The Spanish coast vs other Mediterranean property markets

Why Spain? When it comes to Mediterranean property markets, Spanish coastal real estate offers some compelling advantages. Unlike its Greek, Italian, and Croatian counterparts, Spain offers a unique combination of strengths: political stability, robust infrastructure, diverse property options and a much yearned for lifestyle. Plus a strong economy - Spain was declared the strongest economy of 2024, topping the OECD rankings for its remarkable economic growth, low unemployment, and controlled inflation, according to The Economist. 

For many potential buyers, the appeal goes beyond mere bricks and mortar. Kyero customers frequently highlight their two primary motivations for purchasing a Spanish property; Spain's enviable weather, and the remarkably low cost of living. And let's not forget that other mouth-watering bonus – the incredible food and drink!

Potential buyers often ask: Is it better to buy property in Spain or Portugal or Italy? The answer depends on individual preferences and investment goals. From a budgetary perspective, Spain occupies an attractive middle ground. 

Coastal properties in Spain are generally more affordable than those in Portugal, yet slightly pricier than Italian options. In fact, budget-conscious buyers might find incredibly attractive opportunities in places like Sicily, where coastal properties requiring minimal renovation can be secured for under €100,000.

Beyond property prices, Spain offers many advantages for international property buyers. Cheap flights to key coastal airports, a welcoming and established expat community, and attractive tax incentives all help to make the country incredibly appealing to foreign investors. 

These factors are substantiated by independent research: Spain has been ranked number one in the 2024 Quality of Life Index for three consecutive years, based on feedback from over 12,500 expats.

Moreover, Spain's exceptional quality of life is reflected in its impressive health statistics. With an average life expectancy of 86 years and a remarkable global health index score of 92.75, the country has been consistently recognised as one of the world's healthiest nations by Bloomberg.

Spanish coastal property market overview 

As property experts who've been watching the Spanish market for more than 20 years, we at Kyero are excited about what's happening in the coastal property market right now. The market is looking strong, and we believe 2025 will be another great year for property buyers and investors.

CaixaBank Research recently provided a definitive snapshot of current market dynamics, and it’s a landscape defined by strong demand and limited supply. The Spanish economy is growing steadily, with growth of 2.5% in 2024 and an expected increase of 2.1% in 2025.

Other impressive market highlights from 2024 to be aware of: 
- House prices have gone up by 5%
- Foreign buyers now make up 19% of the market
- Property sales have increased by 6.2%.
- 14% increase in new mortgage approvals

Regional market performance: Winners and challengers

The regional picture tells an interesting story. According to the General Council of Notaries, Valencia leads the way with 21,224 property transactions, accounting for over 30% of foreign purchases. Andalucia follows with 12,637 transactions, then Catalonia with 10,465, and Murcia with 3,840. Not every region is booming equally though – the Canary Islands saw an 11.1% year-on-year drop in property purchases, and the Balearic Islands experienced a slight 0.7% decline.

International buyers: Who's investing in Spanish property?

Foreign buyers continue to be a crucial part of Spain's property market, making up 19% of all transactions in the first half of 2024 according to the latest notary data. UK-based buyers remain at the top of the list of foreign buyers, accounting for 8.4% of transactions, closely followed by Germany at 6.8%. 
Some interesting trends also emerged in 2024: buyers from Italy, Poland, and Ukraine are showing significant growth, with Polish and Ukrainian nationals increasing their purchases by 70% over two years. Buyers from the USA, driven by a favourable euro-dollar exchange rate and the desire to escape perceived political instability, made 1,363 transactions in 2024. 

Emerging interest from Ireland (1,186 transactions), and Portugal (921 transactions) also set new records. Meanwhile, nationalities like France, Russia, and Norway have seen a decrease in the number of property transactions.

Supply and demand: Market challenges

Lucas Fox reports ongoing constraints in new housing development in Spain, with planning applications continuing to decline. This supply limitation suggests continued upward pressure on property prices, which could be good news for investors and property owners.

