Rather than a single market, the current landscape clearly reflects two distinct investment models. In the south, the focus is on capital preservation and prestige. In the east, the emphasis is on cash flow, accessibility and scalability.

Marbella: international luxury and exclusivity

In Marbella, the real estate market has long moved beyond local dynamics. It is now a fully international market, driven by high-net-worth buyers and global capital.

Since the pandemic, this trend has accelerated. Properties priced between €3 million and €15 million are increasingly being sold through private channels, where discretion and strong networks are essential.

Areas such as Puerto Banús and the Golden Mile continue to concentrate a large share of this demand. Limited supply, exclusive developments and strong international interest continue to push prices upwards.

A solid but highly selective market

The prime segment in Marbella remains strong, but it has also become more selective.

Buyers expect top-tier standards in terms of location, design, privacy and services. Properties that do not meet these expectations tend to stay longer on the market.

At the same time, this creates opportunities for investors focused on renovation and repositioning, particularly in well-established locations with strong potential.

Investing in Marbella: a safe haven with global exposure

Price growth in the luxury segment has ranged between 8% and 12% over the past year. While high-end short-term rentals can still generate strong returns, regulatory changes are leading many investors to consider long-term rentals as a more stable alternative.

However, Marbella remains highly sensitive to global economic conditions. Any slowdown in the international economy can quickly impact demand in the high-end segment.

Alicante: a real estate market focused on returns

In contrast to Marbella, Alicante offers a very different investment profile.

Entry prices are significantly lower, allowing investors greater flexibility and, in many cases, higher potential returns. This combination has positioned the province as one of the most attractive areas for international buyers seeking rental income, capital growth and diversification.

Cities like Torrevieja stand out for their strong demand from Northern European buyers, while locations such as Altea attract a more exclusive international audience within a still accessible market.

Why Alicante is gaining investor interest

One of Alicante’s key strengths is its more fragmented and less saturated market, which creates greater opportunities for active investors.

Over the past year, property prices have continued to rise steadily, with increases between 6% and 9%. At the same time, short-term rentals often deliver higher yields than in more saturated southern markets.

This environment supports active investment strategies, including renovation projects and new developments in prime coastal locations or high-demand areas.

Alicante: volume, strategy and scalability

Unlike Marbella, where a single transaction can involve several million euros, Alicante is typically a volume-driven market.

Many investors focus on building portfolios by acquiring multiple units, generating rental income and diversifying risk. This approach works particularly well in a market that still offers a wide range of property types, price points and consistent demand.

In addition, the rise of remote work, international professionals and digital nomads is boosting long-term rental demand, creating further opportunities for strategic investors.

Marbella or Alicante: two ways to invest in Spain

The evolution of the real estate market along the Mediterranean coast leads to a clear conclusion: Marbella and Alicante operate under very different investment logics.

In Marbella, the focus is on:

• capital preservation
• prestige
• high-net-worth international buyers

In Alicante, the focus is on:

• rental income
• accessibility
• portfolio scalability

For many investors, the key is not choosing one over the other, but understanding how each market fits within a broader investment strategy.

Conclusion: Alicante strengthens its position as an investment market

Spain remains one of the most attractive real estate markets in Europe, but understanding regional differences is becoming increasingly important.

In this context, Marbella continues to stand out as a global luxury destination, while Alicante reinforces its position as a market driven by returns, volume and long-term potential.

For investors looking at opportunities on the Costa Blanca, recognising this distinction is not just useful — it is essential.

This not only places Costa Blanca at the centre of the real estate market, but also reinforces its position as one of the most attractive destinations for international buyers in Europe.

Foreign property purchases Spain 2025: Alicante leads the ranking

Alicante tops the national ranking with 43.29% of property transactions carried out by foreign buyers in 2025, far ahead of other key provinces.

It is followed by:

• Málaga (32.80%)
• Santa Cruz de Tenerife (30.04%)
• Balearic Islands (29.86%)
• Girona (25%)
• Las Palmas (21.72%)
• Murcia (21.42%)

This means that in Alicante, almost one in every two properties sold was purchased by an international buyer.

Why Costa Blanca attracts international property buyers

Alicante’s leadership is no coincidence. Costa Blanca offers key factors that drive foreign demand:

• Mediterranean climate all year round
• High quality of life
• Wide range of properties (new build and resale)
• Excellent international connections
• Established and liquid real estate market

These factors make the area a top choice for both second homes and property investment.

