The best places to buy property in Spain
Sarah Ebrahem January 15th 2025 - 5 minute read

Spain continues to be one of Europe’s most alluring destinations for property buyers. With its diverse landscapes, enviable climate and rich culture, Spain offers something for everyone.
Whether you’re looking for a vacation retreat, a place to settle down in retirement, or a smart investment opportunity, here are some of the best places to buy property in Spain.
Barcelona
Barcelona needs no introduction. As one of Europe’s most vibrant cities, it offers a unique blend of architectural splendour, beachside beauty, and an unrivalled culinary scene.
With its thriving local economy and a buzzing cultural scene, Barcelona is one of the best places to live in Spain.
The city’s diverse neighbourhoods cater to a wide range of lifestyles, from historic quarters to modern skyscrapers. Barcelona is ideal for young professionals and investors looking for a solid return, while also loved by families and retirees.
However, real estate here is pricey. Apartments in the city centre average €4,700 per square metre, and popular areas like Eixample or Gràcia are even more expensive. Furthermore, Barcelona has relatively high property and municipal taxes, which can eat into your investment returns. Nonetheless, the city remains a popular bet for long-term growth.
Valencia
Valencia, Spain’s third-largest city, strikes a perfect balance between historical legacy and modern amenities. Known for its stunning architecture, vibrant arts scene, and delicious cuisine (home to the famous paella), Valencia is increasingly popular among international property buyers.
This city offers a lower cost of living compared to larger cities such as Madrid or Barcelona, but with many of the same urban perks. It boasts beautiful beaches, extensive green spaces, and a thriving expat community.
Valencia is perfect for young professionals and families, given its numerous international schools, excellent public transportation, and welcoming atmosphere. It’s also an ideal spot for retirees, thanks to the comfortable climate and abundance of healthcare facilities.
Property prices in Valencia are fairly reasonable compared to other major cities. As of 2024, apartments in the city centre average around €3,000 per square metre, while properties on the outskirts can be as low as €2,000 per square metre. Looking at taxes, Valencia also enjoys a reasonable property tax landscape. While it’s not among the most tax-friendly regions in Spain, it still offers an attractive proposition for medium- to long-term investments.
Mallorca
Mallorca, the largest of Spain’s Balearic Islands, has long been a favourite for celebrities and high-net-worth individuals. It offers breathtaking landscapes, from white-sand beaches to rugged mountain ranges.
With a mix of luxury and laid-back island life, Mallorca is a paradise for those looking to indulge in the Mediterranean lifestyle. The island also boasts a vibrant cultural calendar, including multiple music festivals and art fairs.
Mallorca is one of the top destinations to buy a holiday home in Spain, although it’s also popular among retirees as well as families and remote workers who appreciate the high standard of living and excellent international schooling systems.
Prices on Mallorca are some of the highest in Spain. In hotspots like Palma de Mallorca, properties can cost between €4,000 and €5,500 per square metre. However, more rural areas offer some opportunities for bargains. In terms of taxes, Mallorca is part of the Balearic Islands, which have higher property taxes than mainland Spain, so be prepared for additional fees on luxury homes.
Alicante
Alicante, located on the Costa Blanca, is another prime area that attracts international buyers. Known for its stunning coastline, Alicante combines a laid-back Mediterranean lifestyle with modern infrastructure.
With more than 300 sunny days a year, this region is ideal for those seeking a beachside escape. The Old Town’s charm, coupled with a vibrant nightlife, draws a mixed and varied demographic. The region is also excellent for holiday homes and retirement.
It has a strong British expat community, making integration easier for English speakers. Young families may also appreciate the area, though job opportunities for professionals are somewhat limited comparted to other metropolitan cities.
Alicante is also budget friendly. Properties in the city centre average around €1,800 per square metre, and even beachfront homes can be surprisingly affordable. Alicante offers a relatively favourable tax environment, with fewer municipal taxes than larger cities. This makes it an appealing destination for those looking for tax-efficient property investments.
Málaga
Málaga has undergone a major transformation over the past two decades, evolving from a quiet coastal town into a cosmopolitan hub with excellent infrastructure, a thriving cultural scene, and world-class amenities.
From Picasso museums to Michelin-starred restaurants, Málaga combines cultural richness with beachside living. Its international airport connects it to major European cities, making travel a breeze. Málaga is ideal for holidaymakers and retirees and is also becoming increasingly popular among remote workers due to its high-speed internet and co-working spaces.
As such, prices have been climbing steadily in the last few years, and you can expect to pay around €3,000 per square metre in the city centre, with more luxurious areas like Marbella commanding even higher prices.
Property taxes in Málaga are mid-range compared to other regions, and more exclusive areas may carry higher municipal taxes as opposed to less sought-after areas.
Canary Islands
The Canary Islands, an archipelago off the northwest coast of Africa, are known for their year-round warm climate, volcanic landscapes, and pristine beaches. The islands are a dream destination for travellers and an increasingly attractive spot for property buyers.
The region is popular among retirees, families, and remote workers seeking a relaxed lifestyle. Its diverse islands cater to a variety of preferences, from bustling cities like Las Palmas and Santa Cruz de Tenerife to tranquil coastal villages. Excellent connectivity through international airports, affordable living costs, and a welcoming expat community make the Canary Islands a highly desirable place to live.
Real estate in the Canary Islands remains more affordable compared to mainland Spain’s major cities. As of October 2024, apartments in central Las Palmas de Gran Canaria averaged around €2,375 per square metre, with properties in smaller towns and rural areas available at lower prices.
The Canary Islands also boast some of the lowest property taxes in Spain. For newly built residential properties, the Canary Islands apply a reduced VAT equivalent, known as IGIC, at just 6.5% compared to 10% on mainland Spain. Resale properties are subject to a 6.5% property transfer tax (ITP), which is also competitive.
Madrid
Though not on the coast, Madrid deserves a mention for its role as Spain’s capital and a major hub for international investment.
With a strong job market, it’s ideal for professionals and families. The city boasts top-tier international schools, numerous parks (such as Retiro Park and Casa de Campo), and family-friendly neighbourhoods with spacious housing options.
The region is great for those who thrive in a vibrant city environment and is less suitable for beach lovers.
Madrid’s prices are comparable to Barcelona’s, averaging around €3,500 to €4,000 per square metre in central areas, with more affordable options available further away from the city centre. Madrid also offers a relatively attractive tax environment compared to other major Spanish regions.
How can we help?
If you’re thinking about buying a property in Spain, it’s likely that you’ll need to send money abroad as part of the process. That’s where Currencies Direct come in.
We provide competitive exchange rates, no transfer fees and a personalised account manager to help make your international transactions easier and save you money along the way.
Want to learn more? Reach out to our team today or go ahead and create a free account. It’s completely free to open and hold an account with is, and there’s no obligation to make a transaction once you’re signed up.
We also have plenty of resources for people thinking about buying property abroad, whether you want to know about the costs of Spanish property or need a step-by-step guide to the buying process.
Written by
Sarah Ebrahem