The Most Popular Areas for Expats to Buy Property in Spain

April 11, 2024

The Most Popular Areas for Expats to Buy Property in Spain

The Real Estate Yearbook of Property Registrars (Anuario Inmobiliario de los Registradores de la Propiedad) has recently revealed some interesting statistics about the buying habits of expats in Spain in 2023.

Foreign transactions have once again demonstrated exceptional performance, marking three consecutive years (2021-2023) of significant growth in their share of the national market in Spain. Despite facing the COVID pandemic, foreign buyers have consistently maintained their presence throughout the country, with their weight in total operations remaining above 10% since 2013. During 2023, expats accounted for a staggering 15% of property purchases in Spain, with more than 87,300 transactions. This increase, in comparison to 13.8% in 2022, shows a robust demand from international buyers and strengthens Spain’s real estate market even further.

British Still Leading, But Other Nationalities Are Catching Up

Whilst British buyers continue to lead with a solid 9.5% of total transactions, other nationalities are trailing closely behind them. German (7.3%) and French (6.7%) buyers maintain their positions, however, nationalities such as Moroccans, Belgians and Italians are diversifying the buyers market. 

Several nationalities have witnessed a surge in growth during 2023 too, with Russians, Ukrainians, Chinese and Americans among the standout performers for snapping up properties. This trend underscores the broader distribution of foreign buyers across Spain, with buyers from Mexico, Venezuela, Colombia, Peru, Portugal and the Czech Republic also contributing to the market. 

Preferred Areas for Expats Buying Property

Geographical preferences among nationalities play a pivotal role in home purchases, with regions like Andalucía, Comunitat Valenciana, and Catalonia attracting diverse buyer demographics. Alicante remains a hotspot for foreign investment, followed closely by Santa Cruz de Tenerife and Málaga. Together, these provinces account for over 37% of total transactions by expats.

The type and size of properties preferred by foreign buyers vary, with homes exceeding 100 square metres dominating the market. Americans, Dutch, and British gravitate towards larger properties, while Belgians, Dutch, and Poles show a preference for new homes. Meanwhile, the French, Argentines, and Irish favour used and resale properties.

A significant proportion of purchases by expats exceed 500,000 euros, with regions like the Balearic Islands, the Community of Madrid, Andalucía, and Catalonia witnessing the highest number of high-value transactions. It's also worth noting that non-EU citizens in particular stand to benefit from residency permits, further fueling demand in the luxury real estate industry. 

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Spain Property Imputed Income Capital Gains Modelo 210