Buying a home in Spain is currently more financially advantageous than renting, at least on a monthly basis, according to new data released today by idealista. Although, prospective homeowners face a significant upfront financial hurdle.
The data shows the average monthly mortgage payment for a two-bedroom apartment in Spain is €698, compared to a monthly rental cost of €1,088 for a similar property. This represents a 36% cost advantage for buyers when considering monthly expenses.
Despite the monthly savings, the primary obstacle for most potential buyers isn’t the mortgage itself, but rather the substantial deposit and associated purchase costs. Idealista estimates that approximately €64,568 in savings is required to purchase an average two-bedroom apartment in Spain.
This figure encompasses the standard 20% deposit typically requested by Spanish banks, purchase taxes – which generally range from 6% to 10% depending on the region – and notary, land registry, and legal fees. Banks may require even larger down payments, often 30%, particularly from foreign buyers and non-residents.
The required upfront capital varies significantly depending on location. Palma de Mallorca demands the highest deposit, at €147,116, followed by San Sebastián at €137,700 and Madrid at €117,793. Barcelona requires a deposit of €103,172. These cities represent the most expensive markets, requiring deposits exceeding €100,000.
Other major cities also necessitate substantial upfront investments: Málaga (€96,651), Valencia (€77,503), Bilbao (€73,448), Alicante (€69,500), and Granada (€67,681). Coastal and lifestyle destinations generally require the largest financial outlay.
Conversely, several smaller cities offer significantly lower entry points. Zamora requires a deposit of just €32,996, while Jaén (€34,596), Lleida (€35,581), Palencia (€35,931), Badajoz (€37,862), and Córdoba (€39,164) all require deposits under €40,000. These locations offer approximately half the deposit requirement of the national average, making them more accessible for budget-conscious buyers or investors seeking higher returns.
Across most provincial capitals in Spain, mortgage payments are more affordable than rental costs. San Sebastián is the sole exception, where mortgage payments are approximately 10% higher than rental costs. The largest benefits for buyers are found in Segovia, where mortgages are 54% cheaper than renting, followed by Ceuta and Lleida (45% cheaper), and Zamora (42% cheaper). Tarragona and Zaragoza offer savings of 41%, while Córdoba is 40% cheaper to buy than rent.
Among Spain’s larger property markets, Valencia and Barcelona offer a 38% cost advantage for buyers, Seville is 36% cheaper, Bilbao 33%, Alicante 32%, and Madrid 23%. Palma de Mallorca shows only a 1% advantage for buyers.
For expatriates, digital nomads, and international investors, Spain continues to present compelling reasons to purchase property, particularly in cities where mortgage payments significantly undercut rental costs. However, the substantial initial deposit remains a significant barrier to entry. The average mortgage interest rate in Spain currently ranges between 2.97% and 3.08%, according to data from June 2025, with variable rates tied to the Euribor rate.
According to data from the first quarter of 2025, German nationals represent the largest group of foreign buyers securing mortgages in Spain, accounting for 16.6% of all foreign mortgage applications, up from 15.3% in 2024.
