Buying a home in Spain is now significantly cheaper than renting — at least on a monthly basis. But there’s a catch: you’ll need substantial savings to get on the property ladder.
According to the latest data from idealista, the average mortgage payment for a two-bedroom home in Spain is €698 per month, compared to €1,088 per month to rent a similar property. That makes buying 36% cheaper than renting in terms of monthly costs.
However, the real barrier for most buyers isn’t the mortgage — it’s the deposit and upfront costs.
The real hurdle: €64,500 in savings
To buy an average two-bedroom property in Spain, you’ll need around €64,568 in savings.
This figure includes:
- The standard 20% deposit typically required by Spanish banks
- Purchase taxes (usually 6–10% depending on the region)
- Notary, registry, and legal costs
For foreign buyers, especially non-residents, banks may require an even higher deposit (often 30%). To compare options and calculate how much you could borrow, you can explore current deals and get personalised guidance through idealista’s mortgage platform, idealista/hipotecas.
Where you’ll need the most upfront cash
In Spain’s most expensive cities, required savings are dramatically higher:
- Palma de Mallorca – €147,116
- San Sebastián – €137,700
- Madrid – €117,793
- Barcelona – €103,172
These are the only cities where buyers need over €100,000 upfront.
Other major cities also require significant savings:
- Málaga – €96,651
- Valencia – €77,503
- Bilbao – €73,448
- Alicante – €69,500
- Granada – €67,681
In short, coastal and prime lifestyle destinations demand the biggest financial commitment.
The most affordable cities to buy
At the other end of the scale, several smaller cities require less than €40,000 in savings:
- Zamora – €32,996
- Jaén – €34,596
- Lleida – €35,581
- Palencia – €35,931
- Badajoz – €37,862
- Córdoba – €39,164
In these locations, the upfront requirement is roughly half the national average — making them far more accessible for budget-conscious buyers or investors seeking higher yields.
Mortgage vs rent: where is buying the best deal?
In almost every Spanish provincial capital, mortgage payments are cheaper than rent.
The only exception is San Sebastián, where mortgage payments are around 10% higher than rental costs.
The biggest gaps in favour of buying are found in:
- Segovia – Mortgage 54% cheaper than rent
- Ceuta & Lleida – 45% cheaper
- Zamora – 42% cheaper
- Tarragona & Zaragoza – 41% cheaper
- Córdoba – 40% cheaper
Among Spain’s larger property markets:
- Valencia & Barcelona – 38% cheaper to buy
- Seville – 36% cheaper
- Bilbao – 33% cheaper
- Alicante – 32% cheaper
- Madrid – 23% cheaper
- Málaga – 16% cheaper
- Palma – Just 1% cheaper
What this means for foreign buyers
For expats, digital nomads, and international investors, Spain still offers a strong case for buying — particularly in cities where mortgage payments are significantly below rental costs.
However, the high upfront cash requirement remains the biggest barrier to entry.
If you’re planning to relocate or invest, the key questions are:
- Can you comfortably cover the deposit and purchase costs?
- Are you buying in a city where the rent-vs-buy gap is substantial?
- Do you plan to stay long enough to offset transaction costs?
For those who can manage the initial outlay, buying in Spain may now make far more financial sense than renting.
