The housing crisis, the “American price” trap, hidden relocation costs, the “expat tax”, and what I wish every family knew before moving to Spain.

Let’s be honest, when I moved to Spain with my children, I wasn’t thinking about how my American dollars might affect the local economy.

I was thinking about affordability.

I was thinking about my kids’ immersion.

I was thinking about schools.

I was thinking about safety.

I was thinking about finding an apartment, figuring out residency, getting our paperwork together, learning how Spanish schools work, and trying to build a life in a country where I had never lived before.

Like most Americans relocating to Spain, I was also doing the math.

What does this cost in Spain compared with what I’m used to paying in America?

And that is where I think we need to have a much bigger conversation.

Because Spain can be very affordable for an American earning an American income.

But that doesn’t necessarily mean it is affordable for the people who already live here.

And if thousands of Americans and other higher-income foreigners arrive thinking, “Wow, this is so cheap!” and then start offering what feels reasonable to us, we can unintentionally become part of the very affordability problem that made Spain so attractive to us in the first place.

This isn’t an anti-American argument.

I’m here.

I’m raising my children here.

I want Americans to be able to move to Spain.

I just want us to move here with our eyes open.

Because moving abroad isn’t only about getting a visa and finding a beautiful apartment.

It’s about understanding the place you’re moving into, and understanding how your money, expectations, and decisions affect the community you’re joining.

First: Americans Did Not Create Spain’s Housing Crisis

Let’s get this out of the way.

Americans are not responsible for Spain’s housing crisis.

Spain’s housing problems are much bigger and more complicated than American immigration.

There are structural housing shortages, rising demand, limited affordable housing, tourism pressure, short-term rentals, investment activity, population changes, and major differences between housing costs and local incomes.

The OECD has identified a significant housing supply shortage in Spain and particularly strong affordability pressures in urban and tourist areas.

So I’m not interested in blaming immigrants for a problem that clearly existed before most of us arrived.

But there’s another uncomfortable truth we need to be willing to acknowledge:

Foreign demand can still add pressure to already expensive markets.

Mexico, Colombia, Portugal, and Panama are becoming less affordable as a record number of Americans relocate abroad. This influx drives up local living costs and housing prices. Gentrification is not an Americans abroad problem, but we are too familiar with it in the U.S.

In 2025, foreign buyers accounted for 13.8% of property transactions across Spain; nearly 97,500 properties.

But that national number doesn’t tell the whole story.

In Alicante province, where I live, foreigners represented 43.29% of property transactions in 2025.

Málaga was nearly 33%.

Santa Cruz de Tenerife was about 30%.

The Balearic Islands were nearly 30%.

Las Palmas was more than 21%.

That’s not an argument against foreigners.

It’s an argument for understanding the market you’re entering.

The “It’s Cheap Compared to America” Trap

This is one of the biggest mistakes I see Americans make when they start researching Spain.

You find a beautiful apartment for €1,800 a month.

Your brain immediately says:

“That’s a steal. I was paying $3,500 back home.”

Or you see a €350,000 house and think:

“This would easily be $700,000 where I came from.”

And you’re probably right.

But here’s the problem:

You’re comparing Spain to America instead of comparing Spain to Spain.

The person you’re competing with for that apartment may not be earning an American salary.

They may be earning a Spanish salary.

And when an American renter says:

“I’d gladly pay €300 more. It’s still cheaper than New York.”

that decision doesn’t exist in a vacuum.

If enough people do it, the market learns that somebody is willing to pay €300 more.

Then the next listing reflects it.

Then the landlord sees what the market will tolerate.

Then another landlord follows.

And suddenly what was “cheap for Americans” isn’t affordable for the person who actually works in that neighborhood. And eventually, which is currently happening, everyone will be affected.

That’s why I tell families:

Don’t bring American housing-market psychology to Spain.

Before you rent or buy, learn:

Average rent in the neighborhood
Average price per square meter
Comparable properties
Local wages
How long comparable properties typically stay on the market
Whether the area is heavily dependent on foreign demand
Seasonal rental patterns
Whether you’re looking at long-term or temporary housing
What utilities and community fees are included
What you’re actually getting for the asking price

Don’t just ask whether you can afford it.

Ask whether you’re paying the local market rate.

Americans Can Overpay Without Even Realizing It

And this is where I think relocation education is desperately needed.

Most people aren’t intentionally trying to overpay.

They’re simply inexperienced.

You move from the United States.

You don’t speak fluent Spanish.

You don’t know the neighborhoods.

You don’t know what a normal rental contract looks like.

You don’t know whether €2,000 is a fair price or an “I know you’re American” price.

And suddenly you’re negotiating in a market you don’t understand with significantly more purchasing power than many local residents.

