Buying or renting a house in Spain: Which is better?

Relocating to Spain is an exciting step — full of sunshine, Mediterranean charm and new possibilities. But before you pack your bags and dream of tapas by the beach, there’s a big question to tackle: is buying or renting a house the smarter move?

Whether you're planning a long-term stay or testing out Spanish life before making a permanent move, choosing between buying or renting property can significantly impact your finances, lifestyle, and legal responsibilities. In this article, we’ll walk you through the pros and cons of each option, updated for 2025, to help you make the best choice for your circumstances.

Every year, there are hundreds of thousands of people who move to another country for work reasons. Estate agents are aware of this and so, increasingly, they’re offering special rental rates for expats. Make sure your estate agent in Spain knows that you’re an expat, and find out about the advantages and offers that may be best for you. Before making a decision, you should familiarise yourself with the property market you are going to be dealing with. We recommend that you take your time and, above all, do a lot of research on websites such as Idealista, Fotocasa, Globaliza or Enalquiler.com.

Renting a House in Spain: Pros and Cons

The Advantages

• Renting is often the go-to option for newcomers to Spain — and for good reason. It allows for flexibility, fewer upfront costs, and a chance to test different areas before committing.

• No large investment upfront: You’ll typically need just one or two months’ deposit, compared to the significant down payment required for buying.

• Freedom to move: Ideal if you’re unsure about which city or region suits you best.

• Lower responsibility: Maintenance costs often fall on the landlord, not you.

• Faster process: Renting a home can be arranged in a matter of days, without lengthy paperwork or notary visits.

• If you’re an expat still adjusting to life in Spain, renting gives you room to breathe — and move — as needed.

The Disadvantages

While convenient, renting does have downsides:

• No asset ownership: Monthly payments build no equity.
• Uncertain long-term stability: Rental contracts can end, prices can go up, or landlords might decide to sell.
• Limited customisation: You may not be allowed to make changes to the space.

Buying a House in Spain: Pros and Cons

The Advantages

If you're planning to stay in Spain long-term or want to invest in property, buying could make financial and emotional sense.

• You build equity: Your money goes into an asset that may appreciate over time.
• Stability: You have full control of your home, without fear of sudden rent hikes or evictions.
• Potential rental income: If you’re not living in the property year-round, you can rent it out (especially in tourist-friendly areas).
• Spain’s property market has shown resilience in recent years. While prices vary by region, areas like Valencia, Andalusia or parts of the Costa Blanca still offer good value for money compared to many other European countries.

The Disadvantages

Of course, buying property is a bigger commitment:

• Higher upfront costs: You’ll need a deposit (typically 20–30%), plus taxes, notary fees and legal support.
• Ongoing costs: Property taxes, insurance, utilities, and maintenance are all on you.
• Complex legal process: Especially if you’re unfamiliar with Spanish bureaucracy. You’ll need help navigating paperwork, contracts, and regulations.
• If you’re not yet sure about settling in Spain for the long run, it may be wiser to rent first.

Legal and Bureaucratic Considerations

Spain has specific rules for foreign property buyers. Non-EU citizens may need to apply for a NIE (Número de Identificación de Extranjero), which is required for buying property, opening a bank account, and signing utility contracts. We recommend consulting a specialised real estate lawyer (or gestor) to guide you through the process. Sites like Notaries of Spain or Idealista are also great starting points to explore the market and legal requirements.

The Role of Health Insurance in Settling in Spain

Whether you’re buying or renting a house, one essential step often overlooked is sorting out your health insurance. If you're an expat, especially from outside the EU, having private health insurance is often required for visa applications and residency. Even if not required, having reliable health cover ensures peace of mind as you settle in a new country — especially when navigating an unfamiliar healthcare system.

At Caser Expat Insurance, we offer tailored health insurance solutions for foreigners living in Spain — giving you access to top-tier medical care, English-speaking professionals, and nationwide coverage. Whether you’re renting in Barcelona or buying a finca in Mallorca, your health is protected.

Get your personalised house insurance quote in less than a minute

Renting vs Buying in Spain: Which Is Better for You?

There’s no one-size-fits-all answer. It really depends on your goals, lifestyle, and stage of life. To help you decide, ask yourself:

• Are you planning to stay long-term or just trying out Spanish life?

If you’re still testing the waters — maybe spending a few months in Barcelona, then trying life in Valencia or a quieter coastal town — renting gives you the freedom to move easily without being tied down.

• Do you want to invest, or keep things flexible?

Buying a home can be a smart investment in the long run, especially in high-demand areas. But it also comes with upfront costs, taxes, and long-term commitment. Renting offers more flexibility and less paperwork — ideal if your plans might change.

• Do you feel ready for the legal and financial responsibilities of buying?

Purchasing property in Spain involves navigating bureaucracy, legal processes, and extra expenses like notary fees, property taxes and maintenance costs. Renting is more straightforward and usually requires just a deposit and a signed lease.

If you're still discovering which region feels like home or your future plans aren’t fixed, renting may be the safer option. If you’ve fallen in love with Spain and are ready to plant roots, buying could be a smart move — emotionally and financially.

Deciding between buying or renting a house in Spain comes down to your lifestyle, goals, and financial situation. Both options offer benefits — it’s about choosing what aligns best with your current needs and future plans. Regardless of your choice, make sure to protect yourself and your family by having the right services in place: legal guidance, trusted real estate agents, and of course, comprehensive health insurance.

Ready to take the next step? For more information on renting or buying a home in Spain, visit the Caser Expat Insurance blog and get your free personalized insurance quote in less than a minute. Take the right steps today and ensure your car stays safe and ready for your new adventure in Spain.