One of the biggest decisions when moving to Spain is whether to rent or buy a property. The debate on renting vs buying in Spain goes beyond simple numbers. While renting provides flexibility and lower upfront costs, buying can lead to significant long-term savings and stability. To help you decide, we’ll examine real-life costs, expert studies, and practical considerations.
Renting in Spain: Flexibility at a Cost
Typical costs and contracts
Renting is often the first step for expats. A one- or two-bedroom apartment outside Spain’s largest cities generally costs between €500 and €700 per month. In Madrid, Barcelona, or Málaga, prices are much higher, often starting at €900. Most landlords ask for a one-month deposit, while agency fees can add another half to one month’s rent.
A common issue in tourist areas is the prevalence of 9-month contracts, where landlords reclaim the property in summer for lucrative short-term rentals. To avoid disruption, always insist on a 12-month contract.
Utilities and extras
Tenants cover their own utilities, which typically range from €80 to €120 per month. Seasonal variations can affect bills, especially with air conditioning in the summer and heating in the winter.
When renting makes sense
- You are new to Spain and want to explore different cities or neighborhoods.
- You value flexibility and do not want long-term commitments.
- You are a digital nomad or short-term resident.
- You want to avoid the responsibilities of ownership such as taxes, repairs, or community meetings.
For many newcomers, renting is a way to “test the waters” before making a large financial commitment.
Buying in Spain: Stability and Long-Term Savings
Purchase price and upfront costs
Buying property in Spain involves additional fees on top of the purchase price. For a €100,000 apartment, buyers should expect to spend closer to €114,000 after accounting for transfer tax (10% in many regions), notary and registry fees, and solicitor costs.
Running costs of ownership
Annual ownership expenses are relatively low compared to other countries:
- Community fees: €500–600
- Council tax (IBI): €250–300
- Home insurance: €150–200
- Utilities: €1,000–1,200
Altogether, ownership costs about €2,500 per year, significantly less than renting long term.
Financial studies: why buying often wins
A recent study by Tecnocasa and the University of Barcelona compared rent payments with mortgage costs across 670 Spanish localities. Their findings:
- Over 25 years: Buying instead of renting can save between €100,000 and €150,000 on average. In high-demand cities like Madrid and Barcelona, savings can reach €200,000–300,000.
- Short-term view: In 2015 and especially 2021 (when interest rates were low), mortgage payments were often cheaper than rent in most areas. However, by 2023, with higher interest rates, 82% of localities saw mortgage payments exceed rents.
This means timing and economic conditions strongly influence whether buying is cheaper month-to-month. But in the long run, ownership nearly always builds more wealth.
When buying makes sense
- You know the area well and plan to stay long term.
- You want to build equity and secure your housing costs.
- You are a retiree or non-lucrative visa holder seeking stability.
- You plan to rent the property out when not living in it, creating an income stream.
Risks and Challenges of Buying in Spain
While financially attractive, buying carries responsibilities and risks:
- Hidden costs: Transfer tax, legal fees, property repairs, and renovations can add up.
- Market knowledge: Foreign buyers often face risks if they are unfamiliar with Spanish property laws or do not speak Spanish.
- Liquidity: Selling property in Spain can take time, especially outside major cities.
For this reason, experts advise newcomers to rent first, then buy once they are certain about the area and lifestyle.
Monthly Cost Comparison: Renting vs Buying in Spain
When deciding between renting vs buying in Spain, it helps to look at the numbers side by side. The table below compares the average monthly cost of renting, buying with a mortgage, and buying outright (without a mortgage) in major Spanish cities in 2025. These figures are illustrative, but they give a clear idea of how monthly expenses differ depending on your choice.
| City | Renting (€/mo) | Buying with Mortgage (€/mo) | Buying Outright (€/mo) |
|---|---|---|---|
| Madrid | 1,300 | 1,450 | 250 |
| Barcelona | 1,400 | 1,540 | 260 |
| Valencia | 1,000 | 1,030 | 230 |
| Málaga | 1,100 | 1,240 | 240 |
| Alicante | 900 | 935 | 215 |
| Seville | 950 | 1,025 | 225 |
| Zaragoza | 800 | 895 | 215 |
| Bilbao | 1,200 | 1,460 | 260 |
The numbers show that renting usually works out slightly cheaper than buying with a mortgage in most Spanish cities at current interest rates (2025). However, the gap is not very wide, especially in mid-sized cities like Valencia or Alicante, where costs are almost the same. Buying outright with cash is by far the most economical option on a monthly basis, since owners only cover community fees, local taxes, insurance, and utilities.
In practice, this means that while renting offers flexibility and lower upfront costs, ownership—particularly without a mortgage—provides the strongest long-term financial advantage.
Renting vs Buying in Spain: Lifestyle and Law
Beyond numbers, lifestyle and legal frameworks matter:
- Renting offers mobility, but Spain’s new housing law has made the rental market more competitive, with landlords favoring tenants with stable incomes and work histories.
- Buying offers security, but also comes with community obligations and maintenance.
- Government and bank initiatives, such as 95% mortgages and rental subsidies for young people, are helping both renters and first-time buyers.
Conclusion
The choice between renting vs buying in Spain depends on your stage of life, financial position, and long-term goals. Renting is ideal for newcomers and those who value flexibility, while buying is usually more profitable in the long run, especially in Spain’s larger cities.
A balanced approach is to rent first, explore, and then buy once you are confident about where you want to settle. Spain’s real estate market rewards careful planning, and with the right strategy, both paths can support a fulfilling life in the country.
FAQs
What are some risks and challenges associated with purchasing property in Spain?
Risks include hidden costs like repairs and renovations, unfamiliarity with Spanish property laws, and the potential for limited liquidity, making it difficult to sell in a timely manner. Therefore, experts often recommend renting initially to gain familiarity with the market before committing to a purchase.
Why might buying a property in Spain be more financially advantageous in the long run?
A study by Tecnocasa and the University of Barcelona suggests that over 25 years, buying can save between €100,000 and €150,000 compared to renting, especially in high-demand cities like Madrid and Barcelona, where savings can be even greater. Ownership helps build equity and provides long-term stability.
What are the initial costs and ongoing expenses of buying property in Spain?
Buying property involves additional upfront fees such as transfer tax, notary, registry, and solicitor costs, which can push the total cost to approximately 14% more than the purchase price. Ongoing annual expenses include community fees, council tax, insurance, and utilities, totaling around €2,500 per year.
What are the main advantages of renting a property in Spain?
Renting in Spain offers flexibility, lower upfront costs, and the opportunity to explore different cities or neighborhoods without long-term commitments. It is also suitable for digital nomads, short-term residents, and those who want to avoid ownership responsibilities like repairs and taxes.
What are the typical costs associated with renting an apartment in Spain?
Renting an apartment in Spain generally costs between €500 and €700 per month outside major cities, with higher prices starting at €900 in Madrid, Barcelona, and Málaga. Tenants usually pay a one-month deposit and may face agency fees equivalent to half to one month’s rent.
