How to buy real estate in Spain in 2026 simply and without pitfalls.
by alicante_apa on 5 February 2026
- Stability of real estate market growth in Spain.
- How to buy real estate in Spain for Foreigners.
- What is important to understand when buying real estate in Spain.
- Tax burden when buying real estate in Spain.
- Titling and notarization.
- The most common mistakes when buying real estate in Spain.
- Conclusion.
Spain has long ceased to be just a vacation destination, as it used to be. In recent years, it has become one of the most stable and sought-after real estate markets in Europe and beyond. Especially the Costa Blanca is a region that has become synonymous with a comfortable life by the sea for many people nowadays.
A market that grows year on year, whatever happens in the world
After 2010, the real estate market in Spain has experienced a strong recovery. Against the backdrop of general European instability in Spain real estate has shown constant growth. If you look at data from public statistical sources, in 2025 housing prices in Spain rose by 13% compared to 2024. If you look further, from 2020 growth showed about 35% to 40%, depending on the region.
The coastal areas – Costa Blanca, Costa del Sol and the Balearic Islands – have increased in price the most. On the Costa Blanca, there is always demand from foreign buyers from all over Europe, the average cost per square meter has increased from about 1700 euros in 2018 to 2400 euros in 2025. For Spain, this is a serious indicator, so while you are thinking about whether to buy a home now, tomorrow it will cost more, and buy your property profitably and with professionals you can with a real estate agency in Spain – Alicante Apartments.
The chart shows the growth of the Average House Price in Spain (€/m², 2018-2026, forecast).
Why foreigners are choosing Spain more and more often
Spain combines a mild climate, a fairly high standard of living and as the Spaniards themselves say clear laws, but this is not accurate. Here it is comfortable to live and vacation with your family, but most importantly – a profitable investment. The main reasons for the popularity of Spain can be attributed to: at least 300 days of sunshine a year, good medicine, affordable prices as in Europe and a very high demand for rental real estate.
What is important to understand before buying real estate in Spain
The most important thing is the documents that are needed to buy real estate for a foreigner, this should be approached with the utmost responsibility:
- NIE – foreigner’s identification number (for Ukrainians a Zagranpassport is sufficient)
- A passport is an identity card in our case of a foreigner
- Nota Simple – document extract from the property register
- The Arras contract is a preliminary agreement or simply an apartment reserve
- Spanish bank account
- A certificate of income to confirm your ability to pay
Let’s look at an example of calculating the full value of an apartment
Let’s take as an example an apartment that costs 150,000 euros:
Lawyer – about 1000 euros
Tax (ITP 10%) – 15000 euros
Agency commission – 3000-4000 euros
As a result, we have 170.000 – 173.000 euros (13.5% higher than the initial price of the apartment). This is the realities of the final cost, which few people talk about, but we show fully everything that the buyer will have to face, so to speak without embellishments.
The chart shows the tax burden by purchase type (secondary housing and new construction).
Signing by a notary
The main document you will sign at the notary is the Escritura Publica de Compraventa. Once signed, the notary will register the buyer as the new owner of the property. My free advice to you, always pay through a bank account it will be for you a guarantee and security, cash try to avoid, and if you resort to it only a small percentage of the total amount up to 30%.
Taxes and fees when buying real estate in Spain and afterwards
– ITP (tax on the purchase of secondary housing): 6-10 %
– IBI (annual tax): 0.4-1.1 %
– Basura / Comunidad(garbage and property owners’ contributions): 100-500 €/year
– IVA + AJD (new buildings): 10 % + 1-1,5 %
Mortgage for foreigners
Chart of Average Mortgage Rates 2021-2025 in Spain.
Many foreigners often buy their real estate through a mortgage.
Spanish banks (CaixaBank, Sabadell, Santander) give loans at:
– Down payment from 30% (the more the amount of down payment the more pleasant the conditions can be)
– Loan terms up to 25 years;
– Interest rate is about 3.2-3.4% in 2025-2026.
More details can be found in our article “Spanish mortgage for foreigners.
The most common buying mistakes
1. Lack of NIE – I advise you to register in advance.
2. Buying real estate without a lawyer – I advise you to always check the documents and contact a good lawyer.
3. Making a money transfer directly to the seller – it is better to use a bank check.
4. Not checking Nota Simple – you should be sure to order this statement from the registry.
5. Do not take into account all taxes when buying – you need to add at least +10-15% to the price of the object.
Foreigners in the Spanish real estate market
Chart of the ratio of real estate purchases by foreigners in Spain from 2018-2025 in percent.
I guess you did not know that every sixth property in Spain is bought by a foreigner, and every third through the Real Estate Agency in Spain Alicante Apartments .
In recent years, the most active in the real estate market are the British, Germans, Belgians, French, Lithuanians, Poles and Ukrainians.
Let’s summarize
In our expert opinion, the year 2026 is a great time to buy your first, and maybe not your first, real estate in sunny Spain.
The market has been stable for the last few years, prices have been rising steadily and moderately, and banks have started actively granting loans and mortgages to foreigners at very favorable interest rates again, we advise you to turn to the experts at Alicante Apartments and get full support in the purchase of real estate in sunny Spain. In our experience, Spain remains a country where your dream of a home by the sea can become a reality this year.
