Property News from Spain

The Spanish government has announced a new State Housing Plan for 2026-2030, a comprehensive set of measures designed to tackle the country's ongoing housing crisis. The centerpiece of this plan is a new aid package of up to €30,000 for young people under the age of 35, aimed at helping them get on the housing ladder through a rent-to-buy scheme.

Rent-to-Buy and Anti-Speculation Measures

This flagship initiative allows monthly rent payments to be counted as an advance towards the eventual purchase of a home. The aid will be applied to properties designated as "permanently protected" housing. This critical detail means their price is capped and cannot be freely set by the seller at market rate. If the property is resold in the future, it must be at a regulated price and only to another person who meets the same eligibility requirements. This is intended to protect state-funded housing from market speculation and ensure its long-term affordability.

Broader Housing Initiatives

In addition to the rent-to-buy scheme, the plan introduces several other key initiatives:

• Rental Default Insurance: The government will act as a guarantor for young tenants, which is designed to provide security for landlords and make them more willing to rent their properties to young people. This insurance will cover monthly payments that do not exceed 50% of the tenant's net income.

• Rural Home Purchase Grants: To combat depopulation in less-populated areas, the plan offers grants of up to €10,800 for young people who purchase homes in municipalities with fewer than 10,000 inhabitants. This grant can cover up to 20% of the property's purchase price.

• Increased Regional Funding: The central government has pledged to triple its housing budget transfers to regional authorities. The catch is that regions must also commit to promoting social housing to receive this funding. This could lead to a combined investment of €7 billion over the next five years.

Political Context and Criticism

Prime Minister Pedro Sánchez announced these measures as a direct and firm step forward in housing policy, aimed at making it easier for young people to achieve financial independence and access affordable housing. However, the plan has faced some criticism. Second Deputy PM and Minister of Labour, Yolanda Díaz, has argued that focusing on rental assistance is not the most effective approach, as it could simply transfer funds into landlords' pockets rather than directly addressing the root cause of high prices. She contends that the more urgent need is to lower rental prices across the board.

Who cleans the stairs in your apartment block or maintains the communal pool on an urbanisation in Spain? Who pays for it, and how much? It might not have occurred to you that someone has to do these things. Or maybe you've heard of the concept of a comunidad de propietarios ('community of owners') and how it's responsible for these and other maintenance issues, but are not sure how it works.

Briefly, anyone who owns a property that involves space or facilities shared with other owners will need to take into account 'community fees', or gastos de comunidad, when budgeting for household expenses. Only the owner, never the tenant, pays these – although a landlord may factor in the cost when setting rent charges.

It's in your best interests to know how these fees are calculated, what they cover, who gets to decide everything, and the legal framework covering it all – including your own rights and duties.

What is a comunidad de propietarios (community of owners)?

A comunidad is run by, and for, owners of homes or businesses, to cover the costs of maintaining and repairing any communal (shared) features, and the addition of new features.

A community of owners is a legal entity and has legal personality, its actions are covered by legislation, and the percentage of costs you pay as regular and extraordinary fees are stated in the deeds to your property.

Depending upon your country of origin, you may have a similar system in place: A copropriété, in France; condomínio in Portugal; a condominium or homeowners' association (HOA) in the USA or Canada, and a freehold or a commonhold in the UK.

A comunidad de propietarios is not quite the same as a freehold, though, as we'll explain below.

Creating a comunidad de propietarios is required by law on urbanisations or in apartment blocks with five or more owners and five or more properties. Multiple owners of a single property, or an individual owner of several properties, count as one owner.

Read more at thinkSPAIN.com

Relocating to Spain offers an enriching lifestyle and new opportunities, but careful financial planning is essential to making the most of your move. As an expat, understanding how residency status, tax obligations, and managing foreign income will impact your finances can help you build a stable foundation. This guide provides an overview of the basics you’ll need to know, from determining your residency status and visa type to handling taxes on income earned abroad.

Navigating residency and visas

When moving to Spain, choosing the right visa is an important first step. Residency status affects your eligibility for work, the tax you pay, and your access to public services. Below, we explain some basic concepts on this subject.

Visa types for expats in Spain

The visa you need depends on your income and plans in Spain. Here are the main options:

• Non-Lucrative visa: Designed for retirees or those with passive income from outside Spain, this visa allows you to live in Spain but not to work.
• Work visa: Necessary if you plan to work for a Spanish employer or start a business in Spain.
• Other visa types: Spain offers additional options, such as student visas, entrepreneur visas, and family reunification visas for expats joining family members.

For a detailed overview of each visa type, requirements, and application steps, refer to our complete guide to Spanish visas.

