for sale - modern interior with panoramic windows to the Mediterranean, luxury living room with designer furniture, exclusive apartment with terrace

basic information about SPAIN

I Introduction to the region and basic information

Spain combines factors that rarely occur together in one market: rising property prices since 2014, record tourism driving rental demand, a strong economy growing at 3.2% of GDP annually, and full legal security within the EU. In addition, there is the diversity of the market – from cities with deep long-term demand, through premium seaside resorts, to locations with high potential for value growth. Result: nearly 93,000 transactions made by foreign buyers in 2024 — a record in the history of the Spanish real estate market.

The Spanish market is most easily read through the prism of two main directions. Costa del Sol is a premium flagship destination – Marbella, Estepona, Málaga – with year-round tourism, strong luxury demand and some of the highest transaction prices in the country. This is a market for investors looking for prestige, high returns on short-term rentals and long-term appreciation in the top segment. Costa Blanca – Alicante, Benidorm, Torrevieja – is the market for lower entry threshold, dynamic price increases and a very strong base of buyers from all over Europe, including increasingly actively from Poland. Off the coast, Madrid remains the deepest and most liquid urban market in the country – with strong long-term demand from expats and businesses.

Yes. As a member of the European Union, Spain offers full legal protection of property, transparent real estate register and settlements in euros. A Pole as an EU citizen buys real estate on the same terms as a Spanish citizen — without restrictions, without additional permits. It is worth knowing that Poland is one of the fastest growing groups of buyers on this market — the number of transactions concluded by Poles has increased by 70% over the last two years.

No – Golden Visa was a program aimed at investors outside the European Union who wanted to obtain residency rights through real estate investments. For the Polish investor, as an EU citizen, this scheme has never applied. The right to freely buy, own and rent real estate in Spain remains unchanged for Poles.

II Logistics and practical aspects of travel

Air connections between Poland and Spain are one of the most developed in Europe. Direct flights operate from Warsaw, Krakow, Wroclaw, Katowice and Gdansk to Madrid, Barcelona, Málaga, Alicante, Palma de Mallorca and Valencia. Flight time is 3 to 4 hours depending on the destination. Flights are operated by both low-cost carriers –Ryanair and Wizz Air– and LOT. Thanks to its wide range of offers and price competition, Spain remains one of the cheapest and most easily accessible foreign destinations for a Polish investor.

Definitely yes especially when browsing properties outside the city center. Within Madrid or Barcelona, public transport or taxis are better, but on the Costa del Sol, Costa Blance or the Canary Islands a car is practically essential. The roads are well maintained, signage is clear and rentals are available at any major airport. A Polish driving license in European format is honored without any additional formalities.

The currency in Spain is euro. All transactions related to the purchase of real estate – advances, notarial fees, taxes, living expenses and rental income – are carried out in the same currency. This means settlements are in a stable currency.

III Formal aspects of the purchase of real estate

The process consists of several clearly defined steps. The first is getting a NIE number (Número de Identificación de Extranjero) mandatory tax identification number for foreigners, without which no notarial deed can be signed or a bank account opened. The next step is to sign the standard reservation agreement and payment of advance payment – usually at 10% of the price. The contract secures both parties financially: if the buyer withdraws from the transaction, he loses the advance payment; if the seller – is obliged to repay twice it. Legal verification of the property by an independent lawyer takes place and the whole is finalized by a notarial deed, after signing which the property is registered in the land and mortgage register. The duration of the entire process ranges from several weeks with cash purchase to several months with credit financing.

As an EU citizen, a Pole buys property in Spain without any restrictions and on the same basis as a Spanish citizen. The required documents are a valid passport or identity card and the NIE – number, which can be obtained from the Spanish consulate in Poland or directly from a police station in Spain, with EU citizens usually receiving it on the same day. Additionally, it is necessary to open a Spanish bank account to handle payments related to the purchase, taxes and maintenance costs of the property.

The additional costs above the purchase price are usually 10–15% of its value. On the secondary market, the transfer of ownership tax (ETC) at 6–10% depending on the region. When purchasing real estate from the primary market, the developer is charged VAT at the rate of 10% plus stamp duty (AJD) of 1–1.5%. In addition, there are notarial costs, entry in the real estate register and lawyer's fees total approximately 1—2% of the transaction value. Spanish banks do not finance tax costs, so the buyer must cover all additional fees from its own funds.

