Buy a Property in Benidorm: Guide for Foreign Investors

Quick Snapshot – Why Benidorm Deserves a Look

• Benidorm is a tourist destination. Over 2.8 million visitors were recorded in 2024, and this trend is expected to continue, increasing the short-stay rental demand in the area.
• Town prices have also become high. Apartment prices have increased by nearly one in ten compared to 2024 to 2025, and asking prices are nearly 3400 in most areas in terms of per square metre.
• Markets along the coasts of Spain remain favourable. Capital growth is possible and not certain due to the increasing regional prices and the high local demand.

The Market Right Now – Cold Facts You Need

Demand

The number of visitors to Benidorm strongly increased after the pandemic and continued to increase in 2024. This stable tourism helps to maintain holiday lets and seasonal rentals.

Prices

According to local listings and reports by agents, in recent years, prices have risen by high single and low double digits. Reportedly, some of the agencies indicate apartment prices in the range of 3,000 to 3,500 per square metre in 2025.

Macro Picture

The expansion of the housing market in Spain has expanded significantly in various regions; however, it is not even. It relies on the local tourism, transport connections, and redevelopment.

This does not imply that buyers are not interested, but we recommend that you pick the sub-area wisely (Old Town, Levante, or Poniente) and price it right. In this case, location is not a factor in the rental yield and capital growth as compared to all other regions.

Golden Visa, Taxes, and Headline Legal Changes You Must Know

Golden Visa: Spain has altered the real estate route towards the Golden Visa program. It is no longer certain when one buys property to gain residency. In case you desire the residency, consider the new regulations or consider other visas.

New tax proposals: It is being discussed to have a new, higher tax for people outside the EU and those who are not residents. Some of the buyers may find it harder to afford the proposals, yet these are still under discussion and may be modified.

Among the standard costs you will most certainly incur are: transfer tax (or IVA in new buildings), fees at the notary and registry, fees of lawyers, and commission of agents. When reselling an average property, you will have to expect approximately 10-15 per cent additional on the cost of purchase as a realistic margin on taxes and charges.

How to Approach Property Selection in Benidorm

• Levante (central, lively): Best for holiday rental income. Young crowds, nightlife, and higher nightly rates, but more wear and tear.
• Poniente (quieter, sunsets): Family-friendly and perfect for longer lets. Great for mid-term rentals and owners who want calm.
• Old Town: Full of character, narrow streets, and strong short-stay demand for couples and walkers.
• Rincon de Loix / high-rise areas: Iconic skyline views and apartments aimed at tourists. Easy to manage but highly competitive.

Match the property type to your strategy. Want high occupancy and constant turnover? Go central and target holiday lets. Want a stable long-term yield? Aim for family-friendly apartments near schools and transport.

Numbers – Rental Yields, Occupancy and Returns

Holiday lets, or other short-stay rentals, may be profitable in the peak months, but they can only be effective seasonally. A good year would give you a gross yield of 6 to 8 per cent, but that must be deducted from vacancies, management charges, cleaning, local tax on tourists, and maintenance.

Long-term rentals tend to offer smaller gross returns of 3 to 5 per cent, but they are consistent throughout the year. The return is changed immediately with renovations and new furnishings. A redecorated, current apartment will be rented more quickly and expensively.

Use conservative occupancy (50 to 60% for holiday lets averaged across the year, unless you have proven bookings) when modelling cash flow. Don’t guess.

Financing and Mortgages as a Foreign Buyer

The Spanish mortgages are available to foreign buyers, although the lenders tend to lend a smaller percentage to non-resident buyers, which is usually 60 to 70 per cent of the property value. The rates of interest and approval are based on your nationality, proof of income, and your connections with Spain.

Practical Steps

• Get pre-approval from a Spanish bank or international lender who knows the Costa Blanca market.
• Model cash flow assuming slightly higher interest rates than currently advertised.
• If you plan to finance in your home country, check currency risk. A falling euro can change your repayment burden quickly.

Legal, Tax and Practical Checklist

This is the checklist to follow if you’re buying soon.

• Get a Spanish lawyer experienced in Alicante or the Valencian Community transactions. They should run title checks, debts, community fees, and usage licences.
• Obtain an NIE (foreigner identification number), mandatory for contracts and taxes.
• Check the community of owners (community fees) and pending works or special charges.
• High-rise buildings often have large upcoming maintenance bills.
• Confirm the licence for tourist rental if you plan short-stay lets. Some cities require registration and tourist licences; rules have tightened in many Spanish towns after overtourism concerns.
• Insist on a technical survey (tasación or certificado técnico) for older properties. Incident (Check damp), Check structural, Check lift repairs in tall buildings.
• Arrange your annual tax: property tax (IBI) and community fees and trash tax, and the tax on income in case you rent to a foreigner.

Risks and Red Flags

Overpriced or badly located units. Skyline views don’t always equal rental demand. Buildings with high communal debts. Ask for meeting minutes and reserve fund details. Changing legislation. Tourism taxes, rental licences, and national policies can affect returns quickly. Currency and interest rate risks if you borrow in another currency.

Practical Tips to Win the Deal

Work with local agents, but verify listings yourself. Agents are useful, but cross-check with portals and direct owner listings. Visit during the low season. You’ll see the real street life, noise levels, and year-round amenities. Firstly, attempt to administer an estate. Find a local manager to work for 6 months to understand the changes in occupancy before purchasing additional ones.

Price and terms bargain. In most instances, before signing, you may be discounted or get to correct issues such as non-payment of community fees.

Final Thought – How to Move Forward

1. Decide your strategy: holiday-let or long-term.
2. Get a Spanish lawyer and an NIE.
3. Review comparable sales and recent price trends.
4. Get a look at the business, visit it, and estimate.
5. Seal the deal with a cushion - charge 10% to 15% on top of the deal, and any additional charge levied to cover any unexpected repairs.