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Spain’s government to approve two new emergency decrees that will spell the end of long-term rentals

Raymundo Larraín Nesbitt, October, 5. 2026

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Article copyrighted © 2026. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
5th of October 2026

 

Introduction

In 1987, Kevin Coster starred in a spy thriller called No Way Out. He was a Russian asset planted in American society as a sleeping agent. No matter what he thought, did, or said, he was trapped. Much in the same way, the Spanish government has painted itself into a corner and is now trapped – with no way out.

The tale started long before May 2023, but for simplicity’s sake, I’ll take that date as our stating point because every good story needs to start somewhere. This is when the government approved the new Housing Act (Law 12/2023). Real estate experts had long warned the government, even from the bill's first drafts, that the proposed measures were going to frighten landlords and that they were going to pull their properties out of the market (reducing the supply stock), resulting in increased rental prices. The government, like a horse with blinders on, ploughed ahead and approved it. As a result, Spain lost over the following years 350,000 long-term rental properties and prices started to skyrocket across the board. This law clearly marked an inflection point in rental prices, driving them steadily upwards, even to this very day.

In view of the unmitigated disaster, and how its measures backfired spectacularly, any sensible government would have conceded defeat, back peddled, and approved different measures to heal and reconduct the ailing rental market – well, not this administration. Not only did they not backtrack, but they also doubled down approving yet more laws that further dwindled supply and further pushed rental prices upwards across the country. And the moral of the story is that you simply cannot go against the laws of demand and supply.

Fast forward to October 2026, and the government approved this week two new Royal Decrees which threatens to kill long-term rentals. These laws were approved in the heat of the moment due to a high-profile eviction of an elderly woman called Maricarmen, aged 87. The government seized the opportunity and took out from the drawer these two draft laws which had been gathering dust for months as they had failed to muster enough political support to approve them.

Long story short, these two emergency decrees are NOT going to fix the long-term rental market – even the government knows this. They are only going to make matters worse, add more legal insecurity and red tape, and will ultimately make rental prices soar to unprecedented levels unseen in peace time as frightened landlords frantically pull out their properties out of the market – yet again.

As I’ve written many times, the problem is that this government makes laws thinking only in half of the country and purposely sidelines the other half. When you pass a law, you pass it for everyone. When you pass laws on rentals, you also need to factor in how landlords are going to react to them; it’s all good and well to approve pro-tenant laws, but when you do so at the expense of other peoples’ private property don’t act surprised if they pull their properties out of the market.

The main issue is that this government carries out lofty social housing policies at the expense of people’s private property again and time again – this is not how life works. These ill-advised housing and rental policies drive landlords out of the market out of fear. And the victims of the government’s misguided housing and rental policies always end up being precisely the vulnerable collectives the government vocally sought to protect: young people, elderly, migrants, and mono parental family units.

But the government already knows this all too well.

If the government *really* wanted to fix the housing market, it could do so. It has all the legal means and tools at its beck and call. After all, the government wields all the power. All they need to do is to either build more social housing and/or facilitate developers build them (increase stock supply), reduce all the unnecessary admin red tape associated to construction drastically cutting down delivery timeframes, lower taxation on property (35% to 50% of house prices are taxes), and thoroughly control migration.

But is the government really interested in fixing the housing market? In my view, the short answer is no.

It’s had eight years to fix it and all it has done is (purposely) make matters worse for everyone, by stifling supply, with every new law it has enacted, including these two emergency decrees. The political reality is that fixing the housing and rental market, as pointed out in previous articles, is not in the best interests of the government and so the circus show must go on.

I’ll collate and abridge below in bullet points the proposed rental novelties so as not to complicate and overextend myself.

First decree

The first decree introduces a batch of measures to alleviate soaring rental prices:

