Spain maintains its appeal for international investors, but new tax proposals generate uncertainty. Market stability and potential returns remain attractive, although taxation poses new challenges for foreign buyers.
Spain continues to consolidate its position as one of the favorite destinations for international investors in the real estate sector. According to data from Tinsa, in the first half of 2025, foreign buyers purchased nearly 28,000 homes, representing 15% of all purchase and sale transactions in Spain. Among these investors, 40% came from Europe, mainly the United Kingdom and France, while 35% came from the Americas, with particular interest from the United States and Mexico, and the remaining 25% from Asia, particularly China and Japan.
Spain's attractiveness lies in several factors:
- Relative political and economic stability, compared to other European markets.
- Constant tourist demand, which ensures sustainable rental income, especially in destinations such as Madrid, Barcelona, Malaga, and the Balearic Islands.
- Investment profitability, with average gross annual returns of 4.5% to 6% in urban rental housing and 5% to 7% in coastal areas.
New regulations under discussion
Despite these favorable conditions, recent regulatory proposals have raised concerns among investors. One of the most discussed measures is a tax of up to 100% on homes purchased by residents outside the European Union. The initiative seeks to prioritize access to housing for local residents and curb real estate speculation, but could limit the influx of foreign capital and slow down the purchasing dynamic in certain high-demand regions.
According to the General Council of Real Estate Agents (CGAPI), this measure could primarily affect tourist and coastal areas, where international investment historically represents between 30% and 40% of transactions. The regulation could also impact the office and commercial space market, where foreign investors control approximately 20% of the stock in cities such as Madrid and Barcelona.
Recommended Strategies for Investors
Given this scenario, experts recommend that international investors:
- Evaluate corporate and asset structures to optimize tax and asset management.
- Diversify their investments geographically within Spain, avoiding concentrating solely on capital cities or tourist areas.
- Continuously monitor regulatory and tax changes to adjust their purchase and rental strategies.
Despite these measures, it is recognized that foreign investment remains crucial to boosting the market and supporting property construction and renovation. According to the Spanish Association of Public Housing and Land Developers (AVS), foreign investment has contributed to financing more than 45,000 new homes since 2022, many of them intended for affordable rentals and the renovation of historic buildings.
Future Outlook
Analysts agree that, while the new regulations could slightly dampen international demand, Spain will remain attractive due to its profitability, legal security, and tourism potential. Even with stricter regulations, foreign investment is expected to represent between 12% and 14% of total annual sales until 2027, consolidating the country's position as one of the most dynamic real estate markets in Europe.
Ultimately, Spain faces the challenge of balancing protecting access to housing for local residents with attracting foreign capital, which is key to maintaining a healthy and growing real estate market.