That’s a recipe for overpaying.

And I’ve seen the same pattern happen outside of housing.

The Hidden “Expat Tax” Nobody Puts on Your Relocation Budget

I’m not talking about a formal Spanish government tax called the “expat tax.”

I’m talking about something I think every relocating family should understand:

Sometimes being an expat simply costs more.

Sometimes it’s because you’re paying for convenience.

Sometimes because you’re buying a specialized service.

Sometimes because you need someone who speaks English.

And sometimes because you simply don’t know the local price yet.

I’ve experienced this myself.

My hair salon is a perfect example.

I now pay 52% more than I was paying last year for the same services.

Could that entire increase be because I’m American?

I can’t prove that.

And I wouldn’t make that accusation without evidence.

But it made me realize something:

I had stopped paying attention to the market.

That’s the dangerous part.

When you’ve moved from America, and you’re still mentally converting everything into dollars, you can miss price increases that would have immediately caught your attention back home.

You think:

“It’s still cheaper than America.”

Meanwhile, you’re paying substantially more than you used to pay locally.

That’s not sustainable relocation planning.

I am personally no longer participating in overpaying simply because its less expensive than the U.S., inadvertently causing a problem for the locals.

That goes for tipping too!! No one tips in Spain because workers are paid living wages; tipping will confuse and eventually lead employers to think they can pay less and subsidize with tipping. You know how that went in the U.S.!

The English-Speaking Premium Is Real, Even When It Isn’t Called That

Here’s another one families don’t budget for.

You move to Spain and suddenly need:

A plumber
Electrician
Handyman
Cleaner
Babysitter
Tutor
Lawyer
Accountant
Tax advisor
Realtor
Contractor
Hairdresser
Mechanic
Childcare
Someone to assemble furniture

And because your Spanish isn’t strong enough yet, you search for:

“English-speaking handyman Alicante.”

Or:

“English-speaking babysitter Valencia.”

Or:

“English-speaking accountant Madrid.”

You have just narrowed your market.

And specialized services for international clients can cost more.

Again, that doesn’t automatically mean someone is exploiting you.

Sometimes you’re paying for bilingual communication, specialized expertise, convenience, or a service designed specifically for expats.

But you need to know the difference between:

“This service is genuinely more specialized.”

and

“I’m paying more because I never bothered to learn the local market.”

That’s a very expensive distinction.

International Schools Are Another Budget Trap

This one is especially important for families moving to Spain with children.

You search:

International school Barcelona

You find the tuition.

You do the math.

You think:

“Okay, €900 a month. That’s manageable.”

Then you actually start the enrollment process.

Suddenly you’re looking at:

Enrollment/matrícula fees
Registration fees
Application fees
Insurance
Lunch/comedor
School transportation
Uniforms
Books
Technology fees
Trips
Exams
After-school activities
Deposit or other enrollment charges

And suddenly your “€900/month school” is costing considerably more.

Published international-school pricing can materially understate the actual family budget once enrollment, transportation, meals, uniforms, and other mandatory or common expenses are added. Current 2026/27 comparisons on the Costa Blanca and Costa del Sol, for example, show thousands of euros in additional annual costs beyond headline tuition at some schools.

Never budget for international school based on tuition alone.

Ask for the complete annual cost in writing.

Not:

“How much is tuition?”

Ask:

“What is the total estimated annual cost per child, including every mandatory fee and required service?”

That question can save you thousands.

And Then There’s the Tax Situation Americans Forget About

Here’s another massive relocation mistake:

Moving to Spain does not mean you’re done with American taxes.

If you’re a U.S. citizen living abroad, the United States generally continues to tax you on your worldwide income, and you generally continue to have U.S. filing obligations.

Depending on your circumstances, you may also have foreign financial account reporting obligations such as FBAR and potentially Form 8938.

That doesn’t necessarily mean you’ll pay tax twice.

Foreign tax credits and other provisions may reduce or eliminate double taxation in particular circumstances.

But filing and owing are not the same thing.

And Spain has its own tax residency rules.

For example, Spain generally considers an individual tax resident when they spend more than 183 days in Spain during the calendar year, subject to the applicable rules and circumstances.

There is also a special tax regime for certain individuals who become Spanish tax residents because of qualifying relocation circumstances, commonly known as the Beckham Law regime. It has specific eligibility requirements and isn’t something every American moving to Spain automatically qualifies for.

Translation:

Don’t build your relocation budget around TikTok tax advice.

And don’t assume:

“I still get paid from America, so I’m an American taxpayer and Spain doesn’t matter.”

Your residency, income structure, visa, employment situation, business structure, investments, and time spent in each country can all matter.