  • Banning all tenant evictions until December 2030 (for those tenants officially labelled as ‘vulnerable’).
  • Banning “vulture funds” (property investment funds) to acquire new property in Spain until the 31-12-2028.
  • Automatic 2-year extensions upon request to long-term rental contracts (safeguarding the contract’s conditions i.e. agreed monthly rental) for contracts ending on or before the 31-12-2028. Landlords may only refuse if they had worded a special clause into their contracts.
  • Long-term tenants may now leave ahead of time (before the contract’s agreed ending) WITHOUT having to compensate their landlord financially unlike now.
  • Imposes limitations to update the monthly rental in line with inflation (inflation officially hit 4.9% in September).
  • Seasonal rents cannot be used outside their purpose (see below), and are limited to 12-month contracts, or under. If they are extended without the proper legal justification, they will be presumed to be long-term rentals with all the associated legal consequences this has. As a gentle reminder, seasonal lets have a limited scope of use:
  1. accommodation required for work reasons, or
  2. a student let, or
  3. medical reasons, or
  4. looking to buy property 
  • Impose price limitations on renting individual rooms.
  • Town halls are now empowered to levy a surcharge of IBI tax on empty properties (defined as standing empty for two years, or more), ranging from 50 to 100% of the tax base.
  • Town halls are now empowered to levy a surcharge of IBI tax on holiday rentals, ranging from 50 to 150% of the tax base.
  • Holiday rentals under 30 days are now considered a business and will be treated fiscally as such. A levy of 10% VAT is applied on them. Going forward, landlords will be required to hire quarterly VAT filings as they are equated to running a business.

Second decree

This second decree is far more dangerous, as it introduces – for the first time ever – what can only be labelled as ‘permanent occupational contracts’.

Meaning landlords stand to lose possession of their property for extended periods of time (spanning years, or even decades). Starting at the statutory minimum of 5 years, and chaining multiple extensions over time to multiple decades, exactly like in Maricarmen’s case, who rented the same property for over 70 years, and counting.

In practice, making long-term rentals indefinite in all but in name (remember, with annual price increases capped by law at 2%, well below a rampant inflation of 4.9%).

  • Introduces automatic and mandatory 5-year renewals (for physical persons) or 7-year renewals (for legal persons) chaining long-term rental contracts indefinitely.
  • If a landlord wants to terminate a contract after the statute minimum period (5 or 7 years), it must do so by compensating financially his tenant with the equivalent of a 12-months’ rental.

Conclusion

Both of the new emergency decrees were defeated in a vote last Friday in Congress, as the government failed to rally enough political support to approve them. Many sighed with relief at the legal outcome. Albeit despite what most people believe, the story is far from over. We’ve just closed a chapter and opened a new one.

The government announced today Monday 5th of October that it will call a snap election on the 29th of November 2026 and will dissolve Courts effective immediately. In the interim period, until poll day, a permanent commission is appointed by Congress to approve any emergency laws.

Lo and behold the Spanish government will sneakily attempt to resubmit the two decrees – again – , with only minor tweaks to comply with procedural congressional requirements, for approval. And this time round, maths favours the government to pass the first decree, if not both. 

This dark political manoeuvre has a strong waft of unconstitutionality as the permanent commission’s purpose is not to approve laws that were rejected by the plenary session of Congress. However, if you think Spain’s Constitutional Court is going to fix this, you are wrong. It is firmly placed in the hands of the ruling administration, including its chairman, which was directly anointed appointed by the government.

Unless something is done on time to derail both emergency decrees from being resubmitted to Congress for approval, the enactment of these two decrees would be the death knell of long-term rentals in Spain.

Because both decrees, but especially the second one, constitute a frontal attack on private property and would be right at a home in any communist country, such as Cuba or Venezuela. In plain English, the government seeks to subsidise long-term housing accommodation (spanning multiple decades) at the expense of landlords’ private property. In effect, they want landlords to bite the bullet and rent out for extended periods of time, spanning decades, at a testimonial price that is a mere fraction of the real market rental price.

General Francisco Franco, Spain’s dictator, did in fact introduce an almost identical rental scheme in 1950 called “alquileres de renta antigua” to protect and assist vulnerable social collectives post-civil war at a time of great deprivation and housing shortage. Rental scheme, which incidentally the now famous Maricarmen benefitted from up until very recently, renting out at a price that was considerably well below the market price in a prime location in Madrid (in my humble opinion the best) at the expense of her landlord. The incumbent administration seeks to reintroduce and replicate a pre-Constitutional rental scheme that was indeed justified at the time, within the broader context of the aftermath of a fratricidal civil war, but has no place in a modern market economy. It beggars belief that the solution of this government, which never loses an opportunity to criticise and malign the dictatorship, would stoop as low as to reintroduce a dictatorship rental scheme as a panacea to all housing problems! Honest to God, you couldn’t make it up.

