Looking to buy a home in Spain without spending a fortune? In 2025, it is still possible to find property in the south of the country for under €100,000. But the market is changing fast. While the north and coastal hotspots have become crowded and more expensive than ever before, many towns across Andalusia, Murcia and Extremadura still offer space, character and much better value for your money.
In this post, we explain where to find affordable homes under €100k, what kind of property you can expect, and how new rental rules may affect your plans. We also walk you through the buying process step by step and highlight lesser-known towns that still offer lower prices.
Section 1 Is Southern Spain Still a Smart Buy in 2025?
In 2025, more buyers are starting to look beyond the well-known hotspots in the north of Spain. Cities like Barcelona, Valencia, and areas along the Costa Brava have become crowded, expensive, and difficult for new buyers to enter. Property prices have risen sharply. Rental laws are tighter than ever. And in many places, the market feels oversaturated with holiday homes and investors looking for short-term profit rather than long-term living.
A Different Picture in the South
Southern Spain offers a more balanced option. In regions such as Andalusia, Murcia, and Extremadura, it is still possible to find liveable homes for less than one hundred thousand euros. These may be older village houses with charm and history. Others are small apartments in quiet towns with basic services. Some are even fully ready to move into, offering a low-cost entry into homeownership in the sun.
Why Prices Are Still Low
The main reason these areas remain affordable is simple — they have not been overrun by mass tourism or short-term rental investors. That means you can find more space, more peace, and more value for your money. The cost of living is lower than in the north. The climate is still sunny. And many towns now have fast internet, bus connections, and good access to airports, even if they are not typical tourist destinations.
Lifestyle That Suits Long-Term Living
Another reason buyers are turning south is the lifestyle. These towns are slower, more personal, and often more welcoming. You are more likely to find local markets, friendly neighbours, and the chance to build a garden or create a guest space. For digital nomads, early retirees, or families looking to downsize, the combination of low costs and a high quality of life is hard to beat.
Local Governments Are Still Buyer-Friendly
While some northern regions are placing restrictions on new rental licenses and foreign investment, many towns in the south continue to support buyers. In some cases, the local government may help you with paperwork or give guidance on how to restore an older property. Rules still apply, but they are often clearer and less strict — especially outside the main tourist areas.
Section 2 Is It Really Possible to Buy a Home Under €100k in 2025?
Yes, buying a home in southern Spain for under one hundred thousand euros is still possible in 2025. But like any serious property decision, the answer depends on where you look, what kind of home you want, and how much work you are ready to take on. You will not get a beachfront penthouse at this price. But if you search in the right areas, you can find solid, liveable homes that offer true long-term value.
Village Houses With Charm and Potential
In many parts of southern Spain, especially inland areas, two or three-bedroom village houses are still available between sixty and ninety thousand euros. These are often older homes with thick stone walls, shaded patios, tiled floors and simple layouts. Some have already been updated with new kitchens or bathrooms. Others may need repairs like modern plumbing or electrical upgrades. Even with some renovation, you still get far more space than in many other European countries at this price.
Detached Villas Under €100,000
If you are looking for a bit more space and privacy, southern Spain still has options. In the Mazarrón region of Murcia, for example, you can find detached and semi-detached villas in urbanizations where prices are often around €100,000. These homes usually come with two bedrooms, a private garden, and a rooftop terrace. Some even include extras like a small pool, private parking, or a shaded patio.
Urbanizations like these were built with long-term living in mind. The streets are wide, the layouts are practical, and you often find useful services nearby. Supermarkets, small health clinics, and local bars are usually within a short drive. In many cases, you will also find English-speaking staff or neighbours, which can be helpful if you are still learning Spanish.
I came across Mazarrón during my search, and while it is not the only place with affordable villas, it is a good example of what to expect. There are other urbanizations across the south with similar prices and features.
It is also worth noting that living in a planned community usually comes with extra costs. You may need to pay a community fee to cover shared infrastructure and maintenance.
Lesser-Known Budget Towns
Beyond Mazarrón, towns like Vélez-Rubio, Iznájar, and Lorca offer attractive homes under the €100,000 mark. If you want even more value for money, Extremadura is worth looking at. In this lesser-known part of Spain, it is still possible to find large country houses with land and mountain views for under €80,000. These properties usually need more work, but for buyers who are ready to invest time and effort, the potential is there.
Budget-Friendly Apartments
For those who prefer a home with fewer maintenance demands, small apartments can be a smart choice. In many quiet towns across southern Spain, you can still find one or two-bedroom apartments for under €70,000. These homes are often in good condition, close to shops and public transport, and need little or no renovation. They may not include outdoor space, but they are ideal for part-time living or as a rental property.
