Foreign Buyers Still Pay 75% Premium — What That Means for Property in Spain

• The market is calmer than in the immediate post-pandemic years, which may reduce the frequency of bidding wars, especially for rural and some resort properties.

From an investment perspective, choices differ:

• If your goal is capital appreciation and short-term rental income, you target the same product set that pushes the €3,242/m² average. Expect higher purchase prices and higher management costs, plus regulatory risk around short-term lets.
• If your priority is steady living conditions, integration and long-term capital preservation, aligning expectations with the €1,963/m² figure for foreign residents will be more realistic.

Risks, regulations and practical considerations

No market analysis is complete without acknowledging what can go wrong. The notaries’ data is useful but only a starting point.

Regulatory and tax considerations to check before you commit:

• Local rules on short-term rentals vary by municipality and can change quickly. Popular tourist towns have tightened rules in recent years.
• Non-resident ownership carries different tax implications than resident ownership, including income tax on rental earnings and possible wealth taxes depending on your home country.
• Purchase costs in Spain add several percentage points to the purchase price, including notary fees, registration and regional transfer taxes. Always budget for transaction costs.

Market and financial risks:

• A shift in tourism flows or stricter short-term letting rules would hit the demand side of the non-resident segment more than the resident segment.
• Currency fluctuations can affect the effective price paid by buyers from outside the eurozone.
• Mortgage availability and cost for non-residents is typically less favourable than for residents; lenders often require higher deposits and charge higher rates.

We recommend straightforward steps to reduce exposure:

• Work with a local notary and an English-speaking lawyer who has handled cross-border transactions.
• Verify municipal rules on holiday rentals and communal homeowner association regulations.
• If relying on rental income, model conservative occupancy and rate scenarios; don’t assume top-season yields year-round.

Negotiation and timing: how to approach an offer

With the market calmer than in the peak years, negotiation tactics can vary by segment.

• For coastal resort or prime island properties: sellers still have leverage. Expect asking prices to be firm and practice patience when hunting value.
• For inland, rural and less touristy resorts: there is more room to negotiate and sellers may accept offers closer to valuations.
• For primary-residence purchases: focus on comparable sales in the immediate neighbourhood and be prepared to move when a well-priced property appears; competition remains strong for family-friendly, well-located homes.

Practical negotiation tips:

• Use recent sold comparables, not just asking prices.
• Get pre-approval for finance early; sellers respond to buyers who can demonstrate ability to complete.
• Include sensible contingencies in your offer, and understand local contract customs such as reservation deposits and binding arrangements.

Our read: opportunity with caution

We read the notaries’ H2 2025 data as evidence that Spain’s property market has matured beyond the pandemic surge. Foreign buyers continue to matter, and they pay dearly for the right product. But there is a split market: resident foreigners are driving strong price growth in the primary-residence segment while non-residents maintain a premium in tourism and luxury zones.

That split creates both opportunity and risk. Opportunity if you can identify undervalued stock away from the busiest hotspots or if you have realistic yield expectations for holiday rentals. Risk if you assume the non-resident premium will hold irrespective of regulatory change or shifts in demand.

Frequently Asked Questions

How much more do foreigners pay per square metre in Spain?

According to the notaries’ H2 2025 data, foreign non-residents pay about €3,242/m², which is roughly 75% higher than the €1,839/m² average paid by Spanish nationals. The overall average for foreign buyers is €2,479/m².

Are foreign residents paying the most for property growth?

Foreign residents had the strongest year-on-year price increase at 9.4%, higher than non-residents (5.8%) and Spanish nationals (7.4%). That suggests robust demand from people relocating permanently to Spain.

Is the market cooling for overseas buyers?

Transaction volumes involving foreign buyers fell 4.4% in H2 2025 compared with the same period a year earlier, and the share of sales to foreigners eased to 18.4%. The post-pandemic buying surge has faded, which can mean fewer bidding wars in some segments.

What should I focus on if I’m buying a holiday home versus moving to Spain?

If you are buying a holiday home or investment property, price benchmarks and competition will align with non-resident activity and the €3,242/m² average for that group. If you are relocating, use the €1,963/m² foreign-resident figure to set expectations and budget for integration costs like taxes, schooling and local services.

Our closing practical takeaway: expect to pay a distinct premium for holiday and coastal real estate in Spain, but calibrate your offer and financing to whether you are buying as a resident or as a non-resident. The most useful numbers from the notaries are simple and actionable: €3,242/m² for non-residents, €1,963/m² for foreign residents, and €1,839/m² for Spanish nationals—use them as benchmarks when assessing value and negotiating an offer.