The bottom line: Why now is the time to invest in Spanish coastal property

Our expert recommendation is simple: now is an excellent time to invest in Spanish coastal property. The market's healthy track record, combined with current economic indicators, presents a compelling case for both lifestyle buyers and serious investors. The Spanish coastal property market offers a proven investment strategy backed by years of consistent performance.

Is buying a coastal property in Spain a good investment? 

The experts are unanimous: coastal properties are like gold dust. Buy now, or regret it later!

John Goldacre, from GoldAcre Estates based on Fuerteventura in the Canary Islands says: "Buying a coastal property is the best investment you'll ever make. They're unique, always sell well, and generally have a higher growth rate compared to inland properties."

Lorrainne De Marco, Director at Space Real Estate who runs offices in Costa Blanca, Costa Calida and Costa del Sol suggests a long-term perspective: "Purchasing a property is not a short-term investment. Realistically, to get a decent return, it's a 10-year hold. But if you're looking at quality of life and making memories, it's unbeatable."

Tracie Buckman from MDL Carlton International, based in Marbella on the Costa del Sol, highlights additional advantages to buying a coastal property:

- High demand for vacations and second homes
- Strong rental ROI, especially during peak months
- Faster property value appreciation
- Personal enjoyment of an "elite place in the sun"

What rental returns can I expect on my Spanish coastal property?

In short, it depends where you buy. The always popular Costa del Sol stands out with average annual rental yields between 5.2% and 6.5%, bolstered by its robust tourism infrastructure and year-round demand. The Costa Blanca offers slightly more moderate returns, ranging from 4.8% to 6.0%, with a diverse property market attracting international interest. 

The Canary Islands present a unique investment opportunity, boasting the highest average rental yields between 5.5% and 7.0%. These islands benefit from stable year-round tourism, setting them apart from some of mainland Spain’s coastal regions. 

Key considerations for rental income from your Spanish coastal property

Before diving into holiday letting, it's crucial to understand the full financial picture. Property management and its associated costs can impact your returns. Typically, you'll encounter annual fees ranging from €400 + VAT for an apartment to €800 + VAT for a villa. Additional expenses include service fees like 20% commission, €25 call-out charges, and a 20% service surcharge on repairs and replacements. Check out our comprehensive guide to buying a holiday home in Spain for more information. 

Legal and practical rental considerations

Renting out a holiday home in Spain involves navigating several important considerations: Local regulations vary significantly between regions. Areas like Majorca and Andalucia have introduced stricter rules to protect local housing markets. You must:
- Verify your legal entitlement to rent with local authorities
- Meet specific property requirements (e.g., central heating, air conditioning, smoke alarms)
- Understand regional restrictions on short-term tourist lettings

Marketing your coastal property

Choosing the right platforms is crucial. Options include major rental portals like Airbnb, Vrbo, and Trip Advisor Rentals. For those considering an independent approach, working with a marketing or SEO specialist can help you effectively promote your property.

Navigating the legal landscape of renting your coastal property for income
The legal status of holiday lets in Spain can be complex. Regulations differ by region, with potential significant fines for non-compliance. It's crucial to:
- Thoroughly research local laws
- Understand marketing restrictions
- Ensure full legal compliance

Pro tips for maximising your rental income:

- Understand your target audience
- Invest in quality property management
- Stay informed about local regulations
- Consider the unique appeal of your property's location

While rental income can be attractive, success requires careful planning, local knowledge, and a strategic approach. Lucrative investment opportunities are available to savvy investors who do their homework.

