Luxury Apartments in Spain with Yields Outperforming European Averages. Up to 14% in Toledo, 13.81% in Valencia, and 10.42% in Barcelona

Types of apartments in Spain

Typical flats and apartments for sale in Spain usually have 1 to 3 bedrooms, a separate kitchen or open-plan kitchen-living area, and a balcony or terrace. You can find fully furnished properties, ready to move in, as well as properties under construction, available at lower prices directly from developers.

Modern apartment complexes feature functional layouts, updated utilities, and quality finishes. They often include parking, swimming pools, gyms, landscaped recreational areas, and other public amenities for residents’ comfort. Older buildings, on the other hand, often boast central locations and preserved historic architecture.

Duplexes in Spain are two-story apartments with two or more bedrooms, multiple bathrooms, and spacious terraces. These homes are typically found in modern residential complexes.

Penthouses in Spain represent luxury properties with large living areas. They occupy one or more top floors of a residential building. Their main advantage is the large terraces offering stunning views of the mountains or sea. Many penthouses feature designer interiors with high-end materials.

Apartments in Spain for investment

As of 2024, rental rates for Spanish apartments have been actively increasing. In January 2026, the average price reached a record high of €15.49 per square meter per month, a 7.72% rise compared to March 2025 (€14.38 per square meter). The strong demand for buying and renting residential property makes investing in apartment in Spain for foreigners a solid capital preservation strategy.

Top regions by ROI

As of January 2026, apartments in Spain yield an average return of 8.7% annually. Below are the regions with the highest ROI.

City	Avg. Price per m2	ROI
Ciudad Real	696 €	14,21%
Toledo	878 €	14%
Ávila	838 €	13,83%
Valencia	1406 €	13,81%
Cuenca	781 €	13,6%
Jaén	777 €	12,25%
Teruel	880 €	11,92%
Burgos	1158 €	11,07%
Soria	1084 €	11,05%
León	978 €	11,02%
Girona	2343 €	7,6%
Alicante	2213 €	7,52%
Malaga	3460 €	6,79%

Key investment strategies for apartments in Spain

Short-term rentals (tourist, daily basis)

• Return: 10–14% annually in popular locations during peak seasons and with effective management.
• Best areas: Costa del Sol, Costa Blanca (Torrevieja, Benidorm), Balearic Islands.
• Pros: High income potential during tourist season, dynamic pricing, personal use option.
• Restrictions and risks: Tourist license required in some cities, particularly strict in Barcelona, Madrid, and Palma de Mallorca. Higher costs for cleaning, marketing, and property management. Seasonal demand fluctuations.
• Income tax:
  • Residents: 19–47% depending on income
  • Non-residents from EU: 19%
  • Non-residents from other countries: 24%
• Recommendations: Check license requirements in the specific municipality; invest in well-known tourist districts; work with a property management company.

2) Mid-term rentals (1–11 months)

• Target audience: Business travelers, digital nomads, seasonal workers, temporary residents.
• Pros: More stable tenant flow compared to daily rentals, lower operating costs, less seasonal dependency, but higher monthly rates than long-term rentals.
• Risks: Need to quickly find new tenants after contract ends.
• Recommendations: Choose areas with developed infrastructure and good transport access; offer flexible terms and service packages (cleaning, internet) to attract renters.

3) Long-term rentals (1+ year)

• Target audience: Locals and expats.
• Pros: Predictable income, low tenant turnover, minimal marketing and management costs.
• Risks: Lower yield than short/mid-term rentals; possible local law changes favoring tenants.
• Recommendations: Invest in residential areas with stable demand, near schools, universities, and business centers; carefully screen tenants; maintain a reserve fund for repairs and unexpected expenses.

4) Aparthotels.

• Concept: Hybrid of hotel and apartment. The investor buys an apartment and signs a management contract with an operator who handles all operations. Profits are shared.
• Pros: Professional management, high service level, combines hotel segment returns with apartment stability. Suitable for passive income seekers.
• Risks: Higher entry threshold, need for a reliable operator, shared profits reduce margins.
• Recommendations: Carefully assess the operator, contract terms, income distribution structure, and costs; consider local hotel and tax regulations.

