Quick answer
On our Spain defaults (€280,000 resale flat, €1,200 rent, 20% down, 2.9% rate), buying overtakes renting in about year 5 and leads by roughly €74,000 after 10 years. Low mortgage payments relative to fast-rising rents drive the result. Renting wins if you might leave within about five years, buy in a high-ITP region with a short horizon, or can rent below about €830 a month.
How do you use the rent vs buy calculator for Spain?
On our Spanish default numbers, buying overtakes renting in about year 5 and ends roughly €74,000 ahead after 10 years. The reason is that the monthly mortgage on a typical flat is far below the rent for the same flat. The upfront hurdle is large: transfer taxes and fees of 8–12% on top of a 20% deposit. That is why renting still wins for anyone who may move within about five years.
This alquilar o comprar calculator works month by month. The buyer pays the down payment and purchase taxes up front, then the hipoteca, IBI, community fees (comunidad), maintenance and insurance. The renter pays rent plus contents insurance and invests the down payment, the purchase costs and any monthly saving. At the end, the buyer sells and pays selling costs, and we compare net worth. Our methodology gives the full method.
What do our Spanish defaults assume?
| Input | Default | Notes |
|---|---|---|
| Purchase price | €280,000 | A resale flat (vivienda de segunda mano) in a large city’s outer districts |
| Monthly rent | €1,200 | A comparable flat on a long-term lease |
| Down payment | 20% | Banks usually lend up to 80% of the lower of price and valuation to residents |
| Interest rate | 2.9% | A long-run assumption |
| Term | 30 years | |
| Buying costs | 11% | ITP plus notary, registry, gestoría and valuation; conservative |
| Selling costs | 4% | Agency fee of about 3–5% plus plusvalía municipal |
| IBI | 0.5% | A cautious figure that also covers the waste collection tax in some cities |
| Maintenance | 1% | |
| Community fees | €80 a month | Typical for a flat with no pool or concierge |
| Insurance | 0.1% | Home insurance (seguro de hogar) |
| Appreciation | 4% | |
| Rent growth | 5% | Market rents have risen fast; lower it for capped areas |
| Investment return | 6% |
Rates have risen. Twelve-month Euríbor was about 3.24% in October 2026, according to the Banco de España. The cheapest fixed-rate offers were around 3.4% TIN in early November. Our 2.9% default is a long-run assumption. If you are buying now, enter your offer.
Worked example: €280,000 flat vs €1,200 rent
Upfront cash: €56,000 down payment plus €30,800 in taxes and fees, or €86,800 in total. Banks do not finance the purchase taxes, so that is all savings.
Monthly mortgage (cuota): the loan is €224,000 at 2.9% over 30 years. The amortisation formula, M = P × r ÷ (1 − (1 + r)^−n) with r = 0.029 ÷ 12 and n = 360, gives about €932 a month. In the first month, €541 is interest and €391 repays capital.
Total monthly cost of owning in year 1: about €1,386. That is the cuota, plus about €373 for IBI, maintenance and insurance, plus €80 for the comunidad. The renter pays €1,210 and invests the €176 difference. Because rent rises 5% a year in this scenario, rent overtakes the buyer’s costs within a few years. From then on, it is the buyer who invests the monthly surplus.
After 10 years:
- Buyer: flat worth about €414,500, minus 4% selling costs and a remaining loan of about €169,600, gives net worth of about €238,700.
- Renter: portfolio of about €164,900.
- Buyer ahead by about €74,000. Break-even year: year 5.
- Break-even rent: about €830 a month. If you can rent a comparable flat for less than that, renting wins over 10 years.
The 5% rule gives €280,000 × 5% ÷ 12 = €1,167. A rent of €1,200 sits just above it, which leans towards buying. Try it in the 5% rule calculator.
How robust is the Spanish result?
| Change from defaults | Result after 10 years | Break-even year |
|---|---|---|
| Defaults | Buyer ahead by about €74,000 | Year 5 |
| Rate 3.4% (late-2026 fixed offers) | Buyer ahead by about €61,000 | Year 6 |
| Rent growth 3% instead of 5% | Buyer ahead by about €56,000 | Year 5 |
| Non-resident: 40% down at 3.4% | Buyer ahead by about €44,000 | Year 6 |
| Sell within 3–4 years | Renter ahead | Not reached |
What does it cost to buy a home in Spain?
