Property News from Spain

Relocating to Spain offers an enriching lifestyle and new opportunities, but careful financial planning is essential to making the most of your move. As an expat, understanding how residency status, tax obligations, and managing foreign income will impact your finances can help you build a stable foundation. This guide provides an overview of the basics you’ll need to know, from determining your residency status and visa type to handling taxes on income earned abroad.

Navigating residency and visas

When moving to Spain, choosing the right visa is an important first step. Residency status affects your eligibility for work, the tax you pay, and your access to public services. Below, we explain some basic concepts on this subject.

Visa types for expats in Spain

The visa you need depends on your income and plans in Spain. Here are the main options:

• Non-Lucrative visa: Designed for retirees or those with passive income from outside Spain, this visa allows you to live in Spain but not to work.
• Work visa: Necessary if you plan to work for a Spanish employer or start a business in Spain.
• Other visa types: Spain offers additional options, such as student visas, entrepreneur visas, and family reunification visas for expats joining family members.

For a detailed overview of each visa type, requirements, and application steps, refer to our complete guide to Spanish visas.

Understanding tax residency

Tax residency is determined by where you live and where you have economic ties. In Spain, you’ll generally be considered a tax resident if:

Spain's housing market is experiencing one of its most dynamic periods, with the price of free-market housing surging by a remarkable 12.7% in the second quarter of 2025, according to the National Institute of Statistics (INE). This marks the largest annual increase since the first quarter of 2007 and the second-highest on record.

A Market Driven by Imbalance

Multiple sources and experts point to a fundamental imbalance between supply and demand as the primary driver of this trend. While demand remains robust, the supply of available homes has decreased significantly, with some reports indicating a 20% reduction in homes for sale over the last 12 months. This scarcity is a key factor pushing prices higher.

Key Drivers of the Price Surge:

Chronic Supply Shortages: Spain's construction sector has struggled to keep pace with demand. New housing completions are well below the number of new households being formed, creating a structural deficit of hundreds of thousands of homes. This is due to a combination of factors, including rising construction costs, labor shortages, and extensive bureaucratic processes for building permits.

Strong and Diverse Demand: Demand is coming from various sources, including domestic buyers and a surge in foreign investment. International buyers now account for over 20% of all property transactions nationwide, with some coastal regions seeing foreign buyer participation as high as 40-45%. This is driven by Spain's attractive lifestyle, climate, and perceived affordability relative to other European countries.

Favourable Lending Conditions: The European Central Bank's interest rate cuts throughout 2024 and early 2025 have made mortgages more attractive and increased buyer purchasing power. This has encouraged more people to enter the property market, further stimulating demand.

Regional and Property Type Disparities:

The price increases are widespread, with all autonomous communities showing double-digit annual rates. Hotspots for growth include Murcia, Aragon, La Rioja, Madrid, and the Valencian Community. The price of used homes has seen a steeper rise (12.8%) compared to new homes (12.1%), although new builds are still highly sought after due to their energy efficiency and modern amenities.

Future Outlook and Market Forecasts:

While the market is hot, analysts are not calling it a speculative bubble like the one that preceded the 2008 crash. Instead, they see the current situation as a structural issue of high demand and limited supply. Forecasts for the coming years vary slightly but generally predict continued, albeit moderating, price growth.

Most experts agree that prices will continue to rise by 4% to 9% through the rest of 2025.

For 2026, growth is expected to moderate to around 3-5% as the market stabilises.

The long-term outlook suggests that structural factors like chronic undersupply and demographic trends will continue to exert upward pressure on prices for the foreseeable future.

The search for a home in Spain has become a challenge for many, as the market's strong performance, driven by a powerful mix of economic strength and limited housing stock, shows no signs of slowing down.
 

