Buying in Spain Is 36% Cheaper Than Renting — But You'll Need €64,500 Upfront

The Maths Are Clear — But There Is a Catch

If you are renting a home in Spain and wondering whether it makes more financial sense to buy, new research from Idealista has done the calculation for you — and the answer is unambiguous. Buying is 36% cheaper per month than renting the equivalent property in Spain.

The average monthly mortgage repayment on a two-bedroom home across Spain stands at €698. The average rent for the same property? €1,088. That is a monthly saving of €390 for buyers — or nearly €4,700 per year.

The catch, of course, is getting there. Before you can take advantage of those lower monthly costs, you need to come up with the upfront capital: deposit, taxes, and legal fees. On an average two-bedroom property across Spain, that adds up to approximately €64,568.

For many people, that is the barrier. For those who can clear it, the financial case for buying over renting has rarely been stronger.

Where Does the €64,500 Go?

The upfront cost of buying a property in Spain is made up of three main components:

• Deposit (20% of purchase price) — Spanish banks typically lend up to 80% of the property value on a standard mortgage, requiring buyers to provide at least 20% from their own funds. Non-resident foreign buyers may face higher requirements of up to 30%.
• Purchase taxes — these vary by region and property type:
  • ITP (Impuesto de Transmisiones Patrimoniales) on resale properties: typically 6–10% depending on the autonomous community
  • IVA (VAT) on new-build properties: 10% (or 4% for social housing)
• Notary, registry, and legal fees — typically 1–2% of the purchase price, covering the notary, Land Registry inscription, and any legal or gestoría fees

Add these together and you typically need 30–35% of the purchase price in cash before you can proceed — the deposit plus all associated costs. On a €185,000 property (broadly the national average for a two-bedroom), that is approximately €64,500.

Monthly Costs: Mortgage vs Rent by City

The 36% national average conceals significant regional variation. In some cities, buying is dramatically cheaper than renting. In a small number of markets, it is actually more expensive.

Where Buying Offers the Biggest Monthly Saving

City / Region	Mortgage Cheaper Than Rent By
Segovia	54%
Ceuta	45%
Lleida	45%
Zamora	42%
Tarragona	41%
Zaragoza	41%
Córdoba	40%

In cities like Segovia, where buying is 54% cheaper per month than renting, the financial argument for purchasing is almost impossible to ignore — provided you have the upfront capital. The same dynamic applies across much of inland Spain and in second-tier cities where property prices have not risen as sharply as rents.

The Exception: San Sebastián

San Sebastián (Donostia) is the notable outlier — the only major Spanish city where renting is cheaper than buying. Here, mortgage repayments run approximately 10% higher than equivalent rental costs. This reflects the city's extraordinarily high property prices relative to its rental market, driven by strong local demand, limited housing supply, and its position as one of Spain's most desirable and expensive places to live.

How Much Do You Need Upfront? By City

The entry cost to buying varies enormously depending on where you want to live. Here is how the major markets compare:

Most Expensive Markets to Enter

City	Upfront Capital Required
Palma de Mallorca	€147,116
San Sebastián	€137,700
Madrid	€117,793
Barcelona	€103,172
Málaga	€96,651

Palma de Mallorca's €147,000 entry requirement reflects the island's booming property market — supercharged by high demand from international buyers and the shift toward quality, well-connected destinations that has driven bookings up 40% this Easter alone. Madrid and Barcelona's six-figure entry costs similarly reflect their status as major international cities with persistent demand from both domestic and foreign buyers.

Most Affordable Markets to Enter

City	Upfront Capital Required
Zamora	€32,996
Jaén	€34,596
Lleida	€35,581
Palencia	€35,931
Badajoz	€37,862

For buyers with savings in the €33,000–€40,000 range, several Spanish cities offer a realistic path to homeownership — and in many of these markets, the monthly mortgage saving over renting is also the largest. Zamora, for example, requires just €33,000 to get started and offers a 42% monthly saving over renting. That combination of low entry cost and large ongoing saving makes it one of the most financially compelling property markets in Spain.

What This Means for Expats Considering Buying

For British and other European expats living in Spain, the rent vs buy calculation has some additional dimensions:

The Non-Resident Deposit Requirement

Spanish banks typically lend up to 80% of the property value to Spanish residents, but non-residents — including expats who have not yet established permanent residency — may face a maximum loan-to-value of 70%, requiring a 30% deposit rather than 20%. This increases the upfront capital requirement significantly. Establishing your residency (getting your TIE and registering on the padrón) before applying for a mortgage can improve your lending terms considerably.

The NIE Requirement

Any property purchase in Spain requires a valid NIE (Número de Identificación de Extranjero). If you do not already have one, obtaining it should be one of your first steps when considering a purchase.

Currency Risk for Non-Euro Income

If your income is in a currency other than euros — pounds sterling, for example — your monthly mortgage affordability can be affected by exchange rate movements. This is a risk to factor into your planning, particularly for larger mortgages in expensive markets.

The Long-Term Perspective

The 36% monthly saving is compelling, but buying a property is a long-term commitment. The full financial benefit of buying over renting typically takes several years to materialise once you account for transaction costs. As a rough rule of thumb, if you plan to stay in a property for fewer than five years, the transaction costs may outweigh the monthly saving. For longer-term stays — which describes many expats who have made Spain their home — the case for buying strengthens considerably.

The Euribor Factor

The monthly mortgage figures in this analysis are based on current lending conditions, with the Euribor sitting at approximately 2.2% — significantly lower than its 2023 peak above 4%. This relatively benign interest rate environment is one of the key reasons the mortgage vs rent comparison looks so favourable for buyers right now.

If the Euribor were to rise significantly from current levels, mortgage costs would increase for those on variable or hybrid rates. Most forecasters expect the Euribor to remain broadly stable in 2026, but this is a risk to be aware of when making long-term financial plans. Fixing your rate — either through a fixed-rate or a mixed mortgage — provides protection against this scenario.

The Bottom Line

The data is clear: for those who can manage the upfront cost, buying in Spain makes compelling financial sense. Paying €698 a month on a mortgage instead of €1,088 in rent frees up nearly €4,700 a year — money that can be used to build savings, invest, or simply enjoy a better quality of life.

The barrier is real — €64,500 on average, and considerably more in the most popular cities. But for expats who have been building savings, have equity from a previous property, or are relocating with capital from a home sale abroad, Spain's property market in 2026 offers a window that is worth taking seriously.

All figures are based on Idealista research published March 2026 using average two-bedroom property prices and prevailing mortgage rates. Individual circumstances, credit profiles, and regional variations will affect actual costs. This article is for informational purposes and does not constitute financial or mortgage advice.