Non-resident buyers from outside the EU

The Spanish Government’s plan to impose a higher tax (up to 100%) on property purchases by non-resident buyers from outside the European Union has caused an international stir. Framed as an urgent measure to address housing affordability, the government argues that such buyers, labelled as “speculators,” are exacerbating the housing crisis by driving up prices for local residents.

This report seeks to shed light on the profile of non-resident, non-EU buyers and their role in Spain’s property market. It presents the key data available to analyse this segment and scrutinise the government’s argument. The government claims that 27,000 homes were purchased by this segment in 2023, but how reliable is this figure? Moreover, how significant is the influence of this segment on the Spanish housing market, particularly in regions most affected by affordability challenges? Understanding the reality of this segment is essential for evaluating the fairness and effectiveness of this unprecedented policy.

Buyers from outside the EU: impact on the Spanish housing market

On Monday the 13th of January 2025 Spain’s Socialist PM Pedro Sánchez announced his government’s plan to deter non-resident buyers from outside the EU by slapping them with punitive taxes of up to 100% of the property price, arguing that this segment of the market is made up of speculators who are driving up housing costs for locals. On Sunday the 19th of January at a Socialist Party rally in Extremadura he went a step further and suggested banning them from the market entirely.

Size and relevance of the segment

To assess the role of non-EU buyers in the housing market, it is crucial to examine their size relative to the overall market.

Fig.1 shows that non-resident buyers from outside the EU purchased 18,648 homes in Spain in 2023, a 7% year-on-year decline (based on figures from the Spanish notaries’ association). Over the past decade, this segment’s level of investment has been shrinking slowly, with 2023 marking one of the lowest volumes outside the pandemic years. A declining growth pattern does not support the government’s claim that this segment is exacerbating the housing crisis. In fact, it appears to be losing relevance.

Non-EU non-resident property buyers in Spain

The Spanish Government’s assertion that “around 27,000” homes were purchased by this segment in 2023 contrasts with the notary’s figure of 18,648 shown above. 27,000 would be 49% of all foreign non-residents buying in Spain according to the government’s own figures (54,917 in 2023), which is hard to reconcile with data from the notaries based on sales witnessed by them showing that just 32% of foreign non-resident buyers came from outside the EU.

Contribution to the foreign market

In 2023, this segment (non-residents from outside the EU) represented just 14% of the total foreign buyer market, a decline from its 25% share in 2014-2015 (Fig.2). The total foreign market, which is dominated by EU expats and second-home buyers from countries like France and Germany, has grown much faster than this segment. Given its declining share, this segment is unlikely to be a primary driver of the housing crisis. Targeting this segment with punitive taxation or banning it outright raises questions about the policy’s rationale, especially when its market share has diminished significantly in recent years.

Overall market impact

When considering the broader market, this segment’s influence is even smaller. In 2023, there were 623,000 home sales in Spain, giving this group a market share of just 2.99% (Fig.3). It is the smallest segment of the housing market, making it unlikely to have a significant impact on housing costs for locals.

how important are foreigners to the Spanish housing market?

Nationalities and purchase patterns

The first half-year data for 2024 from the notaries provides the latest insights into the nationalities within this segment. Of the 9,166 sales recorded, British non-residents accounted for 3,480 transactions, making them the dominant nationality with a market share of 37.9% within this segment. The USA was the second-largest nationality, with 695 sales (Fig.4 and Fig.5). These figures suggest that only the British buyers are significant enough to potentially influence local markets if concentrated in specific areas.

the british are number one in the non-resident non-eu market

Nationalities such as Russians (414 sales in H1 2024) and Chinese (257 sales), are too small, and spread to thin, to have any meaningful impact on housing prices. Even the “other” group, encompassing buyers from more than 150 countries, most likely comprises immigrants from developing nations who do not yet have residency papers, seeking homes for personal use not speculative investments.

Regional distribution of purchases

Data on regional preferences shows that British buyers concentrate in coastal regions like the Costa del Sol, Costa Blanca, and Murcia. These areas are characterised by urbanisations catering to international buyers and do not typically overlap with regions experiencing severe housing shortages. For instance, some figures show that 90% of British buyers focus on Alicante, Malaga, Murcia, the Balearics, the Canaries, and Almeria. While some of these regions (Balearics and Canaries) face housing challenges, the number of non-resident British buyers in them is too small to move the needle , and their purchases tend to involve villas or second homes on the coast, not affordable housing stock in the city.

