Foreign demand in Spanish property: Trends, risks and opportunities in 2026

The Spanish property market continues to attract strong overseas demand, despite ongoing debates about foreign ownership and an increasingly complex market.

Spain’s Golden Visa property route was abolished in April 2025, and the government has floated the idea of a 100% tax on property transfers for non-EU non-residents amid housing shortages, high prices, and overtourism in certain hotspots.

While the overseas market has remained resilient in spite of policy changes and uncertainty, 2026 could see foreign demand shift. Overall demand could slow, attention may shift to emerging regions, and buyer profiles and requirements are also likely to change.

In this article, we’ll explore how foreign demand in Spanish property could play out in 2026, analysing recent trends and forecasts, and look at ways that you can prepare for the year ahead as a property professional.

General forecast for foreign demand in 2026

Recent activity and why demand looks durable

Recent data shows that foreign activity in the Spanish market is holding up at high levels. In H1 2025, foreigners bought 71,155 homes in Spain, 19.3% of all home purchases in that period, according to Spain’s notaries. That was a 2% increase in sales volumes year-on-year, signalling continued momentum, although foreign buyers as a share of property purchases declined.

The key drivers of demand are likely to remain durable through 2026. Although the property-linked Golden Visa is gone, many other options remain for those looking to relocate. Large parts of Spain still look relatively ‘cheap’ compared with prime areas in France or Italy, particularly when pricing in Spain’s ever-lasting lifestyle appeal. And the country’s real estate ecosystem is as dynamic as ever, with property professionals well-versed in catering to foreign buyers and leveraging new tools to improve the experience.

Researchers at CaixaBank see Spain’s market in a new ‘expansionary phase’, with foreign buyers playing a notable role. Furthermore, the buyer mix is broadening, with this diversification likely to sustain demand.

Possible headwinds for demand

That said, there are some factors that could moderate demand through 2026. The market is facing a housing deficit, affordability pressures for locals, and growing anti-overtourism protests. A clampdown on short-term rentals, particularly in overheated areas, could deter foreign investment. And the prospect of higher taxation on non-resident buyers looms, with the potential to have a significant impact on the market if the political debates ever harden into policy.

Furthermore, the euro’s recent strength increases the cost of foreign buyers relative to their home currency. Some American and British buyers, in particular, may put purchasing plans on hold until FX conditions are more favourable.

What this means for property professionals

Against this backdrop, you may want to plan for continued inbound demand in 2026 but assume it will be less frothy than 2024/25 and more segmented.

Of course, this presents both opportunities and risks. Strategy is going to be vital to ensure you’re capturing foreign demand in the most efficient way possible, paying close attention to how shifting buyer profiles, legislation and pricing translate to regional disparities.

Regional demand divergence beneath the national headlines

While national figures suggest foreign demand remains resilient, the regional picture is becoming more differentiated.

Structural supply constraints are playing a central role in this shift. In many of Spain’s most established hotspots, limited new-build activity, planning restrictions and tight resale inventory are keeping supply constrained and prices elevated. At the same time, regulatory pressure around short-term rentals is altering the economics of certain markets.

Where inbound demand remains strong

Spain’s established international hotspots continue to anchor foreign activity. The Balearic Islands remain one of the most foreign-driven markets in the country, with foreigners accounting for around 30% of transactions in recent registrar data. Constrained supply and enduring global appeal continue to underpin pricing power.

The Valencian Community, particularly Alicante province, remains a core inbound market, with foreigners representing over 40% of transactions in recent reporting. The depth of its expat communities and mature resale market make demand relatively stable.

The Canary Islands and Málaga province (Costa del Sol) also retain high foreign participation rates, supported by year-round climate, international connectivity and established service ecosystems catering to overseas buyers.

Demand slowing in selected hotspots

In contrast, certain high-pressure urban centres are facing regulatory and political friction that could moderate investor-led demand.

Barcelona won’t renew tourist-apartment licences when they expire in November 2028, while tightening enforcement in the short-term rental market. This does not eliminate foreign demand, but it alters the economics for buyers who previously relied on holiday-let yields.

Similarly, parts of Málaga city and other saturated urban centres have introduced suspensions or limits on new short-term rental licences. In these locations, regulatory risk and compliance complexity are becoming more material considerations for investors.

More broadly, areas experiencing the strongest anti-overtourism protests and housing affordability pressures may see slower growth at the margin, particularly where political debate centres on speculative or non-resident purchasing.

