The journal
Is Buying a Rental Property in Spain Worth It?
People told me Gandia is usually warm from spring through autumn, and that weather like this was rare.
Could property prices rise?
People sometimes say Spain has built so many homes that there isn’t much room for property prices to grow. There may be something to that, but I thought there would still be buyers for well-located homes. I also saw new developments in Gandia, with asking prices above the second-hand properties I viewed.
My main interest wasn’t betting on prices going up. I was looking at the possibility of rental income in euros. Any real investment decision would still need a careful look at the specific property, its costs, demand and risks.
Could I get a mortgage using income from Poland?
From my first round of conversations in 2020, it sounded as though a non-resident earning income in Poland could apply for a Spanish mortgage. The terms I heard then depended on the borrower and the bank; they weren’t an offer or a promise that I would qualify. Lending rules and rates change, so those early figures are out of date.
Would managing rentals from abroad be easy?
If you’re renting out a property, you need someone reliable to handle the day-to-day work. I was mainly interested in long-term rental, so I spoke with people who knew the local market.
Short-term rentals seemed more seasonal, with much of the demand coming in summer. Local management and booking fees could take a sizeable share of the revenue if you hand the whole operation to a specialist company. The figure I heard on my trip was an estimate, not a current rate.
Before offering a property to tourists, check the current national, regional and municipal rules and the building’s own restrictions. The first pointers I got in 2020 aren’t enough to establish what is permitted today.
What about tax?
I didn’t have a clear picture of how Spanish rental income would be taxed. I’d heard different things about short- and long-term rentals, but that was nowhere near enough to make a reliable tax calculation. I’d need up-to-date advice from someone who understands both the property and the owner’s tax situation.
What were the buying costs?
My rough estimate from that first visit was that purchase costs might add around 13–15% to the property price. That was an early estimate from 2020, not a quote or a current figure. Taxes, fees and transaction costs vary by region and property, so they need to be checked again before buying.
What paperwork might I need?
People I spoke with mentioned a Spanish NIE identification number and a local bank account. They also described payment by bank cheque. These were my initial notes, not a complete checklist, and the process may have changed since then. Confirm the documents, sequence and payment method with a qualified local professional before committing.
Did the numbers work for me?
As a rough example, I looked at a flat priced around €30,000 and long-term rent of about €350 a month. Those were asking-price and rent figures I came across in 2020. They didn’t account for all the costs, taxes, vacancy, maintenance or management, and they aren’t a return forecast. On their own, two headline numbers don’t tell you whether a property is a good investment.
Did I buy anything?
No. I saw a few flats I found interesting as potential rentals, but I wasn’t comfortable with everything I’d learned, especially the questions around management and local rules. I decided not to buy on that trip.
I still liked Gandia and could imagine looking at rental property there again. But that first trip taught me that liking a place and finding an apparently attractive asking price aren’t enough. I needed to know who would manage the property, what the real costs were and which rules applied.
That’s the story of my first look at investing in Spain. What would you have checked before taking the next step?