Lorraine Williamson
Foreign demand is no longer a side story in Spain’s property market. In some coastal provinces and island regions, international buyers are now a major force shaping prices, availability, and political debate.
New figures from Spain’s notaries show foreign buyers accounted for 18.4% of all home purchases in the second half of 2025, with 66,629 transactions. That was down from 19.5% a year earlier, but still leaves foreign demand close to one in five sales nationally.
A cooling market, but still a powerful one
The latest data suggests foreign purchases are no longer rising at the pace seen after the pandemic. According to the notaries, transactions by foreign buyers fell by 4.4% year-on-year in the second half of 2025.
Yet the overall picture is not one of collapse. Foreign buyers remain deeply embedded in Spain’s housing market, especially in areas where lifestyle, climate, and remote working have made property even more attractive.
For local buyers and renters, that can mean more competition in markets already under strain.
Where foreign demand matters most
The national figure only tells part of the story. Foreign demand is far more concentrated in certain places.
Coastal areas, islands, and major lifestyle destinations feel the impact most strongly. Alicante, Málaga, the Balearic Islands, the Canary Islands, and parts of Murcia and Girona have all become major magnets for international buyers.
That demand is not always the same. Some buyers are residents building a life in Spain. Others are non-residents buying holiday homes or investment properties.
British, German, and Moroccan buyers remain important
Foreign buyers are not one single group. They include EU citizens, British nationals, Latin American buyers, North Africans, and people from further afield.
In the first half of 2025, the notaries reported that foreign home purchases rose by 2% year-on-year to 71,155 transactions. Resident foreign buyers made up the majority of those purchases, showing that many are not simply holiday-home investors.
That distinction matters. A foreign resident buying a main home has a different impact from a non-resident buying a second property that may sit empty or be used seasonally.
Why prices are part of the debate
Foreign buyers often have higher purchasing power than local buyers in the same market. This is especially true where buyers arrive from countries with stronger wages or higher property values.
That does not mean foreign buyers are the only reason prices are rising. Spain’s housing crisis is also driven by low supply, slow construction, demographic change, mortgage conditions, and pressure from tourist rentals.
However, in high-demand towns and cities, international demand can push prices further out of reach for local workers.
Government pressure is growing
The issue has already moved into national politics. Prime Minister Pedro Sánchez previously floated measures aimed at discouraging non-EU non-resident buyers, including a possible tax of up to 100% on some purchases.
That proposal remains politically difficult. It would need parliamentary support, and the property sector has warned it could damage investment. Reuters reported last year that the government was looking at ways to discourage speculative purchases by non-EU non-residents.
For now, the debate raises a broader question: should Spain treat housing mainly as an investment market or as a basic place to live?
A market split between lifestyle and affordability
For many foreign buyers, Spain remains attractive for good reasons. The climate, healthcare system, transport links, and quality of life make it one of Europe’s most desirable places to settle.
But for many residents, the same demand feels very different. In areas such as Málaga, the Costa Blanca, the Balearics, and the Canary Islands, local salaries often struggle to keep pace with property prices.
That gap is now one of the defining tensions in Spain’s housing debate.
Spain’s housing question is becoming more local
The impact of foreign buyers will not be felt equally across Spain. Inland towns trying to attract new residents may welcome international demand. Overheated coastal markets may see it as another source of pressure.
That means national policy alone may not solve the issue. Spain is likely to need a mix of local controls, more affordable housing, clearer rules on vacant homes, and better data on who is buying, where, and why.
Foreign buyers are not disappearing from the Spanish property market. The real question is whether Spain can manage that demand without pricing residents out of the places they call home.