Property News & Expat Guide for Spain

The average new mortgage in Spain has broken €178,000 for the first time on record, according to figures published by the National Statistics Institute (INE) on 26 August. It is the clearest sign yet that the cost of buying — and of financing that purchase — is climbing in step: house prices rose 15.2% in the year to the second quarter, and now the typical loan buyers are taking out to cover that cost has hit a new high alongside it.

The record amount arrived alongside a record in activity too. Spain signed 45,907 mortgages on homes in June — the strongest June since 2010, up 10.8% on the same month last year. That took the first half of 2026 to 259,681 new mortgages, 7% more than the same period in 2025 and the highest first-half total in 16 years. The capital lent by banks over that period rose even faster, up 17.5% year on year, reflecting both more mortgages and larger ones.

 Source: INE, Estadística de Hipotecas, monthly releases, January–June 2026

Interest rates are, for now, doing little to slow any of this down. The average rate on new mortgages has stayed below 3% through the first half of the year, keeping monthly repayments more manageable than the size of the loans alone would suggest — though a buyer borrowing today still needs a larger deposit and a bigger income to qualify than they would have a year or two ago, simply because both the properties and the mortgages against them cost more.

Read more at thinkSPAIN.com

Spain's official house price index rose 12.2% in the year to the second quarter of 2026, according to the National Statistics Institute (INE) — a slightly slower pace than the 12.9% recorded in the first quarter, but the 49th consecutive quarter in which prices have risen on an annual basis. That streak stretches back roughly 12 years, making this one of the longest uninterrupted growth cycles in the index's history.

The moderation was driven mainly by new-build housing, where annual growth slowed sharply to 7.4% — down 1.7 percentage points on the previous quarter and the weakest new-build reading since the start of 2023. Resale property held up better, still rising 12.9% year on year, only slightly down from 13.5% in the first quarter. Prices did not stand still in the meantime, either: the index rose 3.4% compared with the previous quarter alone, with resale accounting for most of that (+3.7%) against a much more modest 1.0% rise in new-build prices.

Read more at thinkSPAIN.com

Spanish house prices held flat in August compared with July — the first month without further acceleration after a run of consecutive quarterly increases — according to valuation firm Tinsa. Prices are still up 14.9% on a year earlier, some 10 percentage points above inflation, but the pause in month-on-month growth is the clearest sign yet that the pace seen through the first half of the year — which peaked at 15.2% annual growth in the second quarter — may be starting to level off.

The slowdown was not even across the country. It was sharpest in the islands and in capital and large cities — precisely the areas where prices and buying effort are already most stretched, according to Tinsa's research director, Cristina Arias. Island prices fell 0.9% in August alone, the steepest monthly drop of any region tracked.

Coastal and metropolitan markets told a different story. The Mediterranean coast and metropolitan areas both recorded annual growth of 17.4% in August — comfortably the fastest of any category Tinsa tracks, and well ahead of the 10.2% recorded in smaller municipalities. Even as the market as a whole shows its first signs of catching its breath, the areas most popular with international buyers are still the ones moving fastest.

Arias pointed to a squeeze on household purchasing power as a factor behind the broader slowdown, linking it in part to inflation stemming from the conflict in the Middle East, alongside higher interest rates and continued difficulty accessing housing. Transaction and mortgage volumes moderated in the first half of the year as a result, though both remain above their historical average.

Read more at thinkSPAIN.com

Spain's property market has moved quickly over the past couple of years, with national prices rising faster than at almost any point in the past two decades. It is fair to ask whether the classic idea of a Spanish home for under €100,000 still holds up in 2026. The honest answer is yes — but it looks a little different than it might have five years ago. These days, a budget under €100,000 usually means a smaller property, a location a little further from the coast, or a home that could use some love. It does not mean giving up on sunshine, sea air, or a genuine Spanish lifestyle.

Small and coastal: studios and one-beds by the sea

If being near the beach matters more than square metres, the southern Costa Blanca remains one of the most reliable places to look. In Torrevieja, studios and compact one-bedroom apartments — many within easy walking distance of the beach or the town's lively promenade — are consistently available under €100,000, and the town has one of the largest, most established international communities on the coast.

