Finding a Place to Call Home: Renting or Buying in Spain

Relocating to a new country brings excitement, opportunity, and plenty of logistical challenges. Chief among them is figuring out where you’ll live. Whether you plan to settle into a cozy apartment in the heart of Madrid or dream of owning a seaside home in Andalusia, finding a place to call home is one of the most important decisions you’ll make when moving to Spain.

Housing affects nearly every part of your relocation experience. It impacts your cost of living, lifestyle, access to services, and in some cases, even your visa application. Certain residency permits require you to provide proof of a long-term rental contract or property ownership. Beyond the paperwork, where and how you live will shape how integrated, safe, and comfortable you feel in your new environment.

This article will walk you through the essentials of renting or buying in Spain. You’ll learn what to expect from the housing market, how the process differs from the United States, and what steps to take to secure your next home abroad—whether it’s a short-term rental, a long-term investment, or your forever home.

Understanding the Housing Market in Spain

Before jumping into listings or making big decisions, it’s important to understand how the Spanish housing market works. If you’re coming from the United States, you’ll notice some differences—both in the pace of the process and the expectations on tenants and buyers.

Spain has a well-developed rental and real estate market, but it’s often more informal and regionally specific than what Americans may be used to. You’ll find a mix of modern apartments, rustic village homes, and urban flats, with conditions and pricing that vary widely depending on location. In many areas, especially outside major cities, listings are still handled through local agencies or even word of mouth.

If you plan to buy or rent long-term, you’ll need to obtain an NIE (Número de Identificación de Extranjero)—a foreigner identification number that’s essential for signing contracts, opening a bank account, paying taxes, and receiving utility bills in your name. Most landlords and all notaries will require you to have this number before moving forward.

Also worth noting: many rentals in Spain are offered unfurnished, which can mean no appliances, lighting fixtures, or even kitchen cabinets. On the other hand, some long-term rentals come fully furnished and move-in ready, especially in expat-friendly areas. Asking what’s included is essential.

Another major difference is the use of real estate agents (inmobiliarias). In Spain, it’s common for both the landlord and the tenant to pay agency fees, so factor in an extra month’s rent upfront if you’re using a professional service.

Finally, housing availability can fluctuate based on the time of year. Summer tends to favor short-term vacation rentals, while long-term housing is more available in the fall and winter months—especially in coastal regions.

Renting in Spain

Renting is often the first choice for newcomers to Spain. It gives you flexibility, allows you to explore different regions, and helps you settle in without the long-term commitment of buying property. Whether you’re planning a temporary stay or using a rental as your stepping stone to permanent residency, it’s essential to understand how the process works and what to expect.

A. Rental Types

There are two main categories of rentals in Spain:

• Long-term rentals (alquiler de larga duración) are typically 12-month contracts, renewable by law for up to five years (or seven if the landlord is a company). These are the most common choice for residents and visa applicants.

• Short-term or vacation rentals (alquiler vacacional) are designed for stays under 12 months and are often more expensive. They may not meet the residency proof requirement for most visa types.

Apartments are widely available in cities and towns, while villas and detached homes are more common in rural areas or on the coast.

B. Average Costs by Region

Rental prices vary significantly across Spain. Here’s a general idea of monthly rent for a one-bedroom apartment in popular areas:

• Madrid city center: $1,100 – $1,500

• Barcelona: $1,000 – $1,400

• Valencia: $700 – $1,000

• Granada: $550 – $800

• Rural towns and villages: $400 – $700

Utilities are often not included and may run between $100 and $150 per month for electricity, water, and gas.

C. Rental Process Step-by-Step

1. Where to Search

The most widely used property websites in Spain include Idealista, Fotocasa, and Habitaclia. These platforms allow you to filter by location, price, and features. Local Facebook groups and real estate agencies can also be helpful.

2. Documents Required

Landlords typically ask for:

• Passport or NIE

• Proof of income or savings (such as bank statements or a work contract)

• Sometimes a local guarantor or reference

3. Deposits and Fees

By law, landlords can request:

• One month’s deposit (returned at the end of the contract)

• One or more months of rent in advance

• Agency fee (often one month’s rent, if applicable)

4. Lease Terms

Standard leases are for one year but automatically renew unless the tenant or landlord gives notice. Early termination by the tenant is allowed after six months, with 30 days’ notice, but check your lease carefully. Always get a written contract (contrato de arrendamiento) and make sure it is signed before exchanging money.

D. Pitfalls to Avoid

• Scams: Never pay deposits before visiting the property in person or verifying the legitimacy of the agent.

• No written contract: Verbal agreements offer little protection under Spanish law.

• Unclear utility terms: Confirm whether utilities are included and how they will be billed.