Demand rising beyond traditional hotspots

Northern regions, often referred to as ‘Green Spain’ – including Galicia, Asturias, Cantabria and parts of the Basque coast – are attracting growing international interest. Drivers include cooler climates, lower density, relative affordability and lifestyle appeal distinct from the Mediterranean model.

Recent transaction growth in regions such as Galicia, La Rioja, Navarra and Castilla-La Mancha also suggests that value-seeking buyers are looking beyond traditional coastal zones. While foreign buyer shares remain far lower than in the Balearics or Alicante, the trend indicates gradual diversification.

This redistribution suggests that inbound demand in 2026 and beyond is likely to be more geographically nuanced, shaped by regulation, affordability, infrastructure and shifting buyer priorities. A stronger euro could also nudge foreign buyers with FX requirements to seek out less saturated markets.

What this means for property professionals

Staying abreast of the latest market developments and political discussions remains crucial if you want to be proactive rather than reactive. Stay tuned to which markets are thriving, cooling, or showing promise, and be ready to adjust strategy and resources to capture opportunities.

Knowing where demand is shifting can also inform how you allocate time, marketing spend and partnerships. Established hotspots may require deeper regulatory knowledge and tighter inventory management, while emerging northern and interior markets may reward early relationship-building with local experts.

Finally, as FX movements and affordability considerations influence buyer behaviour, pricing strategy and client communication become more important. Being able to frame value in comparative terms – between regions, property types and even currencies – can help buyers make confident decisions in a market that is becoming more nuanced.

A broadening buyer mix

Foreign demand for Spanish property is diversifying. While British buyers remain the largest cohort of overseas buyers of Spanish property, their share is shrinking. Meanwhile, in the first half of 2025, buyers from the USA, Morocco, Ukraine, Colombia, Portugal, Italy and the Netherlands all reached record levels.

Digging into the data a little closer, we can see that different demographics have regional preferences. Moroccans, who make up 7.9% of all foreign purchases nationally (the second-largest cohort after the British), account for 38.7% of foreign resident buyers in Murcia. Meanwhile, US buyers paid the highest price per square metre, with Americans favouring high-value properties in hotspots such as Madrid.

These buyers also have different financing habits. Although Germans were the third largest nationality buying Spanish property in H1 2025 (making up 6.7% of sales), they accounted for the largest share of foreign Spanish mortgage applications in Q3 at 17.1%. Brits were second at 13.7%, while Moroccans were not even in the top ten.

This trend of diversification looks set to continue through 2026, with the mix of buyers continuing to broaden in terms of nationality, regional preference, property use and purchasing behaviours.

What this means for property professionals

As foreign demand becomes more varied, you may need to adjust strategy. Some firms may choose to double down on their core market or buyer profile, while others may look to broaden their reach. But even those focusing on a defined niche may find that their core is becoming more diverse.

A practical way to approach this is by segmenting your pipeline more deliberately. An American cash buyer targeting prime Madrid behaves very differently from a German mortgage-backed purchaser or a Moroccan resident buyer focused on Murcia. Tracking leads and performance by nationality, financing model and intended property use – not just by geography – can help you anticipate timelines, documentation requirements and conversion risk more accurately.

Another important consideration is understanding what this shift means in terms of complexity and competition. Regulatory differences, diverging demand, currency considerations and financing models all add new dimensions to deals. Being prepared for these challenges and able to tailor your services to buyers’ specific needs could become increasingly valuable.

This doesn’t need to be complicated or costly. Incorporating technology like Redpin Payments can help you streamline compliance processes, reduce the time you spend on admin, and save your clients money in FX costs.

Inbound demand for Spanish property in 2026: Still strong but with increased complexity

Overall, inbound demand is set to remain strong in the Spanish property market through 2026, although we could see growth slow as strength in the euro and policy interventions deter some buyers.

Market conditions could also grow more complex, with shifting buyer profiles, regional demand divergence and policy changes all influencing dynamics.

As a property professional, being able to adapt your strategy to optimise demand capture and differentiate your services could be key to success. Plans with flexibility built in are more likely to be successful, while leveraging new technology could give you a competitive edge and reduce the administrative burden.

If you’d like to find out more about how Redpin Payments can help you simplify transactions, streamline compliance and stand out from your competitors, speak to an expert at Redpin today.