Spain wins in the European game of lifestyle and investments

According to the Knight Frank European Lifestyle Report 2025, Spain belongs to the absolute top of Europe when it comes to lifestyle, relocation, and investments in prime real estate. Madrid and Barcelona benefit from the urban “post-pandemic revitalization,” the Balearics and Marbella hold strong positions among non-metropolitan destinations, and tax advantages in selected regions further attract HNWI capital. The effect? Spain not only competes – it wins the European game for lifestyle, investments, and globally mobile wealth.

Spain in the top 5 when it comes to lifestyle and investments

Knight Frank indicates that in the grand picture of wealthy relocation, Spain sits in the European top 5 alongside Monaco, Switzerland, Italy, and Portugal. Importantly, no country has so many regions in the top five as Spain – a clear signal of diversified advantages: from metropolises, to islands, to the coast. In the city rankings Madrid ranks 3rd (average livability score 6.76), and Barcelona 5th (6.13), confirming the renaissance of urban life driven by culture, convenience, and excellent international connections. 

In non-metropolitan destinations, the Balearics rank 5th, just behind icons like Chamonix, Verbier, Tuscany, and the Algarve. Marbella also stands out as one of the most desirable hubs along the Mediterranean – the advantages include top international schools, mature infrastructure, and a vibrant expatriate community.

Why Spain? Advantages that are not easy to copy

• Climate and lifestyle 365 days a year: a combination of sun, gastronomy, sport (golf, sailing, cycling, tennis and padel) and culture creates a real premium for quality of life, which materializes in prime prices.
• Infrastructure and connectivity: long-haul flight network, marinas, highways and high-speed trains – that’s the logistics of everyday convenience.
• Mature local markets: Madrid, Barcelona, the Balearics, Marbella function as parallel demand poles with their own service ecosystems, ensuring liquidity and cyclical resilience.
• International communities: facilitate adaptation, provide secondary demand and stabilize expectations regarding standards.
• Tax incentives in selected regions: according to Knight Frank, including Madrid, Andalusia and the Balearics offer 100% exemption from wealth tax, which has a significant impact on HNWI relocation decisions. (Unfortunately there is a centrally imposed solidarity tax that applies to HNWI in Spain regardless of nationality).

Cities back in the game: Madrid and Barcelona

The report highlights a “post-pandemic urban revival” – a return of the trend for living in well-connected, cultural metropolises. Madrid ranked 3rd in the ranking of European livable cities, and Barcelona 5th.

Prime price increases through Q2 2025: Madrid +6.4% year-on-year, Marbella +5.7%, Barcelona +2.0% – with projections of further, stable growth in 2026 according to Knight Frank. With transaction costs around 7–15% for residents and prime price bands from about €8,400/m² in Barcelona to >€14,000/m² in Madrid, capital entry remains attractive compared to the Alps or the French Riviera. 

What does it mean operationally?

The role of qualitative “asset picking” is growing: high selectivity of addresses, building condition, exposure, and services (concierge, gym, pool, security). In central Madrid, projects are emerging that combine history with a new ESG standard; in Barcelona, demand is for apartments with terraces and views, with excellent access to beaches and the airport. And on the Costa del Sol, the so-called Branded Residences are thriving.

Balearics and Marbella: the island and Andalusian “sweet spot”

The Balearics (Mallorca, Ibiza) are attributed to 5th place among non-metropolitan destinations. This is a rare combination of natural beauty, year-round calendar, and developed premium-service infrastructure. In practice this means:

• Steady year-round demand: not only seasonal, but a full Mediterranean lifestyle year-round, with an increasingly large base of permanent residents and digital nomads.
• Limited supply: coastal belt, views, plots in top neighborhoods — a rarity that always holds up to demand.
• Yachting and wellness ecosystem: premium-class marinas, clinics, high-end gastronomy, art and design.

Marbella, on the other hand, is an icon of the western Costa del Sol, one of the most attractive Mediterranean hubs: international schools, excellent roads, quick access to Malaga airport, golf clubs, and a strong expatriate community. Price growth +5.7% year-on-year in Q2 2025 indicates a healthy balance between demand and supply in the prime segment.

Spain as a capital-safe haven in the EU?

The growing importance of Spain is not just a trend. It is the result of the convergence of trends: quality of life, legal security at the EU level, developed infrastructure, and, importantly, the predictability of international demand. On the pricier markets (the Alps, the French Riviera), Spain offers a relatively favorable entry threshold, which in times of higher rates and selective capital increases its attractiveness.

Additionally, data from the Knight Frank report suggests further stabilization of growth in 2026, which creates a calmer environment for long-term investors. For HNWI, the key becomes qualitative strategies: buy uniqueness, buy service, and buy addresses with liquid secondary markets.

How to invest: practical tips for HNWI

• City vs. coast: in Madrid and Barcelona, micro-location and building standard prevail; in Marbella and the Balearics, exposure, view, privacy, and access to the marina and schools.
• Tax and legal due diligence: verify regional tax incentives and residency status; in island destinations check licenses and planning restrictions.
• ESG and technology: passive houses, photovoltaics, water recovery, smart home systems – these are already essential elements, not marketing add-ons.
• Exit strategy: choose markets and assets with proven liquidity (Salamanca, prime Eixample, Golden Mile, coastal belt, Son Vida, Talamanca) to maintain flexibility over time.

Spain’s Winning Puzzle

Spain combines what today’s wealthy, mobile capital pays for: an uncompromising lifestyle, developed infrastructure, and a predictable growth path for the prime segment. With cities regaining appeal, islands at the top of wish lists, and Costa del Sol as a pillar of the Mediterranean lifestyle, the competitive advantage seems solidified. No wonder that, as the Knight Frank report shows, it is Spain that wins the European game for lifestyle and investments.

Sources: Spanish Property Insight & Knight Frank Report 2025

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