A Guide to Buying a Business in Spain

How Much Does a Garden Add to the Value of a Property

How Much Value Does a Garden Add to a Property in Spain?
When buying a property in Spain, outdoor space is often high on the list of priorities. Whether it’s a private garden for relaxing in the sunshine, somewhere to entertain family and friends, or space for a swimming pool, a garden can make a property considerably more attractive to potential buyers.
But how much extra value does a garden actually add to a property? The answer depends on several factors, including its size, location, privacy and how effectively the space can be used.
As a general rule of thumb, a good garden might add between 10% and 20% to a property's value in a market where private outdoor space is particularly desirable. On a property worth €500,000, that could represent an additional €50,000 to €100,000.
However, this is only an illustrative estimate, not a guaranteed premium. The actual value will depend on the property and local market conditions.
Why Location Makes a Difference
The value of a garden can vary considerably depending on where a property is located.
In densely built-up urban areas, where private outdoor space is limited, a garden can be a major selling point. Buyers may be willing to pay a premium for somewhere to enjoy outdoor dining, grow plants or simply escape the confines of the house.
In contrast, a rural property surrounded by open countryside may gain less additional value from its garden because buyers already have access to expansive outdoor views and open space.
In Spain, where outdoor living is an important part of the lifestyle, gardens can be particularly appealing. In the Murcia region, for example, a well-designed garden can provide an ideal setting for outdoor dining, entertaining and enjoying the sunshine for much of the year.
Other factors that can influence a garden's value include:
Privacy: A secluded garden with limited overlooking is often more desirable.
Orientation and sunshine: A sunny outdoor space can be a significant attraction, although some shaded areas are also valuable during the hotter summer months.
Accessibility: A garden accessed directly from the living room or kitchen is generally more practical than one reached by a steep staircase or a separate pathway.
Views: Attractive countryside, golf course or sea views can enhance the appeal of outdoor space.
Landscaping: A well-maintained garden with established plants, attractive paving and clearly defined seating areas can make a strong first impression.
Maintenance: Low-maintenance gardens may appeal particularly to overseas buyers who use their Spanish property as a holiday home.
Does a Bigger Garden Always Add More Value?
Not necessarily. Although size matters, the relationship between garden size and property value is rarely straightforward.
A very small garden may offer little practical benefit if there is insufficient room for seating or outdoor dining. However, once the space is large enough to accommodate a table, chairs, plants and perhaps a barbecue, it can make a meaningful difference to the property's appeal.
A larger garden may offer additional possibilities, such as:
A lawn or play area for children.
A private swimming pool.
An outdoor kitchen or barbecue area.
Separate spaces for dining, sunbathing and relaxing.
Additional planting, trees and landscaped features.
These features can help buyers picture themselves enjoying the property and may make the home more competitive in the local market.
However, there is a point at which additional space becomes less valuable.
Once a garden is large enough to meet the needs of most potential buyers, adding more land may produce progressively smaller increases in value. An exceptionally large garden can also mean greater maintenance requirements, higher water consumption and additional costs.
For some buyers, that extra space will be a dream come true. For others, it may simply represent more work.
What Is an Extra Square Metre of Garden Worth?
To understand how garden size affects property value, imagine that you own a house without a garden and have the opportunity to purchase some adjoining land to create one.
Would every additional square metre increase the value of your home by the same amount?
Almost certainly not.
One square metre is unlikely to make much practical difference. It is simply too small to provide a genuinely useful outdoor area.
Ten square metres could be enough to create a compact patio garden, giving the property something it previously lacked: private outdoor space.
Thirty square metres might provide room for a small outdoor dining area, a few plants and comfortable seating.
Seventy-five square metres could accommodate a more substantial patio, a lawn or a dedicated space for children to play.
One hundred and fifty square metres might offer enough room for several outdoor living areas, depending on the layout and shape of the garden.
Beyond this point, the additional value of each square metre will generally depend increasingly on the buyer's individual requirements.
These examples are illustrative rather than fixed valuation thresholds. A well-designed 30m² garden may be more appealing than a poorly laid-out 75m² plot.
The important consideration is not simply the amount of land, but how much useful outdoor space it provides.
How Garden Design Can Influence Property Value
A garden does not have to be enormous to make a property stand out. In many cases, thoughtful design and good presentation can be just as important as its overall size.
For sellers, making the most of the existing outdoor space can help potential buyers appreciate what the property has to offer.
Consider the following improvements:
Create a defined seating area: A patio with an outdoor table and chairs helps buyers visualise how they could use the space.
Improve privacy: Screening, hedges or strategically positioned plants can make a garden feel more secluded.
Keep the garden tidy: Trimmed plants, clean paving and a well-maintained lawn create a more inviting impression.
Make the most of the sunshine: Position seating areas to take advantage of the garden's orientation while retaining some shade for hotter days.
Reduce maintenance: Simple landscaping, attractive paving and drought-tolerant plants can be particularly practical in Spain's climate.
A swimming pool can also be a major attraction, especially in areas where buyers are looking for a holiday home or a property suited to outdoor living. However, its contribution to value will depend on local demand, installation and maintenance costs, and the type of property.
It is worth remembering that improvements do not necessarily increase a property's value by the full amount spent on them. The aim is to create an outdoor space that appeals to the widest possible range of likely buyers.
What Does This Mean for Buyers and Sellers?
Understanding how garden space influences property value can help both buyers and sellers make better-informed decisions.
For sellers, the priority should be to present the garden as an attractive and usable extension of the home. A well-maintained outdoor area can improve the property's overall appeal and help distinguish it from similar homes on the market.
For buyers, it is important to look beyond the advertised garden size. Consider the layout, privacy, orientation, accessibility and ongoing maintenance requirements. A smaller, thoughtfully designed garden may offer more practical benefits than a much larger but less usable space.
The same principle applies when considering the purchase of adjoining land. Before deciding how much it is worth to you, consider how it would improve the property's functionality and whether that improvement is likely to be reflected in its resale value. Planning restrictions, boundaries and any relevant legal requirements should also be checked before proceeding.
So, How Much Value Does a Garden Add to a Property?
There is no single figure that applies to every property. Although a garden may add significant value in the right location, its contribution depends on the property's characteristics and what buyers in that particular market are prepared to pay.
In Spain, where outdoor living is an important consideration for many property buyers, a private garden can be a valuable selling point. However, size alone does not determine its worth.
Ultimately, buyers are paying for the benefits a garden provides: privacy, relaxation, entertaining space and the opportunity to enjoy the outdoor lifestyle.
The most valuable garden is not necessarily the biggest one. It is the one that makes the property more desirable and gives buyers a compelling reason to choose it over the alternatives.

