Dreaming of buying a holiday home in Spain in 2025? Every year, thousands of Brits and Europeans hop on a short flight, step into the Spanish sunshine, and start picturing their own place in the sun. And why not? Golden beaches, a laid-back Mediterranean lifestyle, world-famous tapas, and property prices that still offer great value—it’s easy to see the appeal. But let’s be honest: buying a property abroad can feel overwhelming. Where should you buy? What type of home is right for you? And most importantly—how do you make sure it’s a smart investment? In this blog post, we’ll show you exactly how to buy a holiday home in Spain—step by step—so you can enjoy the lifestyle, investment potential, and stress-free escapes you’ve been waiting for.
Why Buy a Holiday Home in Spain?
- Lifestyle & Climate – Enjoy 300+ days of sunshine, stunning beaches, and a relaxed Mediterranean way of life.
- Smart Investment – Property values in hotspots like Marbella and Málaga continue to grow, making Spain a solid long-term choice.
- Rental Income – Strong tourism demand means holiday rentals can bring in steady extra income when you’re not there.
Setting Your Budget
Before falling in love with a sea-view apartment or a countryside villa, it’s important to set a clear budget. Property prices in Spain vary greatly depending on location and type. In less touristy areas, apartments can be found starting at around €50,000, while villas near the coast or in popular regions often range from €150,000 to several million euros. Beyond the purchase price, buyers should also account for additional costs such as Property Transfer Tax (6%–10% on resales) or VAT at 10% for new builds. Notary and land registry fees typically fall between 0.1% and 2%, while legal fees range from 1% to 2%. Surveyor fees can differ, and annual property tax (IBI) also varies by municipality. Factoring in these expenses early will give a clearer picture of the total investment required.
Best Places to Buy a Holiday Home in Spain
Choosing the right location is key. Spain offers everything from buzzing cities to peaceful coastal villages. Some of the best places to buy a holiday home in Spain include:
- Marbella
- Estepona
- Malaga
- Mijas
- Fuengirola
The Buying Process in Spain: Step by Step
Purchasing property in Spain involves several important steps:
- Obtain an NIE (Número de Identificación de Extranjero): This tax identification number is mandatory for all property transactions and can be obtained in Spain or at a Spanish consulate.
- Open a Spanish Bank Account: Required for managing payments related to the purchase and ongoing expenses.
- Hire an Independent Lawyer: Choose an English-speaking lawyer experienced in Spanish property law. They will handle due diligence, check for debts or legal issues, and review all contracts.
- Sign a Reservation Contract: A deposit (usually €3,000–€6,000) secures the property and takes it off the market.
- Conduct Due Diligence: Your lawyer will verify ownership, confirm licenses, and ensure there are no debts or encumbrances tied to the property.
- Sign the Purchase Contract (Contrato de Arras): A legally binding contract requiring a 10% deposit. If either party withdraws, financial penalties apply.
- Finalize the Sale (Escritura de Compraventa): Signed before a notary, this final deed transfers ownership once the balance is paid.
- Register the Property: After the sale, register the property with the Land Registry to formalise ownership.
Financing Your Holiday Home In Spain
Financing a property in Spain can be done through mortgages or alternative methods. Non-residents can secure mortgages from Spanish banks, usually covering 60–70% of the property’s value, provided they show proof of income, a good credit history, and make a down payment of 30–40% or more. Alternatively, some buyers opt for equity release from properties in their home country or use lump-sum pension withdrawals. In either case, consulting a financial advisor is essential to understand the risks and long-term implications before proceeding.
Many holiday homeowners later decide to settle in Spain full-time. If that’s something you’re curious about, take a look at our complete guide on How to Retire in Spain.
Taxes and Legal Obligations in Spain
Property owners in Spain must pay annual taxes such as IBI (local property tax) and Non-Resident Income Tax, even if the property isn’t rented out. If you plan to rent, a tourist license is required along with compliance to regional rules on safety and guest registration—failure to do so can lead to heavy fines.
Final Thoughts
Owning a holiday home in Spain means swapping rainy weekends for rooftop sunsets and long queues for long lunches. Whether it’s for quick getaways, rental income, or future retirement, it’s one of the smartest (and sunniest) moves you can make.
Ready to buy your dream holiday home in Spain? Get in touch with our team today—we’ll help you find the perfect property that matches your lifestyle and investment goals.
FAQs
Can we buy a holiday home in Spain as a non-resident?
Yes! Thousands of Brits and Europeans buy Spanish property every year. All you need is an NIE and a good lawyer.
How long does the buying process take?
Typically, 6–10 weeks from reservation to completion.
Can I get a mortgage in Spain?
Yes, many banks offer non-resident mortgages. Expect to pay around 30–40% deposit.
Are there property taxes in Spain?
Yes. Annual IBI (council tax), non-resident tax, and possibly rental income tax.
