Spain’s Second Home Market

Published on October 23, 2025 and written by Cyril Jarnias

Spain continues to attract numerous French investors in the real estate sector, particularly for second homes. This neighboring country offers an appealing combination of investment opportunities, quality of life, and tax advantages that make it a preferred destination for those looking to diversify their real estate portfolio abroad.

Why is Spain the New El Dorado for Second Homes?

Spain’s appeal for second home investors rests on several solid pillars that make it a privileged destination.

An Idyllic Climate and Enviable Lifestyle

With over 300 days of sunshine per year, Spain offers an exceptional living environment that attracts buyers seeking a pleasant lifestyle. The long sandy beaches, renowned cuisine, and the country’s cultural richness are major assets for attracting second home investors.

Still Attractive Real Estate Prices

Despite recent increases, real estate prices in Spain remain generally lower than those in France, particularly in sought-after coastal areas. This difference allows French buyers to access more spacious or better-located properties for an equivalent budget.

Advantageous Taxation

Spain applies generally lighter real estate taxation than France. Property owners benefit from lower property taxes, which reduces long-term holding costs. Additionally, French citizens who become tax residents in Spain benefit from a favorable tax regime, with income tax and real estate wealth tax generally lower than in France.

Interesting Rental Potential

The seasonal rental market is particularly dynamic in Spain, offering attractive profitability prospects for second home owners. The strong tourist demand, especially in coastal areas, allows for substantial rental income during the high season.

Spanish Hotspots for Your Second Home

Spain is full of attractive destinations for investing in a second home. Here’s an overview of the most sought-after regions:

Costa del Sol: The Andalusian Gem

This southern Spanish region, with its renowned beach resorts like Marbella or Torremolinos, attracts many international investors. The climate is particularly mild and the real estate offerings are varied, ranging from seaside apartments to luxurious villas in the countryside.

Costa Blanca: Mediterranean Charm

Around Alicante, the Costa Blanca charms with its long sandy beaches and charming coastal villages. Cities like Benidorm or Calpe offer excellent value for second homes, with strong summer rental potential.

Balearic Islands: Island Exclusivity

The islands of Majorca, Minorca, and Ibiza are prime destinations for investors seeking high-end properties. The real estate market is more expensive but offers interesting long-term appreciation prospects.

Catalonia: Between Sea and Mountain

The Catalan region, with Barcelona as its flagship, attracts many French investors. The Costa Brava, north of Barcelona, offers an idyllic setting for second homes, between wild coves and picturesque fishing villages.

Costa de la Luz: Preserved Authenticity

Less known than its neighbors, the Costa de la Luz in Andalusia offers interesting opportunities for investors seeking authenticity. Prices are still affordable and the development potential is significant.

Keys to Success for Your Second Home Investment in Spain

Investing in a second home in Spain requires careful preparation. Here are some tips to successfully carry out your project:

Clearly Define Your Objectives

Before starting, precisely determine how you want to use your second home: exclusive personal use, seasonal rental, or a mix of both. This reflection will guide your choices in terms of location and property type.

Work with Local Professionals

The Spanish real estate market has its specificities. It’s highly recommended to work with local professionals: real estate agent, lawyer, notary. They will help you navigate the administrative and legal complexities of the transaction.

Study the Local Market

Each region, even each city, has its own market dynamics. Take the time to study price trends, development prospects, and rental demand in the area that interests you.

Anticipate Additional Costs

Beyond the purchase price, don’t forget to include in your budget notary fees, local taxes, potential renovation work, and property maintenance costs.

Optimize Your Financing

If you opt for bank financing, compare offers from Spanish and French banks. Some French banks offer specific loans for real estate purchases abroad.

• Check property compliance: Ensure the property complies with local regulations (building permits, habitability certificate, etc.).
• Consider rental management: If you plan to rent your property, think about how you will manage it (directly or through a local agency).
• Anticipate taxation: Research the tax implications of your investment, both in Spain and France.

Rental Profitability: Numbers That Bring Smiles

Investing in a second home in Spain can be particularly profitable, especially through seasonal rentals. Here are some concrete examples of rental profitability observed in different Spanish regions:

Costa del Sol: The Rental El Dorado

In Marbella, an 80m² apartment with sea views, purchased for €300,000, can generate up to €25,000 in annual rental income, representing a gross yield of 8.3%. Luxury villas can achieve even higher yields, sometimes exceeding 10%.

Costa Blanca: Solid Returns

In Alicante, a 60m² apartment near the beach, acquired for €150,000, can generate about €12,000 per year in seasonal rentals, representing a gross yield of 8%. Small villas with pools are particularly sought after and can show yields above 9%.

Balearic Islands: Exclusivity Has Its Price (That Pays Off)

In Ibiza, a 150m² villa with a pool, purchased for €800,000, can generate up to €60,000 in annual rental income, representing a gross yield of 7.5%. Prestige properties can achieve very high daily rental rates during the high season.

Catalonia: Between Sea and City

On the Costa Brava, a 70m² apartment with sea views, purchased for €200,000, can generate about €15,000 per year, representing a gross yield of 7.5%. In Barcelona, well-located apartments for tourist rentals can achieve similar or even higher yields.

Costa de la Luz: The Emergence of a New Market

In Tarifa, a 50m² apartment near the beach, acquired for €120,000, can generate about €9,000 in annual rental income, representing a gross yield of 7.5%. The growth potential of this region suggests interesting prospects for the future.

It’s important to note that these figures are averages and can vary depending on many factors: precise location, property quality, rental period, etc. Additionally, these are gross yields, before accounting for expenses, taxes, and management fees.

Conclusion: Spain, a Wise Choice for Your Second Home

Investing in a second home in Spain presents many advantages for French investors. The pleasant climate, geographical proximity, still attractive real estate prices, and high rental potential make it a preferred destination for diversifying real estate assets.

However, like any foreign investment, it requires careful preparation and a good understanding of local specificities. It’s crucial to clearly define your objectives, work with competent professionals, and thoroughly study the local market before starting.

With a thoughtful approach and appropriate management, a second home in Spain can not only offer you a sunny vacation spot but also constitute a profitable long-term investment.