Foreign demand continues to grow in Spain

In 2025, international buyers completed around 97,500 transactions, reaching a new historical record.

This represents 13.8% of all property transactions, reinforcing the importance of foreign buyers in the Spanish real estate market.

Although the percentage share has slightly decreased compared to previous years, the total volume continues to grow, confirming the strength of demand.

Nationalities buying property in Alicante and Spain

The international market is still led by European buyers, although it is becoming increasingly diversified.

Main nationalities:

• British (7.97%)
• German (6.52%)
• Dutch (6.3%)
• Moroccan (5.74%)
• Romanian (5.24%)
• French (5.11%)

There is also a clear geographical preference, with British buyers particularly active in the Valencian Community, reinforcing Alicante’s position.

What type of property foreign buyers purchase

International buyers show clear patterns:

• Strong preference for resale properties
• Growing interest in new build properties among certain nationalities
• Smaller properties (typically second homes)

This reflects a buyer profile focused on both investment and lifestyle use.

Growth in high-value property purchases

The increase in property prices is also reflected in foreign buyer behaviour.

In 2025:

• Average price: €2,284/m²
• Average price per property: €214,581

Purchases above €500,000 now exceed 12% of total transactions.

Conclusion: Alicante, a key destination for international property investment

Foreign property purchases in Spain in 2025 confirm a clear reality: Alicante leads the market and is consolidating its position as the main destination for international buyers.

For those looking to invest or buy a second home, Costa Blanca represents one of the strongest opportunities in the current market.

Font: Idealista

This result marks the high point of a clear upward trend. Spain was not included in the ranking in 2021, entered in seventh position in 2022, moved up to fourth place in 2024, reached second place in 2025, and now takes first place in 2026.

Why real estate investment in Spain in 2026 leads the European ranking

According to CBRE’s European Investor Intentions Survey 2026, based on the views of nearly 700 Europe-based investors, confidence in the real estate market continues to improve while expectations for investment activity also rise.

Spain now ranks first, followed by the United Kingdom in second place and Poland in third. The report also confirms a growing preference for Southern Europe. Alongside Spain in first position, Italy moves up to fourth place and Portugal reaches sixth, reflecting the relevance of these markets thanks to competitive pricing, limited supply, and strong fundamentals.

Nearly half of cross-border investors choose Spain as their main destination because of its return potential, supported by the strength of the economy, solid residential demand, and a shortage of supply in certain segments. This imbalance continues to put upward pressure on rents and absorption.

Spain attracts international capital with strong market fundamentals

For the second consecutive year, Spain is once again the only country with two cities among the five most attractive in Europe for international investors.

The report places Madrid in second position, just behind London, underlining its appeal thanks to market size and economic dynamism. Barcelona ranks fourth, while Lisbon stands in eighth place.

Spain’s leadership also follows a strong 2025, with more than €18.4 billion in investment, up 31% year on year and marking the highest level since 2018.

Looking ahead to 2026, CBRE’s Real Estate Market Outlook forecasts a further increase of between 5% and 10%, taking total investment volumes to between €19 billion and €21 billion. This outlook is supported by monetary stability and improved financing conditions, both of which are expected to help transactions and market liquidity.

Real estate investment in Spain in 2026 is supported by sector strength

The structural shift in investor preferences is becoming increasingly clear. Returns are no longer expected to come mainly from yield compression, but from the real ability to generate income. In this context, asset management and operational performance are becoming more important.

Living and Hotels are expected to remain among the most attractive sectors, while Offices and Retail could become two of the main surprises of 2026.

Living remains the leading sector

For the second consecutive year, Living is the preferred sector among European investors, chosen by 34% of respondents. Its attractiveness is supported by structural imbalances between supply and demand, as well as demographic growth.

Logistics keeps a strategic position

Logistics ranks second with 25% and continues to benefit from e-commerce growth, supply chain optimisation, and the need for modern assets close to major urban centres.

Offices, Retail, and alternative sectors gain relevance

Offices rank third with 13%, with a clear focus on prime, sustainable, efficient assets located in established business areas across major European cities. Retail is selected by 12% of respondents.