Purchase taxes depend on whether the home is new or resale, and on the region.
Resale homes pay the Impuesto sobre Transmisiones Patrimoniales (ITP), set by each comunidad autónoma:
| Region | General ITP rate on homes (late 2026) | Notes |
|---|---|---|
| Comunidad de Madrid | 6% | Flat rate, among the lowest of the large regions |
| Andalucía (Málaga, Seville) | 7% | Flat general rate |
| Comunitat Valenciana (Valencia, Alicante) | 9% | Cut from 10% from 1 June 2026; 11% above €1 million |
| Cataluña (Barcelona) | 10% | Higher rates on very expensive homes |
Many regions offer reduced rates for young buyers, large families or disabled buyers. Valencia’s young-buyer rate, for example, is 6% on homes up to €180,000. Check with your region’s tax office (Hacienda autonómica) before signing.
New builds pay 10% IVA (VAT) plus Actos Jurídicos Documentados (AJD) on the deed. AJD is about 0.75% in Madrid, 1.2% in Andalucía, 1.4% in Valencia from June 2026, and 1.5% in Catalonia.
| Cost | Typical amount | Paid by |
|---|---|---|
| ITP (resale) or IVA + AJD (new build) | 6–10% or about 10.75–11.5% | Buyer |
| Notary for the purchase deed | Often several hundred to about €1,500 | Buyer |
| Land registry (Registro de la Propiedad) | Often several hundred euros | Buyer |
| Gestoría (paperwork agent) | Often a few hundred euros | Buyer |
| Valuation (tasación) | Often €300–€600 | Buyer |
| Mortgage deed notary, registry and AJD | Paid by the bank since 2019 | Bank |
| Agency fee | Commonly 3–5% plus IVA | Usually seller |
| Plusvalía municipal | Varies by city and years held | Seller |
So 11% is our cautious default, in line with a Catalan or Valencian resale purchase. A Madrid resale buyer might pay about 7–8% in total, so enter 7.5% for Madrid.
What taxes do owners pay in Spain?
- IBI (Impuesto sobre Bienes Inmuebles) is the annual municipal property tax. It is charged on the cadastral value, which is usually well below market value, at a rate set by each town hall within a legal range of roughly 0.4–1.1% for urban property. In practice, many owners pay a few hundred euros a year on a typical flat, often less than our 0.5% of market value. Use the seller’s last IBI receipt.
- Plusvalía municipal is paid on sale by the seller. It is not due if you sell at a loss.
- IRPF capital gains on the sale of a main home can be exempt if you reinvest the proceeds in a new main residence, or if you are over 65. Otherwise, gains are taxed at savings rates. The calculator does not model this.
- No mortgage interest deduction for homes bought since 2013, which matches the calculator.
How do Spanish mortgage rules work?
- Loan-to-value: banks commonly lend up to 80% of the lower of purchase price and valuation for a resident’s main home. Some first-time-buyer schemes guaranteed by the state’s ICO lending programme allow more for young buyers.
- Affordability: lenders generally prefer the mortgage payment to stay under about 30–35% of net income.
- Fixed, variable or mixed: fixed-rate loans made up the majority of new mortgages in 2026. Variable loans track 12-month Euríbor plus a spread and reset every 6 or 12 months.
- Non-residents usually get 60–70% LTV, higher spreads and more paperwork. The golden visa route through property purchase was abolished in April 2025.
- Bonificaciones: a lower rate is often conditional on salary direct deposit, life and home insurance from the bank, or a pension plan. Count those insurance costs when you compare offers.
How does the 2023 housing law affect renters?
The Ley 12/2023 por el derecho a la vivienda lets regions declare zonas de mercado residencial tensionado (stressed residential market areas). In those areas:
- rent on a new contract is generally capped at the previous contract’s rent, updated by the annual index
- large landlords are also capped by a state reference price index
- annual increases on existing contracts follow the official reference index introduced by the law (the IRAV from 2025), rather than unrestricted CPI
By mid-2026, about 317 municipalities were covered, most of them in Catalonia (271), including Barcelona, plus areas of Navarra, the Basque Country, Asturias and Galicia. The Madrid region has not applied the system. If your home is in a declared zone, reduce rent growth to around 2–3%. That shifts the result towards renting.