Yes – Spanish banks provide mortgages to non-residents, but on slightly different terms than residents. The standard level of financing for foreigners is 60-70% of the property value, which means having a down payment of 30-40% plus funds to cover transaction costs. The required documents are proof of income, bank statements, credit history and NIE number. It's worth applying for an initial credit decision before making a purchase offer – this greatly simplifies and speeds up the entire process.

IV Financial aspects of investment

The average gross rental return in Spain is 6–7% per year, but the results vary significantly depending on the location and rental model. In tourist destinations – Costa del Sol, Balearic Islands, Canary Islands – short-term rentals can generate higher returns, but require active management and are subject to local licensing regulations. Long-term rentals in cities with large student and expat populations –like Madrid, Barcelona or Valencia– offer lower but stable and predictable revenues throughout the year. Not only the rate of return has a key impact on profitability, but also local regulations regarding short-term rentals – it is worth verifying them for a specific location before purchasing.

As an EU citizen and tax resident of Poland, when you rent a property in Spain you pay Spanish tax on the income of non-residents (IRNR) at a rate of 19% on net income – after deduction of income-earning costs such as loan interest, management fees, insurance or living expenses. This is a significant advantage over non-EU buyers, who are taxed at a rate of 24% without the possibility of deducting costs. At the same time, as a Polish tax resident, you are obliged to declare this income also in Poland – however, the Polish double taxation agreement with Spain protects against double burden. It is worth discussing the details of your settlement with a tax advisor familiar with both systems.

Any property owner in Spain – regardless of residence – pays annual local tax (IBI), calculated from the cadastral value by the commune. Non-residents who do not rent property are additionally obliged to make an annual declaration of the so-called assigned income (imputada pension) at 1.1–2% of the cadastral value, taxed at 19%. Fixed costs also include property management fees, insurance and possible community fees (gastos de comunidad) at properties in residential complexes.

Profit from the sale of real estate by a non-resident who is an EU citizen is taxed at a rate of 19% on the actual profit, i.e. the difference between the selling price and the purchase price increased by documented transaction costs and inputs. The buyer is obliged to deduct 3% of the selling price and pay it towards this tax directly to the Spanish tax office – the seller then files a settlement and collects the overpayment or pays the difference. When selling, you should also take into account local tax on the increase in land value (Plusvalía Municipal), which generally burdens the seller.

V Professional support and additional services

A lawyer is not formally mandatory a notary is mandatory. In practice, however, for a foreign investor independent legal services are definitely advisable. The role of the notary in Spain is narrower than in Poland – he authenticates the file and pays taxes, but does not verify the legal status of the property or its compliance with building and planning regulations. This task belongs to a lawyer who acts solely in the buyer's interest. Verification is particularly important Note Simple – an extract from the real estate register confirming title and no encumbrances – before signing any contract and paying an advance payment.

Most foreign owners entrust the service of local management companies, which deal with marketing, reservations, contact with guests or tenants, cleaning and minor repairs. The cost of such service is usually 20–25% of short-term rental income. Before purchasing, it is worth checking whether a given location has an active tourist licence or whether it is possible to obtain one in some regions, such as Barcelona or parts of the Balearic Islands, new licenses are limited or suspended. Velora Estate works with trusted local partners in Spain and helps you choose a management model that suits your specific property and location.

The Spanish real estate market is governed by its specific characteristics – regional rental regulations, local tourist licenses, tax differences between autonomous communities. We work with specialists in this market who help guide our clients through all the complexities. After the purchase, we help you set up the property management, we help with the formalities on the Spanish and Polish sides, and when it comes time for the next step – we are available.

Our locations

  • Spain white street with blue pots - typical Andalusian town with white houses and colorful flowers, picturesque street with stone surface, traditional pueblo blanco architecture
    COSTA DEL SOL
  • Alicante marina Costa Blanca apartments - luxury skyscrapers above the marina with palm trees, modern seaside apartments with views of yachts, exclusive properties Alicante waterfront
    COSTA BLANCA
  • Spain, Carthage modernist architecture corner building - historic tenement house with decorative balconies and a turret, Belle Époque facade with lace balustrades, city center with historic residential buildings
    COSTA CALIDA