With its convenient digital nomad visa, low cost of living and plenty of warm sunny days, Spain is a popular destination for those looking to live and work remote for an extended period of time.
Lately though, the number of travelers, expats and digital nomads heading to Spain during the summer months has led to astronomical rent increases for the popular short-term rentals across the country.
In response to the escalating cost of living increases, local residents have pushed back against the short-term renters accusing them of being the reason behind the rent increases and lack of availability.
However, it is digital nomads looking to work remote in the country who are also struggling to keep up with the rapid increase in prices.
Housing Prices Escalate
Spain used to be known as an affordable slice of the European lifestyle. Low priced food, cheap transportation, fast internet, and plenty of beaches to work remote.
However, that is quickly disappearing as more and more Americans recognize the country as an expat haven and push up the cost of living, even in some of the most remote spots of the country.
In fact, according to an article in the Spanish newspaper El País, in “Andalusia, the Balearic Islands, the Canary Islands and Cantabria, the average rental price exceeds 30% of the net income of households.”
Even away from the popular Mediterranean coastline of Spain, the cost of living is even escalating in small Northern Spain cities.
In many towns in the region, €500 would have been a reasonable amount of rent to pay for a pretty nice apartment or small home in Northern Spain and digital nomads had plenty to choose from.
Today, there is maybe one available at that price and El País adds that it is most likely run down, with bad windows and no heat for the winter. That’s in a small city and not even a large popular tourist town.
Gentrification by Tourism
According to Former Director of the UNESCO Housing Chair at the Rovira i Virgili University of Tarragona, Sergio Nasarre, in a news report on the issue, “For three or four years we have been witnessing a second gentrification of people who were already expelled from the city centers to the periphery and now find themselves expelled from there to a second circle or even beyond.”
He added that the record for highest number of home purchases by foreigners in Spain in one year was shattered in 2023 and has multiplied by four in the last 15 years.
Where is Affordable Nomad Housing?
Digital nomads looking for the most affordable housing in Spain will definitely want to scratch Madrid off the list, where the average rent to income ratio is nearly 45 percent. It is the highest ratio in the entire country.
Unfortunately for remote workers, the Bank of Spain survey only shows two regions of the country where the price of housing is still reasonable at 30 percent of the average income or less – Aragón and La Rioja.
The Aragón region is northeast of Madrid and sits in the mountains essentially behind Barcelona and Valencia. The major city in the region is the capital city of Zaragoza with about 700,000 people.
Adjoining Aragón to the northwest is the region of La Rioja. It is a predominantly rural region well known for its wine production. The largest city in the region is the capital of Logroño with slightly more than 150,000 people.
Tips for Nomads
If your vision of a digital nomad lifestyle in Spain is finding a cheap beach flat on the Costa Brava, you will need to rethink your plans.
The popularity of Spain for short term residents, such as remote workers, has put the cost of living in Spain nearly out of reach for locals, in addition to many digital nomads.
Unless you plan to spend a significant amount of your remote income on rent, you may want to select the Spanish mountain regions of Aragón or La Rioja or consider another country for your digital nomad lifestyle instead.