Foreign home purchases in Spain fall 13% in first half of 2026, largest drop since 2020

The steepest fall since 2020

Foreign buyers acquired 62,327 free-market homes in Spain in the first half of 2026, down 13% from 71,625 in the same period of 2025. Figures from the Consejo General del Notariado show this is the largest year-on-year fall since the first half of 2020, when Covid-19 restrictions hit the market. The result is the lowest first-half volume since 2021. Across the whole market, free-market sales totalled 341,283, down 8.4%, and purchases by Spanish nationals dropped 7.3%, so the decline among foreigners is steeper than among locals. Foreign buyers accounted for 18.3% of sales, against 19.2% in the first half of 2025, 20.3% in 2024 and a peak of 21.3% in 2023.

Non-residents lead the retreat

Non-resident buyers completed 22,940 purchases, 18% fewer than the 27,988 recorded a year earlier, a loss of 5,048 operations. That group made up 36.8% of foreign purchases but accounts for more than half of the overall drop in foreign transactions. Resident foreigners bought 39,387 homes, 9.7% fewer than a year earlier. Buyers in the non-resident group are typically associated with second homes and holiday properties. The slowdown is set against scarce supply, rising prices and dearer financing after the European Central Bank raised interest rates to curb inflation. The golden visa scheme, which granted residence permits tied to property purchases of 500,000 euros or more, was scrapped in April 2025.

Morocco overtakes the United Kingdom

Moroccan citizens bought 4,960 homes in the first half, 8% of the total, edging ahead of British buyers with 4,541 (7.3%). Morocco has held first place only once before in the series, in the first half of 2021, and the British led in 37 of the 39 half-year periods since 2007. The switch reflects a sharper British drop rather than Moroccan growth: British purchases fell 21%, while Moroccan purchases fell 12.6%. Of Moroccan purchases, 4,897 (98.7%) were made by residents, against just 63 by non-residents. Italians (4,109, 6.6%), Romanians (3,974, 6.4%) and Germans (3,907, 6.3%) followed.

Prices keep rising

Foreign buyers paid an average of 2,644 euros per square metre, 9.4% more than a year earlier, even as volumes fell. Non-residents paid the most at 3,493 euros/m2, up 11.8%, while resident foreigners paid 2,102 euros/m2 and Spanish nationals 1,971 euros/m2. The gap between non-residents and residents widened to a new high of 1,391 euros/m2. Among nationalities, buyers from the United States paid the highest average price at 3,948 euros/m2, while Moroccan buyers paid the least.

A split across regions

The decline reached most of the country. Transactions fell hardest in Cantabria (down 20.5%), the Canary Islands (down 20.3%) and Madrid (down 19.7%), with the Balearic Islands and the Valencian Community both down 15.4%. Catalonia dropped 9%. Only Castilla-La Mancha (up 4.4%) and Extremadura (up 3.3%) recorded increases. Non-resident buyers favoured the Valencian Community, the leading region with 9,250 operations, while resident foreigners were most active in Catalonia with 8,516. Venezuelan (up 10%) and Colombian (up 7%) buyers were the only nationalities whose purchases grew.