Investing in Real Estate in Spain: The Complete Guide for French Buyers

Published on June 30, 2026 and written by Cyril Jarnias

In recent years, Spain has established itself as one of the favorite playgrounds for French investors. In 2026, the trend is accelerating, driven by price increases that are still moderate by European standards, a lower cost of living than in France, a clear tax framework governed by a bilateral treaty, and highly dynamic local markets, particularly along the coasts and in major metropolitan areas.

Good to know:

The Spanish market attracts retirees, remote workers, families, and investors, but it has become complex due to regional niches, new regulations on short-term rentals, the end of the Golden Visa, enhanced tax obligations, and stricter banking conditions for non‑residents.

This guide offers insights specifically tailored for a French audience: comparing costs with France, understanding foreign buyers’ rights, decoding Franco‑Spanish tax rules, reviewing the most sought-after cities, detailing financing options, price outlooks, and the new rules on short-term rentals.

Spain, an Open Market… Without a Passport or Golden Visa

For a French investor, the first great news is legal: Spain leaves the door wide open to foreign buyers. The elimination of the Golden Visa in 2025 has not changed this principle at all.

Attention:

Any foreigner (EU or non-EU) can freely purchase any real estate in Spain, with no residency requirement or limit on the number of properties, and with rights equal to those of a Spanish citizen. The only minor exceptions: certain military or strategic areas may require authorization for non-Europeans.

The major change in recent years is the severance of the automatic link between buying property and obtaining a residence permit. The famous Golden Visa, which granted residency in exchange for a 500,000 euro investment in unencumbered real estate, was abolished for new applications in April 2025. Existing investors retain their rights, but for newcomers, purchasing an apartment or villa no longer automatically leads to a residence permit.

This does not mean that real estate no longer supports a life project in Spain. Three main pathways exist for French people who wish to settle down:

Visas for Spain

Discover the three main types of visas for settling in Spain without local employment.

Non-Lucrative Visa

Based on sufficient passive income, this visa is ideal for those with annuities, pensions, or rental income.

Digital Nomad Visa

Designed for remote workers whose professional activity is focused abroad.

Investor or Entrepreneur Visa

Tied to a genuine economic project, this visa is for project leaders or investors.

In all three cases, owning a property can be a positive factor in demonstrating local ties, but it is not sufficient on its own. Crucially, these statuses require spending at least 183 days per year in Spain, which means becoming a Spanish tax resident and thus being taxed on worldwide income in the country.

For many French people, the simplest option is to remain a non‑tax resident in Spain while investing there. In that case, the country maintains complete freedom to purchase and own property, with a tax regime specific to non‑residents.

Cost of Living: A Structural Advantage for a French Person

Investing in Spain is rarely a purely financial move. Many French people plan to spend part of the year there, or even live there full‑time. The difference in the cost of living compared to France is therefore a key argument.

International comparisons converge: daily life in Spain costs between 20 and 30% less than in France. When considering all spending categories — food, transportation, housing, services — Spain sits at around 60 on an index of 100 (New York as the baseline), versus 67 for France. In practice, this translates into significant savings.

16

A French person earning a living in France sees their purchasing power increase by about 16% when living in Spain, thanks to a lower monthly cost of living for a single expatriate.

The gaps are particularly noticeable in certain categories:

Example:

In Spain, restaurants are about 18 to 30% cheaper, grocery products overall cost 20 to 30% less, individual or shared transportation is up to 39% cheaper, and energy, while volatile, increases slightly less rapidly than in France.

In Madrid, for instance, a single person often spends between 1,500 and 2,200 euros per month, including housing, compared to 2,200 to 3,200 euros in Paris. For a couple with two children, the typical monthly bill runs between 3,500 and 5,000 euros in the Spanish capital, versus 5,000 to 7,500 euros in the Paris region. The 25 to 35% difference represents substantial wiggle room when planning a retirement or a lifestyle change.

This differential also applies, and crucially for the investor, to residential real estate, whether in terms of purchase prices or, to a lesser extent, rents.