Along the Costa Cálida in Murcia, similar value can be found around the Mar Menor, where smaller apartments close to the water are still realistic on this budget. Further south, the Costa de Almería offers some of the best value of any Mediterranean coastline in Spain, with older but perfectly liveable apartments in and around towns like Mojácar and Vera regularly listed under this budget.

More space inland: full-size homes for the same budget

Moving away from the coast changes the maths considerably. Inland provinces such as Jaén and Ciudad Real have some of the lowest property prices anywhere in mainland Spain, and a €100,000 budget stretches to a genuinely spacious home rather than a studio. According to Tinsa's property price index, the province of Ciudad Real averages under €850 per square metre — meaning a full 100m² house, with a garden or terrace, comfortably fits within a €100,000 budget in many of its towns. Jaén province is similarly affordable.

This is Spain at its most authentic — small-town life, close-knit communities, and a slower pace, without the tourist infrastructure of the coast. It suits buyers who want genuine immersion in Spanish life, or who are happy to be a scenic drive from the beach rather than a walk from it.

Renovation projects: the best way to stretch your budget further

A willingness to renovate is still one of the most effective ways to buy under €100,000 almost anywhere in Spain, coast included. Older townhouses and village properties — sound structurally, but in need of a new kitchen, bathroom, or a lick of paint — routinely sell well below the price of an equivalent move-in-ready home. Many of the classic Spanish village houses that come up for sale already have the essentials in place, water, electricity, and a solid roof, which keeps renovation costs predictable rather than a leap into the unknown. For a buyer with some patience and a clear budget for the work, this route often produces the best possible value for money in Spain's current market.

Check out our selection of properties for sale in Spain for under €100,000. 

For Italian buyers in particular, Spain and Italy are natural points of comparison — two Mediterranean countries with similar climates, comparable culture and cuisine, and a shared appeal as a place to buy a second home or relocate to. But the two property markets work quite differently in practice, from how taxes are calculated to how the buying process itself unfolds. This guide compares them honestly, covering what each country genuinely does well, so you can make the decision with a clear picture of both.

Property prices in Spain vs Italy

Neither country is uniformly cheaper than the other — both have expensive capitals and coastal hotspots alongside genuinely affordable regions. Milan, Rome, and the Amalfi Coast command prices comparable to Madrid, Barcelona, or Marbella. But where Spain tends to have an edge for the specific profile of buyer looking at this comparison — a second home or relocation on the coast — is the breadth of accessible, well-connected coastal inventory at moderate prices. Spain's Mediterranean coastline offers a far larger stock of modern, move-in-ready apartments and villas in established international communities, at price points that remain accessible even close to the sea, particularly along the Costa Blanca and parts of the Costa del Sol.

Italy's equivalent value is found more often inland or in the south — Puglia, Calabria, Sicily — where prices can be very low, but the property stock is older, renovation needs are often significant, and English or Italian-speaking international infrastructure is considerably thinner than on Spain's established coasts.

Purchase taxes in Spain Vs Italy

This is the area buyers most often misunderstand, because the two countries calculate tax on different bases entirely.

Spain

For a resale property, Spain applies transfer tax (ITP) directly to the purchase price — generally 6% to 10%, depending on the autonomous community. For a new build bought from a developer, VAT (IVA) applies instead, at a flat 10%, plus stamp duty (AJD) of roughly 0.5% to 1.5%. All-in closing costs for a resale in Spain — taxes, notary, registry, and legal fees — typically land between 10% and 14% of the purchase price. The full breakdown of Spanish property taxes covers regional variations in more detail.

Italy

For a resale property bought from a private seller, Italy applies registration tax (imposta di registro) of 9% for a second home — but crucially, this is calculated on the property's cadastral value (valore catastale), not the market price. Cadastral values are typically 30% to 50% lower than what a property actually sells for, so the effective tax burden on the real purchase price often works out to roughly 5% to 7% — lower than the headline rate suggests. A reduced 2% rate applies to a primary residence, but this requires transferring official residency to the property's municipality within 18 months, a condition most non-resident second-home buyers do not meet. New builds from a developer attract VAT instead, at 10% (4% for qualifying primary residences, 22% for luxury categories), on the sale price rather than cadastral value.

The practical difference

Once notary fees, agency commission, and legal costs are added on both sides, total closing costs in Italy for a non-resident buying a second home typically also land in the 10% to 15% range — broadly comparable to Spain once all costs are accounted for. The genuine difference is less about which country is cheaper overall, and more about predictability: Spain's tax is calculated on what you actually paid, which is simple to budget for in advance...