Key things to consider when purchasing a coastal property in Spain

From complex legal regulations to environmental considerations, purchasing a seafront property in Spain requires careful research and expert guidance. Here are the critical factors to keep in mind:

Legal and regulatory considerations

Ley de Costas (Coastal Law): A somewhat complex environmental legislation that regulates coastal property ownership and use (see below for a full breakdown of this law) 

Property documentation: Ensure all necessary permits and legal certificates are in place

Public vs. private Land: Many coastal areas are classified as public domain, with significant restrictions on ownership

Easement zones: Be aware of protection, transit, and access easements that may impact property use

Environmental and maintenance challenges

Salt air and humidity: Increased risk of damp-related problems and accelerated property wear

Frequent maintenance: Regular exterior upkeep is crucial due to marine environmental conditions

Wind and weather exposure: Consider prevailing wind directions and their impact on property conditions

Practical living considerations

Tourism impact: Understand the seasonal fluctuations in local populations and tourist traffic

Accessibility: Evaluate transport links, proximity to airports, and major highways

Decoding the Ley de Costas: What you need to know

The Ley de Costas is a comprehensive environmental law that governs coastal areas in Spain. Peter Franke from Franke & de la Fuente legal firm, based on the Costa del Sol says “The Ley de Costas is there to protect the coastline and public access, which is essential for everyone.” It establishes two primary zones:

Public domain: Includes beaches, surf zones, and areas affected by maritime conditions

Restricted zone: A 500-metre area with significant restrictions on private property use

This law applies uniformly across Spain's coastline, regardless of local characteristics or property owners' socioeconomic status. To purchase a coastal property, you must obtain an administrative certificate confirming non-invasion of the maritime-terrestrial public domain.

Peter Franke says “For foreign investors, my advice is simple: always conduct due diligence. Work with experienced professionals who understand the law and can guide you through the process to ensure your investment is secure and compliant.”

What the professionals say about purchasing a coastal property in Spain

Nadine Starck from Starck-Estates on the Costa Blanca highlights the importance of balancing lifestyle and practicality. She advises buyers to carefully consider the "Tourism vs. Residential Balance," noting that some coastal towns can be extremely busy during tourist seasons while remaining quiet during off. 

Tracie Buckman from MDL Carlton International offers a balanced perspective: "While coastal properties come with challenges like privacy and parking issues during peak seasons, the breathtaking views often outweigh the drawbacks."

Peter Franke emphasises the importance of due diligence: "The Spanish coastline is one of the most beautiful places to own property, but it comes with unique challenges. Always work with experienced professionals who understand the local laws."

The key takeaway? Coastal properties in Spain are highly desirable and typically command a premium price. However, success lies in thorough research, understanding local regulations, and working with experienced local professionals who can guide you through the complex landscape of Spanish coastal real estate.

Lifestyle benefits of owning a coastal property in Spain

Spain’s Mediterranean climate provides at least 300 days of sunshine annually, creating the ideal environment for an active, healthy, outdoor lifestyle. You'll enjoy mild winters and warm summers perfect for outdoor activities like swimming, walking, and cycling.

The quintessential Spanish coastal lifestyle revolves around the "vida tranquila" philosophy – a relaxed approach that prioritises leisure, social connections, and enjoying life's simple pleasures. Imagine spending evenings savouring fresh seafood at local tapas bars, engaging in long conversations, and embracing a more balanced way of living.

Health-conscious individuals will appreciate the Mediterranean lifestyle's proven wellness benefits. The combination of nutritious local cuisine, regular physical activity, and reduced stress contributes to improved overall well-being. Regions like Costa del Sol, Costa Blanca, and Catalonia provide not just beautiful landscapes, but a holistic approach to living.

Cultural richness adds another dimension to coastal property ownership. You'll have access to historical towns, vibrant local festivals, world-class cuisine, and welcoming international communities. Many coastal areas offer excellent infrastructure, making travel and integration surprisingly smooth.

Additional perks include diverse recreational opportunities – from sailing and diving to exploring natural parks and historic sites.
 

Where to buy a coastal property in Spain

Let’s cut to the chase. The most popular coastal resort in Spain for foreign buyers searching for property for sale on Kyero is Torrevieja, and it has been for the past 5 years. It’s an expat paradise with plenty of familiar amenities, Instagram-worthy beaches and proximity to lots of fun attractions - think water parks, golf resorts and natural parks.

The most sought after costa with international buyers is the Costa Blanca, 
which just pips the Costa del Sol in terms of popularity. The cheapest coastal province to buy is lovely Castellon and the cheapest location to buy is A Coruña in Galicia.