Buying in Spain, Paying Taxes in France: What the Tax Treaty Provides

When combining French income and Spanish investments, understanding the mechanics of the tax treaty between the two countries becomes essential. This treaty, signed in 1963, allocates the right to tax different types of income to avoid double taxation.

Tip:

For a French tax resident owning a rental property in Spain: rental income is taxable in Spain under the IRNR, and must also be declared in France. France grants a tax credit equal to the French tax calculated on that income, up to the amount of Spanish tax paid. Since the IRNR is often lower than French tax brackets, this mechanism typically neutralizes French tax on that income, avoiding double taxation.

On the Spanish side, non‑residents are taxed only on their Spanish‑source income: rental income received, capital gains on property, and, even if the property is not rented, a small annual tax called “imputed income,” calculated on a fraction of the cadastral value. This must be declared using Form Modelo 210.

For rental income, the major change came in 2025, when a Spanish court ruling extended to non‑EU residents the right to deduct actual expenses (mortgage interest, local property tax IBI, management fees, maintenance, depreciation, etc.). For French citizens, as EU nationals, the ability to deduct expenses already exists: the tax rate is then 19% on net income, compared to 24% for non‑EU owners.

Good to know:

Spanish income must be declared in France using Form 2047 (boxes 5EY/5FY then 8TK), referencing the data from the Spanish Modelo 210. This is a transparency obligation: the tax on that rental income is still paid in Spain.

For a French person who, conversely, becomes a Spanish resident while keeping property in France, the mechanism is reversed: rental income from French properties remains taxable in France, but must also be declared in Spain, which then grants a tax credit to avoid taxing it a second time. However, the French real estate wealth tax (IFI) still applies to assets located in France, above 1.3 million euros, even if the owner is a Spanish tax resident.

All of this does not diminish the appeal of the investment. It does, however, require administrative discipline: filings in both countries, coordination with your accountant or manager, and adherence to Spanish deadlines (quarterly declarations for rental income, annual for imputed income).

Major Spanish Cities Under the Microscope

One of the strengths of the Spanish market is its diversity. For a French investor, the key is to choose a location that aligns with their project: rental yield, second home, retirement, capital appreciation, remote work…

The guide from which the data below is drawn compares nine cities that top foreign preferences in 2026. The goal is not to name a “best” destination — each has its strengths — but to understand the positioning of each market.

Madrid and Barcelona: The Capitals of Liquidity

Madrid, the political and economic capital, dominates the Spanish urban market. Its robust economy, top-tier infrastructure, well-connected airport, and concentration of corporate headquarters make it a pole of long-term stability. The median price for apartments is around 4,800 euros per square meter, with peaks approaching 10,000 euros/m² in the very exclusive Salamanca district, which ranks as the most expensive urban address in the country.

Barcelona, meanwhile, combines economic dynamism, design, heritage, and an urban beach. The median apartment price is slightly lower than Madrid, around 4,600 euros/m². The city remains one of the most popular among expatriates, with a high density of foreign residents, a strong digital ecosystem, and a milder Mediterranean climate in winter compared to Madrid’s plateau.

These two markets stand out for:

Good to know:

These areas offer high liquidity, meaning you can resell quickly at a good price. Rental demand is strong (executives, students, families), and prices are rising steadily without spectacular surges.

Valencia and Málaga: The Sun/Price/Yield Compromise

Valencia has now established itself as the rising alternative to Madrid and Barcelona. It has topped “best city” rankings among foreigners for several years, thanks to a rare combination:

– Mediterranean climate,

– beach integrated into the city,

– vast urban park in the former Turia riverbed,

– high quality of life,

– a food scene that rivals San Sebastián at a third of the cost.

Yet prices remain resistant to a surge: around 2,800 euros/m² for apartments, roughly 40% less than in the two major metropolises. For a French investor, this is an ideal city for a good balance between lifestyle, reasonable purchase budget, and revaluation potential, boosted by strong growth in digital nomads and expatriates.