Thu 29th Oct 2026

Building a Villa in Spain: Planning Permission, Licences & Legal Requirements

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Building a New Villa in Spain: The Three Phases of Planning Permission and Legal Requirements
When a Plan Parcial (Partial Development Plan) has been approved for a new urbanisation in Spain, there are still several important legal and administrative steps to complete before individual villas can be built and legally occupied.
Approval of the overall development does not automatically mean that construction can begin on every plot. The developer must ensure that the land has been properly divided, the necessary infrastructure is approved and provided for, and individual building permits are obtained.
The process can be divided into three main phases, from preparing the land for development to obtaining the documentation required to occupy the finished property.
Phase 1: Land Re-parcelling and Urbanisation Permissions
Before individual plots can receive building permission, the developer must establish the legal framework for the development and ensure that the necessary infrastructure is addressed.
1. Proyecto de Reparcelación – Re-parcelling Project
This project establishes how the land within the development is divided and allocated.
It typically involves:
- Redistributing land ownership between the relevant owners.- Calculating the costs and obligations associated with the development.- Identifying the individual building plots (parcelas resultantes).- Designating land for public use, including roads, pavements, parks and green spaces.
The project must receive the relevant municipal approval and be registered with the Land Registry (Registro de la Propiedad) where required.
2. Proyecto de Urbanización – Urbanisation Project
The Urbanisation Project sets out the technical details of the infrastructure needed to make the development suitable for construction and occupation.
This may include:
- Roads, pavements and access routes.- Water supply and sewage systems.- Electricity and telecommunications networks.- Gas infrastructure, where applicable.- Street lighting and other public services.
The project must be approved by the Town Council. Depending on the applicable planning conditions, the infrastructure works may need to be completed, or the required financial guarantees provided, before building permits for individual villas can be granted.
Why this phase matters: A development may have planning approval in principle, but the legal status of the plots and the provision of essential infrastructure must also be addressed before individual homes can progress to construction.
Phase 2: Building Permits and Pre-Construction Requirements
Once the necessary land and urbanisation requirements have been satisfied, the developer or property owner can proceed with the application for permission to build an individual villa.
1. Licencia de Obras Mayores – Major Works Building Permit
This is the principal municipal permit required for constructing a new villa.
The application generally requires technical documentation prepared by qualified professionals, including:
- Architectural project (Proyecto Básico y de Ejecución): The plans and technical specifications for the proposed property, prepared by an architect. The applicable professional validation requirements must also be met.- Geotechnical study (Estudio Geotécnico): An assessment of the ground conditions to help ensure that the foundations are designed appropriately.- Health and safety documentation (Estudio de Seguridad y Salud): The relevant documentation addressing safety risks during construction.- Appointment of the technical team: Including the project architect (Director de Obra), the building execution director or technical architect (Director de Ejecución or Aparejador), and a health and safety coordinator where required.
The applicant must also pay the applicable municipal planning fees (Tasa por Licencia Urbanística) and the construction tax known as ICIO (Impuesto sobre Construcciones, Instalaciones y Obras).
The exact documentation, fees and approval process will depend on the municipality and the circumstances of the project.
2. Utility Connection Permissions
Arrangements must be made for the property to connect to the relevant public utility networks. These may include water, electricity, sewage and gas, where available.
The required permissions and connection agreements depend on the local infrastructure and the requirements of the relevant utility providers.
3. Public Thoroughfare Occupation Permit
If construction work requires the use of public roads or pavements, a separate municipal permit may be necessary.
This can apply when placing skips or containers, erecting scaffolding, positioning cranes or other machinery, or occupying part of the public highway during building work.
Phase 3: Completion, Registration and Permission to Occupy
Completing the physical construction of a villa is not the final step. The finished property must also satisfy the relevant requirements for occupation and legal registration.
1. Licencia de Primera Ocupación – First Occupation Licence
The First Occupation Licence, where required under the applicable regional and municipal rules, confirms that the completed property meets the relevant planning and building requirements.
The Town Council will generally require the appropriate completion documentation and may arrange an inspection to check that the villa has been constructed in accordance with the approved project and applicable regulations.
This documentation is important when establishing that a newly built property can be legally occupied. The precise procedure and terminology can vary between municipalities and autonomous communities.
2. Declaración de Obra Nueva Terminada – Declaration of Completed New Construction
Once construction is complete, the new building must be formally documented.
This normally involves preparing a public deed (Escritura de Obra Nueva Terminada) before a Spanish Notary and registering the completed construction with the Land Registry (Registro de la Propiedad). The relevant information must also be reflected in the Cadastre (Catastro) in accordance with the applicable requirements.
The documentation establishes the existence and characteristics of the completed building for legal and property registration purposes.
3. Licencia de Vado – Driveway Access Permit
Where a villa has a driveway or garage that requires vehicle access across a public pavement, a municipal driveway access permit may be needed.
Known as a Licencia de Vado, this authorises the relevant vehicle access and may also regulate parking restrictions in front of the entrance. Requirements and fees vary by municipality.
Understanding the Process Before Buying a Plot
For anyone considering buying a plot and building a villa in Spain, it is important to understand that planning approval for an entire urbanisation is only one part of the process.
The legal status of the individual plot, the progress of the infrastructure works, the availability of building permission and the requirements for final occupation should all be checked before committing to a purchase.
The exact requirements can differ depending on the autonomous community, the Town Council and the type of development. An independent Spanish property lawyer and the relevant municipal planning department can help establish which approvals are in place, which remain outstanding and what conditions must be met before construction can begin.
Taking these steps early can help buyers understand the position clearly and avoid unexpected delays or additional costs during the building process.

