Spain is the fourth-largest economy in the eurozone and one of Europe\u2019s most sought-after destinations for living and investment. In 2025, the country welcomed a record 96.8 million international tourists \u2014 the highest number ever recorded. The average housing price also reached an all-time high by the end of the same year, rising by around 13%, while supply continues to lag behind demand: according to the Bank of Spain, the country\u2019s housing shortage has reached 750,000 units.<\/p>\n
The market is growing, and myths naturally grow around it as well \u2014 from stories about illegal property occupation to predictions of an \u201cimminent crash.\u201d These narratives spread faster than statistics, and they are often what prevents people from making balanced, well-informed decisions.<\/p>\n
\u201cPeople are very often afraid of completely different risks from the ones they should actually be concerned about.\u201d \u2014 Yuriy Hrushetskyi, founder and CEO of Deniz Estate<\/em><\/strong><\/p>\n In this article, we examine ten of the most common myths about Spanish real estate and compare them with facts and the practical experience of real transactions. The material will help distinguish the risks that genuinely need to be considered before a purchase from background information noise.<\/p>\n Reality:<\/strong> cyclicality is a feature of every economy, not a flaw in the Spanish property market. What matters is not the existence of a cycle itself, but the investment horizon.<\/p>\n Developed economies move in waves: periods of growth are followed by corrections or slowdowns, after which the market turns upward again. The fundamental difference between emerging markets and conservative markets such as Spain lies in the scale and frequency of those cycles. In the former, crises may occur every three to five years and can be painful. In the latter, they occur once every fifteen to twenty years, while governments develop protective mechanisms that soften the impact on both the population and investors.<\/p>\n The 2008 crisis remains the best illustration. Speculative investors who bought at the peak and sold during the downturn did indeed suffer losses. Those who followed a long-term strategy, however, did not merely recover their investment \u2014 they multiplied their capital several times over.<\/p>\n \u201cFor an ordinary person, a crisis is a problem. For an experienced investor, it is an opportunity. These are exactly the periods when you can buy liquid assets that were inaccessible at the top of the market because there was a queue for them.\u201d \u2014 <\/strong>Yuriy Hrushetskyi<\/strong><\/em><\/p>\n What is happening in Spain now? It is not a real estate crisis but a shortage crisis. New housing is being built more slowly than demand is increasing \u2014 hence the Bank of Spain\u2019s estimate of a 750,000-unit housing deficit and the record prices seen in 2025. This is not an argument for buying immediately and without proper calculations. But it is certainly not an argument for \u201cwaiting for the market to crash.\u201d<\/p>\n The practical conclusion is simple: conservative markets require long investment horizons. Local downturns and periods of overheating tend to even out over a ten-year period \u2014 provided you are buying an asset as part of a strategy rather than trying to time the market.<\/p>\n Reality:<\/strong> Spain is one of Europe\u2019s most predictable countries. It is the EU\u2019s fourth-largest economy, a NATO member since 1982, and a country that has not experienced warfare on its territory since 1939.<\/p>\n No analyst can reliably predict the geopolitical future, and the only time-tested tool for dealing with this uncertainty has long been known: diversification of assets across countries and currencies.<\/p>\n At the same time, Spain has a strong factual foundation. Private property rights are protected, democratic institutions have functioned for decades, and the rules for foreign investors are transparent \u2014 from the property registry to tax reporting. Since the end of the Spanish Civil War in 1939, there have been no internal or external armed conflicts on Spanish territory.<\/p>\n There is also a more visible indicator of stability: people\u2019s behavior. Families with children, entrepreneurs, and investors who can choose virtually any country in the world as their place of residence continue to choose Spain year after year.<\/p>\n \u201cPeople vote not with words, but with their money and their way of life.\u201d \u2014 <\/strong>Yuriy Hrushetskyi<\/strong><\/em><\/p>\n The migration of wealthy Europeans to Barcelona, Marbella, and the Balearic Islands is a significant indicator. Large capital rarely misjudges a country.<\/p>\n Reality:<\/strong> in terms of natural conditions, Spain is one of Europe\u2019s most comfortable countries. People move here not despite the climate, but because of it.<\/p>\n The Mediterranean coast does not experience hurricanes, tsunamis, or destructive earthquakes, while seismic activity is noticeably lower than in neighboring Greece, Italy, or Turkey. The climate is mild, with more than 300 sunny days per year.<\/p>\n Costa Blanca deserves particular mention. The region has no heavy industry, while the salt lakes of Torrevieja, together with the surrounding pine forests, create a microclimate that medical professionals have traditionally regarded as one of the healthiest in Europe. People with respiratory conditions such as asthma or bronchitis are often advised by doctors to spend time on Spain\u2019s southeastern coast, including as part of their therapy. Living permanently in such a climate can itself serve as a form of prevention.<\/p>\n For the sake of objectivity:<\/strong> no country is completely protected from destructive natural forces, and Spain is no exception. This is not an argument against purchasing property; it is an argument for choosing a location and developer based on proper analysis \u2014 which, in fact, applies to any country.