At the same time, alternative sectors continue to gain momentum. A total of 69% of investors plan to allocate capital to at least one alternative segment, especially student housing, senior living, or healthcare. This confirms growing interest in assets linked to long-term demographic and social trends, with more defensive risk profiles and more stable income flows.

Market outlook for real estate investment in Spain in 2026

The improvement in investor confidence across the European property market reflects price stabilisation and greater access to debt.

Almost nine out of ten investors, or 89%, expect their buying activity to increase or remain stable in 2026, while 83% expect selling activity to increase or remain stable.

The main challenge continues to be the gap between buyer and seller pricing expectations. Even so, the survey points to growing convergence, supported by better economic prospects, more stable valuations, and the expectation of further reductions in financing costs throughout 2026.

Investors continue to favour value-add and core-plus strategies, taking advantage of stable pricing and opportunities to improve income.

ESG is now a key factor in investment decisions

Sustainability is emerging as a major value driver in the European real estate market.

A total of 88% of investors take ESG criteria into account when making investment decisions, using them as a differentiating factor in risk management and in the future liquidity of assets.

Conclusion

Real estate investment in Spain in 2026 confirms Spain’s position as the leading European destination for international property capital.

With a resilient economy, strong residential demand, limited supply in key segments, and improving financing conditions, Spain enters 2026 as the market to watch in Europe.

According to market data and official statistics from the Spanish Property Registrars, international demand remains stable, with strong activity from British, German and increasingly Dutch buyers in the Spanish residential market.

Foreign property buyers in Spain: what the latest 2025 data shows

The most recent market data, particularly from the final quarter of 2025, confirms that international demand remains resilient. British buyers continued to represent one of the largest foreign groups purchasing property in Spain, while Dutch and German buyers followed closely, reflecting a diversified and stable international demand base.

A broader market perspective can be seen in the analysis of foreign home purchases in Spain in 2025, which highlights that overseas demand is structural rather than temporary.

The rise of European buyers and its relevance in 2026

One of the most notable trends in recent years is the growth of buyers from Northern Europe. Factors such as remote work flexibility, lifestyle improvement, climate, and long-term relocation planning are strongly influencing purchasing decisions in Spain.

In many cases, international buyers are no longer searching only for holiday homes. Instead, they are looking for properties suitable for extended stays, semi-permanent living, or full relocation, which contributes to a more stable and sustainable real estate market.

This shift also reflects a broader change in buyer behaviour, where quality of life, security, and long-term usability of the property are becoming as important as short-term investment returns.

Why Costa Blanca attracts foreign property buyers in Spain in 2026

Within the Spanish market, Costa Blanca has consolidated its position as one of the most attractive destinations for international buyers. The region offers a unique combination of Mediterranean climate, international infrastructure, healthcare services, and strong connectivity with major European cities.

For many foreign buyers, Costa Blanca represents a strategic balance between lifestyle and investment. The area provides year-round livability, established international communities, and a wide range of property types that adapt to different buyer profiles.

International demand in Costa Blanca continues to support real estate activity, as explained in foreign buyer demand in Costa Blanca, reinforcing its position as a key destination for overseas purchasers in Spain.

Investment perspective: international demand in 2026

In 2026, foreign buyers are increasingly adopting a hybrid approach that combines lifestyle goals with long-term investment security. Spain, and particularly Costa Blanca, offers a stable legal framework, consistent international demand, and strong long-term property value fundamentals.

Rather than purely speculative purchases, many international clients are selecting properties that can serve as a primary residence, second home, and long-term asset simultaneously. This diversification mindset is aligned with insights on real estate investment in Spain in 2026 and makes the Spanish coastal market especially attractive compared to more volatile real estate destinations.

Additionally, sustained foreign demand contributes to market liquidity and price resilience in consolidated coastal areas.

What type of properties foreign buyers are looking for in 2026

The profile of international buyers has evolved significantly. In 2026, demand is clearly focused on functional, efficient, and move-in-ready properties located in well-connected coastal areas with established services.

The most sought-after property types include modern villas with outdoor space and privacy, contemporary apartments near the sea, and energy-efficient homes designed for long-term usability. Turnkey properties are particularly attractive, as they reduce uncertainty and allow buyers to start using the property immediately.

Buyers are also prioritising properties with strong natural light, outdoor terraces, and proximity to amenities such as healthcare, restaurants, and transport connections. These features align with the lifestyle-driven motivations that dominate foreign demand in Spain.