Wed 21st Oct 2026

New-Build Developments Rise by 11% but still doesnt meet demand

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Spain’s New-Build Housing Starts Rise by 11%, but Supply Still Falls Short
Spain’s residential construction sector is showing signs of progress, with new housing starts reaching their highest first-half level in at least a decade. However, despite the encouraging increase, the country continues to face a significant housing shortage, particularly in areas where demand is strongest.
According to the latest figures from Spain’s Ministry of Housing, construction began on 67,564 new homes during the first half of 2026, an increase of 11% compared with the same period last year. The rolling 12-month total reached 128,301 homes by the end of June, representing annual growth of 10.5%.
While these figures demonstrate a positive trend, construction remains well below the levels many analysts believe are needed to address Spain’s growing housing deficit.
Regional Differences Highlight the Scale of the Challenge
Although housing starts have increased nationally, the figures reveal significant differences between regions. In Barcelona province, where affordable housing is in particularly short supply, construction starts rose by just 1%. Meanwhile, the Madrid region recorded a 30% decline, despite being one of Spain’s major centres of employment and housing demand.
Barcelona has faced particular challenges in encouraging new residential development. A municipal requirement for certain developments to reserve 30% of their homes for social housing has been controversial, with critics arguing that it can undermine the financial viability of private projects and discourage investment.
The wider debate highlights the difficulty of balancing affordable housing objectives with the need to increase overall supply. Policies designed to make housing more accessible must also ensure that new developments remain financially viable, allowing more homes to reach the market.
Elsewhere, the Balearic Islands recorded a substantial 51% increase in housing starts during the first half of the year. Construction activity is also performing more positively in popular property destinations such as Málaga province, home to the Costa del Sol, and the Region of Murcia.
These regional variations underline the importance of understanding local market conditions rather than relying solely on national statistics.
Why More Affordable Homes Are Difficult to Build
One of the main challenges facing Spain’s housing sector is the cost and complexity of delivering new homes at prices ordinary households can afford.
Higher construction costs, lengthy planning procedures, regulatory requirements and taxes all affect the financial viability of residential developments. These pressures can be particularly significant for projects aimed at lower and middle-income buyers, where profit margins are often tighter.
As a result, developers may favour higher-value properties, where stronger potential returns can help offset rising costs and development risks.
This is a commercial reality, but it creates a potential imbalance in the housing market. If investment becomes concentrated in premium properties while demand for affordable homes continues to grow, the shortage affecting local workers, families and first-time buyers may remain largely unresolved.
There is also a longer-term risk if too much development becomes concentrated in a particular price bracket. A surplus of higher-priced properties in some locations could place pressure on prices and developer returns, even as more affordable housing remains in short supply.
Building More Homes Where People Need Them
Spain’s housing challenge is not simply about increasing the number of properties under construction. It is also about ensuring that homes are built in the right locations and at prices that meet the needs of the population.
Major cities and employment centres require more residential development, but opportunities also exist in surrounding towns and provincial capitals. With suitable infrastructure, these areas can provide alternative places to live for people who might otherwise struggle to afford property close to their workplace.
Investment in public transport, road connections and local services is therefore an important part of the wider solution. Better connectivity can make living outside expensive urban centres a realistic option, while supporting growth in neighbouring communities.
Planning systems that provide greater certainty, alongside policies that encourage financially viable development, could also help bring more projects forward.
What Does This Mean for Spain’s Property Market?
The latest construction figures offer grounds for cautious optimism. An 11% increase in housing starts suggests that development activity is moving in the right direction, while stronger growth in certain regions points to opportunities for continued expansion.
For property buyers, however, the persistent shortage of new homes in high-demand locations may continue to support prices, particularly where employment opportunities, infrastructure and lifestyle appeal attract new residents.
For investors and developers, regional differences remain important. Markets with improving infrastructure, sustained demand and viable development opportunities may offer attractive prospects, although individual locations and property types need to be assessed carefully.
In areas such as Murcia and the Costa del Sol, where new-build developments appeal to both domestic and international buyers, construction activity forms an important part of the wider property market. Nevertheless, national housing figures alone cannot determine the outlook for any individual town or development.
The Road Ahead
Spain’s rising housing starts are encouraging, but the increase is only one step towards addressing the country’s housing shortage. The key challenge is to deliver substantially more homes in the locations where demand is strongest, while ensuring that a meaningful proportion remain within reach of ordinary households.
Achieving this will require a combination of practical planning policies, investment in infrastructure, more efficient development processes and measures that support the financial viability of affordable housing.
Until new construction begins to meet demand more closely, Spain’s housing market is likely to remain under pressure in many of its most sought-after locations. The priority now is to turn the latest improvement in construction activity into a sustained increase in the supply of homes that people can realistically afford.