Spending patterns

The spending habits of this group are highly varied, reflecting its diversity. Fig.6 shows a wide range of budgets within the segment (segment countries in black), from high-end properties to more affordable homes. This variety further undermines the government’s narrative of a homogenous group motivated by a desire to speculate. Instead, many buyers are seeking holiday homes or planning to relocate when residency permits allow.

how much do foreigners spend on property in spain?

Conclusion

The data shows that non-resident buyers from outside the EU play a minor role in the Spanish housing market. Their market share is small and declining, and they focus on the Costas, well away from areas experiencing the housing crisis. The government’s portrayal of this group as speculators who are driving up housing costs for locals in affordability hotspots is not supported by the evidence. Punitive taxation or an outright ban targeting this segment appears disproportionate and misaligned with the realities of the market, raising questions about its effectiveness and fairness.

Menorca property market

Periodic reports on the Menorca property market (Balearic Islands)

This page offers data-driven reports on Menorca’s property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the residential real estate market of Menorca, with a focus on flagship municipalities such as Mahón and Ciudadela. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into Menorca’s property market to help inform big decisions with important financial consequences.

Menorca property market overview

Menorca (Minorca in English) is a prime destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its tranquil lifestyle, unspoiled coastline, and rich cultural heritage, the island attracts a significant share of Spain’s foreign property transactions. As one of the most unique housing markets in the Balearic Islands, a focused report on the Menorca property market is invaluable for anyone with an interest in this region.

Located in the Balearic Islands, Menorca offers a diverse range of housing options, from luxurious villas to charming townhouses in historic areas. The market presents unique opportunities and challenges worth analysing. Key municipalities like Mahón and Ciudadela (known as Maó and Ciutadella in Catalan) are among the most sought-after areas for buyers and investors.

Menorca property market analysis

The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:

  • Home sales across the Balearic Islands and Menorca
  • Foreign buyers: market share, residency status, and second-home investments.
  • New-build properties: sales, pricing trends, and index data.
  • House prices: general trends and specific insights into flagship municipalities like Mahón and Ciudadela.
  • Mortgage lending: base rates, borrowing costs, and their influence on the market.
  • Housing starts and key factors affecting supply and demand.

Subscribing to Spanish Property Insight provides full access to exclusive data and insights, empowering you to make informed decisions about property investments, sales, or purchases in Menorca. Stay ahead of the market—subscribe today to access the latest Menorca property market reports.

Ibiza property market

Periodic reports on the Ibiza property market (Balearic Islands)

This page offers data-driven reports on Ibiza’s property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the residential real estate market of Ibiza, with a focus on flagship municipalities such as Ibiza, Santa Eulalia del Río, San Antonio, and San José, not to mention Formentera. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into Ibiza’s property market to help inform big decisions with important financial consequences.

Ibiza property market overview

Ibiza (Eivissa in Catalan) is a prime destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its stunning coastline, Mediterranean lifestyle, and vibrant cultural scene, the island attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in the Balearic Islands, a focused report on the Ibiza property market is invaluable for anyone with an interest in this region.

Located in the Balearic Islands, Ibiza offers a diverse range of housing options, from luxurious villas to charming apartments in historic towns. The market presents unique opportunities and challenges worth analysing. Key municipalities like Ibiza, Santa Eulalia del Río, San Antonio, and San José are among the most sought-after areas for buyers and investors. The island of Formentera is one of the most exclusive destinations on earth.

Ibiza residential real estate market

The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:

  • Home sales across the Balearic Islands and Ibiza
  • Foreign buyers: market share, residency status, and second-home investments.
  • New-build properties: sales, pricing trends, and index data.
  • House prices: general trends and specific insights into flagship municipalities like Ibiza and Santa Eulalia del Río.
  • Mortgage lending: base rates, borrowing costs, and their influence on the market.
  • Housing starts and key factors affecting supply and demand.

Subscribing to Spanish Property Insight provides full access to exclusive data and insights, empowering you to make informed decisions about property investments, sales, or purchases in Ibiza. Stay ahead of the market—subscribe today to access the latest Ibiza property market reports.

Madrid property market

Periodic reports on the property market of the Madrid region and city

This page offers data-driven reports on the property market in the Madrid region, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the Madrid real estate market, with a focus on Capital city. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into the Madrid property market to help inform big decisions with important financial consequences.

Madrid property market overview

Madrid is a prime destination for international property buyers seeking second homes, urban apartments, or investment opportunities. Renowned for its vibrant cultural scene, historic landmarks, and excellent connectivity, the region attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in the country, a focused report on the Madrid property market is invaluable for anyone with an interest in this region.