Phew! Now we’ve got the fundamentals out of the way, Want to know more? Lets take a deep dive into the best locations to buy a property near the beach in Spain. We have crunched our data, and spoken to the experts up and down the Spanish coastline, to get an idea of the best coastal places to buy property in Spain.

Most popular coastal locations with Kyero buyers

Wow! Kyero property hunters love the Costa Blanca! And it’s not difficult to understand why. We asked two estate agents in the region to give us the inside track on their top locations for foreigners to buy property in Spain’s most popular coastal province.

Costa Blanca 

Nadine Starck from Starck-Estates highlights her top location picks in Costa Blanca North: “Benitachell offers affordable sea-view properties between Jávea and Moraira. Oliva is a traditional town with lower property prices and uncrowded beaches.” While in the more budget-friendly south, she recommends La Marina, which has an established expat community and affordable coastal housing, and Pilar de la Horadada, “another up-and-coming area with plenty of new developments on the horizon.”

Nadine also rates San Pedro del Pinatar - “a growing area with good-value properties,” on the nearby Costa Cálida. Steve Swysen, CEO of DS Real Estate on the Costa Cálida says “If you’re looking for an investment property, go for Cálida - cheaper prices, not as well known as Costa Blanca, but it’s on the up, one to watch. If you want to buy an investment, buy Costa Cálida. Because prices are still very low. In one recent year, prices went up 10-12%."

Know your costas 

OK, so we’ve covered the Costa Blanca, but what about the other Costas? Spain’s famous coastline offers something for everyone. So what are your options?

For those craving luxury, the world famous Costa del Sol delivers opulent condos, vibrant nightlife, and abundant watersports like diving and boating. Lorraine from Marbella-based Space Real Estate offers her tips for hidden gem locations in Andalucia, these include Alcaidesa in Cádiz, which “seems to be attracting plenty of attention this year – possibly due to the ripple effect from nearby Sotogrande."

Shirin Sharifi, Sales Director from The Spanish Estate Agent: points to areas further west as offering good value for money: particularly Manilva and La Duquesa Port.

Mijas-based Keith Spitalnick, Director of Target Property Spain can’t recommend La Cala de Mijas highly enough: "It's the only village in Mijas Costa where you've got a full working village on the beach side of the main road, which is the A7. So it means once you're in the village, you don't need to cross the road to get to the beach. And it's a village with a lot of heart and soul."

The Costa Brava blends history and culture (this is Salvador Dalí’ country) and proximity to Barcelona’s cosmopolitan charm. One of the most popular locations for foreign buyers here is Roses, the pretty coastal town known for its history and vibrant nightlife. Meanwhile the Costa Dorada offers excellent value and rich history, check out the picturesque fishing village of La Rapita and the low key resort of L’Ampolla, which stands at the gateway to the Ebre Delta.

For a wilder coastal experience, try Spain’s Atlantic side, with its dramatic scenery and world class seafood. The Costa da Morte in Galicia and Costa Verde in Asturias are renowned for their rugged cliffs and green landscapes.  

The Costa Vasca on the Bay of Biscay blends stunning views with a unique cultural flair. Heading south, the Costa de la Luz in Cádiz and Huelva entices with pristine beaches and Andalusian seafood delights.

Don’t overlook Spain’s islands either—the volcanic Canary Islands promise a striking contrast to the lush Balearic Islands of Mallorca, Ibiza, and Menorca, each offering unique natural beauty and investment opportunities. Jacomo Waldherr, owner of Forum Inmobiliaria in Fuerteventura recommends Lajares in the north of the island Fuerteventura, which has seen lots of new development and growth in recent years. Kyero data suggests the sun drenched seaside town of Corralejo is most popular with international buyers. 