Mon 12th Oct 2026

Huge increase in buyers from Holland

Dutch property buyers in Spain in Q2 2026
Dutch demand for Spanish property continues to surge, with buyers from the Netherlands gaining market share even as the wider foreign market expanded in the second quarter.Dutch buyers were involved in 1,862 Spanish property purchases in Q2 2026, up 19.5% compared with the same period last year. That was comfortably ahead of the 11.3% growth recorded by the foreign market as a whole.The first-half figures tell a similar story. Dutch buyers purchased 3,489 homes in H1, up 12.3% year-on-year and more than four times the number recorded in the first half of 2017.As a result, the Dutch share of the foreign market share (FMS) reached 6.9% in Q2, up from 6.5% last year and just 2.5% in 2017. On current trends, the Dutch are rapidly closing the gap with some of the traditionally dominant foreign markets in Spain.The rolling trend is still pointing upwardsThe four-quarter rolling total, which smooths out some of the volatility in individual quarters, confirms that the underlying trend remains strong.Dutch buyers were involved in 6,537 Spanish property purchases in the four quarters to the end of Q2 2026, up 12.1% compared with the equivalent 12-month figure a year earlier. That follows an increase of 34.4% in the previous 12-month period.Growth is therefore slowing from the exceptional pace seen last year, but from an increasingly high base. The rolling total has risen from just 1,461 purchases in Q2 2017 to more than 6,500 today.The Dutch market is no longer a small niche in the foreign-buyer landscape. Its share has almost tripled since 2017, and the latest figures show it continuing to grow faster than foreign demand overall.

Mon 28th Sep 2026

Spanish Property Market: Prices Hit New Highs in 2026

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Spain Property Market Update: Prices Continue to Rise as the Market Becomes More Balanced
Q2 2026 housing figures show continued price growth and a strong market for sellers
The latest figures from the Spanish Notaries provide an encouraging snapshot of the property market in the first half of 2026. While sales volumes have moderated compared with the exceptionally strong levels recorded last year, property prices continue to rise strongly, highlighting the underlying strength of the Spanish housing market.
The figures suggest the market is becoming more balanced, with buyers taking a little longer to make decisions while demand remains strong and the shortage of available homes continues to support prices.
Sales Moderate After an Exceptional 2025
The Spanish Notaries recorded 181,206 property sales in Q2 2026, around 9% below the same quarter last year. This follows a 7% reduction in Q1, bringing total sales for the first half of 2026 to 353,237 transactions.
Although this represents a moderation compared with the exceptionally strong first half of 2025, it is important to remember just how active the market was last year.
Looking at the rolling four-quarter figure, which provides a more balanced picture by smoothing out seasonal variations, there were 726,349 transactions, just 2% below the previous year.
This demonstrates that Spain continues to have a very active property market by historical standards, even as buyers become more considered in their purchasing decisions.
Property Prices Continue to Climb
Perhaps the most significant headline from the latest figures is the continued strength of property prices.
The average Spanish property price reached €2,094 per square metre in Q2 2026, representing an impressive 10% increase year-on-year and the strongest annual rate of price growth since 2022.
Over the past five years, the average Spanish property price has increased by approximately 44%.
The combination of strong demand and limited housing supply continues to provide substantial support for property values across Spain.
What Does This Mean for Sellers?
For homeowners considering selling, the current market continues to present an excellent opportunity.
While buyers are becoming more selective and may take a little longer to commit, prices remain on an upward trajectory and demand for quality properties remains strong.
The key is realistic pricing and effective marketing. Well-presented properties in desirable locations, particularly those offering good value, modern facilities and attractive lifestyles, continue to attract buyers.
For sellers, this means there is still an excellent opportunity to take advantage of the strong prices being achieved across the Spanish property market.
A More Balanced Market
The latest figures point towards a market that is becoming more measured rather than less attractive. After several years of strong growth, a little more time for buyers to consider their options is a natural development.
With prices continuing to rise, supply remaining relatively constrained and Spain maintaining its appeal to both domestic and international buyers, the outlook for the Spanish property market remains positive.
For anyone considering selling in 2026, the current combination of strong property values and continued buyer demand makes this a market worth taking advantage of.

