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Investing in Spanish property from abroad in 2026: cities, figures and rules

Published 2 June 2026·9 min read·By The Alveo team

Spanish home values are up more than 12% in a year, and foreign buyers have never carried so much weight. Here are the official figures for the cities where we have offices, and the rules that matter when you invest from abroad.

Contents The Spanish market in 2026 The cities where we have offices Who buys in Spain Buying from abroad Purchase tax by region Long-term letting Holiday lets, city by city Taxes for a non-resident owner Selling Sources

The Spanish market in 2026

The average appraised value of a home reached €2,355 per m² in the second quarter of 2026, the highest since the series began in 1995 and 12.5% up on a year earlier, according to the Ministry of Housing. The INE price index, which tracks completed sales, rose 12.2%.

The Bank of Spain puts the average gross rental yield at 2.9%. Adding price growth, the total return on housing reached 15.1% over the last twelve months.

Foreign buyers made 15.98% of home purchases in the second quarter of 2026, a record according to the Spanish land registrars.

The cities where we have offices

Price per m²: average appraised value of a home, Ministry of Housing, second quarter of 2026. Share of foreign buyers: Colegio de Registradores, same quarter.

Madrid: €5,418 per m², up 9.4% in a year. Foreigners make 8.1% of purchases in the Madrid region.
Barcelona: €4,602 per m², up 6.9%. Foreigners make 16.5% of purchases in the province.
Valencia: €2,973 per m², up 17.0%, the strongest rise of these six cities. Rents there rose 5.9% in 2024, more than in any other provincial capital.
Málaga: €3,321 per m², up 14.8%. Foreigners make 37.0% of purchases in the province.
Alicante: €2,279 per m², up 12.6%. With 46.4% foreign buyers, Alicante province ranks first in Spain.
Vinaròs and the Costa del Azahar: €1,465 per m² on average in Castellón province, up 14.6%, with 16.4% foreign buyers.

Who buys in Spain

Among purchases by foreigners in the second quarter of 2026, British buyers came first (6.99%), ahead of Dutch (6.94%) and German buyers (6.11%). Americans accounted for 1.79%.

According to Spanish notaries, non-residents made 36.8% of foreigners' purchases in the first half of 2026, at €3,493 per m² on average.

Buying from abroad

You need an NIE, the foreigner's identification number, which you can request from the Spanish consulate in your country. The notarial deed records how you paid, and cash is limited to €10,000 for a private non-resident buyer.

Above €500,000, a purchase by a non-resident counts as foreign investment and must be declared: the Spanish notary files the declaration for you.

Alveo Search guides you from the property search to the signing, and Alveo Finance advises you on financing it.

Purchase tax by region

On a resale home, the buyer pays transfer tax (ITP), set by each region. On a new build, the buyer pays 10% VAT plus stamp duty on the deed (AJD).

Madrid: 6% ITP, 0.75% AJD above €180,000
Valencian Community: 9% ITP since 1 June 2026, 11% above €1,000,000, 1.4% AJD
Andalusia: 7% ITP, 1.2% AJD
Catalonia: 10% to 13% ITP depending on the price, 1.5% AJD

Long-term letting

The 2023 housing law lets regions declare stressed rental areas, where a new lease cannot exceed the previous rent. Of the regions where we have offices, only Catalonia has declared them, Barcelona included; Madrid, the Valencian Community and Andalusia have none.

Alveo Rent manages your property for you: tenant selection, lease, rent collection and upkeep.

Holiday lets, city by city

Since 3 April 2025, letting a home to tourists requires the prior approval of the owners' association by a three-fifths vote. Each city also has its own rules:

Barcelona: the city will not renew existing tourist licences, which are due to end in November 2028
Málaga: new registrations suspended across the city since 23 August 2025, for up to three years
Valencia: tourist flats limited to 2% of homes in each neighbourhood, on the ground or first floor with independent access
Madrid: outside the historic centre, only in basements, ground or first floors with independent access; no more scattered tourist flats in residential buildings in the centre

Taxes for a non-resident owner

If you live in the European Union, your Spanish rental income is taxed at 19% after expenses. Elsewhere, in the UK or the US for instance, the rate is 24% on gross rent. A property you do not let creates imputed income of 1.1% or 2% of its cadastral value, taxed at the same rates.

You declare this income on form 210. Rental income is grouped by year: rent received from October 2026 is declared between 1 and 20 April of the following year. The town hall also collects IBI, the annual property tax, at 0.4% to 1.1% of the cadastral value.

No specific tax applies to non-EU buyers today: the bill tabled in 2025 lapsed when the Spanish parliament was dissolved on 6 October 2026.

Selling

When a non-resident sells, the gain is taxed at 19%, and the buyer withholds 3% of the price towards that tax. Alveo Properties handles the sale of your property, from valuation to completion.

Sources

Ministry of Housing (MIVAU), appraised value of homes, second quarter of 2026
INE, house price index (second quarter of 2026) and rental price index (2024)
Bank of Spain, housing market indicators, October 2026
Colegio de Registradores, property statistics, second quarter of 2026. Consejo General del Notariado, first half of 2026
Regional laws on ITP and AJD, Ley 12/2023, Ley 49/1960 as amended by Ley Orgánica 1/2025, Real Decreto Legislativo 5/2004, RD 571/2023
Key takeaways
check Average appraised value of €2,355 per m², up 12.5% in a year (Ministry of Housing, Q2 2026)
check Average gross rental yield of 2.9%, total return of 15.1% over twelve months (Bank of Spain)
check Foreign buyers: 16% of purchases in Spain, 46% in Alicante province (land registrars)
check Rental income taxed at 19% after expenses for EU residents, 24% on gross rent otherwise
The Alveo team Alveo Group · Updated October 2026

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