Why now is a great time to purchase property in Spain

As 2025 commenced, many people considering purchasing a property in Spain were unsettled by headlines claiming the Spanish government had proposed a 100% tax increase for non-EU buyers. For British and other international investors, this ignited uncertainty amid concerns over whether their dream might suddenly become far more expensive.

In the wake of the news, potential buyers sought clarity before proceeding – and many are still unsure. Let’s set the record straight: there’s no such law in place yet, and such a radical measure may never be implemented. Crucially, any purchases made in the near to medium term would remain unaffected, as any new tax would have to be debated on and voted through by the Spanish parliament – and that’s a protracted process.

Focus on the positives

Spain’s status as one of the most popular destinations with overseas property remains firmly intact. The sunshine, the food, the wine, and the outdoor lifestyle can be enjoyed in stunning coastal, countryside, and city surroundings.

The Spanish property market is your key to living la buena vida (the good life) there, so you’ll be glad to hear that it continues to thrive. Amid these favourable conditions, there’s never been a better time to buy.

Discussions around taxation and foreign investment aren’t unusual, whereas major changes are. So, don’t let conjecture cause you to pause your purchase; otherwise, you could miss out on your perfect Spanish property.

5 compelling reasons to buy property in Spain today

With your concerns about the proposals put to rest, you can fully appreciate the reasons why you should buy there now.

Attractive property prices

Property prices in many areas in Spain remain appealing to overseas buyers, especially when compared to other European countries like France – sustaining demand for holiday homes and rental properties.

Investment potential

While Spain boasts relative affordability compared to other destinations, the market offers strong potential for capital appreciation. Prices have risen significantly in popular areas, particularly along the Mediterranean coast, amid high international demand. 

Rental potential

Property in Spain has excellent rental potential due to a desirable lifestyle, robust tourist demand, a high-performing economy, and lower costs of living. Holiday hotspots like the Costa del Sol, Costa Blanca, and the Balearic Islands attract the highest buy-to-let demand.

Favourable exchange rates

The GBP/EUR exchange rate remains relatively strong, favouring UK property buyers in Spain who get more euros per pound compared to many recent periods. This means buyers can stretch their budget further, potentially affording a higher-value property or reducing overall purchase costs.

Find out how a currency specialist can help you make your money go further when purchasing property in Spain.

Mortgage availability 

Spanish banks, both local and international, offer mortgages tailored for non-resident buyers, with many providing English-speaking support and flexible options such as fixed or variable rates. These products demonstrate the sector’s openness to international investment and provide crucial financing for holiday homes and property purchases in desirable regions.

Don’t let rumours prevent you from buying 

The rumours of a 100% tax increase are just that – rumours – and there’s no indication that this proposal will become reality anytime soon, if ever. In the meantime, Spain continues to offer a compelling combination of lifestyle, value, and investment opportunity.

With property prices still attractive, strong rental demand, favourable exchange rates, and accessible mortgage options for non-residents, now’s the time to move forward with your purchase with confidence.

If Spain has been calling your name, now is the time to answer and start your journey toward owning a slice of la buena vida.