Fri 11th Sep 2026

Increase in Foreign Investment into the Property Market in Murcia

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Foreign Buyers Return Strongly to Spain’s Property Market as Demand Nears 100,000 Sales
Foreign buyers have made a powerful comeback in Spain’s property market during the second quarter of 2026, pushing first-half sales to a record high and bringing annual foreign demand within touching distance of 100,000 purchases.
According to the latest figures from the Spanish Land Registrars, foreign buyers completed 51,627 property purchases during the first half of 2026. This represents a 4% increase compared with the same period in 2025 and marks the strongest first-half result ever recorded.
A Strong Second Quarter Drives the Recovery
The figures are particularly encouraging given the slower start to the year. Foreign property purchases fell by 3% year-on-year during the first quarter, raising some concerns that international demand could be beginning to lose momentum.
However, the second quarter told a very different story.
Foreign purchases jumped by 11% year-on-year in Q2, with more than 26,800 homes purchased by international buyers during the three-month period.
This strong rebound pushed the rolling 12-month total to 99,410 foreign-buyer transactions —an increase of almost 3% compared with the previous quarter and just 590 purchases short of the symbolic 100,000 mark.
Foreign buyers are also becoming an increasingly important part of Spain's overall property market. In Q2, they accounted for 15.98% of all home sales, the highest proportion recorded in the Land Registrars' historical series.
The British remain Spain's largest foreign buyer group for the moment, but their long-standing lead is becoming increasingly narrow.
During the first half of 2026, British buyers accounted for an estimated 3,567 purchases, although this was 10% lower than a year earlier.
Meanwhile, Dutch buyers recorded 3,489 purchases, representing an impressive 12% increase.
The difference became even smaller in the second quarter. British buyers completed approximately 1,843 purchases, compared with 1,830 by Dutch buyers—a gap of only 13 transactions.
If these trends continue, the Netherlands could potentially overtake the UK as Spain's largest foreign buyer market later this year. Such a change would represent a significant moment after decades of British buyers dominating Spain's international property market.
Germany retained third place despite a modest 2% decline in purchases. Several other important markets recorded healthy growth, including Italy (+11%), Poland (+11%), Ireland (+6%) and France (+3%).
Belgium was one of the notable exceptions, with purchases falling by 16% during the first half, while Russian demand continued its longer-term decline.
Foreign Buyers Are Outperforming the Domestic Market
The strength of international demand becomes even clearer when compared with the Spanish domestic market.
Spanish buyers completed 294,403 property purchases during the first half of 202*, a decline of 3% compared with the same period last year.
In contrast, purchases by foreign buyers increased by 4% to 51,627.
As a result, international buyers increased their share of the Spanish housing market to around 15% during the first half of the year, compared with approximately 14% a year earlier.
A Positive Outlook for International Property Demand
The latest figures provide an important reminder that demand from overseas buyers remains a major driving force in Spain's property market.
Only a few months ago, the weaker first-quarter figures suggested that international demand could be starting to cool. The strong Q2 recovery appears to have changed that picture.
Not only has overall foreign demand returned to growth, but several key markets are also showing resilience. British and German demand has stabilised, while Dutch buyers continue to expand their presence at a rapid pace.
With the rolling annual total already at 99,410 purchases, the 100,000 milestone could now be reached very soon.
For regions such as Murcia and the Costa Cálida, where international buyers play an important role in the property market, these figures are particularly encouraging. Continued demand from overseas purchasers, combined with Spain's lifestyle appeal, climate, infrastructure and comparatively attractive property prices, should continue to support the market through the remainder of 2026.