Where to buy cheap coastal property in Spain

Let's talk numbers – because nothing says "smart investment" quite like cold, hard data. Based on Kyero's December 2024 analysis, here's a snapshot of Spain's most affordable coastal locations, including average house price per location:

Top 12 cheapest coastal locations to buy property in Spain

Top 12 cheapest coastal provinces to buy property in Spain

How to buy a coastal property in Spain

Purchasing property in Spain is an adventure that requires equal parts strategic planning and Mediterranean-style patience. International buyers are drawn to Spain's real estate like moths to a sangria-fueled flame, but acquiring your dream property demands more than just a romantic vision and a fat wallet.

The path to property ownership is paved with essential administrative steps—obtaining an NIE number, selecting a reputable local solicitor, understanding tax implications, and mastering the art of negotiation. For a comprehensive deep-dive into the process, check out our full guide to buying property in Spain, which breaks down every nuanced step of your real estate journey.

Buying a coastal property in Spain: Your handy checklist

Pre-purchase preparation

•  Define your property non-negotiables and 'nice-to-have' features
•  Research target regions and specific coastal areas
•  Set a realistic budget (including 10-12% for additional costs)
•  Secure financing or confirm cash purchase capability

Legal and administrative steps

• Apply for NIE (Número de Identificación de Extranjero) number
• Open a Spanish bank account
• Hire an independent, English-speaking solicitor (Abogado)
• Obtain property ownership and legal status report
• Verify no outstanding charges against the property

Property search and viewing

• Create alerts on property websites like Kyero.com
• Schedule multiple property viewings
• Inspect properties at different times of day
• Check local amenities, internet, and mobile connectivity
• Take comprehensive photos and videos
• Enquire about community fees and utility costs

Financial considerations

• Budget for additional costs:
• Property Transfer Tax (6-10%)
• Notary fees (0.5-1%)
• Land Registry fees (0.5-1%)
• Legal fees (1-2%)
• Confirm mortgage terms (if applicable)
• Understand tax implications in Spain and your home country

Purchase process

• Negotiate and agree on final price
• Review and sign purchase contract
• Pay initial deposit (typically 10%)
• Set realistic completion timeline
• Prepare necessary documentation
• Attend notary for final deed signing
• Pay remaining balance
• Register purchase with land registry
• Post-purchase tasks
• Apply for local town hall registration
• Review tax reporting requirements
• Consider creating a Spanish will
• Set up utilities and services
• Explore local insurance options

Pro Tip: Patience is your most valuable asset. The Spanish property market moves at its own unique rhythm—embrace it, and your coastal dream home could be yours!

Disclaimer: Property markets are dynamic. Always conduct independent research and seek professional advice tailored to your specific circumstances.
 

Getting a mortgage in Spain 

Securing a mortgage for your Spanish coastal dream requires careful planning and understanding of the local financial landscape. Since 1994, Spain has maintained robust regulations protecting property buyers, with recent updates in 2019 adding extra consumer protections for mortgage lending.

As a non-resident, you can typically expect to borrow between 50-70% of the property's purchase price, compared to 80-90% for Spanish tax residents. You'll need to prepare several key documents, including proof of income, up-to-date tax records, and details of any existing debt, along with obtaining an NIE number.

Most Spanish mortgages are linked to the 12-month EURIBOR rate and offered on a capital and repayment basis, with major banks like Santander and BBVA providing competitive options. Interestingly, some lenders even offer mortgages in your home currency (GBP, USD, or Swiss Francs) to help mitigate currency risks.

Remember that beyond the property price, you'll need to budget for additional costs typically ranging from 10-15% to cover taxes, legal fees, and bank charges.

While the process might seem complex, working with a regulated independent mortgage adviser can transform your property purchase from a potential minefield into a smooth, exciting journey towards your Spanish coastal home. For further information on Spanish mortgages check out our handy complete Spanish mortgage guide: how to get a mortgage for your property in Spain. 

Brexit and buying a Spanish coastal property: What's changed?

For British readers looking to buy a coastal property in Spain, Brexit has significantly changed the residency process. You'll now need to apply for non-EU residency, which requires proving financial stability – specifically, a monthly income of at least €2,259.60 per individual or €27,115.20 annually.