Get qualified U.S.-Spain cross-border tax advice right when you move, not after you’ve created a mess.

Your “Cheap Spain” Budget Can Disappear Very Quickly

This is why I tell families that a Spain relocation budget should have two columns.

The Spain You See Online:

€1,200 apartment
€50 dinner
€40 haircut
€900/month international school
€30 babysitter
€50 handyman
€10 taxi

Looks amazing.

Your Actual Spain:

€1,800 apartment because you need a specific neighborhood near the school

community fees
utilities
internet
insurance
transportation
school matrícula
school meals
school bus
uniforms
childcare
English-speaking services
tax preparation
immigration attorney
translations
document legalization
flights back to the U.S.
unexpected medical/dental expenses
deposits
furniture
household setup
higher seasonal prices

And suddenly that “cheap life in Spain” looks very different.

This is why I don’t teach families to move to Spain based on an internet cost-of-living calculator.

Your actual cost of living depends on how you live.

Before You Choose a City, Do the Math Backward

This is one of the biggest pieces of relocation advice I wish more families followed.

Don’t choose:

City → apartment → school → figure out the budget.

Do this instead:

1. Determine your realistic monthly income.

Not your American salary converted into euros.

Your after-tax, usable household income.

2. Determine your children’s schooling situation.

Public?

Concertado?

Private?

International?

3. Determine your actual housing requirements.

How many bedrooms?

Do you need an elevator?

Air conditioning?

Parking?

Walkability?

Near school?

Near public transportation?

Beach?

Central?

Quiet?

4. Research 3–5 neighborhoods.

Not just cities.

Neighborhoods.

5. Compare actual listings.

Look at what people are really asking, not what an influencer says it costs.

6. Add the invisible expenses.

School fees.

Insurance.

Transportation.

Childcare.

Taxes.

Healthcare.

Professional services.

Flights home/vacation.

7. Then decide where you can actually afford to live.

This is how you stop choosing a Spanish city based on a fantasy and start choosing one based on your family’s reality.

Sometimes the Most Affordable Neighborhood Isn’t the One on Your Pinterest Board

This is where Americans have an enormous advantage.

We often have geographic flexibility.

If you’re working remotely, you may not need Madrid.

If you’re studying, you may not need Barcelona.

If you’re looking for beach life, you may not need the most expensive coastal neighborhood.

If your children are in public school, you may have significantly more flexibility than a family tied to an international-school campus.

And if you aren’t looking for the “expat experience,” you can often discover neighborhoods and cities that aren’t being marketed to Americans at all.

That’s where knowing the market becomes powerful.

Instead of asking:

“Where do Americans move to Spain?”

ask:

“Where does my family actually make sense?”

That’s a completely different question.

And Please Don’t Buy a House Because Spain Looks Cheap

This is where I want Americans to slow all the way down.

Spain’s property market is not a clearance sale for Americans.

Foreign buyers purchased nearly 97,500 properties across Spain in 2025, representing 13.8% of all transactions. And in some markets, foreign participation is dramatically higher.

American buyers have also been among the foreign nationalities paying the highest average price per square meter. In the second half of 2024, U.S. buyers paid an average of about €3,390/m², the highest among the nationalities in the cited notarial comparison.

More recent data found non-resident foreign buyers paying substantially more per square meter than Spanish nationals on average. Meaning, you’re getting jypped! Google it.

That doesn’t prove every American is overpaying.

But it should make you ask:

“Am I buying at a price supported by the local market, or simply a price I can afford?”

Those are not the same thing.

My Advice?

Rent First. Learn First. Buy Later.

If you’re moving to Spain with children, I strongly believe there is enormous value in renting before buying.

Not because buying is bad.

Because your first Spanish home should not necessarily be your forever Spanish home.

Rent long-term (12-month minimum).

Learn the neighborhood.

Learn the schools.

Learn your children’s routines.

Figure out whether you actually like the area in August and January.

Figure out transportation.

Figure out grocery costs.

Figure out whether you want a car.

Meet your neighbors.

Learn enough Spanish to stop depending on everyone else.

Then, if buying makes sense, you’ll make a much more informed decision.

And you may discover that the neighborhood you thought you wanted isn’t where your family actually wants to live.

If You Love Spain, Don’t Help Turn It Into Somewhere Locals Can’t Afford

This is the part I keep coming back to.

When I saw what happened to Maricarmen, the 87-year-old Madrid retiree whose eviction became a symbol of Spain’s housing crisis, I didn’t just see another housing story.

I saw a reminder that housing isn’t just an investment.

It’s somebody’s home.

And the response from her neighbors touched me just as much.

People showed up.

People cared.

People fought for someone in their community.

That’s the kind of community I want my children to grow up around.