<\/p>\n Reality:<\/strong> migration in Spain is not a chaotic process but a deliberate economic strategy. It is more likely to support property values than undermine them.<\/p>\n The country\u2019s population is indeed growing, and migration has long been a politically charged topic in Europe. However, it is important to understand the scale and structure of these processes. Spain is not just Madrid and Barcelona: it is a large country with dozens of regions where population density is moderate by European standards. Most immigration comes from Latin American countries, whose citizens are culturally and linguistically close to Spaniards and tend to integrate quickly. The government views this inflow as a way of offsetting demographic decline: Spanish society is aging, birth rates are falling, and without new arrivals the economy would struggle to maintain its current pace.<\/p>\n For buyers, this has two practical consequences. First, there is a sufficient workforce in construction, services, and rentals, meaning the property service infrastructure does not face severe labor shortages. Second, well-established procedures for foreigners also make relocation easier. A particular tourist neighborhood can certainly become overcrowded \u2014 which is precisely why location selection should be based on analysis rather than dramatic headlines.<\/p>\n Reality:<\/strong> this is the most exaggerated myth about Spain. The problem does exist, but its scale bears little resemblance to the image portrayed on social media, and property owners have effective legal and insurance mechanisms available to protect themselves.<\/p>\n Stories about unlawful property occupation have become a recurring genre in Spanish social media content. The reality is more mundane: properties targeted for illegal occupation are almost always problematic units \u2014 abandoned homes, bank-owned properties, homes that have stood vacant for years, or properties in disadvantaged neighborhoods. In other words, they tend to be homes nobody is monitoring and around which nobody is living.<\/p>\n \u201cIn more than ten years of working in the Spanish market, we have encountered illegal property occupation literally only a few times \u2014 and in every case the matter was resolved through legal and insurance mechanisms within three to six months.\u201d \u2014 Yuriy Hrushetskyi<\/em><\/strong><\/p>\n The situation is similar in France and Germany \u2014 Spain simply receives more media attention. Property rights here are protected when contracts are properly prepared with lawyers and the properties are insured.<\/p>\n Preventing illegal property occupation comes down to four measures:<\/p>\n For a good property in a normal neighborhood with professional management, these measures are more than sufficient.<\/p>\n Reality:<\/strong> Spanish legislation is designed from the outset so that the fate of a construction project does not depend solely on the developer\u2019s word.<\/p>\n Fear of unfinished developments is a legacy of post-Soviet property markets, and for many buyers that fear is understandable. Spain, however, operates under a fundamentally different model.<\/p>\n The bank plays the central role. When purchasing a home during the construction stage, buyers\u2019 advance payments are made exclusively into a dedicated bank account secured by a bank guarantee. A developer cannot simply collect money, fence off the site, and begin a new project using funds from the previous one: the construction is financed by a lending institution that monitors project milestones and ensures that funds are used for their intended purpose. The developer\u2019s financial capacity is checked before sales even begin. Completed residential property is also covered by mandatory ten-year structural insurance known as seguro decenal<\/em>.<\/p>\n The incentives of the parties are also different: the developer\u2019s funds remain blocked in accounts until the project is completed, meaning every month of delay results in a direct financial loss. The financing bank monitors deadlines even before the buyer does.<\/p>\n \u201cIn Ukraine, construction delays are often treated as normal. In Spain, even a one-month delay causes concern \u2014 first and foremost for the bank financing the developer.\u201d \u2014 Yuriy Hrushetskyi<\/em><\/strong><\/p>\n In more than ten years of operation, the longest delay encountered by the Deniz Estate team was approximately three months \u2014 and that was considered an exception. This is precisely why investments in Spanish new-build properties are so popular among foreign buyers: the market model eliminates one of the investor\u2019s biggest fears during the construction stage.<\/p>\n Reality:<\/strong> restrictions are introduced by individual cities, not by the entire country. Spain has hundreds of resort destinations where short-term rentals remain legal and profitable \u2014 the key is to establish this before purchasing rather than afterward.<\/p>\n In Barcelona, for example, the authorities decided not to renew any of the existing licenses for short-term apartment rentals \u2014 all of them will expire by November 2028. Valencia, Alicante, and several other major tourist destinations have also introduced moratoriums on new licenses. The reason is not opposition to investors, but an attempt to preserve balance: tourist numbers continue to break records year after year, and residents of overcrowded cities are demanding measures to ease pressure on the housing stock.<\/p>\n Spain, however, is much more than three cities. Along the southern coast, where Deniz Estate operates, there are many resort destinations where tourist licenses remain available and the application process takes around two weeks. Where demand is not overheated, restrictions are absent \u2014 and returns may even be higher than in saturated metropolitan areas.<\/p>\n \u201cThis is not a risk inherent to Spain itself. The risk is buying a property without first understanding exactly how you intend to use it and how you plan to make money from it.