Frequently asked questions from international buyers in 2026

Are foreign property buyers still active in Spain in 2026?

Yes. The latest complete market data from 2025 confirms that international demand remains stable, particularly in coastal regions like Costa Blanca, where lifestyle and long-term investment motivations continue to drive purchases.

Why do international buyers choose Costa Blanca?

Costa Blanca offers a strategic combination of Mediterranean climate, international connectivity, healthcare services, and a diverse property portfolio suitable for both residence and investment. Its accessibility and quality of life make it especially appealing to European buyers.

Are foreign buyers purchasing mainly for lifestyle or investment?

Most international buyers in 2026 follow a hybrid strategy, seeking properties that enhance their quality of life while also serving as stable long-term real estate assets. This dual objective is one of the main reasons why Spain remains a top destination for foreign property investment.

Key market insights for 2026

Foreign property buyers in Spain remain a key driver of the real estate market.
International demand continues to be stable based on the latest available data.
Costa Blanca stands out as a strategic destination for international buyers.
Buyers increasingly combine lifestyle relocation with investment objectives.
Move-in-ready and energy-efficient homes are the most in-demand property types.

Overall, the combination of stable international demand, lifestyle appeal, and long-term investment potential explains why Spain — and especially Costa Blanca — continues to attract foreign property buyers in 2026.

Following a particularly strong 2025, with more than €18.4 billion in real estate investment and a 31% year-on-year increase, Spain has outperformed the European average and consolidated its position as a priority destination for international investors. In markets such as the Costa Blanca and the Costa Cálida, this trend translates into greater interest in residential assets, second homes and projects linked to the “living” segment.

Real estate investment in Spain 2026 tops the European ranking

According to CBRE, Spain tops the European real estate investment ranking in 2026, ahead of the United Kingdom, Poland and Italy, while Portugal ranks sixth. This leadership is driven by a combination of structural factors such as economic growth, strong housing demand and limited supply in certain segments of the market.

The report is based on the outlook of nearly 700 investors across Europe and confirms a growing preference for Southern Europe, where Spain stands out for its market stability, liquidity and medium- to long-term return potential.

Strong investment growth after a record 2025

Spain’s leadership in real estate investment follows a particularly dynamic 2025. Investment reached €18.4 billion, the highest level since 2018, driven by the gradual return of international capital and more favourable financing conditions.

Looking ahead to 2026, CBRE’s Real Estate Market Outlook forecasts a further increase in investment of between 5% and 10%, placing total volume between €19 billion and €21 billion. This growth is supported by a more stable monetary environment and a gradual improvement in access to financing.

International capital shows strong preference for Spain

The study also highlights that nearly half of cross-border investors consider Spain their main destination due to its return potential. This preference is explained by several key factors:

• strength of the Spanish economy
• high housing demand
• limited supply in residential segments
• attractiveness of the tourism and residential market

In areas such as the Costa Blanca and the Costa Cálida, where international buyers play a structural role, this investor interest reinforces demand for both primary residences and second homes.

The “living” sector, the top investor choice in 2026

In terms of sector preferences, the residential or “living” segment has consolidated its position as the preferred asset class, chosen by 34% of European investors. It is followed by:

• Logistics (25%)
• Offices (13%)
• Retail (12%)

This is particularly relevant for coastal residential markets, where international demand and limited housing supply continue to drive investor interest.

Real estate market outlook for 2026

The report points to a scenario of moderate confidence. Around 89% of investors expect their acquisition activity to increase or remain stable in 2026, while 83% anticipate that selling activity will also rise or remain stable.

In addition, industry experts note that international capital has firmly established its presence in Spain, indicating a structural shift in investment preferences within the European real estate market.

Conclusion

Spain’s leadership as a real estate investment destination in Europe in 2026 confirms the strength of its property market and the growing interest of international capital, particularly in the residential sector. The combination of solid demand, limited supply and economic attractiveness positions the country as a strategic market in the medium and long term.

At Esentya Estate, we help international buyers and investors identify secure opportunities in the Costa Blanca and the Costa Cálida, offering professional guidance and in-depth local market knowledge.

Sources: CBRE, Idealista

In areas such as the Costa Blanca and the Costa Cálida, where international buyers play a structural role in the market, these figures help explain why demand remains strong, why resale properties continue to dominate transactions, and why provinces such as Alicante remain especially prominent.