Located at the heart of Spain, Madrid encompasses both the bustling capital city and its surrounding municipalities, offering a diverse range of housing options. From luxury apartments in exclusive neighbourhoods like Salamanca and Chamberí to family homes in suburban areas such as Pozuelo de Alarcón and Las Rozas, the market provides unique opportunities and challenges worth analysing. Key districts such as Retiro, Moncloa-Aravaca, and Chamartín are among the most sought-after areas for buyers and investors.

Madrid property market report

The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:

  • Home sales across the Madrid region and key municipalities.
  • Foreign buyers: market share, residency status, and second-home investments.
  • New-build properties: sales, pricing trends, and index data.
  • House prices: general trends and specific insights into the capital city Madrid.
  • Mortgage lending: base rates, borrowing costs, and their influence on the market.
  • Housing starts and key factors affecting supply and demand.

Subscribing to Spanish Property Insight provides full access to exclusive data and insights, empowering you to make informed decisions about property investments, sales, or purchases in Madrid. Stay ahead of the market—subscribe today to access the latest Madrid property market reports.

If you want to read the latest report without subscribing fill in the form below to download the report in PDF format.

After submitting the form click again on the button above to see the download link, which you will also be sent by email.

Costa Brava property market

Periodic reports on the Costa Brava property market (Girona province, Catalonia)

This page offers data-driven reports on the Costa Brava property market, consolidating key data from public sources to highlight the latest trends and developments. Illustrated with charts and infographics, these reports provide critical insights into the Costa Brava real estate market, with a focus on flagship municipalities such as Begur and Pals. These reports are written for foreign investors, property buyers, vendors, professionals, and journalists looking for insight into the Girona province / Costa Brava property market to help inform big decisions with important financial consequences.

Costa Brava property market overview

The Costa Brava is a prime destination for international property buyers looking for second homes, holiday properties, or investment opportunities. Renowned for its stunning coastline, charming towns, and vibrant expatriate community, the region attracts a significant share of Spain’s foreign property transactions. As one of the most dynamic housing markets in the country, a focused report on the Costa Brava property market is invaluable for anyone with an interest in this region.

Located in Girona province, Catalonia, the Costa Brava stretches from Blanes in the south to the French border in the north. Known for its diverse housing options, from luxury villas to coastal apartments, the market offers both unique opportunities and challenges worth analysing. Key municipalities like Begur, Pals, Palafrugell, Palamos, and Platja d’Aro are among the most sought-after areas for buyers and investors.

Costa Brava property market

The reports cover a wide range of topics to provide a comprehensive understanding of the market, including:

  • Home sales across Girona province and key municipalities.
  • Foreign buyers: market share, residency status, and second-home investments.
  • New-build properties: sales, pricing trends, and index data.
  • House prices: general trends and specific insights into flagship municipalities like Begur, and Pals.
  • Mortgage lending: base rates, borrowing costs, and their influence on the market.
  • Housing starts and key factors affecting supply and demand.

Subscribing to Spanish Property Insight provides full access to exclusive data and insights, empowering you to make informed decisions about property investments, sales, or purchases in the Costa Brava. Keep on top of the market—subscribe today to access the latest Costa Brava property market reports.

If you want to read the latest report without subscribing fill in the form below to download the report in pdf format.

After submitting the form click again on the button above to see the download link, which you will also be sent by email.

Irish market

The Irish market for homes in Spain

Data and analysis of the Irish market for Spanish property in periodic reports highlighting key trends of interest to anyone looking to buy or sell property in areas of Spain where home buyers from the Republic of Ireland are active in the local real estate market.

This report page looks at the Irish market for property in Spain. Here, you’ll find periodic half-year and annual reports that delve into key trends and data related to Irish buyers in the Spanish property market. Whether you’re a property investor, an estate agent, or simply curious about international real estate trends, this page provides valuable insights into this niche yet important segment of the Spanish property market.

Our reports focus on answering critical questions, including:

  • How many Spanish property sales involve buyers from Ireland?
  • What is the year-on-year change in sales by Irish buyers?
  • How do Irish buyers break down by residency type (expats vs. non-residents)?
  • How much do Irish buyers spend on Spanish property?
  • How does the Irish market compare to other important foreign markets for property in Spain?

While the Irish market for Spanish property is relatively small compared to larger foreign markets, it is notable for its concentration in specific regions. Despite its size, understanding this market is essential for anyone seeking a comprehensive view of the Spanish property landscape, particularly those involved with other international buyers such as Russians.