Overview of foreign investment in the real estate market in Spain: considerations and step-by-step for buying a home.
In recent years, Spain has become an extremely attractive destination for Latin American investors seeking opportunities in the luxury real estate market. The following report aims to analyze the cross-border investment landscape in luxury real estate in Spain in recent months, focusing on the growing interest of Latin American investors.
The Spanish real estate market has experienced a remarkable recovery in recent years. After the economic crisis of 2008, the real estate sector has shown signs of steady growth, especially in the luxury real estate segment. Cities such as Madrid, Barcelona, Costa del Sol, Ibiza and Mallorca have stood out as attractive destinations for foreign investors, including Latin Americans.
Data from idealista indicate that last July, average housing prices in Spain increased by 7.2%, despite estimates of a slowdown in property purchases during 2023. On the other hand, in the midst of so many changes in the real estate market in Spain, foreign buyers are breaking sales records. According to the Registrars, in 2022 they accounted for 13.8% of transactions, the highest figure in the entire historical series.
The Spanish real estate market offers a wide variety of luxury properties, from villas and apartments in prime locations to historic estates and coastal properties. In addition, the country has a solid infrastructure, an excellent quality of life and a strategic location within Europe, making it a popular destination for cross-border investment.
Hiscox data indicate that foreign buyers come mainly from the following places:
The most interesting properties for this buyer profile are located in coastal areas of the country, with the Costa del Sol being one of the most desirable places for foreign buyers to invest and live.
Spain is a highly attractive country for cross border real estate investment due to a number of factors that capture the attention of international investors. First, its privileged geographical location provides exceptional diversity, with spectacular beaches, vibrant cities and charming rural villages. In addition, its mild and sunny Mediterranean climate for much of the year makes it an ideal destination for those seeking a relaxed lifestyle and outdoor enjoyment. This combination of natural attractions and picturesque landscapes is especially attractive to investors seeking properties for tourism and vacation rentals.
Another aspect that makes Spain an attractive destination for real estate investment is its solid infrastructure and services, which guarantees an excellent quality of life for residents and tourists alike. Data from the Spanish Association of Registrars indicates that foreign investment accounts for 8% of sales in Barcelona and during 2021 property sales and purchases in Spain increased by 38.1% reaching 676,775 units.
Spain has a rich history and tradition, offering a wide range of cultural and leisure activities to enjoy. The Spanish real estate market also offers competitive prices compared to other European countries, which represents an attractive opportunity for investors looking to obtain a good return on their investment.
Despite the challenges caused by Brexit and the Covid-19 pandemic, foreign interest in Spain's real estate market has remained strong, and a significant increase in home sales is expected in the country's tourist regions, driven largely by foreign buyers.
According to the perspective of Daniel Obregón, CEO at Nolab some of the main trends that have boosted the interest in real estate investments in Spain by foreigners are:
Acquiring a residence in Spain as a foreigner offers a number of attractive benefits. First, the country has a legal framework that allows foreigners to buy property without restrictions, which greatly facilitates the process. On the other hand, Spain has a solid property rights protection system, which provides security and peace of mind to investors.
Daniel Obregón leads the paradigm shift in cross border transactions at Nolab, and identifies important benefits for Latin American investors interested in expanding their investment portfolio with cross border transactions.
"Our vision is to transform real estate investing into a borderless experience, providing exceptional opportunities for people from anywhere in the world," Obregón stresses.
The rental housing market is currently on the rise, both for long-term and vacation rentals, providing the opportunity for attractive returns. Data from the Spanish Rental Insurance Observatory (OESA) indicates that in 2023 the growth of rental properties in Spain was 5.8%, and is expected to grow to 6.5% by the end of 2023.
"For Obregón, identifying areas of opportunity in the investment process has allowed them to find a niche with a lot of potential; "firstly, we believe in education as a catalyst for informed decisions, secondly, our digital platform connects buyers and sellers efficiently, backed by analytical tools that empower sound decisions. As an impartial intermediary, we ensure that transactions are secure and fair."
Finally, our full-service offerings range from property management to specialized legal advice. We created a network of trusted local professionals to support investors at every stage."
While financial factors are central to cross-border investment, cultural differences play an important role in consolidating successful moves into the Spanish real estate market.
When buying a property in Spain it is important to check aspects such as the ownership and encumbrances of the property directly at the Public Registry of Property. On the other hand, as an investor, you must take into account compliance with urban planning and construction regulations. For example, in the center of Madrid it is strictly forbidden to change the facades of historic buildings or alter them in any way.
Overcoming these challenges is simple by having local real estate experts who are familiar with the regulations and can provide expert advice. Did you know that a home in Spain can have a mortgage burden of up to 40 years? If proper legal checks are not performed a buyer may inherit this debt for several years or decades.
According to Daniel Obregón's experience in these types of cross-border transactions, he shares the following: "One of the keys to success lies in seeking out and collaborating with allies in unfamiliar terrain. Our compass for moving forward with confidence is local legal and financial advice. It is through them that, with their advice, we shield ourselves against the various loopholes in the different regulations and minimize potential risks.
At Nolab we are fully aware of the importance of data and technology, that is why our platform allows solid and reliable operations, creating secure bridges for our users' transactions. We are also committed to information security and much of our efforts are aimed at ensuring the privacy of all parties involved.
What should you know before investing in real estate in Spain as a foreigner? Although each case is different, the following is a list of essential points to consider when investing safely in cross border real estate.
Receive the latest news and updates directly in your inbox.
Alfredo Obregón is the co-founder and CEO of Nolab, a real estate platform focused on investment, sales, and property management across international markets.
jul 7, 2026
5 min.
For years, to talk about investing in CDMX was to talk about opportunities. Today, more and more, it means talking about strategy and decisions with real and tangible results in a market that is constantly evolving. The city's real estate market did not stop, but it did change pace: it stopped rewarding intuition and began to demand a reading of context, understanding of the product and clarity about the moment of the cycle. Right now, in 2026, it is no longer just a matter of "investing" or "entering" CDMX, but of knowing where, how and under what logic to do so. Because the city is not growing uniformly: some areas are consolidating as stable and liquid investments, while others are beginning to reconfigure and deserve strategic attention, not impulsive bets. CDMX heading into the future: what is really driving the market? Real estate investment in Mexico City is not experiencing an isolated boom; rather, buyers are now facing an urban reorganization. Demand is increasingly concentrated in well-connected areas, with services, access to employment and real rental capacity. At the same time, the city is pushing towards verticalization, densification and the development of projects that are more efficient in size, operation and maintenance. Added to this are external factors that put pressure on demand: labor mobility, the arrival of foreign capital, international events, which results in a more informed consumer who compares, questions and prioritizes liquidity, so the market is transformed, becoming less emotional and more selective. How to read capital gains in 2026 so as not to confuse luck with strategy. Talking about capital gains without context is one of the most common mistakes when evaluating an investment. In 2026, the capital gain in CDMX is not only explained by "fashion", but by infrastructure, services, perception of safety, connectivity and urban narrative. And above all, by verifiable data that separates speculation from real growth. The analysis of the real estate market between 2023 and 2025 reveals a clear phenomenon: Mexico City is experiencing a reorganization of its demand, where consolidated premium areas maintain stability and high prices, while emerging neighborhoods capture the flow of capital displaced by the rising prices of traditional centers.
jan 7, 2026
12 min.
Discover Gta. Ruiz Giménez 5, the new fractional apartment in Madrid. Fractional ownership with 45 days of use and fractions from 335.000 €.
nov 26, 2025
6 min.