Moving to Spain: Housing options & real estate market for expats

Finding the perfect apartment is often the first major hurdle for newcomers when moving to Spain. The Spanish real estate market is tight in metropolitan areas – the supply of rental apartments is shrinking while prices continue to rise. The housing market crisis is worsening: supply and demand continue to drift apart, while the average rent reached a new record of 15 euros per square metre in April 2026. This guide provides you with a comprehensive overview of the various housing options, the most important legal framework of the Spanish rental market, as well as a current rental price overview of the main cities, to help you make your decision.

In Spain, the Urban Leases Act (Ley de Arrendamientos Urbanos – LAU) forms the fundamental regulation for residential and commercial leases. Unlike in other countries, the Spanish legislature distinguishes less strongly between furnished and unfurnished apartments regarding statutory minimum terms. For apartments used as a primary residence, a mandatory minimum contract term of five years applies (for landlords who are natural persons) – the contract automatically extends annually until this period is reached. For furnished apartments, a shorter term may be agreed, but they are usually 10 to 20 percent more expensive than unfurnished ones. Rent control in Spain is less comprehensive than in France; it is currently limited to individual regions with tight housing markets. Unlike in Germany, the individual Autonomous Communities do not have completely independent tenancy laws, but they can take measures to limit rents in "tense areas". When searching for accommodation, you should check the energy efficiency of the property – energy costs in Spain can vary greatly depending on the condition of the building.

Rental prices vary extremely between regions: in Madrid, Barcelona, Valencia and Málaga the market is particularly tight, while inland and rural regions such as Extremadura or Castilla‑La Mancha offer significantly more affordable housing. The average rent per square metre for apartments in 2026 is around €14.20, with strong regional variations between under €8 in Extremadura and over €23 in Madrid or Barcelona.

In addition to classic rental apartments, the following alternatives in Spain can make the start easier:

 

– FURNISHED APARTMENTS: Particularly for a short‑term start, furnished apartments are a time‑saving solution. The lease term is more flexible, and the apartment must have a statutorily defined inventory (bed, stove, refrigerator, dishes, etc.). Furnished apartments are usually 10 to 20 percent more expensive than unfurnished ones.

 

– SERVICED APARTMENTS: In major cities such as Madrid or Barcelona, as well as in popular coastal regions, there are providers offering apartments with flexible lease terms as well as additional services such as cleaning and laundry service – ideal for expats with company support.

 

– SHARED APARTMENT (PISO COMPARTIDO): A popular and budget‑friendly option, especially among young professionals and students. In Madrid or Barcelona, a private room in a shared flat costs between €300 and over €600 per month.

 

– BUYING A HOME: For those staying in Spain permanently, buying a property can be an attractive option. German citizens enjoy no restrictions on property acquisition – only an NIE number (Número de Identidad de Extranjero) is required. Foreign buyers remain a driving force on the Spanish property market: in the first quarter of 2026, around 14 percent of all transactions were made by foreign buyers – Germans are the fourth largest group with a share of 6.0 percent.

Rental prices in Spain vary greatly by region. In Madrid , average prices per square metre range between €21.20 and €23.30 – the capital is thus one of the most expensive cities in Spain, where a one‑bedroom apartment in the city centre costs around €1,500 per month. Barcelona remains the most expensive city in Spain at €22.60 to €23.70/m²; here a one‑bedroom apartment in the city centre costs about €1,600. San Sebastián (€17.70 to €18.80/m²) and Palma de Mallorca (€17.20 to €19.10/m²) are also expensive, in the Balearic Islands prices have risen significantly. Valencia (€16.40/m²), as the third largest city, offers a balanced price level, while Málaga an der Costa del Sol (€16.30/m²) also records rapid price Bilbao is at €15.90/m². In Sevilla (approx. €14–15/m²), Alicante (approx. €13–14/m²) and Granada (approx. €12–13/m²), rental prices are more moderate, and particularly cheap cities such as Ciudad Real (€7.20/m²) or Badajoz (€7.50/m²) offer prices below €8 per square metre.

In addition to the base rent, monthly service charges (gastos de comunidad y suministros) for heating, hot water, waste disposal and, if applicable, lift are payable – about €1.50 to €3 per square metre, i.e., an additional €75 to €250 per month. There is also compulsory household insurance (seguro de hogar, about €10–20 per month), as well as electricity, gas, water and internet, which together can amount to about €100 to €180 per month.

– DEPOSIT (FIANZA): The deposit in Spain is regulated by law. For residential leases, the deposit is generally one month's rent. In einigen Autonomen Gemeinschaften (z. B. Andalusien) entfällt seit 2026 die Pflicht zur Hinterlegung der Kaution bei einer Behörde – die Kaution wird direkt vom Vermieter verwahrt. In some Autonomous Communities (e.g., Andalusia), since 2026 the obligation to deposit the deposit with an authority has been waived – the deposit is held directly by the landlord. Landlords are legally obliged to repay the deposit within one month of handover of the keys; if this deadline is exceeded, statutory interest accrues in favour of the tenant.

– NOTICE PERIODS: For tenants, the notice period for rental contracts is generally 30 days. After expiry of the minimum term (five years for natural persons), the landlord may terminate, but must observe a reasonable notice period depending on the contract. During the first five years of the contract, the tenant is particularly protected; the landlord may terminate only under certain conditions (e.g., own use).

– MINIMUM CONTRACT TERM: The statutory minimum term for primary residences is five years for natural landlords and seven years for legal entities. During this period, the contract automatically extends annually unless a party gives timely notice. After reaching this minimum term, the contract may be extended for a further three years unless a party gives notice.

– PROOF OF INCOME: Spanish landlords generally require a gross monthly income of at least two and a half to three times the base rent. In addition to the usual documents (identity card or passport, employment contract, last three payslips), they often also expect Spanish tax returns and the mandatory NIE number. For expats without local income, a German guarantee or a Spanish rental deposit account may be required.

– TAX ASPECTS: For tenants, no specific housing taxes apply in Spain. However, property owners must pay annual property tax (IBI). Rental income is subject to Spanish income tax (IRPF). If you wish to purchase a property, ancillary costs of about 11 to 14 percent of the purchase price apply. For qualified new arrivals, the so‑called Beckham Law can be an attractive option, offering a flat tax rate of 24 percent on Spanish employment income.

– RENT CONTROL: In some tense regions (e.g., Catalonia), rent regulations apply. The Spanish government passed a Housing Act in 2023 allowing Autonomous Communities to set rent caps in areas with tight housing markets. However, these regulations are still being developed and are not yet active nationwide.

Moving to Spain requires careful preparation regarding apartment search, regional differences and legal framework. The real estate market is highly competitive in metropolitan areas such as Madrid, Barcelona and the coastal regions; rental prices are among the highest in the country. However, those willing to move to cities such as Valencia, Seville, Alicante or to rural regions can find significantly more affordable housing – up to 50 percent cheaper than in Madrid or Barcelona. A detailed look at regional legislation, the impact of energy costs, deposit regulations and lease terms will help you successfully master your start in Spain.