Pros and cons of buying a house in Spain

If you spend at least a few weeks a year there and have a horizon of seven to ten years, a home in Spain is almost always a sound decision. If you are after short-term returns, or can only make the purchase work with maximum financing, it is not. Below, we set out both sides honestly, including the costs many buyers only discover afterwards, and what you can do to limit the downsides.

What are the advantages of buying a house in Spain?

Why do so many northern Europeans buy a second home in Spain? The answer rarely lies in a single argument, but in the combination of price, climate and accessibility.

You get more home for your money

On the Spanish coast, the price per square metre is considerably lower than on the coasts of northern Europe. For the price of a flat by the North Sea, you can buy a more spacious home with a terrace and a communal pool on the Costa Cálida.

You can use the property all year round

On the south-east coast, you can still sit outside in January. That makes the difference between a home you use eight weeks a year and one you use for four months. For those who want to spend the winter in Spain after retiring, this is often the deciding factor.

Easy to reach

Alicante, Murcia and Málaga have direct flights all year round from airports across northern Europe, including Amsterdam, Brussels, London and Manchester, in around two to three hours. A long weekend is just as feasible as a month.

Capital growth

Spain's coastal regions have seen rising prices for years, driven by demand from both Spanish and international buyers. There are no guarantees for the future, but those who buy for the longer term generally benefit.

Rental income

In tourist areas, renting the property out during high season often covers a large part of the annual running costs. Rules are getting stricter, however, as we explain below.

Legal certainty

Spain is an EU member state with a public Land Registry. You can have it checked in advance exactly who owns a property and which mortgages or other charges are registered against it. Foreigners can buy property on the same terms as Spaniards.

What are the disadvantages of buying a house in Spain?

The disadvantages are real, and they are rarely mentioned. Yet none of them come as a surprise: if you know about them in advance, you can largely cover them.

Buying costs 10 to 14 percent extra

Transfer tax or VAT, the notary, the Land Registry and your lawyer all come on top of the asking price. You will not get that money back when you sell. So include these costs in your budget from the start, and work out what they mean over the period you plan to keep the property.

Selling takes time and money

Selling in Spain usually takes longer than in northern Europe: think months, not weeks. If you sell as a non-resident, the buyer also withholds 3 percent of the purchase price as a prepayment of your Spanish capital gains tax. On top of that, you pay the municipal plusvalía tax on the increase in land value. If you may need to sell at short notice, factor this in.

Maintenance from a distance

A leak, a power cut or a garden that gets out of hand: from 2,000 kilometres away, you cannot just sort it out yourself. So agree before the handover who holds a key locally, who checks the property after a storm and who arranges repairs.

Community fees and unexpected levies

In a complex or resort, you pay a monthly contribution to the owners' association (comunidad). The association can also impose a one-off extra levy for major works, known as a derrama. Always ask for the minutes of the latest meetings and the state of the reserve fund before you sign.

Rental rules are getting stricter

The Valencian Community and municipalities such as Málaga have significantly tightened the rules for holiday lets in recent years. Since 2025, every rental property must also be listed in a national register, and the owners' association can ban holiday lets by a qualified majority. Do not assume you can simply rent out, and have the licensing situation checked before you buy.

Tax obligations in two countries

Your home country may tax the property or the income from it, usually with relief to avoid double taxation. In Spain, as a non-resident, you pay non-resident income tax (IRNR) on a notional income every year, even if you do not rent the property out. The amounts are usually manageable, but the paperwork continues for as long as you own the property. Many owners therefore outsource it to a gestor.

Is buying a house in Spain a good idea for you?

Three rules of thumb help you weigh it up.

How often will you be there?

If you spend less than four weeks a year there, the running costs weigh heavily and renting is usually cheaper. From six weeks or more, the balance tips, especially if you also rent the property out.

How long do you plan to keep it?

Because of the costs on both purchase and sale, it typically takes seven to ten years before buying pays off financially. If you might want to sell within three years, it is better to wait.

How much of your own money can you put in?

As a non-resident, Spanish banks usually finance 60 to 70 percent of the valuation, and you always pay the additional costs yourself. If you have to stretch to the limit to make it work, you lack the buffer for a derrama or a season without tenants.

How do you limit the disadvantages?

Hire a lawyer who is independent of the seller, have the community documents and the licensing situation checked before you pay a deposit, and set up property management from day one. That is why our support does not stop at the handover: read how we approach it and how to recognise a reliable estate agent in Spain.

Curious about other buyers' experiences? Read our buyers' stories or browse our current properties on the Costa Blanca. Still unsure whether it adds up in your situation? Get in touch and we will work it out together, without obligation.