Why 700,000 People Bought Property in Spain Last Year — And Why UK Buyers Lead the Pack

In the year to June 2025, Spain recorded approximately 700,000 residential property transactions. Foreigners accounted for 19.3% of those sales — over 71,000 properties in the first half alone. British buyers led all foreign nationalities with 5,731 purchases in H1 2025, followed by Moroccans, Germans, Italians, and Romanians.

That's the data. The question is: why?

1. The Value Gap With Northern Europe Is Enormous

The average property price in Spain is roughly €2,990 per square metre nationally. In the UK, the equivalent figure is approximately £5,200/sqm (London pushes this much higher). Even on the Costa del Sol, where prices are at all-time highs, Marbella at €5,410/sqm is roughly 40% cheaper than comparable coastal property in the South of France and 60% cheaper than the Italian Riviera.

For UK buyers specifically, the exchange rate adds another layer. With sterling trading above €1.17 through much of 2025, purchasing power has been favourable. A property listed at €500,000 costs roughly £427,000 — less than the average UK house price in many southern English counties.

2. The Climate Isn't a Lifestyle Choice — It's a Health One

The Costa del Sol averages 320+ days of sunshine per year. Average winter temperature: 16°C. This isn't about beach holidays. For UK buyers over 50 — who make up a significant proportion of foreign purchasers — the health implications of year-round warmth, outdoor living, and vitamin D are well-documented. Arthritis, respiratory conditions, and seasonal depression all respond positively to the Mediterranean climate.

The NHS waiting list crisis has also pushed some retirees to consider Spain's healthcare system, which ranks among the best in Europe. Spanish public healthcare is available to legal residents (including Non-Lucrative Visa holders), and private healthcare is significantly cheaper than in the UK — comprehensive annual cover typically costs €1,000–3,000 depending on age and coverage.

3. The Infrastructure for Foreign Buyers Is Decades Deep

Spain has been selling property to foreigners since the 1960s. The Costa del Sol in particular has 60+ years of experience serving international buyers. This means:

• English-speaking lawyers who specialise in conveyancing for foreign buyers
• Banks with dedicated non-resident mortgage teams
• Estate agents (many themselves British expats) who understand UK buyer expectations
• English-language media, social groups, and support networks
• Direct flights from every major UK airport (Málaga Airport: 60+ international routes)

Portugal and Greece are building this infrastructure. Spain has had it for decades. The practical experience of buying, owning, and managing a property in Spain as a foreigner is smoother than almost anywhere else in Europe.

4. Rental Returns Are Outperforming Most Alternatives

Holiday rental gross yields on the Costa del Sol run from 6% in Marbella to 11%+ in Torremolinos. Long-term rental yields sit at 4–7% depending on the area. Net returns of 3–6% after taxes and management costs are realistic.

For context: the average UK buy-to-let yield is roughly 5.5% gross, but after UK mortgage costs, income tax, and management fees, net yields are often 2–3%. Spanish property, bought without leverage, can deliver comparable or better net returns with capital appreciation running at 5–10% annually in prime areas.

The regulatory environment is tightening — Málaga's moratorium on new tourist rental licences and similar restrictions across Spain will constrain supply. For existing licence holders, this is actually positive: less supply means higher rates.

5. The Proposed 100% Tax Hasn't Stopped Anyone

The Spanish government's proposed 100% tax surcharge on non-EU, non-resident property buyers (announced January 2025, submitted to Parliament May 2025) has generated headlines but not a market slowdown. Transaction volumes continued climbing through H2 2025.

The market's read: the proposal is politically motivated, legally questionable, and specifically exempts new-build purchases and anyone with Spanish residency. For UK buyers willing to either buy new-build or obtain residency (the Non-Lucrative Visa or Digital Nomad Visa), it would have no impact even if passed. For resale purchases by non-residents, it creates uncertainty — but legal experts have consistently described it as "unlikely to survive legal scrutiny in its current form."

The structural factors driving Spanish property demand — value, climate, infrastructure, yields — are not policy-dependent. They're geographic, economic, and demographic. Policy can create friction. It can't change the fact that British buyers want to live somewhere warm and affordable, and Spain has been delivering that for over 60 years.

The Numbers at a Glance

Metric	2025 Data
Total transactions (Spain)	~700,000
Foreign buyer share	19.3%
UK buyers (H1 2025)	5,731 (#1 foreign nationality)
Málaga province foreign share	39% (highest in Spain)
Marbella avg. €/sqm	€5,410 (all-time high)
Costa del Sol rental yield (gross)	4–11% depending on area and type
Digital Nomad Visas issued (cumulative)	~28,000