And if Spain has welcomed my family, I don’t want to come here and behave as though the only thing that matters is whether I can afford it.

I want to know:

What does my presence mean for the community I’m joining?

That doesn’t mean I should never rent an apartment.

It doesn’t mean I should never buy property.

It doesn’t mean Americans shouldn’t move here.

And it doesn’t mean every foreigner is responsible for rising prices.

It means we should pay attention.

The New Expat Mindset: “I’m a Neighbor Now.”

This is the mindset I wish more people adopted when moving abroad with kids.

You aren’t just an expat consuming a cheaper lifestyle.

You’re becoming somebody’s neighbor.

Your children are entering somebody else’s school system.

You’re shopping in somebody else’s neighborhood.

You’re renting somebody’s apartment.

You’re hiring somebody’s services.

You’re taking up space in somebody’s community.

And eventually, you may become the person telling another newcomer:

“Here’s how things work around here.”

That means we have a responsibility to learn before we take.

To listen before we assume.

To understand before we spend.

And to stop treating every difference between America and Spain as an arbitrage opportunity.

My “Move to Spain Without Accidentally Becoming Part of the Problem” Checklist

Save this. Send it to the family member who’s planning their Spain move.

🏠 Housing

☐ Research average rents by neighborhood, not just city.

☐ Compare €/m².

☐ Look at multiple listings before making an offer.

☐ Don’t automatically offer more because it’s “still cheaper than America.”

☐ Rent before buying whenever your circumstances allow.

☐ Understand whether you’re entering a high-pressure foreign-investment market.

☐ Think twice before buying a home solely as a speculative or tourist-rental investment.

💰 Your “Expat Tax”

☐ Compare prices at multiple local businesses.

☐ Ask Spanish-speaking friends for local recommendations.

☐ Don’t assume English-speaking services are the normal local price.

☐ Learn enough Spanish to shop and negotiate independently.

☐ Track your recurring expenses after the first 3 months.

☐ Reassess prices instead of assuming everything is still “cheap.”

👧🏽 Your Kids

☐ Research public, concertado, private and international options.

☐ Get the total annual school cost, not just tuition.

☐ Ask about matrícula.

☐ Ask about insurance.

☐ Ask about transportation.

☐ Ask about meals.

☐ Ask about uniforms.

☐ Ask about books and technology.

☐ Ask about extracurriculars and trips.

☐ Calculate the cost for all of your children, not one.

🇺🇸 Taxes

☐ Determine whether you’ll become a Spanish tax resident.

☐ Understand your U.S. filing obligations.

☐ Check whether FBAR/FATCA reporting applies.

☐ Understand foreign tax credits.

☐ Determine whether you qualify for any Spanish special tax regime.

☐ Get professional U.S.-Spain cross-border tax advice.

❤️ Community

☐ Learn Spanish.

☐ Shop locally.

☐ Get to know your neighbors.

☐ Learn how your neighborhood actually works.

☐ Don’t assume your American income makes you entitled to American-style pricing.

☐ Remember that “affordable to me” doesn’t necessarily mean “affordable here.”

Spain Doesn’t Need Us to Be Perfect.

It needs us to be conscious.

I’m not interested in telling Americans:

“Don’t come.”

I’m telling Americans:

Come prepared.

Come understanding the housing market.

Come understanding taxes.

Come understanding schools.

Come understanding the true cost of living.

Come knowing that your dollars can carry more weight here.

Come knowing that being able to pay more doesn’t always mean you should.

Come prepared to learn.

Come prepared to adapt.

Come prepared to be a neighbor.

Because moving abroad with children isn’t just about finding a country where your money goes further.

It’s about building a life somewhere new without forgetting that other people already built theirs there.

Spain has allowed my family to build something different.

And I want to honor that opportunity.

Not by pretending Spain has no problems.

Not by pretending Americans aren’t contributing to some of the pressure.

And not by blaming immigrants for problems that require government and systemic solutions.

But by asking a much more useful question:

How can we move to Spain, build the life we came here for, and leave our communities stronger instead of making them harder for the next family to afford?

That’s the kind of immigrant I want to be.

And that’s the kind of relocation advice I give other families.

Move abroad.

But move responsibly.

Thinking about moving abroad and don’t know where to start?

Check out: The Ultimate Moving Abroad with Kids Checklist

Already ready to make the move?

Move abroad prepared and confident with The Moving Abroad with Kids BLUEPRINT

Get all of your moving abroad questions and concerns answered; gain clarity, and get assistance building a personalized Family Relocation plan, with a 1-on-1 moving abroad consultation call with me HERE

Looking forward to your responsible move abroad!

Cheers to new beginnings!

xoxo,