Step-by-step process of buying an apartment in Spain

1. Choose a suitable property on apartments-in-spain.com and schedule a viewing.
2. If you are not a resident, obtain an NIE (foreigner identification number) and open a bank account in Spain.
3. Agree on the price, make a deposit (up to 10% of the property value), and sign a preliminary agreement.
4. Order a due diligence check. This includes verifying that the seller has no debts on utilities/taxes, confirming ownership, and ensuring all legal documents for the property are in order.
5. Sign the final purchase agreement at a notary’s office and pay the remaining amount.
6. Pay the property transfer tax (ITP) for resale properties, or VAT (IVA) for new builds, as well as stamp duty (AJD).
7. Pay the notary and registry fees, and legal service charges.
8. Register ownership with the local property registry (Registro de la Propiedad).
9. Receive the keys and sign contracts for utility services in your name. Optionally, insure the property.

Popular cities and areas for buying an apartment in Spain

Permanent residence

Ideal cities for permanent living offer well-developed infrastructure, high safety levels, quality healthcare, prestigious schools, and efficient transport links. Some of the most popular cities for comfortable living include:

1. Madrid:

• The country’s largest business and administrative center with many job opportunities
• Extensive metro, bus, and suburban rail networks; Barajas Airport offers convenient flights across Europe and globally
• Numerous theaters, museums (Prado, Reina Sofia), concerts, vibrant nightlife, and top-tier gastronomy
• Major universities and excellent healthcare infrastructure
• Retiro Park and abundant sports and leisure facilities
• Wide variety of housing options, although prices are higher compared to other cities

2. Barcelona:

• A modern city and beach destination in one
• Job opportunities in tech, creative industries, and tourism
• Unique Gaudí architecture, museums, cultural events, and festivals
• International airport, public transport, widespread English proficiency in business sectors
• Numerous pedestrian and cycling areas, rich gastronomy

3. Valencia:

• A big city with beaches and seaside promenades
• High-quality services and infrastructure, but lower cost of living than Madrid or Barcelona
• The large Turia park and many sports and recreation zones
• Employment in logistics, agribusiness, and tech sectors
• Prestigious universities
• Excellent traditional cuisine, festivals, and vibrant culture
• Convenient metro, train system, and international airport

Coastal cities and apartments by the sea

For a comfortable seaside lifestyle or investment in rental properties, the following coastal destinations are ideal:

• Costa del Sol (southern coast): Marbella, Málaga, Estepona
• Costa Blanca: Alicante, Torrevieja, Benidorm
• Balearic Islands: Palma de Mallorca, Ibiza
• Canary Islands: Tenerife, Gran Canaria
• Costa Brava coast

Affordable cities to live in

Affordable apartments in Spain for expats can be found in quieter cities and provinces that are less tourist-heavy. Examples include:

• Murcia province and city – average apartment price: €1171/m²
• Almería – €1177/m²
• Extremadura region: Cáceres (€969/m²), Badajoz (€984/m²)
• Lugo in Galicia – €969/m²
• León in León province – €978/m²
• Cuenca (€781/m²) and Ciudad Real (€696/m²) in Castilla-La Mancha

Apartment price trends and forecast in Spain

From January 2025 to January 2026, property prices in Spain increased by 18.4% year-on-year. This was driven by resumed housing construction and sustained high demand. By January 2026, the average apartment price reached €2126/m². The average sale amount was €176,458, with an average apartment size of 83 m².

In January 2026, the strongest price growth was recorded in Málaga, the Balearic Islands, Santa Cruz de Tenerife, Alicante, and Madrid.

By the end of 2025, Spain ranked first among the most attractive European countries for investment. Research showed that nearly half of foreign investors chose it as their top investment destination due to high returns driven by a strong economy, high housing demand, and limited supply in certain market segments. Residential real estate was the most popular investment category.

Experts forecast a 5–10% increase in investment volume in Spanish real estate in 2026, likely fueling further price growth.

Benefits of buying an apartment in Spain

• Warm climate, clean beaches, nature parks, and diverse tourist routes make Spain ideal for both living and leisure
• Rich history and culture, numerous museums, architectural landmarks, and festivals
• Efficient transport infrastructure, high-quality healthcare, and top-tier international education institutions
• Investing in an apartment for sale in Spain is a solid investment due to consistent price growth and strong rental yields