Foreigners purchased homes in Spain in 2025: key figures

Although the relative weight of foreign buyers declined slightly compared to previous years (14.6% in 2024 and 15% in 2023), overall market growth offset this adjustment.

In 2024, international buyers purchased close to 93,000 homes in Spain. In 2025, this figure increased by almost 5%, reaching nearly 97,300 transactions. This confirms that foreign demand remains a key pillar of the Spanish property market, even in a context of rising prices.

Most active nationalities

During the fourth quarter of 2025, the highest volumes of foreign purchases were recorded among:

• British buyers

• German buyers

• Dutch buyers

• French buyers

• Belgian buyers

This profile is fully aligned with the typical European buyer seeking a second home or a long-term residential investment on the Spanish coast.

Resale housing reaches historic highs

Resale properties continued to dominate the market. In 2025, more than 556,000 resale home transactions were recorded, accounting for nearly 79% of total sales.

New-build properties also grew, exceeding 149,000 transactions, but their development remains constrained by the limited supply of new construction in many regions.

In the Costa Blanca and the Costa Cálida, this situation reinforces the importance of existing housing stock, where factors such as property condition, legal documentation and location are decisive for international buyers.

Alicante and the Mediterranean coast at the centre of foreign demand

One of the most striking figures of 2025 is the weight of foreign buyers in the province of Alicante, where they accounted for approximately 45.7% of all transactions.

At regional level, the highest shares of foreign purchases were recorded in:

• Balearic Islands

• Valencian Community

• Canary Islands

• Region of Murcia

• Catalonia

• Andalusia

This confirms that international demand continues to concentrate in regions offering favourable climate, good air connectivity and housing products tailored to overseas buyers.

House prices reach new record levels

Average house prices maintained their upward trend in 2025, increasing by 9.5% year on year to reach €2,354 per square metre, according to the Property Registrars.

Both new-build and resale properties closed the year at record price levels, a dynamic that is particularly noticeable in areas with strong foreign demand.

Mortgage activity also increases in 2025

Mortgage lending also grew significantly. In total, nearly 498,500 mortgages were granted in 2025, representing a 14.5% increase compared to 2024. In the final quarter of the year, around 74% of home purchases were completed with mortgage financing.

However, housing affordability indicators deteriorated slightly, with the average mortgage payment representing around 33.8% of household income, highlighting the need for careful financial planning by buyers.

Conclusion

In 2025, foreigners purchased homes in Spain at a pace close to 100,000 transactions, consolidating their key role in the property market. Regions such as the Valencian Community and the Region of Murcia, and particularly the province of Alicante, remain top destinations for international buyers.

At Esentya Estate, we assist international buyers throughout the entire purchase process on the Costa Blanca and the Costa Cálida, offering professional advice and carefully selected properties with clear documentation and transparent procedures.

Sources: Spanish Property Registrars (Real Estate Registry Statistics), Idealista

The key point is understanding that being able to buy a property is not the same as being able to mortgage it or legally live in it. Below, we explain what happens when these documents are missing and how this impacts mortgage approval in Spain.

What is the cédula de habitabilidad and what is it used for?

The cédula de habitabilidad is the document that certifies that a property meets the minimum legal requirements to be used as a dwelling. While the exact criteria vary by autonomous community, it generally confirms:

• a minimum usable surface area,

• adequate ceiling heights,

• the existence of a kitchen and bathroom,

• proper ventilation and natural light,

• compliant doors and windows,

• basic hot water supply,

• and minimum safety standards.

The inspection is carried out by a registered architect or technical architect.
The cost is usually low (often under €200) and the document typically has a validity of around 15 years, after which it must be renewed if the property is sold or rented, depending on regional regulations.

Is the cédula de habitabilidad mandatory to buy a property?

From a strictly legal standpoint, it is not always mandatory to complete a purchase, but the absence of a cédula of habitability can seriously complicate matters.

Without it:

• you cannot register as a resident (padrón),

• it may be impossible to connect or transfer utilities (water, electricity or gas),

• home insurance companies may refuse to provide cover,

• and most importantly, the property is usually not eligible for a residential mortgage.

For this reason, although the sale itself may go through, the risk for the buyer is considerable.