In short, what the government pretends with this second emergency decree is to create an army of millions of Maricarmens who would pay only a testimonial rental every month and live in the same property for the remainder of their lifetime, whilst landlords are (greatly) impoverished in the interim, such as the original landlord of Maricarmen, who was forced to sell up due to accumulated losses over decades.

The pervading idea behind everything the Spanish government approves on housing has been explained multiple times throughout previous articles: the Spanish government adopts lofty social policies at the expense of other people’s private property. For it is landlords, and not the government, who will foot the bill of its misguided housing and rental policies. 

The crux of the problem is that the government refuses to build more homes out of ideological reasons (because General Francisco Franco built lots of social housing at the time and they basically refuse to go down the same route), despite a record deficit of 1,000,000 homes and counting, and keeps piling more pressure on both the rental and resale property market by purposely stifling supply.

At no time should governments tamper with housing supply and demand, much less artificially stifle supply for political gain. This only leads to rising house prices (and rentals) which in turn opens to widespread social discontent. As I write these lines, the looming threat of the approval of these two emergency decrees has driven out of the rental market thousands of long-term rental properties all over Spain, including Madrid which lost an estimated 20% within only 24 hours of its announcement, greatly cutting back on supply. The government knew all too well that this would be the plausible outcome, no crystal ball is required, only logic.

Most Spanish people are now priced out of the property market, having to resort to family (and even extended family) to secure mortgage loans with durations that now span multiple decades – madness. 

As a result of the ruling administration pursuing all these misguided housing and rental initiatives, property supply has dried out in Spain whilst demand (both domestic and foreign) remains strong and steady. 

No to mention that the Spanish government goes out of its way, and then some more, to purposely allow access into the country to millions of new migrants from third world countries. All of these migrants also need suitable accommodation. Unchecked migration is a key contributing factor to property price escalation in Spain, both in the rental and housing markets.  In only 10 years, Spain’s population has jumped by almost 10%, and the vast majority are migrants. Spain’s natality levels sit at an all-time low because young Spaniards simply cannot afford getting onto the first rung of the property ladder on precarious wages.

Long story short, landlords are not here to fix the government’s housing problems, get a grip. The government should have planned ahead and built more housing. When you rule, you rule for both sides, for all; otherwise, it is biased ruling. And these two new decrees are heavily biased in favour of tenants (understatement) to the (great) detriment of landlords who would be forced to subsidise their long-term tenants for decades, if not for the reminder of their lifetimes; such as in Maricarmen’s case, who enjoyed a privileged rental for 70 years. For equality’s sake, a middle ground must be sought by lawmakers, and this is not it.

To sum up a long conclusion, if these two new decrees are approved, I can only recommend landlords to pull out – and stay out – of long-term rentals in Spain until the legal situation is cleared post-election. There is far too much uncertainty and legal insecurity to warrant renting out long-term; you are safer crossing a highway on foot.

LNA-related services:

 

At Larrain Nesbitt Abogados (LNA) we have over 23 years of experience specialising in property conveyance and taxation. We also assist clients with immigration & residency visas (digital nomad visa), and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarising, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

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2026 © Raymundo Larraín Nesbitt. All Rights Reserved.

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San Sebastián: The Pearl of the Cantabrian Sea

Raymundo Larraín Nesbitt, September, 18. 2026

 

 

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By Raymundo Larraín

21st of September 2026

I continue today with my running series on top places to buy and live in Spain. You can find older entries in this series by scrolling down below. These impromptu, light-hearted guides are not meant to be exhaustive; they are simply a lighthouse to shed some light on an area’s main highlights, character and landmarks.

Introduction – Basques and their origin story

Long before the shadow of Rome, their existed a misty green land inhabited by a seafaring race, comprised of tall piercing blue-eyed warriors. Even the power of Rome never managed to fully subdue and bring them under heel, forever remaining an elusive and independent collective that largely kept to themselves, even to this very day.

Successive Spanish and French governments pursued Basques throughout history, going to great lengths to stomp out their uniqueness and language and bring them into the fold. But like Rome, failed. The Basque people pre-date the formation of Spain (and Rome aeterna), and will remain long after Spain, or even Europe, are no more.

The origins of the Basques remain shrouded in mystery. It’s like going down a rabbit hole. Despite centuries of painstaking research, experts worldwide are still unable to pinpoint the exact origins of Basques. It’s a pre-Roman ethnic group which is unrelated with the Celts or any of the other proto-Iberian group. Inexplicably, they would seem to have arisen in complete isolation from other human groups – but that makes no sense.    

