Spain has long been an ideal place for UK residents looking to buy a home. With its warm climate, access to the Mediterranean Sea, rich culture and variety of regions to suit every lifestyle and budget, it remains a popular destination for British property buyers.
In this article, we’ll explore the best place to buy property in Spain, what types of homes might suit your needs, and how to get the most value from your investment.
Understanding the Spanish real estate market
Spain’s real estate market is a hot spot for UK residents, with a wide range of options from modern apartments in lively cities to seaside villas and countryside homes. While coastal regions and major cities like Barcelona and Madrid typically run on the higher end for property prices, many inland areas and emerging regions offer excellent value for money.
As a buyer, it’s important to understand how the process works. You’ll typically need to obtain a Número de Identificación de Extranjero (NIE),1 a tax identification number, which is needed for any legal or financial transaction in Spain.
You will also want to find an independent lawyer who specialises in Spanish land law (urbanismo).2 A bilingual estate agent may also be helpful, especially when it comes to navigating contracts, local zoning laws and negotiating with sellers. If you’re purchasing from abroad, having someone on the ground to act on your behalf can help ensure the process runs smoothly and within legal bounds.
What type of property suits you? Villa vs. apartment
Before narrowing down your search to a region of Spain, it’s worth considering the kind of lifestyle you’re looking for and what type of property will suit your lifestyle.
Advantages of buying a villa in Spain
Buying a villa in Spain can be an excellent choice for those seeking comfort, space and a more permanent lifestyle abroad.
Some advantages of buying a villa in Spain include:
- More interior and exterior space
- Greater privacy compared to apartment living
- Outdoor features like gardens, terraces and private pools for enjoying the Mediterranean climate
- Often located in coastal or suburban areas with quieter surroundings
- Strong resale value in high-demand areas such as the Costa del Sol
- Ideal for families, retirees or those planning extended stays
Advantages of buying an apartment in Spain
Apartments are a popular option for holidaymakers, investors and those wanting easy access to city or coastal amenities.
Some advantages may include:
- Lower maintenance responsibilities
- Typically located in vibrant areas with walkable access to shops, restaurants and transport
- More affordable purchase prices compared to standalone villas in the same area
- Shared amenities such as security, parking and cleaning services
- High rental potential, especially in tourist-friendly cities and beach towns
- Ideal for part-time or seasonal living
Best places to buy property in Spain
From high-end coastal villas to charming inland towns, Spain offers a wide range of regions to match every buyer’s goals and budget.
Costa del Sol: Luxury villas and beachfront investments
Located in southern Spain within the Andalucia region, Costa del Sol is generally known for its sunny climate, upscale amenities and stunning beaches. It remains one of the top choices for international buyers looking for high-end real estate, golf course communities and a thriving expat scene.
Marbella
Marbella is typically known for its luxurious properties, high-end shopping districts and a vibrant nightlife. The Golden Mile and Puerto Banús are particularly sought-after areas and known as the best places to buy a villa in Spain.
Estepona
For a more relaxed, family-friendly environment, Estepona offers a charming old town, scenic beaches and a growing number of modern developments. The property market here is often more affordable than in Marbella while still offering a luxurious coastal lifestyle.
Best for: Buyers seeking luxury coastal living or high-end second homes
Known for: Upscale villas, golf resorts and expat-friendly communities
Barcelona & Costa Brava: Urban energy and coastal charm
If you’re drawn to culture, architecture and vibrant city life, Barcelona is one of the best areas to buy property in Spain. The city offers a strong rental market and excellent infrastructure, while Costa Brava is nearby for a coastal escape.
Eixample (Barcelona)
Eixample is known for its iconic grid layout and elegant modernist buildings. It’s a prime location for buyers seeking a mix of historical charm and contemporary urban living, with high-end apartments and excellent connectivity to the rest of the city.
Lloret de Mar (Costa Brava)
For those who prefer a quieter coastal lifestyle, Lloret de Mar is a great alternative. Located along the Costa Brava, this town offers beautiful beaches, a vibrant cultural scene and more affordable property options than central Barcelona.
Best for: City dwellers and mixed-use buyers (holiday and investment)
Known for: Architectural beauty, strong rental markets and coastal retreats
Alicante (Costa Blanca): Affordable coastal living
Costa Blanca is generally known for its affordability, making it a great option for buyers looking to get the most from their money while enjoying a Mediterranean lifestyle.
Benidorm
A lively destination known for its high-rise apartments and buzzing nightlife, Benidorm is ideal for buyers seeking a vibrant community with strong tourism appeal. It’s a great spot for those considering a property that could double as a holiday rental.