Total Costs Are Higher Than the Price Tag
While the listing price may look low, remember to plan for the total cost. You should add around ten to twelve percent for taxes, legal fees, and the notary. If you plan to renovate, expect to invest another €10,000 to €30,000 depending on the size of the job. Light upgrades like painting and fixtures can be done for less, but full renovations will cost more.
In the next section, we will explain how the updated rental laws for 2025 may affect your plan, especially if you want to rent out your new home as a short or long-term investment.
Section 3 Understanding the Updated 2025 Rental Rules
As of April 3, 2025, there is an important update to the Ley de Propiedad Horizontal (Horizontal Property Law). Apartments in shared buildings can only be used as short-term holiday rentals if 60 percent of the co-owners approve. In addition, the community may increase shared maintenance costs by up to 20 percent for those rental units. This rule is designed to reduce nuisance and protect long-term residents. The change only applies to properties with shared common areas. Detached homes or villas in rural locations, such as in parts of southern Spain, are usually excluded from this rule, since they have no shared spaces. In those cases, neighbour approval is not required.
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From July 1, 2025, a national digital registry for tourist rentals will come into effect, called the Ventanilla Única Digital de Arrendamientos. Every short-term rental will be required to register and display a unique registration number in all advertisements on platforms such as Airbnb and Booking. Without this number, listings may be removed and fines may be issued.
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Summary of the Rule
| Situation | Rule from April 3 | Rule from July 1 |
|---|---|---|
| Apartment in complex | 60% neighbour approval required, up to 20% extra maintenance fee | Digital registration and ID number required |
| Detached rural house | No neighbour approval needed | Only registration required |
| Regional differences | Stricter in Andalusia and Canary Islands | National register, applied differently by area |
Always check with your local town hall to see what applies in your region. Rules differ between autonomous communities and even between towns. In the countryside and many rural areas, regulations are often more flexible than in cities or tourist zones.
Section 4 The Buying Process Step by Step in 2025
Buying a property in southern Spain may feel unfamiliar at first, but the process in 2025 remains clear and manageable. Foreigners are still free to buy property, and many towns across the region welcome international buyers who bring new life to the area. Whether you are buying a home to live in or to rent out, it is important to follow each step carefully and work with professionals who understand the local system.
Start With Your NIE and Bank Account
Before anything else, you will need to apply for a NIE number. This is your foreign tax identification number and is required for all legal and financial activity in Spain. You cannot buy a property, register for utilities, or pay taxes without it. You can apply for an NIE at a Spanish police station or through a Spanish embassy in your home country.
Next, open a Spanish bank account. This will allow you to transfer the money for the purchase and also helps with setting up bills after you buy the property. Most Spanish banks accept non-resident clients and offer English-speaking support.
Get Legal Help From the Start
Hiring a local lawyer or property advisor is one of the most important steps. Your lawyer will help you confirm that the home is legally registered, that there are no unpaid debts, and that the property was built according to regulations. This is especially important in rural areas, where rules about building and land use are more strict. Legal fees are usually between one and two percent of the purchase price, but they can save you much more in the long run.
Secure the Property With a Reservation Contract
Once you find a home you want to buy, you can sign a reservation contract and pay a deposit. This deposit usually ranges between €3,000 and €6,000. It holds the property while your lawyer carries out legal checks. Always make sure this step is handled through your lawyer and that the contract includes refund conditions in case something is not right with the paperwork.
Due Diligence and the Final Contract
Your lawyer will now carry out full due diligence. They will confirm that the seller has the legal right to sell, that there are no mortgages or tax debts, and that everything is properly registered. If the property includes extensions or rural buildings, this step will confirm if they are legal and documented.
Once everything is confirmed, you will sign the escritura de compraventa at the notary office. This is the official sale deed. The notary makes the transaction legal, and you will pay the final amount. From this moment, you are the official owner of the property.
Register the Property and Pay the Taxes
After signing, the property must be registered in your name. Your lawyer or gestor will take care of this. You will also need to pay a transfer tax, which ranges between six and ten percent depending on the region. This, along with the notary and legal fees, brings the total cost of buying to around ten to twelve percent above the purchase price.
Connect Utilities and Final Setup
After the home is officially yours, you will need to connect or update services like electricity, water and internet. In many areas of southern Spain, these services are available quickly, and local support is often offered to help you through the process. This is also the time to set up property tax payments and register with the local municipality if required.