As a highly sought-after location for a sunshine-filled life overseas, property for sale in Mallorca is usually snapped up very quickly – making it a great investment. This also means the largest of the Balearic Islands is among Spain's most expensive places to buy a home – but did you know that there are still plenty of houses and apartments for sale in Mallorca for under €200,000?

It's true that homes in this price bracket are more limited in number, but they're not as rare as you would think, especially if you don't need much space, or you're able and willing to renovate them.

Low-cost Mallorca holiday homes

Whether you're seeking a sunny retreat for relaxing and unwinding, or a sound long-term investment you can let out to other holidaymakers, you'll find plenty of apartments for sale in Mallorca for under €200,000. Better still, many are near beaches, have access to communal pools, or both.

Studio flats big enough for a single person to live in year-round, or for a couple on extended holidays, are found in popular coastal areas like Palma, Alcúdia, and Manacor beach for between €100,000 and €135,000. With all amenities close by, and the splendid Mediterranean weather, you won't need to spend much time indoors. But these properties are typically modern and stylish, so your comfort's assured on those days when you don't feel like venturing outside.

Everywhere in Mallorca is, at most, a short drive from the beach, but if you're not directly on the coast, your money goes further. Property for sale under €200,000 offers more space in attractive inland towns like Manacor and Inca. Here, two-bedroom flats start from about €140,000.

Affordable Mallorca homes to renovate

Putting your own stamp on a new home can be hugely satisfying and, when it's in a Spanish holiday hotspot, a superb investment. Depending upon how much extra you're able to spend, you can catch a bargain.

Property for sale in Mallorca under €200,000 frequently includes spacious villas in major tourism belts needing refurbishment. They may already have the necessary mains utility systems in place, but require new fixtures and cosmetic upgrades. Upon completion, you'd have a comfortable, high-class home suitable as a family residence, and make a significant resale profit.

Check out our selection below of properties for sale under €200,000 in Mallorca for inspiration.

Deciding on the best place to retire in Spain will depend very much on what you want from your retirement. We understand that with so many great places to live in Spain, this task can be a little overwhelming, which is why we want to help you simplify the process. Choosing the best place to retire in Spain will depend on several factors, such as personal preferences, budget, climate, amenities, and location.

Here are some tips to help you make a well-informed decision:

1. Determine your budget: Spain offers a wide range of retirement options, from luxurious coastal resorts to small inland towns. Determine how much you can afford to spend on housing, healthcare, transportation, and daily living expenses.
2. Consider the climate: Spain has a diverse climate, ranging from Mediterranean in the south to subtropical in the north. Consider your preferences for temperature, humidity, and rainfall when choosing a place to retire.
3. Look for amenities: Make a list of amenities that are important to you, such as healthcare facilities, cultural activities, shopping centres, and restaurants. Look for a place that offers the amenities that you need to enjoy your retirement.
4. Choose a location: Decide whether you want to retire in a coastal town, a city, or a rural area. Coastal towns offer a relaxed lifestyle and easy access to beaches, while cities provide more cultural and entertainment options. Rural areas offer a quieter and more peaceful lifestyle.  

Read more at thinkSPAIN.com

When selling or renting your property in Spain, boosting its market value through renovations can be an excellent investment. Extensive and costly improvements aren't always necessary; small, cost-effective upgrades can make a substantial difference. These enhancements not only increase the sale price but also make the property more appealing to potential tenants or buyers.

By understanding what factors influence property appreciation and strategically implementing effective upgrades, you can achieve a higher profit. Let’s explore some impactful measures and considerations for enhancing your property's value.

