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Spain has long been one of the most popular expat destinations in Europe and worldwide. There is something to suit everyone in this warm friendly country with rich cultural and natural heritage. The Alicante coast, traditionally called Costa Blanca, stands out for its beautiful beaches, coves with crystal clear waters, the local gastronomy based in fresh sea food and eco-grown farm products, and exceptionally pleasant climate with abundance of sun and absence of winter. It´s home for most renowned spa resorts, golf-courses, tennis clubs and yachting marines, as well as for some of the most spectacular villas in Spain.

If you are moving to Spain as a foreigner, you may want to know which are the best ways to create a new home away from home. The most common doubt is whether you should buy or rent. 

Is it better to rent or to buy in Spain?

On the one hand, buying a home in Spain requires a significant initial input of money. 

On the other hand, the more favorable market is for buying due to the low price-to-rent ratio.

Residential rent prices in Spain have been consistently rising in the past few years. Despite COVID-19, Spain has witnessed the highest rises in rent since April of 2020. The amount of renters in municipalities like Alicante is rapidly growing, the affordable housing options being scarce. 

According to recent statistics, it is far cheaper to pay a mortgage than to pay a rent.

At the same time, the banks have significantly tightened lending requirements which put granting of new mortgages in jeopardy.

There´s an affordable and adequate solution to this – rent to buy leasing option.

What is rent-to-buy

Rent-to-own arrangement is an alternative to traditional home loan. The contract is much like a regular long-term lease. The difference is that it gives the lessee the exclusive right to purchase the property for agreed price at a specified future point. A portion of the money is paid up front (typically around 10-20% of sale price), and the established monthly rent also goes toward the purchase price. Agreements typically range from one to five years.

Both buyers and sellers can benefit from these arrangements.

Buyer´s benefits:

  • You don´t lose your monthly rent payments. Instead you gradually contribute toward your new home purchase.
  • You secure your future purchase now and finish it when you are in stronger financial position.
  • If you are not qualified for a mortgage by a Spanish bank, you can gain time and build your credit history, in order to get a loan later when it´s time to buy.
  • You avoid growing pricing pressure as you can buy a property in the future at today´s price. If the market drops, you have an option to back out.
  • You get to know a home before committing to buy it. You figure out the problems before it´s too late.


Seller´s benefits:

  • You can earn rental income while selling your property.
  • Rent-to-own down payment provides both immediate income and security. 
  • You can start investing in your new residence before you sell your current one. 
  • You can market to a wider range of customers, including both prepared buyers and renters.
  • You can ask for a higher rent as renters contribute towards the purchase of their new home. 
  • Entering rent-to-own contract usually waves agency rental maintenance fee.
  • Renters are more motivated to pay on time. If you don't pay rent on time, you may lose the right to purchase.
  • Potential buyers are more likely to maintain and upgrade residences.


How It Works

  • The buyer and the seller agree to certain terms that fit everyone’s needs.
  • A purchase price is established, as well as the amount of monthly rent.
  • A rental term is established, typically it´s 2 years.
  • The buyer makes a non-refundable upfront down payment, usually 10% of the agreed purchase price. This payment gives the buyer an option to buy the home; it is applied to the purchase price. It´s also a guarantee that the seller doesn´t sell the property to anyone else until the rental agreement expires.
  • The monthly rent is usually credited to the final purchase price.


If you are interested to rent with an option to buy, please get in touch with us for more information. We provide a wide array of residential properties available both for sale and rent. Our team includes professional brokers, legal advisers, and bank consultants. You will be attended in your home language. Besides Spanish, our agents speak English, French, Italian, German and Dutch.

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