AI overview and Article Summary: Spain is a popular destination for British property buyers, with established communities across the Costa Blanca, Costa del Sol, Murcia, the Balearic Islands and the Canary Islands. Property prices vary significantly, from more affordable homes in Murcia to premium properties in Marbella and Mallorca. British buyers can apply for a Spanish mortgage as non-residents, with lending typically dependent on income, deposit, credit history and individual bank criteria. Some Spanish lenders accept income paid in pounds sterling, although foreign currency policies differ between banks. Before purchasing, buyers should understand the deposit required, additional buying costs and potential exchange-rate risks. Obtaining a mortgage assessment before choosing a property can help establish a realistic budget and make buying a home in Spain more straightforward.

Where Do Most Brits Live in Spain? Popular Locations, Property Prices and How to Get a Spanish Mortgage

Spain remains a popular destination for British property buyers, whether they are looking for a holiday home, a retirement property or a permanent move abroad. From the sunny beaches of the Costa Blanca to the stylish resorts of the Costa del Sol, there are plenty of locations to suit different budgets and lifestyles.

If you are considering buying a property in Spain, understanding where British residents live, how much property costs and how to arrange a Spanish mortgage can help you plan your purchase with confidence.

Where do most British people live in Spain?

According to Spain’s National Statistics Institute (INE), approximately 266,000 British citizens were registered as residents in Spain on 1 January 2025. Alicante and Málaga provinces were the two largest centres for British residents. Other popular areas include the Balearic Islands, Murcia, Almería and the Canary Islands.

1. Costa Blanca – Alicante, Torrevieja and Orihuela Costa

The Costa Blanca, in the Valencian Community, is particularly popular with British buyers seeking sunshine, beaches and established international communities.

Popular locations include Torrevieja, Orihuela Costa, Rojales, Benidorm and Jávea. The area offers everything from apartments close to the sea to detached villas on residential developments.

Average property prices: In Alicante province, the average advertised price was approximately €2,767 per square metre in September 2026. That equates to around €221,000 for an 80 m² property, although prices vary considerably by town and property type.

Getting a mortgage: British buyers can explore Spanish mortgages as non-residents, subject to the lender’s affordability and eligibility criteria. Lenders will generally assess income, existing debts, credit history and the deposit available. If you earn in pounds sterling, the lender may also consider exchange-rate fluctuations.

2. Costa del Sol – Málaga, Marbella and Fuengirola

The Costa del Sol is another major destination for British buyers, offering a mix of beach resorts, golf communities, international schools and vibrant towns.

Popular choices include Marbella, Mijas, Fuengirola, Benalmádena and Estepona. Marbella tends to attract buyers looking for premium properties, while other towns offer a broader range of apartments and family homes.

Average property prices: Málaga city had an average advertised price of approximately €3,969 per square metre in September 2026. An 80 m² property at that rate would cost around €317,500. Prime coastal locations can be considerably more expensive.

Getting a mortgage: A Spanish mortgage can help spread the cost of buying in this popular coastal region. Non-resident buyers should be prepared to provide evidence of income, bank statements, tax documents and details of existing financial commitments. The amount a bank will lend depends on its criteria and your circumstances.

3. Murcia and the Costa Cálida

Murcia is worth considering if you want a Mediterranean lifestyle and are comparing property prices with more expensive coastal markets.

British residents live in areas including Mazarrón and other coastal and inland communities. Buyers can find apartments, townhouses and detached villas, depending on the location.

Average property prices: The average advertised price across the Region of Murcia was approximately €1,689 per square metre in September 2026. This equates to around €135,000 for an 80 m² property, although individual locations and property conditions affect prices.

Getting a mortgage: Buyers should compare the deposit required, interest rates, fees and maximum loan available to non-residents. A mortgage in principle can help you understand your potential budget before making an offer on a property.

4. The Balearic Islands – Mallorca, Menorca and Ibiza

The Balearic Islands appeal to British buyers looking for island living, attractive beaches and an established international community. Mallorca is particularly popular, although Menorca and Ibiza also attract overseas property purchasers.

Average property prices: The average advertised price across the Balearic Islands reached approximately €5,593 per square metre in September 2026. An 80 m² property at that rate would cost around €447,000, with premium locations often commanding substantially higher prices.

Getting a mortgage: Because property prices can be high, buyers should calculate their deposit and purchase costs carefully. A Spanish lender will assess whether your income comfortably supports the mortgage, including where your salary or other earnings are paid in a foreign currency.

5. The Canary Islands – Tenerife and Gran Canaria

The Canary Islands are popular with British holidaymakers and property buyers who want a warm climate throughout the year. Tenerife and Gran Canaria offer coastal resorts, residential communities and larger towns with everyday amenities.

Average property prices: Advertised prices across the Canary Islands averaged approximately €3,349 per square metre in September 2026. An 80 m² property at that rate would cost around €268,000, although prices differ between islands and individual areas.

Getting a mortgage: British buyers can investigate non-resident mortgage options for properties in the Canary Islands. The lender will consider your income, deposit, debts and overall financial profile, as well as the property being purchased.

How much deposit do you need for a Spanish mortgage?

If you are buying a property in Spain as a non-resident, you may need a larger deposit than a resident buyer. Some lenders may offer finance of around 60–70% of the property’s accepted value, but the amount varies by lender, applicant and property.

For illustration, if a lender offered 70% finance on a property costing €250,000, the mortgage would be €175,000 and your deposit would be €75,000.

You should also budget separately for purchase taxes, legal fees, valuation costs and other transaction expenses. These vary depending on the property, location and whether you are buying a new-build or resale home.

Can you get a Spanish mortgage if you earn in pounds?

Yes. Some Spanish banks offer mortgages to British buyers who receive their income in pounds sterling (GBP). Depending on the lender, applications may also be considered where income is earned in other foreign currencies.

However, not every bank accepts every currency. Lenders may apply exchange-rate adjustments when calculating eligible income, so it is important to confirm their current criteria before relying on a particular income source.

You will typically need to provide identification, proof of income, bank statements, tax returns, details of existing loans and other financial documents. Self-employed applicants may need to provide additional evidence.

Should you get a mortgage in principle before finding a property?

Getting an initial mortgage assessment before you start viewing properties can help you establish a realistic budget and understand the likely deposit required.

Once you find a suitable property, the lender will normally carry out a fuller assessment, including a valuation of the property, before making a final mortgage offer. An initial indication of borrowing is not a guarantee of approval.

Start planning your Spanish property purchase

Whether you are considering the Costa Blanca, Costa del Sol, Murcia, the Balearic Islands or the Canary Islands, the right mortgage can help you plan your purchase around your budget and financial circumstances.

Before committing to a property, compare mortgage options, confirm how the lender assesses your income and make sure you have sufficient funds for both your deposit and buying costs.

Thinking about buying a property in Spain? Explore your Spanish mortgage options early so you can understand your potential borrowing capacity before making an offer.

Property prices are indicative advertised averages from September 2026, not guaranteed sale prices or valuations. Mortgage availability, loan-to-value limits and eligibility are subject to individual lender criteria. Seek independent legal and financial advice before committing to a purchase. This article is for information purposes only.