Spain property market update: Key insights for foreign buyers: February 2025

100% Property tax for non-EU, non-resident buyers looks set to fizzle

A potential 100 per cent tax on property purchases by non-EU, non-residents, announced by Prime Minister Pedro Sánchez in January, has sparked alarm among international property investors. Yet legal experts suggest the measure is unlikely to materialise in its current form.

Spanish lawyer and friend of Kyero Miguel Manzanares indicates the proposal may represent a tax increase rather than a punitive levy, potentially translating to a modest rise in purchase costs. Parliamentary approval appears challenging, with the legislative process expected to substantially water down the original proposal.

Louise Dell, Kyero Co-founder, warns potential buyers not to panic. While the announcement has caused temporary market jitters, Spain remains committed to attracting international investment. For British and American buyers contemplating Spanish property, the advice is pragmatic: continue to monitor developments, but do not let speculation derail your investment plans. As one industry insider noted, “This looks more like a policy exploration than an imminent implementation.”

Property prices hit record highs, foreign buyers hold steady

Spanish property prices reached a new record in 2024, according to the latest data released by Spain’s notaries on February 5th, climbing 12.5% above the previous peak of 2007. The final quarter saw prices rise to an average of €2,164 per square metre, with Madrid, the Balearic Islands, and the Basque Country topping €3,000 per square metre. House sales also hit their highest level since 2007, with nearly 173,000 transactions, driven largely by a 61% surge in new home sales.

Foreign buyers purchased close to 25,000 homes in the fourth quarter, led by Brits, Germans, and Dutch investors. While the share of Spanish properties purchased by foreigners dipped slightly to 14.48%, they remain a key market force. On the mortgage front, nearly 70% of 2024 home purchases were financed with loans, indicating solid confidence among buyers despite rising costs.
 

The Golden Visa's final farewell

The impending closure of Spain's Golden Visa Program on April 3rd, 2025, marks a significant moment for some international investors. With the program's termination, wealthy non-EU nationals have a limited window to secure residency through property investment. The €500,000+ property route – the most popular Golden Visa option – will close, potentially creating a surge of interest in the coming months. For serious investors, this presents both a challenge and an opportunity. Buyers can still acquire property, but the automatic residency benefit will disappear. Procrastinators, take note: this is decidedly not the moment for your 'I'll do it later' strategy.

Encouragingly though, there are still multiple pathways to Spanish residency, for most foreign buyers the relevant options include the non-lucrative visa, digital nomad visa, and various work visas. The move reflects Spain's evolving approach to international property investment, potentially signaling a more selective immigration strategy while maintaining the country's attractiveness to global investors. 

Airport expansion across Spain takes flight

Spain's airport developments are set to transform travel infrastructure, with major expansions in multiple regions. Alicante-Elche's €19.8 million renovation includes expanded terminals and improved facilities, while Madrid-Barajas aims to become the EU's largest airport, handling 90 million passengers annually by 2031.

And while we’re talking airports, don’t forget about the new Huelva Cristobal Colon Airport, a long-planned project (first announced in 2015!) designed to open up the Costa de la Luz. Spanning 350 hectares with a 2,400-meter runway, the new airport promises to create 12,000 jobs and generate €1.15 billion in economic benefits. Building has yet to start, but now would be a good time for savvy investors to buy in this area, while prices are still reasonable. For property hunters, improved airport access typically translates to increased tourism potential and stronger property values.

The Madrid project alone is expected to create approximately 60,000 jobs, positioning the city as a crucial transit hub between America and Asia. For those who thought 'plane spotting' was just a quirky hobby, Spain's airport development suggests it should be a serious part of your investment strategy.
 

Train routes reconnect the Iberian Peninsula

The revival of train connections between Spain and neighbouring countries represents an exciting development for future expats and travel lovers. The new RENFE AVE route connecting Barcelona and Toulouse in mid-2025 opens up cross-border opportunities, while the resumption of night train services between Portugal and Spain reconnects historic rail links. For property buyers, enhanced transportation infrastructure typically signals economic growth and increased regional connectivity. These developments make cross-border living and investment more attractive, potentially opening up new property markets and lifestyle opportunities. Speaking of new markets, have you considered Catalonia yet? With excellent transport links, historic cities and gorgeous beaches to explore, and plenty of day trip options to France, this vibrant region offers an appealing combination of lifestyle benefits and investment potential, soon to be enhanced by even faster connections to Southern France. In other train-related news, it was announced by Spain's transport minister in early February that high speed rail services will link all three Valencian Community provinces by 2027. New tracks will be completed as part of the Mediterranean Corridor allowing AVE trains to run between Alicante, Valencia and Castellon.