Good to know:

In Málaga, apartments cost about 3,400 €/m², but offer direct sea access, a well-performing international airport, and a very sunny climate. The strong expat presence and robust rental demand (seasonal and residential) can generate significant gross yields, provided you comply with the new short-term rental regulations.

Cities with Strong Price/Yield Potential: Alicante, Granada, Seville, Bilbao, Palma, San Sebastián

Alicante stands out on two fronts: ranked the tenth most attractive Spanish city for investment in 2026, it combines very accessible prices — around 2,200 euros/m² for an apartment — and strong rental profitability. The city, with its Mediterranean climate, attracts a large expat community and is a prime location for tighter budgets, especially for a retirement in the sun or a profitable pied‑à‑terre.

Granada also offers a very interesting price/yield ratio, driven by a large student population and the tourist appeal of the Alhambra and Sierra Nevada. Prices remain below those of the major capitals, with strong rental demand, particularly in the long-term or university semester segment.

Seville, the Andalusian capital with very hot summers, has moderate price levels (about 2,400 euros/m² for an apartment). The expat density is low, but the city’s cultural richness and tourist appeal make it an ideal playground for residential rentals or low-cost lifestyle projects, provided you can handle the summer temperatures.

Bilbao, in the green north, benefits from a milder oceanic climate, intermediate prices around 3,800 euros/m², and a high-level cultural and gastronomic scene. The expat density is rather low, which will appeal to investors seeking markets less saturated by foreigners.

Palma de Mallorca sits at the opposite end: high prices around 4,900 euros/m², very high expat density, a market resolutely geared toward luxury second homes, yachting, and an affluent international clientele. Demand is structurally strong, but access comes at a high price, especially since the Balearic Islands are among the most regulated markets for short-term rentals.

San Sebastián, finally, represents one of the most expensive urban markets in the country after Madrid: about 6,200 euros/m² for an apartment, in a city renowned for its beauty, its oceanic climate with mild summers, and above all its incredible density of Michelin-starred restaurants. The expat community remains modest, but affluent domestic and international clientele push prices upward.

Comparative Overview of Prices and Profiles of Major Cities

To visualize the price differences and profiles among these destinations, here is a summary table based on median price per square meter and dominant characteristics.

As you can see: for a given budget, a French investor can choose between the security and liquidity of major metropolises, the quality of life and value of Valencia, or the yield / accessible budget tandem of cities like Alicante or Granada.

Spain vs. France: Purchase, Rent, and Monthly Payments

To judge the appeal of a project, it is not enough to look at Spanish prices in isolation. Compared to France, the differences are significant, both in purchase and financing.

Nationally, the average price per square meter in Spain is around 2,150 euros, compared to about 3,140 euros in France. In city centers, the gap widens: about 339 euros/m² in Spain versus 486 euros/m² in France according to some indices — a difference of over 30%. Outside city centers, you can find around 218 euros/m² in Spain versus 336 euros/m² in France, a gap of over 35%.

880

The average rent in Spain is about 880 euros, while the average monthly mortgage payment is lower, around 720 euros.

In other words, in Spain, being a homeowner is often cheaper than renting, especially in large cities. This situation, combined with a lower purchase cost than in France, creates an interesting leverage for a French person who takes on debt in Spain, especially when they retain French income or purchasing power.

Financing Your Purchase as a French Non‑Resident

Spanish banks are willing to lend to foreigners, but they apply stricter conditions for non‑residents than for residents. For a French person who is not a tax resident in Spain (less than 183 days per year there), here are the main points.

The loan-to-value (LTV) ratio is generally between 60 and 70% of the property’s value. Concretely, this means you need to bring between 30 and 40% of the purchase price from your own funds. On top of that come purchase costs — taxes, notary fees, registration fees, legal fees — which in practice amount to an additional 10 to 15%. For a property worth 300,000 euros, a French investor would therefore need to mobilize about 120,000 to 159,000 euros in cash (i.e., 40 to 53% of the price), with the rest financed by the Spanish bank.