1. Kitchen and bathrooms

The kitchen and bathrooms are critical areas that can make or break a sale. They are one of the areas that potential buyers scrutinise. Making it more functional and modern can be a game-changer. Even simple updates like fresh paint and new hardware can make a substantial difference. The cost of a new kitchen can start at approximately €5,000 increasing substantially depending on specifications. If you’re contemplating selling, modernising your existing kitchen often provides a good return, potentially increasing your property's value by about 5%. A renovated bathroom with high-quality fixtures and tiles can increase your property value by 10-20%. A complete bathroom update can range from €10,000 to €20,000. Here are some areas to consider:

• Replacing cabinets: New cabinets can refresh the kitchen’s or bathroom’s look.
• Upgrading countertops: A new worktop can give the kitchen a facelift. For smaller kitchens, white worktops can brighten the area and create a sense of spaciousness. This simple change can modernise your kitchen without a significant expenditure.
• Upgrade taps: Modernising the kitchen taps with more contemporary and practical designs can make a big difference.
• Installing modern appliances: An induction hob or new appliances can update the kitchen.
• Repainting walls: Warm colours can make the kitchen feel more inviting.
• Updating flooring: Changing the floor can modernise the kitchen.
• Swap bathtub for shower tray: A simple and practical upgrade involves replacing the bathtub with a shower tray. This not only saves space but also reduces water consumption, adding both functionality and an eco-friendly appeal.
• Installing a shower screen: instead of a curtain for a modern look.

2. Flooring

Replace old flooring with stylish and durable materials like hardwoods, laminates, or high-quality tiles. If your budget allows, replacing worn parquet flooring can give your home a fresh look. Alternatively, consider refinishing existing flooring.

3. Enhance lighting

Good lighting can exponentially increase the appeal of any living space. Here are ways to let in more natural light:

Read more at thinkSPAIN.com

Downsizing your home can lead to a more manageable lifestyle and simpler daily routine, especially in a country like Spain, where many enjoy a relaxed and cost-effective living environment. For expats, particularly retirees, downsizing is an appealing choice. Here’s a guide on how to downsize successfully in Spain, covering essential benefits, practical steps for decluttering, choosing an ideal location, and managing the financial and legal considerations unique to Spain.

Why downsize your home when moving to Spain?

For many, transitioning to a smaller home in Spain offers practical and lifestyle advantages that can enhance daily life. Here are the top reasons why downsizing may be the right choice, covering everything from financial benefits to lifestyle enhancements unique to Spain.

A simpler lifestyle for retirement

Downsizing provides the chance to transition to a home that’s easier to manage, especially as you enter retirement. Spain’s renowned retirement benefits and vibrant communities make it an ideal destination. A smaller property lets retirees focus on enjoying their time without the demands of a large home, especially if they opt for a single-story property.

Read more at thinkSPAIN.com

Moving to Spain when you retire, or buying a holiday home in Spain to live in when you eventually stop working, is one of the better ways to get the best out your new and well-earned free time. You can finally live where you want to and, according to numerous reports, Spain is one of the top 10 choices for pensioners seeking a change of scenery.

Within Spain, one of the most popular locations for retired life is the Balearic Islands. Mentioned in countless articles, surveys and studies, hailed for its calm and relaxed atmosphere and its delicious regional cuisine, this Mediterranean archipelago never fails to enter 'best places in Spain to retire' lists. Each of the four islands is very different, but the largest, Mallorca,is frequently singled out as the most rewarding and practical for post-work life.

Why spend your retirement in Mallorca?

Mallorca is the largest and most cosmopolitan island in the Balearics. Whilst it's most famous for family holidays and for its nightlife, Mallorca is rich in historic and natural heritage. Artists' colonies, spectacular caves with underground lakes, an enormous 13th-century cathedral in Palma, along with traditional villages deep in the mountains, mean plenty to explore. Now you're retired, you'll have much more time for sightseeing, and you won't have to travel far to do it. Thelongest point-to-point distance in Mallorca, from Andratx to Capdepera or Formentor, is 108 kilometres by road, and the maximum coast-to-coast distance anywhere else is about 71 kilometres.

As a long-established destination for global tourism and foreign residents, the infrastructure is excellent. One of Mallorca's main drawbacks, though, is that it's expensive to buy or rent property in. It's still cheaper than the USA and most of northern Europe, and cheaper than Madrid and Barcelona, but it's probably not the best destination if budget housing is your main priority.