Thu 20th Aug 2026

Choosing a Spanish Lifestyle

Why Most Foreign Buyers Choose Spain for Lifestyle, Not Necessity
Spain continues to attract buyers from around the world, but for most international purchasers, buying a home here isn't simply about finding somewhere to live – it's about embracing a better lifestyle.
A recent thinkSPAIN Buyer Trends Survey highlights a clear difference between Spanish and foreign buyers. While domestic purchasers are primarily driven by price, international buyers place much greater importance on location, property features and lifestyle. The number of bedrooms, bathrooms, outdoor space and proximity to the coast or golf courses often outweigh the purchase price when making a decision.
Foreign Buyers Spend More
The figures reflect these priorities. During the second half of 2025, foreign non-resident buyers paid an average of €3,242 per square metre for property in Spain, compared with €1,839 per square metre paid by Spanish nationals – around 76% more.
This premium is partly explained by the type of properties international buyers choose. Coastal homes, golf resorts, luxury developments and properties in popular holiday destinations typically command higher prices than the national average, making them especially attractive to overseas purchasers.
Retirement Remains the Biggest Motivation
According to the survey, retirement is by far the most common reason for buying property in Spain among foreign non-residents.
The results showed:
* 51% are purchasing a home for retirement.* 28% are buying a holiday home or second residence.* 15% are relocating for work, family or a lifestyle change.* 6% are purchasing primarily as an investment.
These figures demonstrate that the majority of overseas buyers are making long-term lifestyle decisions rather than purely financial investments.
Retirement Buyers Are Well Prepared
Many retirees arrive in Spain with substantial savings, pension income or funds released from selling property in their home country. As a result, financing is often not a major concern.
The thinkSPAIN survey found that only around 5% of foreign retirement buyers require a mortgage, making them financially prepared and generally able to move quickly once they find the right property.
For these buyers, quality of life is every bit as important as the property itself. Warm weather, relaxed living, excellent healthcare, lower living costs and welcoming communities all contribute to Spain's continued popularity.
Spain Continues to Lead for Quality of Life
Spain consistently ranks among the world's most desirable places to live. According to the latest InterNations survey, Spain has been ranked number one for quality of life for four consecutive years.
More than four out of five international residents rated Spanish healthcare positively, with respondents highlighting:
* Affordable healthcare (83% positive ratings)* Easy access to healthcare services (82%)* High-quality medical care (81%)
Combined with a Mediterranean climate, excellent transport links and a slower pace of life, it's easy to understand why so many overseas buyers choose Spain for retirement.
Holiday Home Buyers Want Convenience
Not every overseas purchaser is planning to move permanently. More than one in four foreign non-residents are buying a second home where they can enjoy regular holidays, extended stays or spend time with family.
These buyers are looking for properties that are easy to own and maintain. Secure gated communities, modern apartments, villas with low-maintenance gardens and developments offering property management services are particularly appealing.
Easy access from international airports, nearby beaches, golf courses and local amenities also play a significant role when choosing the ideal second home.
Murcia Continues to Attract International Buyers
The Region of Murcia remains one of Spain's best-value destinations for overseas buyers seeking sunshine, beautiful beaches and an exceptional quality of life. With modern new-build developments, established golf resorts and traditional Spanish towns all within easy reach of Murcia International Airport, the region offers something for retirees, holiday home owners and investors alike.
At Murcia Villas, we have been helping international buyers purchase property in the Region of Murcia and the southern Costa Blanca since 2002. Whether you're looking for a permanent home, a holiday apartment or a brand-new villa, our experienced bilingual team can guide you through every stage of the buying process.
If you're considering buying property in Spain, we'd be delighted to help you find the perfect home to match your lifestyle.