Read more at thinkSPAIN.com

If you have spent any time living in or travelling across Spain over the past few weeks, you haven't needed a thermometer to tell you something extraordinary is happening. The sheer weight of the heat has felt inescapable—a suffocating blanket settling over the peninsula, pushing air conditioning units to their absolute limits and turning rural landscapes into powder-dry tinderboxes.

According to data released by Spain’s State Meteorological Agency (AEMET), July has officially tied with 2022 as the hottest July on record since modern meteorological records began in the mid-20th century. With an average daily temperature soaring to 25.7°C—a punishing 2.6°C higher than the historical baseline—this summer has unleashed a relentless succession of heatwaves that have tragically triggered some of the most destructive wildfires in modern Spanish history.

The Dangerous Formula: Weather Whiplash and Megafires

The unprecedented wave of forest fires scorching over 150,000 hectares across regions like Madrid, Ávila, Toledo, Guadalajara, and Castellón is not just bad luck. Climate scientists and international attribution groups point to a dangerous meteorological phenomenon known as "weather whiplash."

• The Wet Winter: Spain kicked off the year with unusually heavy rainfall and wet winter conditions, encouraging massive bursts of spring vegetation growth.

• The Sudden Drought: That lush green growth was followed by an exceptionally dry spring and an early, brutal onslaught of summer heatwaves.

• The Perfect Fuel: The heavy vegetation rapidly withered and died, creating vast layers of hyper-flammable fuel across the countryside. When combined with July's record-shattering temperatures, international scientific studies show that these extreme fire-weather conditions were made at least 20 times more likely due to human-induced global warming.

The Human Toll and National Emergency

For the first time in modern Spanish history, the severity of the blazes forced the central government to declare a state of emergency of national interest across parts of Madrid and Ávila as massive fires threatened urban perimeters, forced tens of thousands of evacuations, and blanketed major cities in hazardous smoke.

What This Means for Long-Term Residents and Property Owners

For British expats and property owners living in Spain—particularly those in rural, semi-rural, or urbanización settings bordering pine forests and dry scrubland—the summer of 2026 serves as an urgent wake-up call regarding fire safety and property infrastructure.

EOS Insider Pro-Tip: If your Spanish home is located near wooded areas or dry fields, you must treat fire prevention as an absolute priority. Ensure your property has a cleared defensible perimeter (at least 10 to 15 metres of cleared vegetation away from structures), check that your gutters are free of dry pine needles, and familiarise yourself immediately with local municipal evacuation protocols. When local authorities issue red-flag high-risk fire warnings, compliance with outdoor restrictions (such as banning heavy machinery use or charcoal barbecues) is a matter of life and death.

Join the EOS Community Discussion

As Spain confronts a rapidly changing climate, the reality of living through these intense summer heatwaves and wildfire crises affects every corner of our community—from rural homeowners to urban dwellers dealing with poor air quality.

How has your local area coped with this record-breaking summer heat? Have you had to alter your travel plans or take special precautions around your home? Share your experiences and thoughts in the comments below.

While property headlines across Spain frequently focus on surging rental costs, mortgage pressures, and the squeeze on standard residential housing, a parallel universe exists entirely divorced from traditional market realities. In Spain’s most exclusive enclaves, a massive shift is underway: an invisible, high-stakes real estate trade where properties never appear on public listing sites, and privacy is valued far above public exposure.

According to recent investigations by El País, off-market transactions—deals privately executed behind closed doors outside traditional public channels—have surged dramatically, powered by an elite class of international buyers seeking absolute discretion.

The Hidden Mechanics of Off-Market Real Estate

In the standard property market, success is measured by maximum visibility—glamorous portal listings, virtual tours, and wide social media promotion. In the ultra-luxury tier, however, the exact opposite is true.

Sellers of multi-million-euro estates often demand total anonymity. They do not want their personal residences photographed, catalogued, or openly discussed on property websites. Instead, specialised boutique agencies curate private portfolios, connecting vetted, high-net-worth buyers directly with sellers through encrypted networks and private viewings.

• The Price Floor: According to industry experts, baseline entry into this hidden market typically starts at around £1.5 million ($1.75 million / €1.6 million).