That said, if you're flexible about exact location and property type, there are some very affordable options. In the Calas on the east coast, or the north, centre, and Alcúdia area, you can find prices well below the national average. Also, depending upon your country of origin, Spain is likely to be cheaper for everyday living. Once you've bought your home, you'll probably find your pension stretches further than it did before the move.

If you're hoping to head to Mallorca to live after finishing your working life, you're in good company. The Balearics as a whole is one of the top choices for relocating Spanish pensioners, too. But what makes Mallorca such a hit with retirees?

1. Climate

With an average of 300 days of sunshine per year, summers above 30ºC and winter temperatures in double figures, the Balearics attract new residents from colder northern European climates. Warmer weather is kinder to painful joints, aids circulation, and allows you to spend more of your life outdoors – like this, you tend to move about more, without realising you're 'exercising', and the vitamin D from the sun is crucial for healthy bones and a stronger immune system.

Spain as a whole is warm and dry, but the mainland coastal parts suffer prolonged episodes of torrential rain when the seasons change. The Balearic Islands tend to miss the worst of it.

Sea air from every compass point takes the edge off extreme heat and humidity in high summer. Anywhere in Spain is hot in July and August, but, as an island, Mallorca's temperatures are slightly lower than mainland Mediterranean Spain – but without those chilly sea winds that you often get in coastal northern Europe, or Atlantic Spain....

Read more at thinkSPAIN.com

What happens if your visa to move to Spain gets denied? What do you do if your temporaryresidence permit renewal is refused? Whether you are already in Spain on an expired visa, are applying to travel to Spain for a holiday, or intend to live there permanently or temporarily, waiting for a response to your application can be nerve-wracking. But if you meet the visa requirements, and have submitted all the correct documents to the Spanish Consulate at home or the immigration authority in Spain, you will probably be fine. Spain issues over two million visas per year.

Some applications do get rejected. This is not necessarily the end of the story, though – many appeals are successful. The best way to increase your chances of having your visa application accepted the first time around is to get a specialist immigration lawyer to help you compile it. If, however, you still get a rejection, legal experts recommend you always consider an appeal before giving up.

Here's a guide to the appeal process for Spain – but first, we'll explore the most common reasons why your visa request might be turned down.

Reasons a visa for Spain might be rejected

Your application for a visa for Spain may be turned down for a number of reasons, but sometimes, a solution is very simple. Even if it's not, you may still have a case for appeal. Where the solution is complex, not obvious, or open to interpretation, use a legal firm with extensive experience in handling immigration issues.

These are some of the most common grounds for visa denial:

Errors and omissions in your application

These could include:

• Not supplying the complete documentation
• Not supplying sworn translations of documents, where requested
• Not giving sufficient evidence of your reasons for wanting to live in Spain
• Not supplying copies of every single page of your passport, or showing a passport with less than a year to run before it expires
• Providing out-of-date paperwork

Fortunately, these issues are relatively easily resolved, but you should still get an immigration law specialist to check nothing is missing before you reapply.

Insufficient financial means

Applying for a visa in your own name means you need to prove savings or annual income in line with the IPREM. This is a Spanish-government set figure used as a base for non-contributory State benefits, and is currently €7,200 per annum.

A lone immigrant needs annual income or savings of at least four times the IPREM, or €28,800. For each additional household member, a further €7,200 per year must be added.

It is always advisable to try to show a higher figure if you can, especially in light of exchange rates. You may have calculated your income correctly, but a rate change could put you below the threshold.

Income requirements are much lower for a family reunification visa, but sufficient proof is needed if the sponsor is a non-EU citizen.

Family reunification: Insufficient proof of dependence or relationship

This may jeopardise your application if it is missing or incomplete. Take a look at our comprehensive article on how to apply for a family reunification visa and all paperwork needed.