Moreover, their native language (Euskara) is not linguistically linked to any of the major (or minor) romance languages descended from Latin. It is an isolated language, meaning it has no known genetic relation to any other language family in the world. This is extremely rare, as all languages borrow from one another through shared trade, wars, conquest, etc. All do; well, all except the Basque. The preposition ‘except’ and Basques you will find remain inextricably linked. Despite all our modern knowledge, vast resources and best efforts, we are still unable to trace back its origins to any other known language. All we know for certain is that Euskara is widely considered the oldest living spoken language in Europe without any ties to any other known language – dead or alive. Truly, a language lost in time; some even dare to venture its pre-Younger Dryas, but that’s unfounded, and there is no hard evidence to sustain such a baseless claim.

And brace for it – it gets weirder.

Even their blood type raises eyebrows. RH-negative can only be found in 15% of the world population, making it the second rarest blood type. However, despite being a recessive trait, Basques sport large concentrations of this blood type, with up to 40% of their population, and even higher concentrations in rural areas. It also brings issues related to childbirth (stillbirth) when parents have mixed blood types, in a way railroading RH-negatives to stick together to ensure there are no issues with descendants. It’s almost as if Mother Nature had hardwired them genetically to band together, as one.

In their oral traditions, passed down from one generation to the next, there are whispers that their origins can be traced back to a fertile land, that was once powerful but was lost under the waves and mud. The survivors of the cataclysm were forced to resettle the mainland but would remain accomplished seafarers. Whilst it is easy – and downright tempting – to dismiss these as fringe theories or delusions from romantic writers linked to the Atlantean myth, the fact is that Basques must have originated from someplace – alas Science just can’t pin where.

In conclusion, what little we do know is that their society is old – very old. And that their language predates all other European languages and dialects by thousands of years. It’s almost as if they had magically sprouted in isolation post-Ice Age in their green valleys and forests; but surely there is more to this.

In truth, after all this time, we hardly know anything about Basques and their true origins. Science is going to need a great deal of luck to find whence they came.

Sorioneku - good luck!

Geography & major Basque cities

The Basque Country (Euskal Herria), which forms part of Spain, is a diverse geographic region straddling the border between northern Spain and southwestern France along the Bay of Biscay. It spans seven traditional territories. The climate is Atlantic, with rainy winters and short summers that lead to lush vegetation. However, I must add that the climate change over the last two decades has created more temperate winters and longer spells of dry summers which now last for months.

It has three major cities:

  • Vitoria-Gasteiz: This is the administrative capital, on paper. This is the government seat where the regional parliament is located and is home to the sitting regional president.
  • Bilbao: is the seat of wealth and true power. It has been the main financial hub in the north for centuries, home to the sharpest financial and commercial minds of Spain. It is also the city with the largest population and is a cultural reference. I’ll be sure to cover it next fall in an article.
  • San Sebastián: Featured in today’s article, is a major cultural and tourist hub.

San Sebastián

There are Spanish cities you visit and then there are Spanish cities you fall in love with.

San Sebastián (Donostia in Basque) firmly belongs to the latter category.

Tucked into the northern coast of Spain, in the province of Gipuzkoa in the Basque Country, San Sebastián curves elegantly around the Bay of La Concha. Behind it rise rolling green hills; in front of it stretches the Cantabrian Sea. The city somehow manages to combine the sophistication of a grand European resort with the earthy character of the Basque Country.

San Sebastián has long attracted visitors because of its pristine white sandy beaches, architecture and gastronomy. Today, its reputation reaches far beyond Spain. The city's official tourism office describes it as “a destination where sea, culture, gastronomy and an active lifestyle converge, while its culinary reputation has become international.”  

For somebody considering buying a home in northern Spain, however, the attraction goes deeper than tourism. San Sebastián is a city designed for living.

You can walk almost everywhere. You can have breakfast beside the sea, wander through the Old Town for lunch, hike up a green mountain in the afternoon and finish the evening eating pintxos in a packed bar.

And then there is the rain – a lot of it.

But that rain is partly responsible for the extraordinary greenery surrounding the city. This is not Mediterranean Spain with exotic palm trees, it’s a completely different ball game. There are no endless arid landscapes or baking-hot summers. Instead, you get a lush Atlantic climate, dramatic skies, gentle green hills and a coastline that can look almost cinematic when the weather turns.