• The Upper Echelons: For ultra-luxury properties commanding between £10 million and £20 million, private, off-market sales are no longer just an option—they are standard operating procedure. Agencies specialising in this tier report that over a third of their total operations are conducted entirely out of the public eye.

Where Are Spain’s Secret Billion-Euro Enclaves?

This shadow market is heavily concentrated in specific geographical pockets where wealth, international mobility, and prime real estate intersect.

The Pros and Cons of Going ‘Invisible’

For sellers, the appeal of an off-market deal goes beyond just the astronomical figures. As real estate professionals note, "In many cases, peace of mind carries as much value as the financial result of the sale itself." High-profile executives, athletes, and international investors avoid media scrutiny, curious neighbours, and potential security risks.

However, there is a flip side to the coin. By deliberately restricting a property's exposure to a hand-picked circle of buyers, sellers sacrifice competitive bidding wars. They rely entirely on the accuracy of their broker's private network, meaning a seller could potentially miss out on higher offers that might have surfaced on the open market.

Insider Pro-Tip: If you are browsing standard property portals like Idealista looking for a bargain in upscale neighbourhoods like Madrid's Salamanca or Marbella's Golden Mile, keep in mind that the most prestigious properties will never show up on your screen. The true crown jewels of Spanish real estate change hands quietly in private offices, proving that in the world of ultra-wealth, invisibility is the ultimate luxury.

Join the Community Discussion

The growing divide between Spain’s standard housing market and the secretive, multi-million-euro elite sector highlights just how dynamic the country's property landscape has become.

Have you noticed the changing face of high-end real estate in your local area? Do you think the trend toward private, off-market sales protects communities, or does it further alienate the traditional housing market? Let us know your thoughts in the comments below...

Which are the best Spanish beaches to visit this summer? That's a tough question for an undisputed world blue flag leader with an 8,000-kilometre coastline. It also depends upon your preferences: Scenic, quiet, lively, easily accessible. But Spain's endless incredible beaches (some even several hours' drive from the sea) are always a hit, and not just in summer: Many are equally beautiful in winter.

Need inspiration? Here are some ideas.

Top Spanish beaches for sunshine holidays

Despite Spain's international fame as a beach holiday hotspot, it's not difficult to find remote, tranquil coves, even in the busiest tourism destinations, to escape the crowds. Quiet bays in beautiful, unspoilt surroundings abound in every coastal province.

But established seaside tourism belts guarantee a lively atmosphere, convenience, accessibility, and practical facilities: All ideal for an easy, hassle-free trip.

The best indicator of a well-equipped, good-quality beach geared up to holidaymakers is the blue flag. Here's a selection to suit every preference:

Begur, Girona province

On the Costa Brava, the remote, natural coves in Begur are a complete contrast to the bustling holiday feel of this well-loved coast. Zealously guarded by majestic cliffs and dense pine forests, with wooden walkways allowing you to explore the landscape en route to the crystalline waters of its many bays, the best parts to find peace and quiet are in the Aiguafreda ('Cold Water', but it's not especially, so don't take it literally), Sa Tuna, Sa Riera and Aiguablava ('Blue Water', and do take this literally) bays.

La Concha, San Sebastián, Basque Country

The name of this beach in Guipúzcoa province comes from its shape – that of a sea-shell, or concha in Spanish. Flat, wide and sandy, enclosed enough to keep out the strongest of the winds in autumn and winter, La Concha is sufficiently close to the city centre for maximum convenience, making it popular with holidaymakers from northern Spain and southern France.

Locals are so proud of their beach that the awards at the world-famous San Sebastián International Film Festival are named after it: The Concha de Oro ('Golden Shell') is presented for the best film, and the Conchas de Plata ('Silver Shells') to the best lead performer, supporting performer, and director.

Granadella and Portitxol, Jávea (Alicante province)

Famous as the Costa Blanca is for international seaside tourism, the Alicante province coastline actually has plenty of quiet beaches off the mainstream holiday trail. And although Jávea's urban shores are full of life in summer, two of its most sought-after beaches are completely secluded. Stunning cliffs, mountains, heathland, forest, and a tiny handful of private villas are the backdrop for these well-hidden bays. But numbers are restricted, as they're part of a marine reserve.