Additional requirements include opening a Spanish bank account, obtaining private medical insurance, proving no criminal record, and providing a clean health certificate. Permanent residency is now only confirmed after five consecutive years of living in Spain, with a requirement to re-prove eligibility after this period.

Practical considerations extend beyond residency. Driving requires exchanging your UK licence for a Spanish one, involving a medical examination and administrative process. Working depends on your employment status – UK-based remote workers need a non-profit visa (permiso de residencia no lucrativa), while those employed by Spanish companies will have their visa managed by their employer.

Tax implications have also changed, with non-EU residents now paying higher capital gains tax (24% compared to 19% for EU nationals) when buying or selling property.

Despite these challenges, Brits are still the leading nationality of foreign buyers in Spain. If they can do it, why can’t you? 

90-day rule workarounds: Getting a Spanish visa

Spain offers several visa options that effectively bypass the standard 90/180-day Schengen travel restrictions.

The Digital Nomad Visa is particularly attractive, allowing remote workers to legally stay in Spain for up to one year (and potentially extend to five years) while working remotely. This visa not only lets you override the typical 90-day limit but also provides a favourable tax rate of 15% on the first €600,000 of annual earnings.

Another option is the Non-Lucrative Residence Permit, which allows non-EU citizens to live in Spain for extended periods if they can financially support themselves without working locally.

For those with more substantial financial resources, the Golden Visa offers even more flexibility, allowing investors to stay in Spain with minimal physical presence requirements, essentially providing a long-term solution to travel restrictions.

If you're going to be working in Spain, you'll need a suitable work visa. Check out our guide to working visas in Spain. 

For more information about available Spanish visas, check out our comprehensive guide to Spanish visas. 

Paying taxes in Spain 

Becoming a Spanish resident (spending over 183 days a year) opens up a world of opportunity, with a straightforward tax system designed to be fair and transparent. Spain offers a progressive income tax structure that adapts to your earnings, with rates ranging from 19% to 45%, ensuring everyone contributes according to their means.

Whether you're a remote worker, entrepreneur, or retiree, there are clear pathways for managing your tax obligations, including online filing, digital signature certificates, and helpful exemptions for small businesses and lower-income individuals.

From property purchases to wealth assets, the tax system is comprehensive but navigable, with various rates and considerations that can work to your advantage. The key is preparation and understanding – consult with a local tax expert, stay informed, and you'll find that Spain's tax system is just another part of the exciting adventure of making this beautiful country your new home. 
Learn more about your tax obligations in Spain with our handy guide to the Spanish tax system, written by a property lawyer. 

Currency exchange for your coastal property purchase

When embarking on your Spanish coastal property adventure, understanding currency exchange is crucial to protecting your financial investment.

Currency rates fluctuate continuously, changing every two seconds, with the potential to  make a significant impact on your property budget. These exchange rates are influenced by a complex 'currency compass' that includes economic events, political shifts, and central bank decisions.

What many buyers don't realise is that the market doesn't just reflect current conditions, but also anticipates future changes – meaning a single expectation from a central bank can dramatically shift rates.

While navigating this terrain might seem daunting, it's essential to recognise that you have options beyond traditional high street banks. Specialist currency firms can often provide more competitive commercial exchange rates, potentially saving you thousands of euros on your property purchase.

By understanding these nuances and being strategic about when and how you exchange your funds, you can turn currency exchange from a potential risk into a smart financial strategy, ensuring your dream of owning a Spanish coastal home remains both exciting and financially sound.

Conclusion - Getting your keys to the coast

Buying a coastal property in Spain is more than just a real estate transaction—it's an investment in a new lifestyle. While the process may seem complex, with careful research, professional guidance, and a dash of patience, your Mediterranean property aspirations can become a reality. 

Remember, success lies in thorough preparation. Take time to understand the local market, and legal requirements. Engage with local professionals, from real estate agents to legal advisors, who can provide invaluable insights tailored to your specific needs. 

Are you ready to start searching for your dream Spanish seaside property? Search more than 135,000+ Spanish properties near the beach now.