Do banks grant mortgages without a cédula de habitabilidad?

As a general rule, no.
Spanish banks only grant residential mortgages on properties that are officially recognised as habitable.

If a property lacks a cédula de habitabilidad or a first occupancy licence, banks consider that it does not meet the minimum legal requirements to be used as a home and therefore cannot be accepted as mortgage collateral.

In very specific cases, the only alternatives may be:

• a loan for a commercial property or non-residential use,

• or a self-builder / developer loan.

These products usually come with shorter repayment terms and higher interest rates, making them unsuitable for most residential buyers.

What if the property also lacks a first occupancy license?

This situation is even more problematic.
The first occupancy licence is issued by the local council and certifies that the building has been completed in accordance with the approved project and may legally be used as a residence.

If a property has never been granted this licence:

• it is considered not legally authorised for residential use,

• registering a mortgage at the Land Registry is usually impossible,

• utility connections are generally denied,

• and the buyer cannot register as a resident.

In areas such as the Costa Blanca and the Costa Cálida, this issue can occasionally arise in older properties, undeclared refurbishments or buildings with urban planning irregularities.

Can you buy a property without a cédula de habitabilidad?

Yes, but these transactions usually involve:

• properties classed as “out of planning order”,

• homes with unresolved urban planning issues,

• or older buildings that have never been regularised.

In such cases, the mortgage valuation is significantly affected. The appraisal value is often well below the market price and, as a result, the bank will not approve a mortgage.

Mortgage valuers always assess the legal and urban planning status of the property. If there are irregularities, the risk is transferred directly to the buyer.

What happens if I buy a property without these documents?

The buyer assumes full responsibility.
If they decide to keep the property, they must usually:

• undertake the legalisation process (if it is possible),

• cover the technical and administrative costs involved,

• or accept that the property cannot legally be used as a residence.

In some cases, regularisation is not possible at all, which is why proper due diligence before signing is essential.

Differences between the first occupancy license and the cédula de habitabilidad

Conclusion

Buying a property without a first occupancy licence or a cédula de habitabilidad may seem attractive in some cases, but it involves serious legal, financial and practical risks, especially when mortgage financing is needed.

Before committing to a purchase, it is essential to review the legal and urban planning status of the property. Early checks can prevent major problems later on.

At Esentya Estate, we help international buyers purchase property safely on the Costa Blanca and the Costa Cálida, carefully verifying documentation and guiding them through every step of the process.

Sources: regional housing regulations, banking practice, mortgage valuation criteria, Idealista

According to the latest consensus from the Funcas Panel, the euribor is expected to close 2026 below 2.2%, breaking the upward trend seen at the end of last year. This is particularly relevant for buyers considering a property purchase or mortgage financing in high-demand areas such as the Costa Blanca and the Costa Cálida.

Although the global economic environment remains uncertain, experts agree that changes in the euribor are likely to be gradual rather than abrupt.

What are the forecasts for the euribor in 2026?

The euribor closed December 2025 at 2.267%, its highest level in nine months, after five consecutive monthly increases. This development raised concerns among mortgage holders, who anticipated higher monthly repayments at their annual review.

However, the Funcas Panel expects the indicator to stabilise and ease slightly during 2026. While the provisional average for January stands at around 2.25%, forecasts point to a gradual improvement over the coming quarters.

Expected euribor evolution

• March 2026: 2.19%

• June 2026: 2.17%

• September 2026: 2.15%

• End of 2026: slight rebound to around 2.17%

If these projections materialise, the impact on variable mortgage repayments would be limited, with only marginal increases or even neutral revisions in many cases.

What role will the European Central Bank play?

According to the consensus, the European Central Bank (ECB) is not expected to change official interest rates during 2026. While some market participants speculate about a possible adjustment in the second half of the year, the central scenario remains one of monetary stability.

This outlook supports a more predictable mortgage environment, an important factor for international buyers planning to finance a property purchase in Spain.

Economic outlook: growth, inflation and employment

The Funcas Panel has also updated its macroeconomic forecasts for 2026, pointing to a scenario of moderate economic slowdown, but without signs of recession.

Economic growth

• GDP growth forecast for 2026: 2.2%

• GDP growth in 2025: 2.9%

The slowdown is expected to come mainly from weaker investment, particularly in machinery and capital goods, and to a lesser extent from household consumption. Public consumption is expected to show slightly more strength.