The magic of San Sebastian. You can spot La Concha Bay and Santa Clara Island.

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Famous people born in San Sebastián

In no particular order:

Catalina de Erauso (known popularly as La Monja Alférez, a 16th century intrepid woman who adopted a masculine identity and sailed into the New World, where she would serve as soldier under the Spanish Empire fighting across multiple campaigns for king and country), Pío Baroja (renown writer belonging to the Generation of 1898), Paco Rabanne (international designer and parfume maker), Eduardo Chillida (acclaimed artist and sculptor), Alberto Iglesias (award-winning cinema score composer), Marta Etura (lauded actress), Luis Arconada (legendary football goalkeeper), Martín Zubimendi (football player), Ane Gabarain (actress).

The always gorgeous model Sarah Loinaz, born in San Sebastian.

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Foreign writers who visited San Sebastián

Victor Hugo: The giant French laureate visited in 1843 and wrote about his experiences describing the coast and the city in his work Alpes et Pyrénées.

Ernest Hemingway: Well of course, he would make the list, wouldn’t he? He visited San Sebastián multiple times during his travels in northern Spain. He enjoyed swimming off La Concha beach, eating local pintxos, and staying at classic spots like the Hotel Maria Cristina. His time in the region heavily influenced his writing, including his classic novel The Sun Also Rises.

Hans Christian Andersen: The romantic Danish writer made a Spain tour in 1862 visiting several cities (including Malaga city). His travels were captured in his book A Visit to Spain.

John Banville: The lauded Irish writer stayed in the city and actually featured it as backdrop to his dark novel April in Spain.

León Trotski: The intellectual Marxist and writer spent some time living and writing in the city after being expelled from France in 1916. He would eventually be detained and expelled from Spain too. No rest for the wicked.

The Roots: War, Royalty and the Sea

San Sebastián's history is inseparable from its strategic position on the Bay of Biscay.

For centuries it was a fortified town, military stronghold and important port. Its key strategic location made it valuable – and therefore coveted.

The city suffered one of its darkest moments in 1813 when San Sebastián was attacked during the Peninsular War. The town was largely destroyed by fire following the assault.

Yet, as so often happens throughout the history of Spain, destruction gave way to a rebirth, which led to reinvention. San Sebastián was rebuilt from the ground up. The medieval and military character gradually gave way to a more elegant urban vision, particularly during the nineteenth century. The city subsequently became a fashionable destination for Spanish royalty and European aristocracy.

Walk through the city centre and you encounter a distinctly Belle Époque atmosphere: grand façades, elegant buildings, theatres, hotels and wide avenues. The City Hall, Victoria Eugenia Theatre and Hotel María Cristina are among the architectural reminders of this transformation.

It is difficult not to feel that San Sebastián was designed for people who enjoyed dressing up for dinner. Mercifully, today you can turn up in trainers. And that’s fine by me, otherwise I wouldn’t be allowed in anywhere!

La Concha: The Crown Jewel

If San Sebastián had a single defining image, it would be La Concha (the seashell, in English).

The sweeping crescent-shaped bay is the city's poster child, its symbol and arguably its greatest natural asset. La Concha beach stretches lazily for more than a kilometre and a half, with the island of Santa Clara sitting offshore and Mount Igueldo rising at one end of the bay.  There is a long promenade made for walking and taking in the gorgeous sea views.

Don’t be surprised by locals who walk by briskly, without so much as a side glance, seemingly oblivious to the extraordinary scenery and beauty unfolding around them because they are used to it and tragically don’t pay it a second thought.

La Concha beach splendour.

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The Old Town

Then there is the Parte Vieja (the Old Town).

If La Concha is San Sebastián's elegant and more mature face, the Parte Vieja – ironically– is its mischievous bon vivant younger sibling.

The streets are narrow, atmospheric and packed with bars, restaurants and pintxo counters. It is here that you discover one of the great San Sebastián traditions: eating your way through the neighbourhood one small plate at a time.

The official tourism office describes the Parte Vieja as “one of the city's most vibrant and authentic areas, with a concentration of pintxo bars, restaurants and traditional food.”  

Monte Igueldo

For the best views of San Sebastián, climb Mount Igueldo. Or, more accurately, take the funicular. At the top, the city opens below for you.

La Concha forms a perfect crescent below. Santa Clara sits in the middle of the bay. The buildings of the city stretch inland, surrounded by the green hills of Gipuzkoa.