Proposed stops include Xativa, Villena, Orihuela, Elche, and Sagunto.

Mallorca's luxury hotel renaissance

Mallorca is set to elevate its luxury hospitality landscape in 2025 to even higher levels, with a series of high-profile hotel openings. The Mandarin Oriental Punta Negra leads the pack, offering 131 guest accommodations including 44 suites and nine waterfront bungalows near Puerto Portals. Joining this prestigious lineup is the Vignette Collection Mallorca - Finca Banyols, a 45-room boutique property by IHG Hotels & Resorts in Alaro, marking the chain's second Mallorcan venture. The Iberostar Selection Es Trenc will debut in April, transforming the former THB Sur Mallorca with sea-view rooms, themed suites, two swimming pools, and multiple dining venues.

In June, the Aethos Mallorca will open its 61-room property in Peguera, featuring a rooftop bar and infinity pool, while the Purobeach Resort Santa Ponça - Oasis del Mar will introduce 166 beachfront rooms. For property investors, these developments signal sustained confidence in Mallorca's luxury real estate market, potentially driving property values and attracting high-end international travellers seeking premium Mediterranean experiences.
 

Spain's accessibility champions: Breaking barriers in urban design

Cartagena (Murcia) and San Cristóbal de La Laguna (Tenerife) are leading Spain's charge in creating truly inclusive urban environments. Cartagena clinched third place in this year’s European Commission's Access City Awards for remarkable initiatives supporting persons with disabilities. The city has implemented comprehensive accessibility measures including disability assistance at beaches, reserved event seating, and accessible leisure areas. San Cristóbal de La Laguna won the award in 2024, with innovations like fully accessible tram networks, acoustic traffic lights, and tactile paving for visually impaired residents.

These efforts go beyond mere compliance, representing a fundamental reimagining of urban spaces to ensure equal access and participation for all citizens. For property buyers and investors, such progressive urban planning signals sophisticated, forward-thinking communities with potential for long-term social and economic development. Offering urban design so inclusive, even your most hard-to-please relatives might finally agree to visit.
 

Kyero partners with Idealista

Kyero, one of Europe’s leading property portals will join forces with Idealista in 2025, a potentially transformative moment for international property seekers. By combining Kyero's expertise in attracting international buyers with Idealista's technological capabilities, the partnership promises enhanced services in future and more sophisticated property matching. For foreign property buyers, this means improved access to Spanish property listings, more advanced search tools, and potentially more targeted investment opportunities.

Kyero’s founders, Martin & Louise Dell are committed to maintaining Kyero's core approach while leveraging Idealista's technological prowess, suggesting a strategic move that will serve international buyers more effectively. This merger should help to simplify the property search process, provide more comprehensive market insights, and create a more streamlined experience for those looking to invest in Spanish real estate. Think of this merger as the property world's version of a power couple - minus the drama, plus some seriously smart tech
 

Travel awards celebrate Spanish hospitality

Booking.com's 2025 Traveller Review Awards have crowned Spain as a hospitality powerhouse, with the country securing an impressive third place globally in its list of top self-catering destinations. Drawing from a staggering 360 million verified customer reviews, the awards highlighted Spain's exceptional tourism offerings. Italy led the pack with 207,652 award-winning properties, followed by France with 155,141, and Spain close behind with 147,603 accolades. The awards not only recognise Spain's tourism excellence but also underscore the country's continued appeal to international travellers and property investors. For potential property buyers, these recognitions translate to tangible market value – destinations celebrated for outstanding hospitality often correlate with strong rental potential, tourism infrastructure, and sustained property appreciation.

La Zagaleta's new chapter

The acquisition of the exclusive La Zagaleta estate by Abu Dhabi's Modon Holding signals continued international confidence in high-end Spanish real estate. This famous 900-hectare development near Marbella represents a significant investment in luxury property, with plans to preserve the estate's exclusivity while exploring future development potential. For property investors, this acquisition demonstrates the ongoing appeal of premium Spanish real estate to global investors, particularly on the Costa del Sol. The transaction includes a substantial amount of land, plus existing properties, suggesting potential for future high-value developments. 
 

New planning laws on the Costa del Sol 

In 2021, the Junta de Andalucia passed a new planning regime known as LISTA. That seems to have either opened the doors to reforms at the local level. Or, at least, it has been part of a shift in thinking and policy urgency.

Marbella will soon – after a decade in limbo – have a new overall planning law (POU). It will be followed later this year or early 2026 with a detailed law zone by zone (PGOU). This shift is already having an impact in other Costa del Sol municipalities, with Vélez-Málaga moving to approve the construction of 3,500 homes. This is the first of what will ultimately be 25,000 new homes, which will include at least 10% for affordable housing.