Inflation

• Average inflation: 2.2%

• Inflation rate in December: 2.1%

• Core inflation: 2.3%

Despite a slight upward revision, inflation levels remain compatible with stable interest rates.

Employment and unemployment

• Employment growth: 1.7%

• Unemployment rate: expected to fall to 10% in 2026

Although job creation is expected to slow compared to previous years, the overall trend remains positive.

A still uncertain international environment

The Funcas report warns that global uncertainty is likely to persist in the short term. Europe remains one of the regions most exposed to geopolitical risks and trade tensions.

Analysts note that the European Union has yet to agree on a unified strategy to address the shifting global economic balance, which adds pressure to the European outlook. Even so, the consensus believes that this adverse context will not translate into immediate financial instability, reinforcing expectations of euribor stability.

What does this mean for property buyers?

For those considering buying a home in 2026, particularly on the Costa Blanca and the Costa Cálida, this scenario suggests:

• greater predictability in mortgage financing,

• lower risk of sharp increases in repayments,

• and a more stable environment for medium-term planning.

Conclusion

Current forecasts suggest that the euribor in 2026 could see a slight decline compared to the end of 2025, remaining at manageable levels with limited impact on variable-rate mortgages. While the international context remains complex, economists rule out abrupt changes in the short term.

At Esentya Estate, we help international buyers assess the right time to purchase property on the Costa Blanca and the Costa Cálida, supporting them with clear and up-to-date financial insight throughout the buying process.

Sources: Funcas, Panel of Analysts, BBVA Research

In areas such as the Costa Blanca and the Costa Cálida, where many buyers purchase a home as a main residence or a second home, these additional costs often raise questions. Planning ahead is therefore essential to avoid unexpected expenses.

As a general rule, experts recommend having additional savings of around 10% to 12% of the property price, specifically to cover taxes and purchase-related costs.

What costs are involved when buying a property?

These are the mandatory costs you should expect in 2026 when buying a new or resale property in Spain.

Notary fees

The purchase deed must be signed before a notary. Notary fees are regulated by the Spanish state and depend on the value of the property.

• Approximate cost: between 0.2% and 0.5% of the purchase price

• Typical amount: between €600 and €875

Land Registry fees

Once the deed has been signed, the property must be registered at the Land Registry so the buyer is officially recorded as the legal owner.

• Approximate cost: between 0.1% and 0.25% of the property price

• Typical amount: between €400 and €650

Conveyancing / gestoría fees (optional)

A gestoría or conveyancing service handles tax payments and administrative paperwork. It is not mandatory if you buy without a mortgage, but it is common when a bank is involved.

• Estimated cost: around €300

Taxes when buying a property in 2026

The tax burden depends on whether the property is new-build or resale, and on the autonomous region where it is located.

Taxes on new-build properties

• VAT (IVA): 10% of the declared purchase price
  (4% in certain cases of protected housing)

• Stamp Duty (AJD): varies by region
  In the Valencian Community and the Region of Murcia, it usually ranges between 0.5% and 1.5%

Taxes on resale properties

• Property Transfer Tax (ITP)
  In 2026, the general rate usually ranges between 6% and 10%, depending on the region.

In the Valencian Community and Murcia, reduced rates may apply for:

• young buyers

• large families

• people with disabilities

• primary residence purchases under certain conditions

Additional costs if you need a mortgage

If you require financing, some extra costs must be taken into account.

Property valuation

Banks require an official valuation before approving a mortgage.

• Estimated cost in 2026: between €250 and €600

• Validity: 6 months

Mortgage arrangement fee

Some lenders charge an arrangement or opening fee, which can be up to 2% of the loan amount, although this is becoming less common. It must be clearly stated in the binding offer.

Estate agency fees

In certain transactions, especially when using a property finder or personal shopper service, professional fees may apply. The percentage depends on the service provided and the local market.

How are purchase costs paid?

With a conveyancing service

The conveyancer requests a provision of funds before completion. This amount is used to pay notary fees, land registry fees and taxes.

If there is any surplus, it is refunded to the buyer. If additional funds are needed, the buyer is asked to top up the difference.

Without a conveyancing service

If the buyer handles the process directly, payments are made as follows:

• Notary and land registry fees at the time of signing

• VAT or IGIC paid to the seller (new-build property)

• ITP or AJD paid to the regional tax authority

How much are the total purchase costs?