Understanding tax residency

Tax residency is determined by where you live and where you have economic ties. In Spain, you’ll generally be considered a tax resident if:

Spain's housing market is experiencing one of its most dynamic periods, with the price of free-market housing surging by a remarkable 12.7% in the second quarter of 2025, according to the National Institute of Statistics (INE). This marks the largest annual increase since the first quarter of 2007 and the second-highest on record.

A Market Driven by Imbalance

Multiple sources and experts point to a fundamental imbalance between supply and demand as the primary driver of this trend. While demand remains robust, the supply of available homes has decreased significantly, with some reports indicating a 20% reduction in homes for sale over the last 12 months. This scarcity is a key factor pushing prices higher.

Key Drivers of the Price Surge:

Chronic Supply Shortages: Spain's construction sector has struggled to keep pace with demand. New housing completions are well below the number of new households being formed, creating a structural deficit of hundreds of thousands of homes. This is due to a combination of factors, including rising construction costs, labor shortages, and extensive bureaucratic processes for building permits.

Strong and Diverse Demand: Demand is coming from various sources, including domestic buyers and a surge in foreign investment. International buyers now account for over 20% of all property transactions nationwide, with some coastal regions seeing foreign buyer participation as high as 40-45%. This is driven by Spain's attractive lifestyle, climate, and perceived affordability relative to other European countries.

Favourable Lending Conditions: The European Central Bank's interest rate cuts throughout 2024 and early 2025 have made mortgages more attractive and increased buyer purchasing power. This has encouraged more people to enter the property market, further stimulating demand.

Regional and Property Type Disparities:

The price increases are widespread, with all autonomous communities showing double-digit annual rates. Hotspots for growth include Murcia, Aragon, La Rioja, Madrid, and the Valencian Community. The price of used homes has seen a steeper rise (12.8%) compared to new homes (12.1%), although new builds are still highly sought after due to their energy efficiency and modern amenities.

Future Outlook and Market Forecasts:

While the market is hot, analysts are not calling it a speculative bubble like the one that preceded the 2008 crash. Instead, they see the current situation as a structural issue of high demand and limited supply. Forecasts for the coming years vary slightly but generally predict continued, albeit moderating, price growth.

Most experts agree that prices will continue to rise by 4% to 9% through the rest of 2025.

For 2026, growth is expected to moderate to around 3-5% as the market stabilises.

The long-term outlook suggests that structural factors like chronic undersupply and demographic trends will continue to exert upward pressure on prices for the foreseeable future.

The search for a home in Spain has become a challenge for many, as the market's strong performance, driven by a powerful mix of economic strength and limited housing stock, shows no signs of slowing down.
 

As a highly sought-after location for a sunshine-filled life overseas, property for sale in Mallorca is usually snapped up very quickly – making it a great investment. This also means the largest of the Balearic Islands is among Spain's most expensive places to buy a home – but did you know that there are still plenty of houses and apartments for sale in Mallorca for under €200,000?

It's true that homes in this price bracket are more limited in number, but they're not as rare as you would think, especially if you don't need much space, or you're able and willing to renovate them.

Low-cost Mallorca holiday homes

Whether you're seeking a sunny retreat for relaxing and unwinding, or a sound long-term investment you can let out to other holidaymakers, you'll find plenty of apartments for sale in Mallorca for under €200,000. Better still, many are near beaches, have access to communal pools, or both.

Studio flats big enough for a single person to live in year-round, or for a couple on extended holidays, are found in popular coastal areas like Palma, Alcúdia, and Manacor beach for between €100,000 and €135,000. With all amenities close by, and the splendid Mediterranean weather, you won't need to spend much time indoors. But these properties are typically modern and stylish, so your comfort's assured on those days when you don't feel like venturing outside.

Everywhere in Mallorca is, at most, a short drive from the beach, but if you're not directly on the coast, your money goes further. Property for sale under €200,000 offers more space in attractive inland towns like Manacor and Inca. Here, two-bedroom flats start from about €140,000.

Affordable Mallorca homes to renovate

Putting your own stamp on a new home can be hugely satisfying and, when it's in a Spanish holiday hotspot, a superb investment. Depending upon how much extra you're able to spend, you can catch a bargain.

Property for sale in Mallorca under €200,000 frequently includes spacious villas in major tourism belts needing refurbishment. They may already have the necessary mains utility systems in place, but require new fixtures and cosmetic upgrades. Upon completion, you'd have a comfortable, high-class home suitable as a family residence, and make a significant resale profit.

Check out our selection below of properties for sale under €200,000 in Mallorca for inspiration.