Mon 3rd Aug 2026

Buying a Business in Spain

Buying a business or traspaso in Spain
What is a 'traspaso' in Spain? How business transfers work when taking over a commercial property
Many international expats dream of running a café, bar, or boutique in Spain. If you are looking to invest in the Spanish commercial sector, you will quickly encounter the term traspaso.
A traspaso is the transfer of a leasehold business. You do not purchase the commercial property (the physical bricks and mortar, known as the freehold); instead, you buy the right to take over the existing business operations, its assets, and the premises' lease contract.
Understanding the legal aspects and financial mechanics of a traspaso is critical to ensure you are buying profitable operations rather than inheriting someone else's hidden debts. Buying a business in Spain requires a different approach compared to the UK or North America, as it is heavily reliant on local municipal compliance.
Purchasing a traspaso means taking over the operational rights, terrace permits, and customer base of a functioning business. Photo: UnsplashWhat is a 'traspaso' and how is it different from starting from scratch?When you buy a business as a traspaso, you acquire an operational entity, but you do not own the real estate. If you were to purchase the freehold, you would own the property outright. Conversely, starting from scratch would mean renting or buying an empty property, applying for every municipal license from zero, and building a brand without a safety net.
What is typically included in a traspaso?When you negotiate the price for a traspaso, you are paying a premium for speed and existing infrastructure. A standard transfer typically includes:
Fixed assets: Commercial machinery, furniture, fixtures, fittings, and existing stock.Intangible assets: The business name, brand reputation, online presence, and established customer base.Operational rights: Existing licences (such as the licencia de apertura or opening licence) and permits required to trade.The lease: The right to occupy the premises under an existing or newly negotiated agreement.Starting from scratch vs. traspaso: which is better?Deciding whether to open an empty commercial property or take over an existing business depends on your budget, timeline, and risk tolerance.
Starting from scratch vs. traspasoFactor Starting from Scratch Taking over a TraspasoTime to launch 6–12+ months (bureaucratic delays) 1–4 weeks (licences are already in place)Initial costs Lower purchase costs, high setup and renovation costs High initial premium (the traspaso fee)Licenses Must apply for new municipal licences Existing licences transfer overClientele Zero; requires heavy marketing Inherited, established clienteleAdvantages of a traspasoThe primary advantage is operational speed. Dealing with the Spanish government and local administrative areas to secure a new opening licence can take months or even years, especially for hospitality venues requiring soundproofing, fume extraction, and terrace permits. A traspaso allows you to invest efficiently, bypassing this bureaucratic bottleneck and generating revenue from day one.
How a traspaso works in practice: The lease negotiationUnder Spanish letting law (specifically the Ley de Arrendamientos Urbanos or LAU), a tenant running a commercial business has the right to transfer their lease to a third party without needing the landlord's explicit consent, provided they notify the landlord within one month.
However, in practice, bypassing the landlord is highly ill-advised. The law entitles the landlord to increase the rent by 20% upon a business transfer. Furthermore, the remaining duration of the lease might be too short to recoup your money. Most buyers will sit down with the outgoing tenant and the landlord to negotiate a brand-new lease contract or secure a lease option that guarantees a minimum 5 to 10-year term. Securing the property for a long enough period is vital for the long-term viability of the business.
Required documentation and due diligenceBefore you transfer any funds, rigorous due diligence is essential. Never sign a traspaso agreement or buy without independent legal representation. Your lawyer or gestor (a Spanish administrative specialist) should review:
Proof of ownership: Verifying the seller actually owns the equipment and has the legal right to execute the purchase.Licences and compliance: Checking with the local town hall (ayuntamiento) that the opening licence is valid, unrevoked, and matches the business activity exactly.Registration certificate: You must check the municipal registration certificate to ensure all safety, health, and fire compliance metrics are up to date. An outdated registration certificate can result in immediate closure by inspectors.Corporate standing: Checking the commercial register (Registro Mercantil) if the business is operated by a Spanish limited company (SL) to confirm there are no embargoes or outstanding legal disputes.Staff transfers and subrogationIf you purchase an ongoing business, Spanish employment law (Article 44 of the Workers' Statute) mandates that existing employment contracts automatically transfer to the new owner. You inherit their seniority, salaries, and severance rights. You cannot simply fire inherited staff without paying standard Spanish redundancy terms (finiquito). Always factor potential redundancy liabilities into the final purchase price.

Sun 2nd Aug 2026

Adding Value to Spanish Homes

Buying a business or traspaso in Spain
What is a 'traspaso' in Spain? How business transfers work when taking over a commercial property
Many international expats dream of running a café, bar, or boutique in Spain. If you are looking to invest in the Spanish commercial sector, you will quickly encounter the term traspaso.
A traspaso is the transfer of a leasehold business. You do not purchase the commercial property (the physical bricks and mortar, known as the freehold); instead, you buy the right to take over the existing business operations, its assets, and the premises' lease contract.
Understanding the legal aspects and financial mechanics of a traspaso is critical to ensure you are buying profitable operations rather than inheriting someone else's hidden debts. Buying a business in Spain requires a different approach compared to the UK or North America, as it is heavily reliant on local municipal compliance.
Purchasing a traspaso means taking over the operational rights, terrace permits, and customer base of a functioning business. Photo: UnsplashWhat is a 'traspaso' and how is it different from starting from scratch?When you buy a business as a traspaso, you acquire an operational entity, but you do not own the real estate. If you were to purchase the freehold, you would own the property outright. Conversely, starting from scratch would mean renting or buying an empty property, applying for every municipal license from zero, and building a brand without a safety net.
What is typically included in a traspaso?When you negotiate the price for a traspaso, you are paying a premium for speed and existing infrastructure. A standard transfer typically includes:
Fixed assets: Commercial machinery, furniture, fixtures, fittings, and existing stock.Intangible assets: The business name, brand reputation, online presence, and established customer base.Operational rights: Existing licences (such as the licencia de apertura or opening licence) and permits required to trade.The lease: The right to occupy the premises under an existing or newly negotiated agreement.Starting from scratch vs. traspaso: which is better?Deciding whether to open an empty commercial property or take over an existing business depends on your budget, timeline, and risk tolerance.
Starting from scratch vs. traspasoFactor Starting from Scratch Taking over a TraspasoTime to launch 6–12+ months (bureaucratic delays) 1–4 weeks (licences are already in place)Initial costs Lower purchase costs, high setup and renovation costs High initial premium (the traspaso fee)Licenses Must apply for new municipal licences Existing licences transfer overClientele Zero; requires heavy marketing Inherited, established clienteleAdvantages of a traspasoThe primary advantage is operational speed. Dealing with the Spanish government and local administrative areas to secure a new opening licence can take months or even years, especially for hospitality venues requiring soundproofing, fume extraction, and terrace permits. A traspaso allows you to invest efficiently, bypassing this bureaucratic bottleneck and generating revenue from day one.
How a traspaso works in practice: The lease negotiationUnder Spanish letting law (specifically the Ley de Arrendamientos Urbanos or LAU), a tenant running a commercial business has the right to transfer their lease to a third party without needing the landlord's explicit consent, provided they notify the landlord within one month.
However, in practice, bypassing the landlord is highly ill-advised. The law entitles the landlord to increase the rent by 20% upon a business transfer. Furthermore, the remaining duration of the lease might be too short to recoup your money. Most buyers will sit down with the outgoing tenant and the landlord to negotiate a brand-new lease contract or secure a lease option that guarantees a minimum 5 to 10-year term. Securing the property for a long enough period is vital for the long-term viability of the business.
Required documentation and due diligenceBefore you transfer any funds, rigorous due diligence is essential. Never sign a traspaso agreement or buy without independent legal representation. Your lawyer or gestor (a Spanish administrative specialist) should review:
Proof of ownership: Verifying the seller actually owns the equipment and has the legal right to execute the purchase.Licences and compliance: Checking with the local town hall (ayuntamiento) that the opening licence is valid, unrevoked, and matches the business activity exactly.Registration certificate: You must check the municipal registration certificate to ensure all safety, health, and fire compliance metrics are up to date. An outdated registration certificate can result in immediate closure by inspectors.Corporate standing: Checking the commercial register (Registro Mercantil) if the business is operated by a Spanish limited company (SL) to confirm there are no embargoes or outstanding legal disputes.Staff transfers and subrogationIf you purchase an ongoing business, Spanish employment law (Article 44 of the Workers' Statute) mandates that existing employment contracts automatically transfer to the new owner. You inherit their seniority, salaries, and severance rights. You cannot simply fire inherited staff without paying standard Spanish redundancy terms (finiquito). Always factor potential redundancy liabilities into the final purchase price.