In general terms, costs and taxes when buying a property amount to around 10% to 12% of the purchase price.

Example (property priced at €200,000 on the Costa Blanca)

New-build property

• Notary: €1,000

• Land Registry: €500

• Conveyancing: €300

• VAT (10%): €20,000

• AJD (approx. 1%): €2,000
  Approximate total: €23,800

Resale property

• Notary: €1,000

• Land Registry: €500

• Conveyancing: €300

• ITP (approx. 8%): €16,000
  Approximate total: €17,800

Figures may vary depending on the municipality and the buyer’s personal circumstances.

The cadastral reference value

Since 2022, the cadastral reference value has been in force and is used as the tax base for taxes such as ITP and AJD.

This means:

• If the declared purchase price is lower than the reference value, taxes will be calculated based on the cadastral value

• If the declared price is higher, the declared price will be used

This is particularly relevant in high-demand areas such as the Costa Blanca.

How to reduce purchase costs

• Check whether you qualify for reduced ITP or AJD rates

• Request quotes from different notaries (they may apply discounts of up to 10%)

• If buying without a mortgage, you may avoid conveyancing fees

• Plan the purchase with professional advice from the outset

Conclusion

Understanding costs and taxes when buying a property in 2026 is essential to buying safely and avoiding unexpected expenses. Good planning makes a real difference, especially for international buyers.

At Esentya Estate, we help international buyers invest safely in the Costa Blanca and the Costa Cálida, guiding them through the entire purchase process with transparency and confidence.

Sources: Spanish Tax Agency, Cadastre, current regional regulations

Why Spain Second-Hand Housing Prices Keep Rising

The surge in Spain’s second-hand housing prices in 2025 can be explained by several structural factors.
First, demand continues to outpace supply by a wide margin — a trend that has persisted since the pandemic.

Buyers are seeking larger spaces, better locations, and upgraded amenities, particularly in coastal areas such as Costa Blanca and Costa Cálida, where lifestyle quality and the Mediterranean climate remain top attractions.

Demographic growth also plays a key role: increasing immigration, more single-person households, and the rise of remote work are pushing up housing needs in these regions.

Foreign Buyers Drive the Market Forward

According to Fotocasa, international buyers now account for nearly 15% of all transactions, while investors have doubled their market share to 10% in just two years.

The Costa Blanca and Costa Cálida continue to attract strong demand from Dutch, German, French, Belgian, and Nordic buyers, drawn by Spain’s legal security, lifestyle, and competitive prices compared to other Mediterranean destinations.

This international demand has had a direct impact on pricing:
well-located, renovated second-hand homes are selling faster — and often at higher values — than newly built properties.

Costa Blanca and Costa Cálida: Spain’s Fastest-Growing Real Estate Regions

Throughout 2025, the Valencian Community and the Region of Murcia recorded some of the strongest housing price increases in Spain.
Murcia leads with a 29.6% annual rise, followed by the Valencian Community at 24.4%, both well above the national average.

Towns such as Torrevieja, Orihuela Costa, Guardamar del Segura, La Manga del Mar Menor, and Los Alcázaresare among the most dynamic markets, driven by both local and international demand for coastal properties with high living standards.

Meanwhile, more inland areas show moderate growth, highlighting that Spain’s real estate strength is clearly concentrated along its Mediterranean coastlines.

A Trend That Will Continue in 2026

The financial and economic context continues to favor buyers and investors alike:

• Low interest rates support mortgage affordability.

• Rising employment and wages fuel domestic demand.

• Foreign investment remains strong, consolidating Spain’s position as one of Europe’s most attractive housing markets.

With more than 200,000 new households created annually versus only 100,000 new homes built, the structural shortage of supply suggests that Spain’s second-hand housing prices will likely continue to rise throughout 2026.

In Summary

The Spain second-hand housing prices 2025 data confirms a stable, high-demand market with strong international appeal.
The Costa Blanca and Costa Cálida stand out as key growth drivers, combining profitability, lifestyle, and long-term value for buyers and investors alike.

At Esentya Estate, we assist international clients throughout the entire buying process, offering expert advice, multilingual service, and access to the most desirable homes on Spain’s Mediterranean coast.

Sources: Fotocasa, Idealista