Read more at thinkSPAIN.com

If you're looking to move to or buy a holiday home in Spain, you've made a great choice. Deciding exactly where in Spain, though, can be far more challenging: The options are endless, so how do you narrow it down?

The popular Costa Blanca is highly varied with something for everyone, so where would be the best area for the life you want to lead?

The 'two Costa Blancas'

One of Spain's earliest destinations for foreign holidaymakers and now home to a long-established multi-national community, the Costa Blanca is as richly diverse as its inhabitants, who have unofficially divided 244 kilometres of the Alicante-province coastline into "North Costa Blanca" and "South Costa Blanca".

This article focuses on the North Costa Blanca, which extends from just above Alicante city to the border with Valencia province.

Finding the right lifestyle-location match is crucial, so here's an overview of life on the North Costa Blanca to aid your decision-making – but check out Best places to live on the South Costa Blanca, too, as a comparison.

How is the North Costa Blanca different from the South?

The North Costa Blanca - comprising the districts of Marina Baixa and Marina Alta - is more 'traditionally Spanish' than the South, and European expatriates are fewer and more scattered. The advantage of the North Costa Blanca for foreign residents is that it's a 'gateway' to an authentic Spanish lifestyle, yet with a safety net.

The main features that make the North Costa Blanca different are:

• Fewer urbanisations

Urbanisations (purpose-built residential complexes) become fewer, smaller and farther apart the more northwards you travel, and are much closer to the main hub of their towns and villages.

• Fewer expatriates

Costa Blanca urbanisations usually have an exceptionally-high foreigner population, normally from northern Europe, whilst Spanish-owned properties on them are predominantly summer homes. The South Costa Blanca's extensive villa and apartment complexes therefore mean considerably more expatriates than in the north.

• More villages, much smaller towns

The North Costa Blanca is mostly made up of lots of villages a short distance apart and very well-connected to each other, whilst the southern half is much more densely populated. The North only has one town of more than 50,000 inhabitants – Benidorm – whereas the south has several big towns and two cities.

• More rural

Generally, the north is greener, more forested, rural and mountainous, whilst the south, certainly along the coast, is flatter and more arid.

• Greater national mix in foreign communities

Areas with a high foreigner population in the North are more culturally-diverse. The large, multinational European communities are often outnumbered by expatriates from elsewhere in the world, opening up a world of diverse cultural exchange.

Read mroe at thinkSPAIN.com

Building on the Q1 2025 review, the Spanish property market has continued to demonstrate remarkable resilience and dynamic shifts throughout the second quarter of 2025. The average value of completed properties, encompassing both new builds and resales, recorded a substantial year-on-year increase of 9.8% and a quarter-on-quarter increase of 2.6% with a real annual growth of 7.7% when adjusted for inflation.

This sustained strength is underpinned by a compelling interplay of economic factors, including resilient employment and robust demand, significantly influenced by easing mortgage costs following the European Central Bank's 25-basis-point reduction in key interest rates. This widespread growth throughout the first half of the year underscores the broad-based strength of the market.

At the regional level, the momentum was particularly evident, with year-on-year growth accelerating or remaining high in 16 of Spain's 19 autonomous regions. Four regions stood out with exceptional growth exceeding 10%: Madrid led with a 16.1% increase, followed by the Balearic Islands at 14.4%, Cantabria at 14.1%, and Asturias at 11.6%. Notably, the Balearic Islands (25.3%) and Madrid (6.8%) have now surpassed their 2007 property bubble peaks in nominal terms, though they remain below their inflation-adjusted peaks (9% below in the Balearics and 24% below in Madrid, considering CPI at 2.3% in June 2025). The "Madrid effect" is also creating a ripple effect, activating prices in surrounding provinces like Toledo, Segovia, Guadalajara, and Ávila as buyers seek more accessible options.

Read more at thinkSPAIN.com