REAL ESTATE
MARKETS
IN SPAIN
Market data, acquisition taxation, and international buyer profiles across Spain’s five main real estate markets.
50+ financial institutions
01 Madrid – Real Estate Market
Madrid is Spain’s largest real estate market in terms of transaction volume and depth of financing options. The capital is home to the headquarters of the country’s leading financial institutions, resulting in greater competition among lenders and more competitive terms for buyers.
International demand is sustained and diversified, with buyers from Latin America, Europe, the United States, and the Middle East.
Property Transfer Tax (ITP) in the Community of Madrid
| Type | Percentage |
|---|---|
| General rate | 6% |
| Large families (main residence) | 4% |
NEW-BUILD PROPERTIES
Who Buys in Madrid
The Madrid market combines domestic and international demand. International buyers include predominantly Latin American and European profiles, alongside a growing segment of Middle Eastern and US buyers.
Key Investment Areas
Salamanca, Chamberí, and Retiro are the prime markets par excellence. Malasaña, Lavapiés, and Usera attract investment demand with higher-yield profiles. In the outskirts, Aravaca, Las Rozas, Pozuelo, and La Moraleja attract international buyers with families.
Altavista Finance’s main office is located in Madrid.
We know this market from the inside.
Last updated: June 2026
02 Barcelona – Real Estate Market
Barcelona combines a growing technology-driven economy with Mediterranean lifestyle appeal, positioning it as Spain’s second major international real estate market.
Since June 2025, Catalonia has applied a progressive ITP regime.
ITP in Catalonia
| Property Value | Approximate Effective Rate |
|---|---|
| Up to €600,000 | 10% |
| €900.000 | ~10,3% |
| €1.000.000 | ~10,5% |
| €1.500.000 | ~11% |
| More than €1,500,000 | Up to 13% |
NEW-BUILD PROPERTIES
For properties valued at more than €1,000,000, AJD increases to 2%.
Mallorca
The Mallorca market is anchored by German demand. The southwest coast (Andratx, Calvià) and Deià / Sóller concentrate the premium segment.
Ibiza
Ibiza is a market characterized by restricted supply and ultra-premium demand. Santa Eulalia, San José, and the northern coast concentrate the highest-value transactions.
Who Buys in Barcelona
A mixed profile: domestic buyers, European buyers (French, Italian, Dutch, and British), and a growing segment of international technology professionals.
Key Areas
Eixample, Sarrià-Sant Gervasi, Poblenou / 22@, Gràcia, Diagonal Mar.
Last updated: June 2026
03 Balearic Islands – Real Estate Market
The Balearic Islands — primarily Mallorca and Ibiza — are among Europe’s most established international real estate markets.
ITP in the Balearic Islands
| Property Value | Type |
|---|---|
| Up to €400,000 | 8% |
| €400,001 to €600,000 | 9% |
| €600,001 to €1,000,000 | 10% |
| €1,000,001 to €2,000,000 | 12% |
| More than €2,000,000 | 13% |
NEW-BUILD PROPERTIES
For properties valued at more than €1,000,000, AJD increases to 2%.
Mallorca
The Mallorca market is anchored by German demand. The southwest coast (Andratx, Calvià) and Deià / Sóller concentrate the premium segment.
Ibiza
Ibiza is a market characterized by restricted supply and ultra-premium demand. Santa Eulalia, San José, and the northern coast concentrate the highest-value transactions.
Who Buys in the Balearic Islands
Mallorca: Germans, British, Scandinavians, and Swiss.
Ibiza: British, French, Northern Europeans, with a growing Middle Eastern segment.
Last updated: June 2026
04 Marbella and Costa del Sol – Real Estate Market
Marbella and the Costa del Sol represent Spain’s premier international luxury real estate market.
ITP in Andalusia
| Type | Percentage |
|---|---|
| General rate | 7% |
| Main residence below €150,000 | 6% |
| Buyers under 35 (main residence, up to €150,000) | 3,5% |
NEW-BUILD PROPERTIES
Wealth Tax: 100% regional tax relief.
Andalusia has applied a 100% regional tax relief on Wealth Tax since 2022. However, the effective scope is affected by the continued application of the Temporary Solidarity Tax on Large Fortunes (ITSGF).
Inheritance and Gift Tax: 99% tax relief
Andalusia applies a 99% tax relief on inheritance and gift tax for transfers between direct relatives (Groups I and II).
Who Buys in Marbella / Costa del Sol
British buyers, Middle Eastern buyers (a clearly growing segment), Scandinavians, Belgians, and Dutch buyers. The HNW/UHNW segment is particularly active in the Golden Mile, Puerto Banús, and Benahavís.
Key Areas
Golden Mile, Puerto Banús, Nueva Andalucía, Benahavís, Estepona corridor, Sotogrande.
Last updated: June 2026
05 Costa Blanca – Real Estate Market
The Costa Blanca (province of Alicante) is one of Spain’s most active international real estate markets by transaction volume. Its appeal lies in accessible pricing, air connectivity, and a climate that attracts both lifestyle buyers and retirees.
ITP in the Valencian Community
| Type | Percentage |
|---|---|
| General rate | 9% |
| Properties valued above €1,000,000 | 11% |
NEW-BUILD PROPERTIES
Who Buys in Costa Blanca
British, Scandinavian, Dutch, Belgian, and, more recently, Eastern European buyers.
Key Areas
Jávea / Xàbia, Moraira, Altea, Dénia, Benidorm, Torrevieja, and Orihuela Costa.
Last updated: June 2026
Taxable Base
In Spain, the basis for calculating ITP is not necessarily the agreed purchase price. The higher of the declared value (purchase price) and the cadastral reference value is applied.
Other Taxes and Recurring Costs
IBI: Annual municipal property tax.
IRNR: Non-resident owners are subject to annual taxation even if the property is not rented out.
Wealth Tax / ITSGF: Depending on the autonomous community and the net value of the individual’s assets.
Municipal Capital Gains Tax: Tax on the increase in the value of urban land, generally payable upon sale.
ITP Comparison by Autonomous Community
| Comunidad | ITP | AJD (New Build) |
|---|---|---|
| Madrid | 6% | 0,75% |
| Andalucía | 7% | 1,2% |
| Comunidad Valenciana | 9% (11% > 1M€) | 1,4% |
| Catalunya | 10-13% | 1,5% (3,5%) |
| Baleares | 8-13% | 1,5% (2%) |
Last updated: June 2026
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If you are considering a real estate transaction in Spain and want to understand which options make sense to explore, we would be happy to talk.