Non-resident foreign property purchases in Spain fell 9.8% in 2025 to 51,411 transactions — the lowest in four years. However, total foreign buying remained healthy at 126,981 homes (18% of all Spanish sales) because resident expat purchases rose 4% to 75,570. Alicante province led all regions with 5,672 foreign purchases representing 42.9% of total local sales.
Headlines about declining foreign buyer activity in Spain can alarm buyers and investors monitoring the Costa Blanca market. The reality behind the 2025 data is considerably more nuanced than the headline suggests — and understanding the distinction is essential for anyone making an informed property decision.
According to analysis by Spanish Property Insight based on official transaction data, the decline is concentrated in a specific category: non-resident foreigners (FNR), meaning people who own property in Spain but do not live there as primary residents. This group — typically holiday home buyers and pure investors — pulled back nearly 10% in 2025. The cause appears to be mainly political uncertainty surrounding Spain’s proposed 100% property tax on non-EU buyers, which created hesitation among some northern European buyer groups even before any law was passed.
At the same time, resident expat purchases — people who have moved to Spain as their primary country of residence — actually increased 4%. This matters enormously for understanding Costa Blanca’s structural demand story, and for predicting where prices go from here.
Breaking Down the 2025 Foreign Buyer Data
Spain recorded 126,981 total foreign property purchases in 2025, representing 18% of all residential sales nationally. This total is down modestly from peak years but remains within the range consistent with a healthy international market.
The split within that total is where the story gets interesting. Resident foreign buyers (expats with Spanish residency) completed 75,570 transactions in 2025 — up 4% year-on-year and the highest level in at least five years. These buyers are committed long-term residents who purchase homes for primary living rather than seasonal use or investment.
Non-resident foreign buyers (FNR), by contrast, completed 51,411 transactions — down 9.8% from 2024 and the lowest figure since 2021. This group includes British, German, Dutch, and Scandinavian buyers who maintain primary residence in their home countries and purchase Spanish property as a second home or rental investment.
Critically, the 51,411 FNR figure remains above the 10-year historical average and above pre-pandemic levels. The decline is a return to a more normal baseline after two exceptional years of post-lockdown pent-up demand, not a structural retreat from the market.
Alicante Leads Every Metric: Costa Blanca Remains Spain’s Most International Market
Alicante province — which encompasses the entire Costa Blanca — recorded 5,672 foreign property purchases in 2025, making it the most active foreign buyer province in Spain by a substantial margin. Foreign buyers accounted for 42.9% of all property sales in the province — nearly triple the national average of 18%.
This extraordinary foreign concentration reflects decades of infrastructure investment, established international communities, and the Costa Blanca’s reputation as one of Europe’s most accessible and liveable Mediterranean destinations. The British, Dutch, German, and Scandinavian communities in the region are self-reinforcing: new buyers from these countries seek areas where their compatriots already live, creating cluster effects that sustain demand through economic cycles.
For the Costa Blanca specifically, the high proportion of resident expat buyers — people who have permanently relocated here — provides a demand floor that is fundamentally different from purely seasonal or investment-driven markets. Resident expats need housing for primary living, making their demand less cyclical than holiday home investment demand.
Why Non-Resident Buying Dipped: The 100% Tax Effect
The most credible explanation for the non-resident FNR decline in 2025 is political uncertainty rather than economic fundamentals. Spain’s Prime Minister announced a proposal to impose a 100% additional property tax on non-EU, non-resident buyers in January 2025. While the proposal has stalled in parliament and has not become law — and may never do so, given the minority government’s difficulties securing coalition support — it created genuine hesitation among some northern European buyer groups.
British buyers, who are non-EU post-Brexit, were particularly affected by the announcement. Even with legal advisers explaining that new builds and off-plan purchases are exempt from the proposed tax (because they are subject to VAT, not transfer tax), the uncertainty caused some buyers to pause while monitoring parliamentary developments.
With the proposal now stalled in Congress and showing little sign of progressing in its current form, this political overhang is gradually lifting. Buyer enquiry data from agents across Costa Blanca suggests renewed confidence from British and northern European buyers in early 2026, which is consistent with a recovery in FNR transaction volumes as the year progresses.
What This Means for Costa Blanca Property Values
The combination of strong resident expat demand and recovering non-resident demand creates a supportive backdrop for Costa Blanca prices. Even during 2025’s period of political uncertainty, property prices in Alicante province continued rising: the latest data shows average prices exceeding €2,400/m² in the province, with coastal prime areas in Costa Blanca North reaching €3,500-4,500/m².
The structural supply constraint remains unchanged regardless of demand fluctuations. The coastal strip of the Costa Blanca has essentially no remaining serviced land suitable for large-scale residential development. Every new build completed reduces the future supply of new homes that can be delivered, tightening the medium-term market further.
From a buyer perspective, the 2025 data provides reassurance that the market did not experience a demand collapse even under significant political pressure. The decline in FNR volumes was orderly and modest, not a panic selling event. Prices held and continued to rise throughout the year, demonstrating the underlying structural strength of Costa Blanca as an investment destination.
The Outlook for 2026: Recovering FNR Demand
Early 2026 indicators point to a recovery in non-resident foreign buyer activity. The 100% tax proposal has stalled in parliament. The EU Entry/Exit System launched in April 2026, increasing bureaucratic complexity for some buyers but also clarifying the rules — buyers now know exactly what the regulatory environment looks like rather than facing ongoing uncertainty.
BBVA’s forecast of 10.2% national price growth in 2026 implicitly assumes sustained foreign demand, including FNR activity at or above 2025 levels. If FNR volumes recover toward their 10-year average as political uncertainty fades, the demand picture for Costa Blanca becomes meaningfully more bullish than 2025’s cautious baseline.
For buyers who were waiting to see how the tax proposal played out, the current environment — with the proposal stalled and new builds structurally exempt even under the original proposal — provides a clear window. The buyers who hesitated in 2025 are re-entering a market that did not fall in their absence and now faces a more competitive environment.
The Bottom Line
The 10% decline in non-resident foreign buying in Spain in 2025 is real, but it tells an incomplete story. Resident expat buying rose 4%. Alicante remained Spain’s most international market. FNR demand is above the historical average. And early 2026 data suggests a recovery is underway. For Costa Blanca buyers, the data points to a market that proved its resilience under political pressure — a strong foundation for continued price growth ahead. Ready to explore Costa Blanca new builds? Browse our current listings in Torrevieja, Orihuela Costa, Jávea, and beyond.
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