One of the first decisions many retirees face when relocating to Spain is whether to buy or rent a property. Both options come with benefits depending on your goals, budget, and lifestyle preferences.
Why Retirees Choose to Rent in Spain
Renting is often the best option for newcomers, especially during the first 6–12 months.
Benefits of Renting:
- Flexibility to try different regions or towns
- Lower upfront costs (no legal fees, taxes, or large deposits)
- Easier to adapt if plans change
- No property maintenance responsibilities
Typical Rental Costs:
- €600–€1,000/month for a two-bedroom apartment in smaller towns
- €1,200+ in major cities or beachfront areas
Renting is ideal for retirees who want to explore, avoid long-term commitments, or get to know an area before buying.
* Prices correct as of mid-2025
Why Retirees Choose to Buy Property in Spain
Buying makes sense for retirees seeking long-term stability and a permanent base.
Benefits of Buying:
- Full control over your home
- Long-term cost savings compared to renting
- Potential for property value appreciation
- Greater security and peace of mind
- Buying Costs to Consider:
- Property Transfer Tax (6–10%)
- Notary & registration fees (~1.5%)
- Legal fees (~1%)
- Ongoing property tax (IBI)
Before buying, it’s essential to:
- Hire a local, independent solicitor (not tied to the seller)
- Get an NIE number (foreigner tax ID)
- Open a Spanish bank account
- Ensure the property is free of debt and legally registered
Mortgage Access for Foreign Retirees
Some banks offer mortgages to foreign retirees, typically up to 60–70% LTV. Proof of pension income and credit checks will be required. Many buyers use cash to simplify the process.
Legal & Financial Advice
Work with a real estate agent experienced in expat clients and always use a qualified gestor or lawyer to navigate paperwork.
Try Before You Buy
A popular strategy is to rent for a year in your chosen region while exploring different neighborhoods. Once you’re confident in your decision, you can buy with peace of mind.
See our list of Legal & Financial Advisors in Spain