3

The average interest rate on new loans for residents is around 3% in 2025‑2026, with a downward trend thanks to ECB rate cuts.

Fixed-rate loans over the full term can start at around 2.5 to 2.7% for the strongest profiles and moderate amounts, but many institutions reserve these conditions for residents. For non‑residents, banks sometimes favor mixed formulas: a fixed rate for the first three years, then a variable rate indexed to the 12‑month Euribor plus a margin (often between 1 and 2% for a non‑resident). Some institutions have even withdrawn their full fixed-rate offers for loans over 500,000 euros.

Good to know:

For a non‑resident, the repayment term is generally 20 to 25 years, compared to 30 years or more for a resident. Additionally, most banks set a maximum repayment age at around 75.

On a practical note, obtaining a loan requires:

– having a NIE,

– opening a Spanish bank account (non‑resident account),

– providing proof of stable income (often at least 2,000 to 2,500 euros net monthly),

– meeting a debt‑to‑income ratio typically between 30 and 40%,

– presenting a clean credit history in your home country.

For the French investor, the major advantage is that, despite these constraints, the cost of Spanish credit is often lower than what it long was in France, and borrowing is in euros, in a real estate market still in a phase of “mature growth.”

Purchase Process: From NIE to Key Handover

Spain has a well‑established acquisition process, applied equally to Spaniards and foreigners. It can be broken down into three main phases: pre‑purchase, purchase, and post‑purchase.

First and foremost, you need to obtain the famous NIE (Número de Identidad de Extranjero). This tax identification number is essential for signing a preliminary contract, a notarized deed, opening an account, paying taxes, or taking out a loan. French citizens can obtain it from the Foreigners’ Office of the Spanish National Police or through a Spanish consulate in France. The application includes a passport or ID card, Form EX‑15, proof of the reason (property purchase), and payment of a small administrative fee of about 10 to 15 euros. The average processing time is about ten days.

Tip:

Although opening a bank account in Spain is not a legal requirement, it is strongly recommended in practice. This account allows you to issue the bank check needed to pay the balance at the notary’s office, and then to pay recurring charges such as homeowners’ association fees, IBI, water, electricity, and gas bills, as well as to collect any rental income.

The pre‑purchase phase then relies on due diligence. It is highly advisable to hire an independent lawyer to verify the legal status of the property before signing anything. This includes obtaining a Nota Simple from the Land Registry — a document confirming the owner’s identity, property description, and listing any existing charges or mortgages — checking for any outstanding homeowners’ association debts or local taxes, verifying planning compliance (occupancy license, absence of penalty procedures), and possibly a technical inspection for older properties.

Once this stage is secured, the usual practice is to first sign a reservation contract, accompanied by a modest deposit (often 5,000 to 15,000 euros, or 1 to 5% of the price), which takes the property off the market for a short period while completing checks and negotiations.

Attention:

The deposit contract (arras) is a preliminary sale agreement where the buyer pays 10% of the price. If the buyer backs out without cause, they lose the deposit. If the seller withdraws, they must return double the amount. You should sign after thorough due diligence, allowing 2 to 3 months for financing.

The purchase phase proper culminates at the notary’s office, with the signing of the Escritura de Compraventa (public deed of sale). The seller then proves ownership and the absence of undisclosed debts, the buyer pays the remaining balance (often 90% remaining) via bank check, and both parties sign before the notary. The deed can be signed by proxy if the buyer cannot attend, with the lawyer acting on their behalf.

From that moment, the buyer becomes the owner, receives the keys, and the post‑purchase phase begins: registration of the deed with the Land Registry, payment of transfer taxes (ITP for an older property, or VAT + stamp duty for a new property), changing utility contracts, informing the homeowners’ association, and taking out insurance.

Acquisition Costs and Local Taxes: What to Anticipate

A common pitfall is to think only in terms of the “net seller” price when searching for a property. In Spain, ancillary costs represent a substantial amount that must be factored into the financing plan from the start.