How do inputs change across Spanish cities?
| City | How the inputs change | Result to expect |
|---|---|---|
| Madrid | Higher price and rent (try €450,000 vs €1,700), but only 6% ITP, so buying costs are about 8%. No rent caps. | Buyer ahead by about €106,000 after 10 years, break-even year 5 |
| Barcelona | High price (try €420,000 vs €1,500), 10% ITP (about 12% total), and rent caps in a stressed zone (rent growth 2.5%). | Buyer ahead by only about €22,000, break-even year 8 |
| Valencia | Lower prices (try €250,000 vs €1,150). ITP is now 9%, but keep 11% total if buying new. | Buyer ahead by about €80,000, break-even year 5 |
| Málaga | Strong demand and tourist-let competition push rents up (try €350,000 vs €1,400). 7% ITP gives about 9% total. | Buyer ahead by about €88,000, break-even year 5 |
| Seville | Same 7% Andalusian ITP and generally lower prices. Run your own price and rent. | Often similar to Málaga |
Barcelona shows how stacked policy changes the outcome. High transfer tax and rent caps both reduce the advantage of buying.
When does renting win in Spain, and when does buying win?
Renting tends to win when:
- you might leave within about five years, before the 8–12% purchase costs are recovered
- you have a long-standing, below-market contract in a capped area
- you are a non-resident needing a 30–40% deposit, which ties up a lot of cash
- the building has large pending works (derramas) that the community has approved
Buying tends to win when:
- comparable rent is above the break-even rent (about €830 on our defaults)
- you buy in a low-ITP region such as Madrid, or qualify for a reduced young-buyer rate
- you will stay seven years or more
- you can fix a rate around 3% or below
For deeper reading, see is it cheaper to rent or buy? and our guide to buying an apartment vs a house.
Alquilar o comprar: a checklist for Spain
- Find your region’s ITP (or IVA + AJD for a new build) and any reduced rate you qualify for.
- Add notary, registry, gestoría and valuation, roughly 1–2% more.
- Ask for the IBI receipt and the comunidad fees, plus any approved derramas.
- Get the nota simple from the land registry to check for charges on the property.
- Compare a fixed offer with a variable one, including the cost of required insurance.
- Check whether the area is a zona tensionada and set rent growth to match.
- If you are a non-resident, raise the down payment to 30–40%.
- Make your horizon longer than the break-even year in the results.
This calculator gives estimates based on your inputs, not financial advice. To compare with neighbouring markets, see the France calculator or the all-countries hub.
Frequently asked questions
Is it better to rent or buy in Spain in 2026?
For residents staying at least five to six years, buying usually comes out ahead on our defaults. Mortgage payments on a typical flat are well below market rent, and rents have been rising faster than incomes. Renting is better for shorter stays, because transfer taxes and fees of roughly 8–12% take years to recover.
How much are the costs of buying a home in Spain?
For a resale home, budget the regional transfer tax (ITP), typically 6–10% depending on the comunidad autónoma, plus notary, land registry and gestoría fees of around 1–2%, plus a bank valuation. For a new build, you pay 10% IVA plus AJD stamp duty of roughly 0.5–1.5% instead of ITP. Our 11% default is deliberately on the high side.
Who pays the mortgage notary and registry fees in Spain?
Since the 2019 mortgage law, the bank pays the notary, registry and gestoría costs for the mortgage deed, and the stamp duty on it. The borrower usually pays only the property valuation (tasación) and their own copy of the deed. The purchase deed is still the buyer's cost.
What is plusvalía municipal and who pays it?
Plusvalía municipal (IIVTNU) is a local tax on the increase in the land value of urban property, normally paid by the seller. Since the 2021 reform, the seller can choose between an objective method based on cadastral value and the actual gain, and no tax is due if the property is sold at a loss. It is part of selling costs in the calculator.
Can non-residents get a mortgage in Spain?
Yes, but terms are stricter. Spanish banks typically lend non-residents around 60–70% of the price, compared with up to 80% for residents. That means a larger down payment. Set the down payment to 30–40% in the calculator. A higher deposit lowers the mortgage, but it also raises the opportunity cost of the cash.
How do zonas tensionadas affect renting vs buying?
In areas declared stressed under the 2023 housing law, rents on new contracts are generally capped at the previous contract's rent, and large landlords are capped by a state reference index. Most declared areas are in Catalonia. Where caps apply, lower the rent growth input, which makes renting relatively more attractive.