Granadella, officially one of Spain's most-featured on Instagram, becomes full from early morning. Beachgoers are known to start queuing before sunrise to ensure they get a parking space.

Portitxol, even more secluded, is often overlooked in favour of the Granadella, so it fills up less quickly. Portitxol bay has its own 'village' fiesta every summer, and retains its traditional essence of a remote clifftop fishing hamlet.

Rincón de la Victoria (Málaga province)

One of Spain's top international beach destinations, the Costa del Sol (Málaga province coast) is vibrant, bright and refreshing, with tourists' every practical need covered. Mature sun, sea and sand enclaves such as Fuengirola, Torremolinos, Estepona, Benalmádena and Marbella are ideal for a sunshine break with minimal effort. But they can get busy and, in high season, feel less authentically-Spanish than at other times of the year.

Lesser-known yet equally convenient is Rincón de la Victoria, a long-standing favourite for families living farther inland. The beaches are low-rise and low-density, especially the semi-rural Torre de Benagalbón. Although there are plenty of hotels, most visitors are Spanish holiday-home owners who typically move in for summer. Everyday amenities are necessary even when you only live somewhere for two months, so short-term visitors will find all they need on their doorstep.

Sa Calobra and Es Trenc, Mallorca

Sunseekers looking for well-equipped urban beaches can find them almost anywhere on the largest of the Balearic Islands. But Mallorca is equally internationally-renowned for its remote, undeveloped bays and semi-rural coves, especially in the Alcúdia and Port Sóller areas.

Read more at thinkSPAIN.com

What drives international demand in Spain goes beyond traditional assumptions about climate or tourism. For agents, understanding these differences helps tailor conversations, build stronger pipelines and convert international demand more effectively.

Most foreign buyers are lifestyle-driven

A key difference between foreign and domestic demand is that international buyers are often less price-driven when searching for Spanish property, creating stronger, higher-value opportunities for estate agents.

A recent thinkSPAIN buyer trend survey reveals that for domestic buyers, price was the most important factor when choosing a property. For international buyers, location, number of bedrooms and bathrooms, or property features ranked significantly higher.

Their spending reflects this: In H2 2025, foreign non-residents paid an average of €3,242/m², compared with €1,839/m² paid by Spanish nationals. That’s 76% more per square metre, highlighting the value this audience brings to the Spanish market. This difference may also be influenced by the types of properties and locations international buyers tend to target, particularly coastal, island and higher-end markets where average prices are already above the national average.

Foreign buyers are often driven more by lifestyle than necessity: Many already own, or have recently sold, property in their home country and are choosing Spain for reasons beyond immediate housing need. Different segments have very different motivations, priorities and buying behaviours. Our recent buyer survey, where 75% of buyers were foreign non-residents, highlights this clearly:

• 51% of foreign non-residents are buying for retirement.
• 28% are seeking a holiday home or a second residence.
• 15% are relocating for work, family, or a change in lifestyle.
• 6% are buying for investment.

Among foreign residents, motivations are more evenly split between retirement and relocation, while holiday-home and investment demand remain limited.

The motivations behind international demand vary significantly by buyer type, with each segment bringing different drivers, timelines and opportunities for estate agents.

Retirement buyers: financially prepared, long-term planners

Foreign buyers looking to retire in Spain are often financially prepared, with many using life savings, pension funds, or cash from selling a previous property. As a result, only 5% require a mortgage (thinkSPAIN property search, finance and currency survey 2026) . This reduces financing-related uncertainty and improves lead quality once a property is chosen.

Often viewing Spain as the place where they want to spend later life, healthcare plays a central role in that decision, alongside climate, local services and day-to-day comfort. InterNations has ranked Spain 1st for quality of life for 4 consecutive years, with over 4 in 5 respondents rating Spanish healthcare as:

• Affordable (83% positive ratings, compared with a global average of 59%).
• Easily available (82% vs. 68%).
• High quality (81% vs. 67%).

As a major life decision, buyers looking to retire in Spain usually take longer to commit. Two thirds expect to purchase in 6 months or more as they compare regions, services and long-term suitability. Early-stage enquiries often take a bit longer to convert, making consistent follow up and a clear understanding of international buyers’ decision cycles essential for generating a steady flow of reliable leads.

