Spain remains one of Europe's most active markets for international real-estate buyers. A deep rental market, year-round tourism and a large stock of both resale and off-plan inventory mean there is something for most strategies — from a coastal second home to a pure rental play.
This guide walks through the regions investors ask about most. Figures are indicative ranges drawn from what sellers publish on the platform; they are not forecasts, and yields vary widely by property, location and management. Always do your own due diligence.
The regions
Costa del Sol (Málaga province)
The best-known international market in Spain — Marbella, Estepona, Fuengirola and the city of Málaga itself. Strong short-term-rental demand, a long season and consistent foreign buyer interest. Indicative gross yields commonly fall in the 4–6% range for well-located rental stock; prime Marbella is bought more for lifestyle and capital preservation than yield.
Costa Blanca (Alicante province)
Alicante, Torrevieja, Jávea and Dénia. More affordable entry points than the Costa del Sol, popular with northern-European buyers. New-build coastal developments are abundant. Indicative gross yields around 5–7% on rental-focused units.
Valencia
The city has drawn attention for its balance of price, livability and a growing long-let market driven by relocations and remote work. Indicative gross yields around 5–6%, with renovation upside in the historic core.
Balearic Islands (Mallorca, Ibiza)
A prime, supply-constrained market. Strict short-term-rental licensing limits new rental supply, which supports values but caps easy yield. Bought primarily for lifestyle and long-term capital preservation.
Madrid
A pure-investment, year-round rental market rather than a holiday one. Resilient demand, lower seasonality. Indicative gross yields around 4–5% in central districts, higher in peripheral neighbourhoods.
Canary Islands (Tenerife, Gran Canaria)
Winter-sun demand gives a longer effective season than the mainland coasts. Tourist-licensed units in established resorts can show competitive gross yields, often in the 5–7% range.
Market trends to keep in mind
- Short-term-rental licensing is tightening in many municipalities. A licence (or the ability to obtain one) materially affects the income case — confirm it before assuming holiday-let income.
- New-build supply is constrained in prime coastal areas, which has kept off-plan and completion-stage pricing firm.
- Financing for non-residents is available but typically at lower loan-to-value than for residents; budget accordingly.
In short
- The Costa del Sol and Costa Blanca dominate international demand; Valencia and Madrid are the stronger pure-rental cities.
- Indicative gross yields broadly sit in the 4–7% range depending on region and strategy.
- Rental licensing is the single biggest swing factor on the income case.
This article is general information, not financial, legal or tax advice, and Onora does not verify seller-published figures. Browse current Spanish listings or read our FAQ for how introductions work.