\u201d \u2014 Yuriy Hrushetskyi<\/em><\/strong><\/p>\n This leads to a rule that can prevent the most common mistake: first determine the goal \u2014 living, long-term rental, or a tourist rental business \u2014 and only then choose the region and property that fit that objective. The \u201cI\u2019ll buy first and figure it out later\u201d strategy is the most expensive one in this market.<\/p>\n Reality:<\/strong> in terms of peaceful living conditions, Spain consistently ranks among the world\u2019s top 30 countries \u2014 27th out of 163 countries in the 2026 Global Peace Index.<\/p>\n Crime exists wherever there are large cities, and Spain is no exception. Pickpocketing in tourist areas of Barcelona and Madrid is a genuine issue, and locals rightly warn visitors about it: keep an eye on your bag on the metro and along promenades, just as you would in any major city in the world.<\/p>\n However, having a phone stolen is not an argument against buying an apartment. The level of violent crime and the overall sense of safety in Spain are such that people from Eastern Europe often compare it with a quiet provincial city.<\/p>\n \u201cClients arrive with fears, and after a few months they all repeat the same phrase: \u2018Somehow, it actually feels even calmer here.\u2019\u201d \u2014 <\/strong>Yuriy Hrushetskyi<\/strong><\/em><\/p>\n The Spanish pace of life quickly becomes appealing: nobody is constantly rushing anywhere, and things happen in a measured and predictable way. For most of our clients, this has been the biggest surprise after relocating.<\/p>\n Reality:<\/strong> this is not a risk but a matter of service. And the property management infrastructure in Spain has long been well established.<\/p>\n Around half of Deniz Estate\u2019s clients spend only one or two months per year in Spain. During the rest of the year, their apartments do not remain vacant: the owner hands the property over to a management company, and their involvement in day-to-day operations effectively ends there.<\/p>\n The Deniz Management division handles the full cycle: long-term and short-term rentals, communication with tenants, monitoring the condition of the property, cleaning, technical issues, and everyday support. If the owner comes to stay for a couple of weeks, the apartment is prepared for their arrival just like a hotel room.<\/p>\n Remote ownership of Spanish property is well established both legally and technically: transactions can be completed under a power of attorney, payments are processed through banks, and tax reporting is handled by a tax representative. More than one-third of Deniz Estate\u2019s transactions in Spain last year were completed remotely, without the buyer traveling to the country.<\/p>\n Reality:<\/strong> most problems in the Spanish property market are caused not by the country or its laws, but by random intermediaries. The biggest risk is entrusting an investment to unqualified professionals.<\/p>\n Of all ten risks, this is the only one that could reasonably be placed first. It is not illegal property occupation, migration, or market cycles, but rather unqualified intermediaries with no office, no team, and no legal expertise who appeared in response to rising demand.<\/p>\n To verify an intermediary when buying property in Spain, it is enough to get clear answers to several questions: Does the company have an office and a team? Are lawyers employed in-house? Does it have its own property management company? How many years has it operated in the market? How many properties has it sold? How many clients has it supported through the full process? What do actual buyers say about it? What should be evaluated is not an agency\u2019s presentation, but its real cases and recommendations.<\/p>\n \u201cBuying property does not end when you receive the keys. In fact, that is when everything is only beginning.\u201d \u2014 Yuriy Hrushetskyi<\/em><\/strong><\/p>\n Once the contract is signed, the main work begins: registering ownership rights, handling taxes, connecting utilities, launching the rental model, and resolving everyday and legal matters. Depending on the individual situation \u2014 family composition, residency, tax residency, and source of funds \u2014 there can easily be dozens of such issues. That is<\/p>","protected":false},"excerpt":{"rendered":" Spain is the fourth-largest economy in the eurozone and one of Europe\u2019s most sought-after destinations for living and investment. In 2025, the country welcomed a record 96.8 million international tourists \u2014 the highest number ever recorded. The average housing price also reached an all-time high by the end of the same year, rising by around\u2026<\/p>\n","protected":false},"author":23,"featured_media":1905709,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,259,261],"tags":[],"class_list":["post-1905708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-ispaniya","category-about-the-countries"],"yoast_head":"Myth 1. \u201cSpain is about to face another crisis \u2014 investing now is dangerous\u201d<\/h2>\n
Myth 2. \u201cEurope has been unsafe since 2022, and Spain is no exception\u201d<\/h2>\n
Myth 3. \u201cClimate change and natural disasters will make life in Spain uncomfortable\u201d<\/h2>\n
Myth 4. \u201cMigration will make Spain overcrowded and reduce the value of its regions\u201d<\/h2>\n
Myth 5. \u201cOkupas: property owners cannot protect their homes\u201d<\/h2>\n
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Myth 6. \u201cA developer can abandon a construction project, just as happens back home\u201d<\/h2>\n
Myth 7. \u201cTourist rentals are being banned \u2014 Spain\u2019s income-generating property model is dead\u201d<\/h2>\n
Myth 8. \u201cSpain is unsafe \u2014 crime levels are too high\u201d<\/h2>\n
Myth 9. \u201cIt is impossible to manage an apartment in another country\u201d<\/h2>\n
Myth 10. \u201cThe main thing is to buy an apartment \u2014 everything else will sort itself out\u201d<\/h2>\n