The total costs related to acquisition are generally estimated at between 10 and 15% of the property’s price: taxes, notary, registration, lawyer, and possibly brokerage fees and bank charges. For a non‑resident, aiming for a budget of 10 to 12% as a floor is prudent, but certain regions or configurations (new build, autonomous community with high rates) can push it a bit higher.

Good to know:

When buying an existing property, the buyer pays ITP, ranging from 6 to 10% of the price depending on the region. For a new property, VAT is 10% with a stamp duty of 1 to 1.5%.

Add to that notary fees, land registration fees, and legal fees, which together often amount to around 3,000 euros for a standard transaction, but can vary depending on complexity and property value.

Once you are an owner, you will need to pay each year: property taxes, homeowners’ association fees, home insurance, and any necessary repairs or renovations.

– the IBI (Impuesto sobre Bienes Inmuebles), equivalent to property tax, paid to the municipality,

– the IRNR on rental income if the property is rented, or on imputed income if it is not,

– homeowners’ association fees.

To give you an idea of the order of magnitude, here is a summary of the main cost components when buying.

This tax structure remains broadly stable, even though a recent text, Royal Decree‑Law 2/2026, has adjusted certain rules for calculating taxable bases and strengthened reporting obligations for non‑residents. Contrary to some rumors, this text did not create a “100% tax” on foreign purchases, nor did it limit foreigners’ right to buy.

Price Outlook: Moderate but Robust Growth

Investing in 2026 means accepting entry into a market that is no longer at the very beginning of its upward cycle. Spanish prices have risen continuously for 42 quarters, and the years 2024‑2025 saw double‑digit increases in some areas. The question for a French person deciding today is whether they are “coming too late.”

Available forecasts for 2026 are reassuring on this point: all major players (CaixaBank, Bankinter, BBVA, university observatories, major networks) converge on a nationwide price increase of between 3 and 7%, with an average around 5 to 6%. Some analysts, such as Gesvalt or certain university observatories, do not rule out progressions of 9 to 10% for certain property categories (new vs. existing) or certain markets.

Good to know:

The economic consensus does not foresee a general price decline in 2026, but rather a continued increase at a moderate pace, typical of a market in a “mature growth” phase.

This national average, however, masks strong geographical disparities. The coastal areas, and especially the Costas most popular with foreigners, traditionally outperform the rest of the country. Recent data show:

– an annual increase of more than 7% for the entire coastline according to some polling firms,

– an increase of more than 12% year‑on‑year for seaside second homes, with prices approaching nearly 3,000 euros/m²,

– for 2026, forecasts of 5 to 9% increases on the Costa del Sol (Marbella, Estepona, Mijas, Benalmádena) and the Costa Blanca (Alicante and surroundings),

– in premium segments (Marbella, Moraira, Jávea, Altea Hills), scenarios of +10% are not excluded.

5100

The average price per square meter for houses and apartments in the Balearic Islands in 2026, making it the most expensive market in Spain.

This dynamic is not without risks. In certain overheated micro‑markets on the Costa del Sol, analysts are beginning to speak of “affordability fatigue” and raise the possibility of a correction around 2027 if increases continue at the same pace. The scarcity of land, construction costs, and environmental and urban planning constraints also limit supply in the most sought‑after areas.

For a French investor, this context calls for nuance. A purchase on the front line of the sea in Marbella or Palma will be at levels comparable to the finest Parisian districts, but in a market where a global clientele is still driving prices. An investment in Valencia, Alicante, Murcia, or Granada, on the other hand, offers a more interesting catch‑up curve, at prices well below those of major French cities.

Short‑Term Rentals: A New Regulatory Landscape to Master

Until recently, one of the most attractive strategies for a French person was to buy an apartment on the coast or in a city center and rent it out for short periods via Airbnb, Booking, or other platforms. With the influx of tourists and the mild climate, the cash‑flows promised spectacular returns.