Holiday home buyers: premium second-home seekers

Buyers seeking a second residence are also strongly driven by lifestyle rather than need, but their preferences differ from retirees. They often want a second home for regular visits, family holidays or longer seasonal stays, so ease of owning, managing and accessing the property from abroad matters as much as the property itself.

Read more at thinkSPAIN.com

Mallorca is one of Europe’s most desirable places to live — but it is also one of Spain’s most expensive. Understanding whether the lifestyle justifies the cost is the key question for most people considering a move.

What makes Mallorca different is not just the climate, but the rhythm of life: mornings at a café in Palma’s Santa Catalina, year-round outdoor living, and a pace that feels distinctly Mediterranean even in the capital. With a resident population of around 900,000, the island functions well beyond the summer season — but what ‘year-round’ actually looks like in practice is something this guide explores in detail.

Is moving to Mallorca a good idea?

For the right person, absolutely. Mallorca suits those who prioritise Mediterranean climate and outdoor living, a stable property market, access to international schools and private healthcare, and strong flight connections across Europe. It works particularly well for retirees — there are nine compelling reasons why Mallorca consistently ranks among the best places in Spain to retire. It also suits remote workers, business owners, and those with income generated outside the island.

It may not suit those who:

• Are working to a budget below €2,000/month excluding rent
• Need access to a large corporate or public-sector job market — local salaries in tourism and hospitality are modest relative to the cost of living
• Rely on public transport; a car is essential almost everywhere outside Palma
• Expect fast administrative processes — registrations, residency cards, and bank accounts take longer than most newcomers anticipate
• Are buying property to let short-term: tourist rental licences are now tightly restricted across the island

Language and daily life

Mallorca has two official languages: Spanish and Catalan, specifically the Mallorquí dialect. In practice this means signage, official correspondence, and local bureaucracy often appears in Catalan first. Public schools teach primarily in Catalan. In Palma and heavily international areas, English and German are widely spoken, but outside these zones, Spanish is the working language and Catalan the community one.

This genuinely affects integration. Learning conversational Spanish makes daily life significantly smoother; making an effort with Catalan — even basic greetings — is noticed and appreciated by local communities. For those planning to settle in smaller towns or inland villages, some language capability is less an advantage than a practical necessity.

Climate and the off-season reality

Mallorca enjoys a Mediterranean climate with over 300 days of sunshine per year. Summers are warm and dry — July and August regularly reach 28–30°C — while winters are mild, typically settling between 10–15°C. Spring and autumn are arguably the most pleasant seasons, particularly for hiking, cycling, and sailing.

What the climate figures do not capture is the off-season reality of many coastal and resort areas. Between November and February, a significant number of restaurants, shops, and leisure facilities close. Communities thin out. In heavily seasonal towns, this can feel isolating, particularly for people who moved expecting a permanent version of their holiday experience. Palma and the major inland towns maintain a full year-round rhythm, but buyers drawn to quieter coastal areas should spend time there in winter before committing.

Transport and connections

Palma de Mallorca Airport (PMI) connects the island to 87+ destinations via 36 airlines, with year-round direct routes to London, Frankfurt, Amsterdam, Zurich, and Madrid. Within the island, public transport covers Palma well, but is limited elsewhere.

Key realities:

• Driving from Pollença or Alcúdia to Palma typically takes 45–60 minutes
• Summer traffic on coastal roads in July and August can add significantly to journey times
• Rural areas have minimal bus frequency — often a few services per day at most

A car is effectively essential outside the capital. Budget €200–€400/month for ownership costs including insurance, fuel, and maintenance.

Taxes: what you need to know before you move

Spain’s tax system is complex for new residents, and the Balearics have specific considerations — including a reintroduced wealth tax and strict worldwide income declaration rules. Depending on your circumstances, qualifying newcomers may also be eligible for a favourable flat tax rate under the Beckham Law. If you own a property before establishing residency, you will also be liable for non-resident income tax under Modelo 210, even if the property is unoccupied. Tax planning should happen before you arrive, not after — our tax guide for expats in Spain covers the main obligations in full.

Cost of living in Mallorca

Mallorca is the most expensive region in Spain by property value, but everyday costs remain moderate by northern European standards. The figures below are indicative estimates based on typical costs reported by Numbeo and Freedom Abroad (2025–2026):

Read more at thinkSPAIN.com