Torrevieja
For a more laid-back experience, Torrevieja is popular among retirees and families. It offers beautiful beaches, a relaxed atmosphere, and property prices that are often lower than in other coastal destinations.
Best for: Budget-conscious buyers or rental investors
Known for: Year-round sunshine, affordability, and a strong expat community
Madrid: Dynamic urban investment hub
As Spain’s capital, Madrid is a prime location for long-term investment. Its strong rental market, thriving business sector and amenities make it a great option for those seeking a more urban retreat.
Salamanca
One of Madrid’s most exclusive neighbourhoods, Salamanca is home to luxury apartments, designer boutiques, and upscale dining. It’s a top choice for investors looking for high-end city properties with strong appreciation potential.
Chamberí
Chamberí offers a more residential feel while still being centrally located. Known for its elegant architecture and traditional Spanish charm, this area is perfect for families and professionals seeking a quieter yet well-connected urban lifestyle.
Best for: Long-term investors and professionals relocating to Spain
Known for: Capital growth, high demand and cultural vibrancy
Canary Islands: Year-round climate and tax benefits
The Canary Islands offer warm weather all year round and potential tax advantages for residents, which makes them an attractive option for buyers looking for a relaxed island lifestyle.
Tenerife
The largest of the Canary Islands, Tenerife has a well-developed infrastructure, a diverse real estate market, and a mix of bustling resort towns and quieter coastal villages. It’s a great choice for those looking for both holiday homes and long-term residences.
Lanzarote
Known for its unique volcanic landscapes, Lanzarote offers a slower pace of life, stunning natural beauty and typically has a lower cost of living compared to mainland Spain. It’s a top pick for buyers who want a peaceful retreat with a warm climate year-round.
Best for: Retirees, remote workers and warm-weather seekers
Known for: Natural beauty, generally lower cost of living and warm climate
Emerging hotspots: Undervalued gems in Spain
If you’re looking for property in Spain that offers great value with long-term potential, there are several up-and-coming areas you may want to consider. These locations are often less crowded than the big-name destinations but still offer an excellent lifestyle and generally lower property prices.
Some hidden gems include:
- Valencia: A vibrant coastal city with a growing international community, excellent transport links, a blend of beach and city living and often at a lower price point than Madrid or Barcelona.
- Almería: Nestled in Andalucia, Almería offers untouched beaches, a slower pace of life, and some of the more affordable real estate along the Mediterranean.
- Murcia: Known for its warm climate and agricultural richness, Murcia is attracting buyers with its low cost of living and increasing development.
- Granada (Inland Andalucia): Granada combines Moorish architecture with natural scenery, set near the Sierra Nevada mountains (home to mainland Spain’s highest peak and the southernmost ski resort in Europe). It’s a culturally rich yet affordable inland option.
- Extremadura: A lesser-known inland region with charming towns, rolling landscapes, and some of the lowest property prices in Spain.
Best for: Buyers looking for untapped value or lower competition
Known for: Cultural richness, inland charm and affordability
Lumon: Making your Spanish property budget go further
Buying a property in Spain can be the first step in your dream relocation journey. We specialise in fast, hassle-free international transfers, offering you competitive exchange rates and personal support to help you get great value when buying property in Spain.
When you buy:
- Spot contracts: If you need to move money immediately to make a property purchase, the Spot contract could be the option for you. Spot contracts allow you to secure the current exchange rate and make a payment on the same day.
- Forward contracts: Our forward contract options let you lock in an exchange rate before you complete your property purchase, or fix the value of a foreign property sale. This gives you peace of mind, knowing exactly what you’ll pay or receive in your chosen currency.
- Experienced personal account manager: Your dedicated account manager will work with you to build a currency strategy that gives you confidence and clarity at every stage of your purchase.
- Lumon EU bank accounts: Need to receive funds from a foreign solicitor? Our EU bank accounts make it easy and seamless.
After you buy:
- Online account: Manage any property-related payments with ease through your online account. Send money quickly, securely, and on your schedule.
- Dedicated Lumon staff in Spain: Our local Lumon teams are ready to assist, helping to coordinate payments with solicitors, lawyers, and notaries.
- Regular Payment Plan: Planning for ongoing costs like maintenance fees or mortgages? We’ll set up a Regular Payment Plan so you can automate regular transfers with complete peace of mind.
Sources used:
- UK Government – Spain: buying and renting property
- Ministry of Foreign Affairs – Spain: Tax Identification Number (NIF)
Sources last checked on: 30.04.2025
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
