Italy or Spain – where is it more profitable to buy real estate in 2025?

In 2025, Italy and Spain remain among the most attractive destinations for real estate purchases in Europe. Both countries offer numerous advantages for buyers, whether it’s for investment, a holiday home, or permanent residence. However, the choice between them depends on various factors, such as the purpose of purchase, budget, and personal preferences.
Real Estate Market in Italy
Italy attracts buyers with its cultural heritage, exquisite cuisine, and picturesque landscapes. Among the most popular regions are Tuscany, Liguria, Lombardy, as well as the islands of Sicily and Sardinia.
Advantages:
1. Affordable prices in provincial areas. Small towns and villages offer numerous property options at significantly lower prices than major European capitals.
2. Historical and cultural value. Many properties are architectural landmarks, making them attractive for restoration and use, for example, as hotels.
3. Special programs. Italy offers initiatives like “Case a 1 euro,” allowing buyers to purchase homes for a symbolic price on the condition of restoration.
4. Quality of life. Italy is renowned for its comfortable climate, delicious food, and high-quality healthcare.
Disadvantages:
1. High taxes. Property taxes and rental income in Italy can be significant.
2. Complex bureaucracy. The process of buying property in Italy can take more time due to local legal peculiarities.
3. Economic instability. The Italian real estate market is susceptible to economic crises.
Real Estate Market in Spain
Spain is famous for its warm climate, beautiful beaches, and developed infrastructure. Among popular regions are Catalonia, Andalusia, and the Canary Islands. Spanish real estate remains in stable demand among foreigners, especially Britons, Germans, and Russians.
Advantages:
1. Affordable prices on the coast. In areas like Costa Blanca, Costa Brava, and Costa del Sol, you can purchase quality apartments and villas at reasonable prices.
2. Stable rental demand. Tourist traffic makes short-term rentals a profitable and stable income source.
3. Market recovery. After the 2008 crisis, the Spanish real estate market has shown steady price growth.
4. Simplified purchase process. Transactions in Spain are considered faster and more straightforward than in Italy.
Disadvantages:
1. Seasonal rental income. Income from short-term rentals depends on the tourist season, which may affect profitability.
2. High competition. Spain’s popularity among investors leads to increased competition.
3. Price increases in major cities. In places like Barcelona and Madrid, property prices continue to rise.
Key Factors Comparison
1. Property prices.
In Italy, more affordable housing can be found in the provinces.
In Spain, property prices are slightly higher on average but are offset by high rental demand.
2. Investment attractiveness.
Spain wins due to stable tourist traffic and an active rental market.
Italy is appealing for long-term investments, especially in properties with historical value.
3. Taxes and maintenance costs.
In Spain, property and rental income taxes are lower than in Italy.
Maintenance costs are similar in both countries.
4. Climate and lifestyle.
Italy offers a variety of climate zones: from Alpine climates in the north to Mediterranean in the south.
Spain is known for its mild climate and many sunny days.
5. Bureaucracy and legislation.
The property purchase process in Spain is more straightforward and less time-consuming.
In Italy, purchasing can be accompanied by challenges related to local bureaucracy.
Recommendations for Buyers
For Investors:
• If your goal is rental income, Spain could be the optimal choice due to stable tourist demand.
• For those looking for long-term investments, Italy offers exciting opportunities, including the purchase of historical properties.
For Personal Use:
• Italy is ideal for those dreaming of life in a village or a home with historical charm.
• Spain is suitable for lovers of beach holidays and modern amenities.
The choice between Italy and Spain depends on your priorities. Italy offers affordable prices and unique historical properties. Spain provides stability, a simple transaction process, and rental income opportunities. Before making a decision, research the market and consult with local experts. Regardless of your choice, both countries have their unique advantages and can be excellent locations for purchasing real estate.