It is one of those vistas that makes property prices suddenly seem reasonable.

Breathtaking views of San Sebastian at dusk from Monte Igueldo. Lads, this is the perfect spot to declare your undying love – you're welcome.

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Culture and festivals - International Film Festival

San Sebastián is not simply a beach resort.

It has a substantial cultural life, with theatres, museums, exhibitions, festivals and international events forming part of the city's fabric.

Perhaps the most internationally famous is the San Sebastián International Film Festival (now on its 74th edition as I write these lines), which brings actors, directors and the international film industry to the city every year. For avid moviegoers, like me, it’s always a thrill to watch great actors walking up the red carpet.

There are also traditional Basque festivals, sporting events and the famous traineras – traditional rowing boats – which compete in races along the coast.

The result is a city which remains lively outside the main summer season, and throughout all the winter. This matters if you are thinking about living here rather than simply visiting. By experience, I can tell you that summer resorts in winter tend to be dull and boring once the tourists leave (yes, even my native Marbella). Albeit San Sebastián doesn't suffer from this acute problem, because it is a cultural hub first and foremost – tourist destination takes a back seat.

American actress Angelina Jolie walking down the red carpet at San Sebastian. Arguably, the most beautiful actress ever - I'll die on that hill.

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The Basque identity

As highlighted in the article’s introduction, the Basques are – truly – a peculiar lot in the sense that they come from a unique mould. Their people, their language, their traditions, their food, and even their blood type are unique! All these taken together coalesce, conferring them a genuinely distinctive identity that transcends time and space, offering no parallelisms with any other known culture, whether in Spain or abroad.  

Sadly, the Basque singularity and strong volkgeist often clashed with centralised power, both in France and Spain, leading to separatist activists and nationalist groups writing some of the darkest chapters in their long history.  

Note to self: in my spare time, I have to dig deeper into the Atlantis myth origin story and the Richat Structure; history is holding back on us. There is more than meets the Eye.

Traditional Basque flag known as Ikurrina. Written in Basque: "The Basque Country decides".

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Gastronomy

Basques take food seriously, and man do I mean SERIOUSLY.

So much so, that most of the best chefs in Spain originate from the Basque Country or study there. Food to Basques is akin to what football is to Argentinians.

The cuisine of San Sebastián is based upon excellent local produce: fresh fish from the Cantabrian coast, seafood, meat, vegetables, cheese and cider, alongside the famous pintxos.

The city also sits within a wider Basque gastronomic culture that includes several plates.

San Sebastián's gastronomic reputation is extraordinary. The city's tourism authority currently highlights 18 Michelin stars associated with the city, while its wider gastronomic culture encompasses traditional cooking, gastronomic societies, markets, cider houses and the Basque Culinary Center.

For Basques, fine dining is so much more than simply eating out, it is ingrained in their psyche, it is woven into their daily routine, to the point it defines them culturally, setting them apart – again!

I’ll make an effort to gloss over and highlight what I reckon are the main dishes, so please bear with me:

Traditonal Bacalo al Pil-Pil (salted cod)

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Signature dishes

Pintxos: small portions, big taste

Small, elaborate bites served on bread in bars, acting as the Basque version of tapas. A pintxo may be small, but the culinary ambition behind it is considerable. Traditional ingredients sit alongside modern techniques, and a casual bar can sometimes produce food that would not look out of place in a Michelin-starred restaurant.

Marmitako: A comforting stew made with fresh tuna, potatoes, peppers, and onions.

Bacalao al Pil-Pil: Salted cod gently pan-fried in olive oil with garlic and chili, creating a rich, emulsified sauce.

Kokotxas: Gelatinous hake or cod cheeks, usually served in a garlic and parsley green sauce (salsa verde).

Txuleton: A thick, massive, bone-in prime rib steak grilled over high heat. Hell yes, worth selling your soul for.

Txipirones en su tinta: Baby squid cooked in its own deep black ink sauce.

 

Pintxos bar in San Sebastian

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Traditional desserts

Basque Cheesecake: A famously burnt, crustless cheesecake with a rich, creamy center.

Pastel Vasco (Gâteau Basque): A traditional round shortcrust pastry filled with pastry cream or black cherry jam.

Local drinks

Txakoli: A refreshing, slightly sparkling, high-acidity dry white wine poured from a height.