The legal framework changed radically in 2025‑2026. Spain has implemented a three‑tier system: regional tourism regulations, increased power for municipalities and homeowners’ associations, and national digital and police control of rentals.

First, there is still no single law at the state level. Each autonomous community defines its own rules for tourist‑use accommodations (VUT, VFT, HUT, ETV depending on the territory). Andalusia, for example, imposes equipment standards and air conditioning per room; Catalonia caps the number of licenses and has high tourist taxes; the Valencian Community has tightened license conditions, notably requiring a certificate of urban compatibility.

Attention:

Since a recent reform of the Horizontal Property Law, homeowners’ association meetings can prohibit tourist use of units with a three‑fifths majority vote, increase the charges for affected units by up to 20%, and, in regions like Andalusia, require explicit approval recorded in meeting minutes to obtain or retain a license.

Finally, the central government has set up a national digital registry coupled with a traveler control system. All tourist or seasonal rentals must now have a unique national identifier (NRU or similar number), linked to the regional license, to be listed on platforms. Without this number, severe penalties are provided, with fines potentially reaching several hundred thousand euros in the most serious cases. Platforms are required to remove listings without a valid number.

Attention:

All accommodation providers (hotels, guesthouses, tourist apartments) must register their guests’ data via the SES.HOSPEDAJES platform of the Ministry of the Interior within 24 hours of arrival. This obligation is in force and subject to checks and penalties.

For a French investor, the conclusion is clear: short‑term rentals remain possible, but they require rigorous legal management. Before buying a property with the idea of making it an Airbnb, you must check at least four elements:

– that the homeowners’ association explicitly allows tourist use,

– that the local zoning plan authorizes the activity at that address,

– that the autonomous community is still issuing licenses in the area,

– that obtaining or transferring a license remains feasible under current rules.

For those who wish to avoid this complexity, two solutions are available. On one hand, focus on long‑term rentals, governed by the national Urban Leases Act (LAU), which remains more stable and is not subject to the same license restrictions or homeowners’ association votes. On the other hand, target the medium‑term rental segment (more than two months), aimed at students, posted workers, or families in transition, which in many regions escapes the tourist rental status, provided they are not marketed as such.

Building Your Strategy: Lifestyle, Yield, Wealth

Faced with such a rich and evolving market, the key for a French person is not just “finding a good deal”, but first defining a strategic direction.

A purely wealth‑focused project, aimed at security and liquidity, will naturally lead toward Madrid, Barcelona, or the most established markets on the Costa del Sol and the Balearic Islands. Price growth there will likely be less explosive than in some catch‑up cities, but the depth of the market, international demand, and scarcity of supply reduce the risk of a sharp downturn.

Good to know:

For a project combining personal life and investment (remote worker or future retiree), prioritize Valencia, Málaga, Alicante, Granada, certain cities in Murcia, or the north with its milder climate. These cities offer reasonable entry prices, superior quality of life, rents that cover at least part of the costs, and still real potential for price appreciation.

A high‑yield tourist project is still feasible, but it requires targeting niches where licenses already exist (for example, by buying a property with a valid license) or less saturated destinations, while accepting professional, hands‑on management, sometimes high concierge fees (18 to 25% of revenue for full nightly management), and a regulatory environment that may evolve.

Good to know:

For effective financial management, it is crucial to forecast cash flows taking into account real costs: purchase fees, annual charges, local and international taxes, and the cost of credit. Avoid relying solely on optimistic gross profitability scenarios.

For a French person in 2026, investing in real estate in Spain remains a solid option, provided it is considered for what it now is: an investment in a matured market, legally regulated, where growth prospects remain favorable but more reasonable, and where the quality of legal, tax, and banking support makes the difference between a great wealth‑building move and a chaotic adventure. The sun, meanwhile, continues to be free — but it should not dazzle you to the point of forgetting the rigor of numbers and laws.

A wealth project or a question? Contact us now to speak with a wealth management expert.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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