Is it worth buying a holiday home in Spain?

You can certainly get more for your money if you shop around, especially in popular locations like Costa Blanca, Costa Cálida, and Costa del Sol. Whether you're looking to buy a holiday home or a rental investment, you'll likely find your dream property in Spain at a surprisingly affordable price.



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When buying a vacation home, you'll find that mortgage requirements are stricter. You'll need a higher credit score and a larger down payment, and you can expect to face higher interest rates than for a primary residence. Utilities and maintenance are costly.

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Even if you do not rent out your property, there is a deemed income on any property you own which is for your own use. This applies to second homes, holiday homes and property you own in Spain as a non-resident. This is taxable at 19% of the taxable “income”.

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Spain is a bureaucratically complicated country. The real estate market there has fluctuated in the past, so some research before buying property is always a good idea. Another important factor to keep in mind is that Spain has a fairly high capital gains tax.

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Taxes on buying a Spanish property This includes new properties that were bought by banks or taken on by them in case of default on mortgage payments, for example. Expect to pay between 8% and 11.5% in taxes on a property purchase in Spain.

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