• Language barriers: If you don’t speak Spanish fluently, consider hiring a bilingual agent or having a translator review your lease.

Buying Property in Spain

If you’re planning to settle in Spain long-term or want to make an investment that doubles as your future home, buying property is a viable—and often attractive—option. Spain allows foreigners to purchase real estate without restrictions, and owning property can also support certain visa applications, like the Golden Visa or Non-Lucrative Visa.

A. Can Foreigners Buy in Spain?

Yes, non-EU citizens can buy property in Spain with no residency requirement. You don’t need to live in Spain full-time to own real estate there, and many Americans buy homes in Spain either for personal use or as rental investments. However, you will need to obtain an NIE (Número de Identificación de Extranjero) before completing the purchase. This number is required for all property transactions, tax payments, and legal contracts.

B. Step-by-Step Buying Process

1. Get Your NIE: Apply at a Spanish consulate or local police station. Some legal representatives can do this on your behalf.

2. Open a Spanish Bank Account: Needed to transfer funds for the purchase and pay fees.

3. Find a Property: Use platforms like Idealista or enlist a local agent (inmobiliaria) for help.

4. Hire a Lawyer: Choose an independent abogado who specializes in property law to conduct due diligence, check debts or liens, and confirm zoning regulations.

5. Sign the Arras Agreement: This reservation contract usually involves a 10% deposit. If you back out, you may lose the deposit; if the seller cancels, they must return double.

6. Close Before a Notary: The sale is finalized at a public notary’s office. Both parties sign the title deed (escritura), and the property is registered in your name.

C. Additional Costs

In addition to the purchase price, buyers should budget an extra 10–15% for taxes and fees:

• Transfer Tax: 6–10% depending on the region and property type

• Notary Fees: Typically $500–$1,000

• Legal Fees: 1% of purchase price is a standard estimate

• Registration Fees: 0.5–1.5%

• Mortgage Fees (if applicable): Includes valuation and origination costs

After purchase, you’ll be responsible for:

• IBI (Impuesto sobre Bienes Inmuebles): Annual property tax

• Community Fees: Covers building maintenance and shared amenities (for apartments or gated communities)

• Utilities and insurance

D. Renting Out Your Property

If you plan to rent out your home in Spain, there are two main options:

• Long-term rentals: These are generally unrestricted, but lease agreements must follow national tenancy laws.

• Short-term rentals: Regulated more strictly. Many regions require a tourist rental license, which can be difficult to obtain, especially in cities like Barcelona or Valencia. Some buildings or homeowner associations may prohibit short-term rentals altogether.

Make sure to research local laws before advertising your property, and consult a tax advisor about declaring rental income in both Spain and the U.S.

Where Should You Live?

Spain offers a remarkably diverse range of places to live, each with its own pace, personality, and price point. Whether you’re seeking city energy, coastal relaxation, or rural charm, there’s likely a corner of Spain that suits your lifestyle and priorities.

Madrid

Spain’s capital is a cultural and economic hub with excellent public transportation, international schools, and vibrant neighborhoods. It’s a great option for professionals, students, and families who want access to services, job markets, and international communities. Expect higher rental and purchase prices compared to most of the country.

Barcelona

A cosmopolitan city known for its architecture, Mediterranean vibe, and tech sector. Barcelona offers a dynamic lifestyle with a strong international presence, though short-term rentals are heavily regulated and the housing market can be competitive. Catalan is widely spoken alongside Spanish.

Valencia

Often considered Spain’s best-kept secret, Valencia combines affordability with beach access, walkability, and a growing expat community. It’s smaller and more relaxed than Madrid or Barcelona but still offers rich culture, excellent healthcare, and a Mediterranean climate.

Andalusia (Seville, Málaga, Granada)

Known for its history, music, and sunshine, Andalusia is a popular choice for retirees and those seeking a slower lifestyle. Property is more affordable, and many smaller cities offer a strong sense of community. Coastal areas like the Costa del Sol attract seasonal residents and foreign investors.

Northern Spain (Basque Country, Galicia, Asturias)

Cooler, greener, and often overlooked, the north of Spain offers a different flavor of life. Cities like Bilbao and San Sebastián blend modern living with regional traditions. The cost of living is moderate, and these areas appeal to those seeking fewer tourists and more local culture.

Smaller Towns and Villages

Spain’s interior and coastal villages can offer stunning real estate at much lower prices. While rural areas often require Spanish fluency and patience with bureaucracy, they reward residents with authenticity, space, and quiet.

What to Consider When Choosing a Location

• Climate: Southern Spain is hot and dry; the north is cooler and wetter.

• Cost of Living: Cities tend to be more expensive, but also offer more amenities.