Sat 1st Aug 2026

House Prices in Spain will Stay strong until 2029

Spain Forecast to Lead European House Price Growth Until 2029
Spain's property market continues to outperform much of Europe, with experts forecasting strong house price growth for years to come. While this is welcome news for homeowners and property investors, it also highlights the ongoing challenge facing buyers trying to enter the market.
According to leading ratings agency Standard & Poor's (S&P), Spain is expected to record the strongest house price growth in Europe over the next several years. Prices are forecast to increase by 9.1% in 2026, followed by 7.4% in 2027 and a further 6.2% in 2028.
## Why Are Spanish House Prices Continuing to Rise?
The main reason is a continuing imbalance between supply and demand.
Demand for homes remains high, supported by:
* Strong employment growth* Rising wages* Continued immigration* High demand from international buyers
At the same time, the supply of new homes remains limited due to planning delays, labour shortages and rising construction costs. As a result, demand continues to outpace the number of new properties coming onto the market.
Although governments across Europe have announced new housing initiatives, including Spain's €7 billion State Housing Plan, S&P believes these measures will take years to significantly increase housing supply. In the short term, any policies that stimulate demand without delivering more homes could place even greater upward pressure on prices.
Good News for Homeowners and Investors
For existing property owners, continued price growth is encouraging. Rising property values help build equity and make real estate an attractive long-term investment.
This is particularly positive for buyers who have already secured a home in sought-after areas such as the Costa Cálida and the Region of Murcia, where demand from both Spanish and international buyers remains strong.
The Challenge for First-Time Buyers
The downside is that rising prices make it increasingly difficult for first-time buyers to enter the market.
As property prices increase, rents often follow, making it harder for younger generations to save for a deposit. Housing affordability has become an important political issue across Europe, with governments exploring measures such as rent controls, increased taxes on investors and tighter regulations on tourist accommodation.
However, many housing experts believe these policies do little to solve the underlying problem.
Supply Remains the Key Issue
The biggest challenge facing Spain's housing market is simply that there are not enough homes being built to meet demand.
Until housing supply increases significantly, property prices are expected to continue rising, benefiting homeowners while making it more challenging for buyers and renters alike.
What Does This Mean for Buyers?
For anyone considering purchasing property in Spain, the forecasts suggest that delaying a purchase could mean paying more in the future. While no market can be predicted with complete certainty, the long-term outlook remains positive, supported by strong demand, limited supply and Spain's continued appeal to both domestic and international buyers.
For overseas buyers looking for excellent value, the Region of Murcia continues to offer an attractive alternative to many of Spain's more expensive coastal areas. With modern developments, established golf resorts, beautiful beaches and excellent transport links, Murcia remains one of the country's best locations to enjoy the Spanish lifestyle while benefiting from a market with strong long-term potential.
At Murcia Villas, we have been helping clients buy property in the Region of Murcia and the southern Costa Blanca since 2002. Whether you're searching for a holiday home, retirement property or investment, our experienced bilingual team is here to guide you through every step of the buying process.

Fri 31st Jul 2026