Else Beekman
Spain has long been a top destination for retirees seeking a better quality of life, but recent figures suggest that foreign buyers are flocking to the country in even greater numbers. This growing interest cements Spain’s status as one of Europe’s most desirable retirement destinations.
A lower cost of living, excellent healthcare, and a warm, sunny climate continue to be major draws. But beyond that, Spain offers a relaxed way of life—something many retirees look for when choosing where to settle.
Foreign retirees favour Spain over other European destinations
Spain and Greece stand out as the two most sought-after destinations for European retirees. Both countries offer a pleasant climate, affordable living costs, and high-quality public healthcare, making them attractive choices for those looking to stretch their retirement savings further.
According to a report by the World Population Review, global property markets are undergoing significant shifts. Factors such as remote working, migration, foreign investment, and an ageing population are reshaping the way people buy and sell homes. While cities like San Francisco have seen property prices drop due to workers relocating to cheaper areas, other locations—including Dubai, Miami, and Lisbon—are booming hotspots for expats and investors. Spain appears to be following a similar trend.
Where are foreign buyers investing in Spain?
Recent data from Spain’s Ministry of Housing highlights the increasing interest from foreign buyers in the country’s property market. In 2023, a total of 638,552 property transactions took place, with 123,159 (19.3%) involving non-Spanish buyers.
Certain regions attract particularly high numbers of foreign homeowners, notably the Balearic Islands and the Canary Islands, where international buyers make up a significant portion of the market.
When it comes to nationality, British buyers remain the largest group despite the additional bureaucracy introduced post-Brexit. They accounted for 9.5% of all foreign property purchases in Spain last year. Germans followed with 7.2%, while the French made up 6.7% of foreign transactions. Italians, Dutch, and Romanians also feature prominently among Spain’s international buyers.
Spain’s most popular destinations for retirees
Many retirees are drawn to Spain’s coastal and island regions, with Mallorca, Menorca, Valencia, and the Canary Islands—especially Gran Canaria and Tenerife—among the most sought-after locations.
Valencia, in particular, has gained international recognition as the best city in the world for expats and retirees. The city offers a rare mix of stunning beaches just minutes from the centre, a mild Mediterranean climate, and striking architecture, including the iconic Ciudad de las Artes y las Ciencias, designed by Santiago Calatrava.
Beyond its beauty, Valencia also boasts a well-developed public transport system, top-tier healthcare services, and plenty of green spaces. Add to that Spain’s high safety standards and straightforward residency options, and it’s no surprise that retirees see Valencia as an ideal place to enjoy their golden years.
Stricter regulations for foreign property buyers?
However, the surge in demand for Spanish property has also raised concerns. In many popular areas, rising prices are making it harder for local residents to afford housing.
In response, Spain’s government—led by Prime Minister Pedro Sánchez—is considering new measures to regulate the real estate market. One of the most controversial proposals is a potential tax increase for non-EU property buyers, which could see taxes double for those purchasing homes in Spain.
This proposal has sparked significant debate, particularly in the UK, where Spain remains one of the most popular destinations for British retirees and second-home buyers. The government argues that such a measure is necessary to tackle Spain’s housing crisis, as high demand and a lack of new construction have driven property prices out of reach for many locals.
Foreign retirees and the luxury market
Beyond the general property market, foreign buyers are also dominating Spain’s luxury real estate sector. Recent figures suggest that a staggering 92% of high-end property investments in Spain come from international buyers.
Investors from Mexico, Colombia, Venezuela, China, Russia, and the UAE are among the most active in Spain’s luxury housing market. This has fuelled debate over whether foreign investment is boosting Spain’s economy or driving up property prices to unsustainable levels.