• Language: English is more commonly spoken in tourist zones; elsewhere, Spanish or regional languages are essential.

• Expat Communities: If integration support matters, seek areas with established expat networks.

• Healthcare Access: Proximity to public or private hospitals can be a deciding factor, especially for retirees or families.

There’s no one-size-fits-all answer. Many people rent first to explore a city or region before committing to a long-term home.

Renting vs Buying: How to Decide

One of the most important decisions you’ll face when relocating to Spain is whether to rent or buy your home. Both options come with advantages and trade-offs, and the right choice depends on your visa type, financial situation, long-term goals, and how familiar you are with the country.

Why You Might Start with Renting

For most new arrivals, renting is the safer, more flexible option. It allows you to:

• Get to know a region before committing. What looks ideal on a travel blog may feel very different in daily life.

• Avoid upfront costs. Renting requires a much smaller financial investment than buying a property.

• Stay mobile. If you’re not yet sure where in Spain you want to settle, a lease lets you move easily after a year or two.

• Navigate bureaucracy more gradually. Buying a property involves legal processes, tax considerations, and ongoing ownership responsibilities that can be complex for newcomers.

Renting is also sufficient for most visa applications, including the Non-Lucrative Visa and Digital Nomad Visa. However, make sure your lease is long-term and legally registered if you’re using it as proof of residence.

Why Buying Might Be Right for You

If you’re confident about your location and ready to make a long-term investment, buying can be a smart move. Benefits include:

• Property appreciation. Spain’s real estate market has been stable in recent years, especially in major cities and tourist zones.

• Potential rental income. If you’re not in the property year-round, you may be able to rent it long-term or seasonally (depending on local laws).

• Golden Visa eligibility. If you invest at least €500,000 (approximately $540,000 USD) in Spanish property, you may qualify for Spain’s Golden Visa, which offers flexible residency benefits.

Buying is ideal for those with clear plans to stay long-term or return frequently. That said, it’s not something to rush into—working with legal and financial professionals is essential.

General Recommendation

Unless you’re applying for a property-based visa or have already spent time in Spain, consider renting first. Use that time to explore neighborhoods, understand the cost of living, and adjust to the lifestyle. Many expats rent for their first year or two, then decide whether to stay and invest or explore another region altogether.

Next Steps

Once you’ve decided whether to rent or buy, it’s time to start preparing. The Spanish housing process can feel unfamiliar at first, but a little organization goes a long way. Whether you’re weeks away from your move or still in the early planning stages, here are the key steps to take next:

1. Get Your NIE

The Número de Identificación de Extranjero (NIE) is essential for almost any legal transaction in Spain, including signing a lease or buying a property. You can apply for it:

• At a Spanish consulate in the U.S.

• In Spain at a local police station with a foreigners’ office

• Through a legal representative acting on your behalf

Apply early—processing times can vary by region and consulate.

2. Start Exploring Housing Options

If you’re renting:

• Use sites like Idealista, Fotocasa, and Spotahome to get a feel for pricing and availability.

• Join local expat groups online for referrals and off-market listings.

If you’re buying:

• Research neighborhoods and narrow your search to 1–2 regions.

• Begin conversations with real estate agents and property lawyers to understand market conditions and legal steps.

3. Prepare Your Documents

Even for rentals, landlords will often ask for:

• A valid passport

• Proof of income or financial stability

• Bank statements or proof of pension/remote work

• Your NIE (once available)

For purchases, add:

• Spanish bank account information

• Power of attorney, if applicable

Having these documents ready can make your move-in or purchase process much smoother.

4. Connect with Professionals

Especially if you’re buying, now is the time to consult:

• A real estate lawyer (abogado)

• A notary (notario)

• A translator, if your Spanish is limited

• A relocation consultant for extra support with paperwork, utilities, or school enrollment

Conclusion

Finding the right place to live is one of the most personal and important steps in any international move. In Spain, whether you’re renting a compact apartment in Valencia or buying a quiet country home in Andalusia, your housing choice will shape how you experience daily life, connect with your community, and settle into a new culture.

Spain’s real estate and rental systems can feel unfamiliar at first, but they’re accessible with the right preparation. By understanding the market, learning the legal requirements, and approaching the process with patience and flexibility, you can make confident decisions that support your visa, lifestyle, and long-term goals.

Take your time. Explore before committing. Use your first months in Spain to learn what feels like home—whether that’s a lively urban center or a slower-paced village by the sea. And if you’re planning to invest, be sure to work with trusted professionals who can help you avoid costly mistakes.

For more support, read our guides on choosing the right visa, understanding Spain’s healthcare system, or planning your relocation logistics. Each piece is designed to help you not just move—but thrive.