Foreign buyers often target Spain’s real estate market. They are drawn to properties across the country, with many choosing villas or apartments as strategic investments. For buyers investing around half a million euros or more, the Golden Visa program offers residency and work rights with relative ease. This policy has attracted many individuals from outside the European Union, particularly Latin American millionaires seeking a relocation option in recent years.
Historically, international buyers have represented roughly 12% to 14% of all closed property sales. The Vivienda en la Costa report by the Tinsa appraiser notes that buyers from abroad carry substantial weight in coastal markets, underscoring the influence of foreign demand on regional dynamics.
Which regions are most appealing to foreign buyers? Islands stand out, with about one-third of sales occurring to foreigners and a similar share of foreign buyers choosing to reside in those areas. The research also highlights the Mediterranean Coast, where roughly one-fifth of purchasers are foreigners and half of them settle in the country. In contrast, the north coast of Spain and Andalusia’s Atlantic coast attract a more national audience.
According to 2021 closing data from the Ministry of Transport, Mobility and Urban Agenda, Alicante emerged as the top city for foreign purchases, accounting for about 20,000 residences and more than 40% market share. Malaga followed with around 12,500, then Barcelona with about 8,000, and the Balearic Islands with roughly 7,000.
Foreign buyers in 2022
Data gaps in 2022 aside, foreigners accelerated their property purchases in the first three quarters of the year, with international buyers continuing a six-quarter rise. The British led the activity, followed by Germans and French buyers. From January through September, purchases by foreign nationals reached 72,395 units in total, broken down as 21,638 in Q1, 24,029 in Q2, and 26,728 in Q3.
In the first quarter, foreign purchases represented 8.63% of all sales, slightly above the 2012 figure of 8.12% and close to the 2006 peak of 8.97%. Russians accounted for about 9% of market transactions during those months, second only to the British. In the second quarter, official data from the College of Registrars shows international buyers reached the highest share in a decade, representing roughly 15% of all transfers. The Balearic Islands, the Canary Islands, and the Valencian Community were the top destinations, with shares around 34.7%, 34.2%, and 27.7% respectively. Between July and September, foreign purchases hit 15.9% of all sales—the highest level in the period observed.
A mid-year Idealista report analyzing nationality-based preferences shows frequent destinations for Germans as Palma, Calviá, Barcelona, Torrevieja, and Llucmajor. French buyers favored Barcelona, La Moraleja in Madrid, Valencia, and Alicante, while British buyers leaned toward Madrid, Barcelona, and Costa del Sol towns like Marbella or Mijas.
Ukraine conflict and market resilience
Recent years have been challenging for foreign buyers, yet the data indicate a market that remains resilient. The Covid-19 crisis temporarily paused transactions as travel halted, but demand recovered once restrictions eased. The period with the fewest international deals since 2013 occurred in 2020 with 8,160 signatures, reflecting broader domestic market weakness alongside the global shock.
With the onset of 2022, geopolitical tensions further impacted the landscape. Russia’s invasion of Ukraine and EU sanctions curtailed Russian investment in Spain, including measures with the Bank of Russia restricting operations and access to the SWIFT network. Observers note a decade-long rise in Russian activity until 2014, followed by a sharp decline in 2015 and a slow recovery that was interrupted by the health crisis in 2020. A subsequent partial rebound in 2021 gave way to another downturn in 2022 amid sanctions, suggesting a potential reversal of the prior trend as markets normalize.
In contrast, neighboring economies such as Poland intensified their purchases in Spain. Notably, Polish buyers were prominent at developments like the Intempo skyscraper in Benidorm and the Sierra Blanca project, though these concentrations have yet to shift overall market totals on a large scale.