Italy vs Spain: which to buy in for living, rental and resale

Spain and Italy are the two big southern-European markets foreign buyers shortlist, and they behave very differently once you start the paperwork. Spain has the larger foreign-buyer infrastructure and a more standardised process. Italy is cheaper on national averages but fragmented, regional and heavy on documents. The figures below are summarised from 2026 sources, several of them single aggregators, and rules change, so confirm what matters with a local lawyer and tax adviser.

Market and prices

• Spain: one aggregator puts the national average at roughly EUR 2,100 to EUR 2,600 per square metre, with Madrid around EUR 4,600 and Barcelona around EUR 4,400. Alicante province accounted for close to 46% of all foreign property sales by the end of 2024, and Málaga province with the Balearic Islands took around 32%.
• Italy: the same type of source puts the national average at about EUR 1,830 to EUR 1,960 per square metre, with moderate growth expected in 2026. The spread is wide, from around EUR 800 in Calabrian villages to EUR 8,000 in central Rome. Rome averaged about EUR 3,779 in April 2026 with foreigners in roughly 65% of transactions, while Naples averaged about EUR 3,010 and is still bought mostly by Italians.

National averages hide more than they show in both countries. Compare the specific town and street, not the headline figure.

Who can buy

• Spain: open to foreign buyers. A proposal made in January 2025 for a 100% tax on purchases by non-EU buyers had, according to 2026 sources, not been enacted, so watch it if you are not an EU citizen.
• Italy: for non-EU citizens a reciprocity rule applies. You can buy only if an Italian citizen can buy under similar conditions in your country, and the notary checks it before the deed. Sources report that citizens of the United States, Canada, the United Kingdom and Australia can buy without special restrictions, but confirm your own case.

Buying costs

• Spain: a resale pays ITP transfer tax set by region, roughly 6% to 10% (Madrid about 6%, Andalusia about 7%, Catalonia about 10%). A new build pays 10% VAT plus stamp duty of roughly 0.5% to 1.5%. Total acquisition costs for non-residents are commonly quoted at 10% to 15%.
• Italy: from a private seller you pay 9% registration tax on the cadastral value, not the negotiated price, with a EUR 1,000 minimum, which often makes the effective rate lower than it looks. From a developer you pay VAT instead: 4% for a main home, 10% for an ordinary home, 22% for luxury categories, plus fixed taxes. Agency commission is typically about 3% plus VAT, and one 2026 guide estimates all-in costs of 10% to 15%. Non-residents also pay the annual IMU property tax with no main-home exemption.

See our new build versus resale guides for each country for the detail.

Financing

Spain is one of the easier European markets for a non-resident mortgage. Reported loan-to-value is roughly 60% to 70% for EU and other European residents and 50% to 60% for non-EU buyers, with terms of 15 to 25 years, and 2026 rates reported at about 3% to 4.5% fixed. These come from lender and legal-adviser sources, not the central bank, so ask a broker for a current quote. For Italy we have no comparable verified figures, so use a broker for a real offer.

Selling: the biggest difference

• Spain: a non-resident pays a flat 19% on the gain, and the buyer withholds 3% of the price and pays it to the tax office. Inflation indexation was abolished from 2015, so a long holding period brings no relief.
• Italy: there is no capital gains tax at all if you sell more than five years after acquiring. Inside five years the gain is taxed either at a 26% substitute tax applied by the notary or at progressive income tax of 23% to 43%, and a non-resident rarely qualifies for the main-home exemption.

For a buyer who plans to hold for many years, Italy's five-year rule is a real advantage. For a shorter flip, the picture changes.

Residency and tax regimes

• Spain: the investor golden visa for property was abolished on 3 April 2025. The remote-worker visa asks for about EUR 2,646 a month in 2026, and qualifying holders can apply for the special expatriate regime, informally the Beckham regime, with 0% on foreign income and a flat 24% on Spanish income for up to six years.
• Italy: an investor visa is reported to stay open, with options such as EUR 250,000 into an innovative start-up, EUR 500,000 into an Italian company, EUR 1 million to a philanthropic project or EUR 2 million in government bonds. The remote-worker visa is described as one of Europe's stricter and more paperwork-heavy schemes. Italy also has flat-tax regimes for new residents and, for foreign pensioners moving to certain southern municipalities, a 7% flat tax, but amounts and eligibility change, so confirm them at the time you move.

Short-term rental rules

• Spain: since 1 July 2025 every short-term rental needs a national registration number, on top of city rules. Madrid has suspended new licences in several central districts, and Málaga, Seville and Valencia restrict historic cores.
• Italy: every listing needs a national CIN code, guest identity must be registered through Alloggiati Web, and safety equipment is mandatory, with fines of EUR 600 to EUR 6,000 for missing items. Most individual hosts use a flat cedolare secca tax of 21% on a first property and 26% on a second.

Both are tightening under EU Regulation 2024/1028. Verify the licence for the exact property before you count on holiday income.

Character property and ruins

Both have cheap, characterful stock that needs work: Italy's 1-euro-home villages and Spain's abandoned villages. The headline price is rarely the real cost, so read our dedicated guides before you chase either.

Which suits which goal

• You want the most standardised process, big foreign-buyer infrastructure and coastal variety: Spain.
• You want a long hold with no capital gains tax after five years, regional character and lower national averages, and accept more paperwork: Italy.
• You want to finance with a non-resident mortgage: Spain has the clearer reported terms.
• You are not an EU citizen: check Italy's reciprocity rule and the status of Spain's proposed non-EU buyer tax.

FAQ

Which is cheaper? Italy on national averages, but both vary widely by town. Which is easier for a foreigner? Spain, for process and infrastructure; Italy needs more documents and reciprocity checks for non-EU buyers. Which is better for selling? Italy if you hold more than five years; Spain charges a flat 19% with a 3% buyer retention. Is the Spanish golden visa still available? No, it ended on 3 April 2025. Can I rent short term? In both countries only with the national registration and any local licence, so check first.

How we help

We shortlist across both markets to your goal, check the legal and licence position, model net costs and coordinate local lawyers. Informational only, not legal, tax or investment advice; prices, taxes and rules change, so confirm every figure with a qualified local adviser before relying on it.