Sagardoa: Natural, tart Basque cider served uncarbonated.

Property scene

As a shameful plug, I remind the gentle reader I happen to be a conveyance lawyer by trade (I know shocking, writing is the side hustle). So please feel free to contact me, or my law firm, if you fancy buying a property in the Basque Country (or anywhere else in Spain).

Ok, now we arrive at the elephant in the room. San Sebastián is expensive, very expensive by Spanish standards. According to Idealista's August 2026 data, the average asking price for property in Donostia-San Sebastián was approximately €6,680 per square metre, following a 2.6% annual increase. This made San Sebastián the most expensive provincial capital in Spain at the time. And that is just an average. Location impacts enormously. Like the old real estate adagio goes: location, location, location.

Premium locations command higher prices. San Sebastián's property market therefore presents a very different proposition from some of the other cities in this series. You are not necessarily buying here because it is cheap. You are buying because the combination of location, lifestyle, scarcity and quality of life is difficult to replicate elsewhere.

Supply is also constrained by geography. There is only so much coastline. Only so many apartments overlooking La Concha. Supply is also constrained by stringent planning laws that are (over) protective of its historic and cultural sites (Old Town). Only so much historic city centre I’m afraid.

All the above, taken together, translate into steep prices for discerning pockets. San Sebastian is not just a sun & sea hotspot; it is so much more. Intellectually-inclined minds will feel right at home with the city’s busy cultural life. Its close proximity to European influences and avant-garde trends, give it a lustre of a cosmopolitan city.   

What the future holds: sustainability vs innovation

The challenge for San Sebastián is familiar to other distinctive European cities.

How do you preserve what makes a place special while accommodating tourism, investment and rising housing costs?

The city has been developing sustainable tourism initiatives and promoting walking, cycling, neighbourhood tourism and responsible use of the city's resources. But success comes at a price. The more desirable the city becomes, the greater the pressure on housing. The more tourists discover it, the greater the pressure on the historic centre. And the more international attention the restaurants receive, the harder it becomes to keep everything feeling completely local.

San Sebastián's challenge is to remain San Sebastián. As always, virtue lies in striking the right balance.

In Conclusion

Basques are extraordinarily hard to befriend, but if you manage the feat, they become lifetime friends that will stand beside you like a rock, come high or low tide.

San Sebastián blends seamlessly a rich tapestry of cultural life with laid-back beachgoing. Romantic seaside promenades guarantee dramatic views at dusk. It offers a delicious gastronomy for those in the know, and for savvy investors on the prowl climate change is creating new unprecedented opportunities as summers increasingly become longer and hotter with each passing decade.  

San Sebastián is heaven in the north, a pearl of the Cantabrian Sea waiting to be explored and savoured by discerning minds.

San Sebastián, la perla del norte.

Donostia, iparraldeko perla.

 

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"Los necios tienen muchos amigos; el hombre inteligente, pocos." – Pío Baroja

Loosely translated as: “Fools have many friends; the intelligent man, few.”

Pío Baroja y Nessi (1872 – 1956). Was a Spanish writer born in San Sebastian. He was one of the key novelists of the Generation of '98. Despite being a trained physician, he preferred to write novels. He had an exquisite dark writing style, defined by an abrupt, unadorned and deeply pessimistic "dry blow" which stripped away grand rhetoric to expose human suffering and societal corruption – telling it how it is. Arguably, his masterpiece was his novel El árbol de la ciencia. He deserved a Nobel.

This is what Hemingway said about him: “Allow me to pay this small tribute to you who taught so much to those of us who wanted to be writers when we were young. I deplore the fact that you have not yet received a Nobel Prize, especially when it was given to so many who deserved it less, like me, who am only an adventurer.”

Other entries in this running series:

 

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

2.026 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Spain’s Digital Nomad Visa explained by a lawyer

Idealista, September, 21. 2026

Idealista is Spain's leading online property portal, ranking number one. It was recently sold for over €1.3bn to EQT Group.

It was founded in 2000 by three partners, brothers Mr. Jesús and Fernando Encinar, and by Mr. César Oteiza. It offers millions of properties for rental and sale in Portugal, Italy and Spain.

Following Nielsen audited ratings, it has over 144 million pages visited every month, 5 million unique users, 300 employees, and an annual turnover of over €40mn.

Idealista kindly published our article in exclusivity on their website: Spain’s Digital Nomad Visa explained by a lawyer

 

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