Buying a home in southern Spain in 2025 remains one of the best ways to enjoy the climate, culture and lifestyle without a massive investment. If you stay within budget, plan for all legal and tax costs, and get professional help along the way, the process is smooth and secure. You can read a detailed overview of the full buying process and what to expect by visiting Idealista’s guide.
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Section 5 Where to Look: Areas in Southern Spain
If you are searching for affordable homes in southern Spain in 2025, you will be glad to know that many regions still offer real value for less than €100,000. While the north and coastal hotspots have become crowded and expensive, inland areas in the south continue to attract buyers who want more space, more peace, and less pressure.
A Diverse Landscape With Different Lifestyles
The south of Spain is large and full of variety. You will find quiet farming villages, inland towns surrounded by olive groves, and rural urbanizations where you can still buy a detached home with a garden for the price of a small city apartment. Many of these places were overlooked during the tourism boom and still have plenty to offer today. They are often well connected by roads, near essential services, and full of local charm.
Towns With Extra Housing Supply
Prices are especially accessible in areas with falling population numbers. These towns often have many homes that are structurally sound but need modern updates. If you are willing to renovate, you can find large village homes at a low price. Others may prefer newer properties that are ready to move into. These are also available in peaceful areas just outside major cities.
Great Value in Rural Urbanizations
Urbanizations in southern Spain can be one of the best ways to find budget-friendly properties. Many were built during the early 2000s and were later affected by the financial crisis. Today, you can still find detached villas, bungalows, or townhouses with terraces and gardens for under €100,000. Most of these properties are legal, connected to utilities, and located in friendly mixed communities with both local and international residents.
More Freedom With Fewer Rules
Inland areas often come with more flexible rules. This is especially true compared to tourist-heavy cities and coastal zones, where strict rental laws and community rules now apply. Rural homes are less likely to be part of shared buildings, so you often do not need neighbour approval to rent your property. There are also fewer high community fees, which helps keep long-term ownership affordable.
Peaceful Living With Practical Benefits
These areas are not just cheap — they offer a better lifestyle. The cost of living is low. The pace is relaxed. There is space to enjoy life without noise or pressure. Whether you want a small garden, a place to keep pets, or just a quiet home to enjoy the sun, the south of Spain still delivers in 2025.
Know What You Want Before Choosing
Before you choose your location, make a list of what matters to you. Do you want a garden or room for animals? Are you fine with a short drive to the nearest supermarket? Would you rather avoid renovation, or are you open to fixing up a traditional house? Once you are clear on your needs, it is easier to narrow down the options.
Take Time to Visit and Explore
Always visit in person before you buy. Many towns have their own character. Some feel very local and traditional, while others are more international. Take the time to walk around, speak with residents, and feel the atmosphere. These places may not be in tourist guides, but they offer something much better — an affordable and peaceful life in real Spanish communities.
Section 6 Is Buying in Southern Spain Still a Good Idea in 2025?
In 2025, southern Spain still offers some of the best property opportunities in Europe. But like any major purchase, it is not the right move for everyone. A cheap price does not make the process easy. It takes time, planning, and a clear idea of what kind of lifestyle you want to build.
Prices Are Low, But Costs Add Up
You can still find homes under €100,000, especially in quiet inland areas. But you should expect additional costs. Renovation work can cost between €25,000 and €50,000 if you hire professionals. Doing it yourself is cheaper but requires time and skill. If you want modern finishes or luxury features, you will need a bigger budget. You should also add around 10 to 12 percent in fees and taxes on top of the purchase price.
Work With a Lawyer You Can Trust
This is not a casual buy. It is a long-term decision. That is why working with an independent, well-rated lawyer is essential. Do not rely only on the seller or agent. Your own lawyer will check that the home is legal, confirm there are no debts, and help with every step of the paperwork. A good lawyer gives you confidence and protects your investment.
Talk to Locals and Learn From Others
Spend time in the area before you buy. Talk to people who already live there — both locals and expats. Ask what they love, what surprised them, and what they wish they had done differently. Their insights will help you avoid mistakes and choose a location that fits your lifestyle.
New Rental Laws Are in Effect
Since April and July 2025, short-term rental rules have become stricter in many regions. This helps protect communities and makes living more stable for year-round residents. If you plan to rent your home to tourists, make sure you understand the local rules. Detached houses in rural areas usually face fewer restrictions. For most buyers, the new rules are in most cases not a problem, they just require you to be better informed and prepared.
Join the Conversation
Looking for advice or want to share your experience? Our community forum is the place to ask questions, learn from others, and connect with people across Europe who are also searching for affordable property. Whether it’s about financing, notaries, or renovation tips. You’re not alone. Your story might help someone else too!
