Spain's Property Market: 2025 in Review and What Lies Ahead in 2026

Spain's property market had a remarkable 2025 - record sales, rising prices, and growing foreign buyer interest despite a challenging European backdrop. 

As we move into 2026, the data suggests that momentum is not going away. Prices are forecast to keep climbing and the obligations that come with non-resident property ownership are more closely monitored than ever. With all of that in mind, what does 2026 hold for non-resident owners in Spain? Well, let's take a look. 

Reflections on 2025

Spain's property market had a strong year in 2025 - one of the strongest in Europe, in fact. While most other European economies were still absorbing the effects of inflation and sluggish growth, Spain moved in the opposite direction. 

In the first half of 2025 alone, 379,484 homes were sold across Spain - the highest figure for that period since before the 2008 financial crisis, and well above anything the market has averaged over the past decade. By the end of the year, total transactions were up 7.6% compared to 2024, with foreign buyers accounting for nearly 50,000 of those purchases - a 15% increase from the year before.

Prices rose by 12.3% nationally, making Spain the second fastest-growing property market in Europe after Portugal. Even at the luxury end, demand barely flinched: sales of homes priced above €2.5 million fell by just 1%, with Málaga, Mallorca, Madrid, and Barcelona leading the way - a market almost entirely driven by international, non-resident buyers.

One thing worth noting: property prices in Spain continue to vary significantly by region. Supply is limited almost everywhere, but how much property values have grown depends on where your property is located. 

Consistent international interest in 2025

International demand for Spanish property held firm in 2025, with growth recorded across all of Spain's major buyer nationalities. Dutch purchases rose by a striking 38% year-on-year, with Morocco up 10%, Germany up 8%, France up 6%, and the UK up 5%. 

Germany has been the dominant foreign buyer nationality since 2022 and continues to account for 14.1% of all international demand in Spain. 

Projections for 2026

What the Numbers Say

Spanish property prices are forecast to grow by between 7.8% and 9% in 2026. That makes Spain one of the strongest-performing real estate markets in Europe right now - and if you already own property there, your asset is quietly appreciating year-on-year. 

For non-resident owners in coastal and island areas, though, the practical effect of this new supply is limited. The places where most foreign buyers own property - the Costa del Sol, Costa Blanca, the Balearic and Canary islands - continue to see demand overtake supply, which is precisely why values and prices in those areas keep climbing.

Added Scrutiny for Non-Resident Owners 

1. Rental registration: what changed and what remains From July 2025, all short-term rental properties in Spain were required to display a national Rental Registration Number (NRA) on listing platforms. However, in May 2026, the Spanish Supreme Court annulled that obligation, ruling that it unlawfully duplicated existing regional tourist registration systems. The NRA is no longer required - but regional tourist licences remain fully in force, and the obligation to declare rental income via Modelo 210 is unchanged. 

2. Rental Income Tax - and a potential refund: All rental income from your Spanish property must be declared to the Spanish Tax Office. If you live outside the EU or EEA, a recent court ruling may also allow you to reclaim overpaid tax going back four fiscal years - something that could mean a meaningful refund. However, this should be assessed case by case. IberianTax now offers this service, managing the entire reclaim process on your behalf.

3. The Spanish Tax Agency (AEAT) is paying closer attention in 2026: Every year, Spain's Agencia Tributaria publishes its Annual Tax Control Plan - a formal outline of where enforcement efforts will be concentrated that year. For 2026, non-resident income tax (IRNR) and the real estate sector are both named as priorities. The AEAT is cross-referencing more data sources than ever - property records, banking information, and international tax exchanges - to identify non-resident owners who have not met their tax obligations.

If your Modelo 210 is not up to date, now is the right time to address it. The window for the 2025 tax year is open until 31 December 2026, but you don’t need to wait until December. File now with IberianTax, in a few clicks, and relax for the rest of the year.

Filing your Spanish Property Taxes

From filing your annual Modelo 210 to reclaiming overpaid rental tax, setting up a direct debit for your IBI bills, or simply understanding what you owe and when - IberianTax has you covered. 

Visit iberiantax.com to check your obligations, use our free tax calculators, or file your Modelo 210 online in English - it takes less than ten minutes.

We are an official collaborator of the Spanish Tax Agency (Agencia Tributaria), trusted by thousands of non-resident property owners across more than 80 countries.

Whether you are filing your Imputed Income Tax, Rental Income Tax, or are looking to sell your Spanish property and you need to file for Capital Gains Tax - IberianTax is here to help.

Create your FREE account today and start saving on your annual Spanish non-resident tax return filings.