With a Mediterranean climate, rich cultural history, and beautiful landscapes, it’s no surprise that Spain continues to be a top destination for international property buyers. Whether you’re looking for a Spanish home for holiday, retirement, or investment purposes, there’s something to suit everyone in sunny Spain.
According to the Instituto Nacional de Estadística (National Institute of Statistics), 2024 was the third-highest year on record for property sales, with foreign buyers making up 14.5% of all property transactions at a 6% year-on-year increase.
The largest share of foreign property buyers in Spain are from the UK, with Germany, France, the Netherlands, and Italy filling out the top five. Other nations like the US also remain key buyers.
With the European Central Bank (ECB) projected to lower interest rates as inflation stabilises, the 12-month Euribor could drop from 2.65% in late 2024 to 2.1-2.5% by the end of 2025. This will make mortgages more affordable, making it a good time to invest for anyone using finance to purchase property in Spain.
Whether you’re looking for a family home or somewhere with high rental yields, there’s still a window of opportunity as house prices in Spain increase, so potential buyers should be researching the best places to buy property in Spain now.
Fortunately, we have a list of the best cities for non-EU residents to buy a house in Spain below, covering the hotspots for foreign investment across the country in 2025.
Madrid
Coming 7th place in both the InterNations Expat Insider 2024 ranking of expat-friendly cities and the Conde Nast 2024 Readers’ Choice Awards for the best cities in Europe, the capital is always a strong contender for the best place to buy a home in Spain as a foreigner.
While Madrid is in central Spain, the lack of beaches is easily overlooked by those who prefer the thriving boulevards of a diverse economic hub with a mix of city apartments, suburban houses, and luxury estates.
However, the high level of demand in Madrid means housing prices here are some of the highest in Spain, which could discourage potential homebuyers and investors.
Barcelona (Catalonia)
While Barcelona ranked 21st in the InterNations report and 13th in the Readers’ Choice Awards, making it the lowest-ranked Spanish city out of the five that made each list, it’s still such a popular place that housing prices rival the capital city.
Barcelona is known to offer a vibrant cosmopolitan lifestyle, with older homes in city apartments and newer housing in urban developments available, offering both modern and historic architecture.
Its coastal location also gives Barcelona an edge over Madrid for those who would prefer properties with access to the beach, though you may need to learn to speak Catalan as well as Spanish.
Palma (Balearic Islands)
Though it didn’t rank in the InterNations report, the city of Palma on the island of Mallorca (also known as Majorca) did place 9th for Conde Nast readers, drawing attention to the most popular of the Balearic Islands.
As the largest of these islands off the Mediterranean coast, Mallorca and particularly its capital Palma have long been a big attraction for tourists and luxury property investors alike.
Due to being such a prime location for travellers and expats, property prices are also at the high end here. Other nearby islands like Ibiza have also become hotspots for luxury real estate with high ROI potential, though holiday rentals are more strictly regulated to protect the environment and local residents.
Valencia
Topping the list in 1st place for both the InterNations Expat Insider report and the Readers’ Choice Awards, Valencia has become one of the most favourable Spanish cities for foreigners.
As the third-largest city in Spain, located north of the Costa Blanca, Valencia is flanked by spectacular landscapes, including high mountains inland and bays and beaches towards the Balearic Sea. It’s home to a flourishing expat community that appeals to those looking for a more permanent residence in Spain.
Valencia is a more relaxed and quieter metropolis than the tourist hotspots further south, but this does mean paying a higher property price than other coastal regions – though prices here are still lower than Madrid and Barcelona.
Alicante (Costa Blanca)
Alicante may have been forgotten by Conde Nast readers, but InterNations survey participants ranked it 3rd, largely due to its higher rate of affordable housing that’s considered easy to find.
Around 171km south of Valencia, Alicante is one of the star attractions of the Costa Blanca – an internationally renowned stretch of Spanish coast famed for its white sand beaches and expat towns like Benidorm. You’ll find more retirees here than young workers, which investors should bear in mind.
Whether you would prefer a traditional townhouse or a modern villa with a sea view, you can find it in Alicante for a lower price than other beach towns along the southern coast.
Seville (Andalusia)
Despite being Spain’s fourth-largest city, Seville was also overlooked by the InterNations report, but did score the final spot in the top 10 in the Readers’ Choice Awards – perhaps because it’s mostly known as a warm and sleepy small town.
Further inland and less busy than the tourist towns dotted along the Costa del Sol, Seville is the capital of the autonomous community of Andalusia and offers a slower-paced lifestyle with lower-priced properties than some on the coast.
With a traditional Spanish feel and an excellent food scene, Seville could be a great alternative if you’re looking to buy a house in Andalusia within a couple of hours of Malaga by car or train. However, if you’re more interested in property investment for rental income from tourism, this may not be the most lucrative spot.
Malaga (Costa del Sol)
Though it came 1st in 2023, Malaga conceded to Valencia in 2024 and ranked 2nd in the latest InterNations Expat Insider survey. Maybe due to the touristy reputation of the Costa del Sol, it didn’t make the top 20 for Conde Nast voters.
That said, Malaga has solidified its status as a top city for property investment thanks to a bustling economy and lively culture, maintained by the mix of locals, expats, and travellers who find a welcoming home in this part of southern Spain.
Hosting one of the busiest international airports in Spain and surrounded by some of the most stunning golden beaches in the world, Malaga and its neighbouring areas are popular places to snap up real estate – especially Marbella and luxurious private communities like Benahavis.
With so many urban developments along the Costa del Sol, it’s arguably the best place in Spain to invest in real estate for rental returns – while prices are high, the unrelenting demand for rental properties here ensures that property investments can help pay for themselves over time.
Choosing the best city to buy a house in Spain
Armed with more information about the best cities in Spain for international property buyers, you can narrow down your decision about where to buy based on the desired property type, area, and purpose of your investment.
For example, a property close to transportation hubs and tourist attractions would be a better option for someone looking to invest in real estate to earn rental income. Meanwhile, somewhere quieter and more luxurious would be worth the investment for a second home or retirement residence in Spain.
Whatever you’re searching for, you’ll need help from Spanish real estate lawyers to ensure your property transactions run smoothly and to help you stay on top of associated legal obligations.
There are no special rules or requirements preventing foreigners from buying property in Spain, as all you need is a valid ID, funds or financing, and a Foreigner Identity Number. However, foreigners who buy properties here while primarily living abroad need to stay on top of Spanish property tax and non-resident tax in Spain.
So, if you need professional assistance to navigate Spanish property laws and tax laws when buying a house in Spain, look no further than Manzanares Lawyers for guidance in a language you understand.
Our multilingual team would be more than happy to help you complete property purchases, transfers, and tax payments, so please contact us by phone or email to benefit from our comprehensive services.
