Andalucía and Valencia coastlines come out as the least hostile for non-Spanish looking to invest in property on the coast. While Barcelona aims to curb foreign investment in the housing market, other areas of the Spanish coastline are beginning to appear more attractive.
Barcelona council with the support of pro-separatist party ERC, has approved a proposal to explore legal measures banning non-resident foreigners and investment funds from purchasing properties unless they will live in them full-time.
The plan, supported by ERC, PSC, and Barcelona en Comú, aims to protect keep city’s housing market for locals, with ERC’s Eva Baró stressing the need to treat housing as a human right, not a commodity. The measure, which extends to EU citizens and builds on similar restrictions in Amsterdam and Utrecht, and could reshape Barcelona’s real estate landscape, where 78 per cent of recent sales in Utrecht went to residents after similar policies.
Barcelona crack down follows investments from Chinese, Iranian, US and British increase
Barcelona’s crackdown follows a surge in ‘Golden Visas,’ with 314 granted in Catalonia in 2024, 98 per cent in Barcelona, mostly to Chinese, Iranian, American, and British investors. However, with the Spanish government set to end the visas in April, and a talk of a 100 per cent tax on non-EU foreign buyers not residing in Spain (although, nothing has materialised yet), the appeal of Barcelona for holiday rental investments is waning. ERC’s blanket approach, targeting all non-residents, signals a tougher stance than the national plan, potentially pushing investors away.
The move creates an opportunity for places to capitalise, such as in Andalusia, a region unaffected by such specific restrictive measures. Still as welcoming as ever and eager to grow, alongside plans to construct protected price housing for lower-income residents, there is little stopping the international crowd from investing away from the restrictions of the Catalan capital.
Known for their sunny climate, cultural richness, and booming tourism, Andalucía and Valencia offer a stable and welcoming environment for holiday rental investments.
While some in Barcelona become less welcoming towards foreign investment, other zones are still very much open for business when to comes to those who want to invest in the country.