Spanish dream sours: Holiday homes become a headache for Lithuanians

The Spanish real estate market, once seen as a "gold mine" by Lithuanians, has become a source of significant headaches. Just four years ago, a two-bedroom apartment near the sea in Andalusia could be bought for around 100,000 euros. However, surging demand from Eastern and Central Europe has driven prices up to 180,000–220,000 euros. This dramatic increase in initial capital requirements has diminished investment returns, making it nearly impossible to find good, affordable properties.

Even Lithuanians who invested earlier are now encountering difficulties and often consider selling their Spanish homes. While the Spanish sun and climate have met many expectations, the dream of a low-maintenance investment has largely evaporated. Most purchased properties are used far less than planned, with owners and their families visiting only once or twice a year. Karolis Ivanauskas, head of the real estate management platform "Sunshine Homes," noted that while Lithuanians bought 241 properties in Spain in the last quarter of 2025 alone, those who invested during the COVID-19 pandemic faced the most surprises.

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One of the biggest surprises for buyers is the strict local requirements. There are many cases where apartments are not granted short-term rental licenses. In such situations, owners face a difficult decision: either rent the property out long-term, losing the chance to vacation there themselves, or keep it empty for personal use, meaning the investment yields no additional income.

"One of the biggest surprises for buyers is the strict local requirements," Ivanauskas explained. "There are many cases where apartments are not granted short-term rental licenses. In such situations, owners face a difficult decision: either rent the property out long-term, losing the chance to vacation there themselves, or keep it empty for personal use, meaning the investment yields no additional income."

Many initially attempt to manage their foreign properties independently, but this leads to numerous practical challenges. Spain's specific apartment door systems, which cannot be opened from the outside for security reasons, cause problems when guests leave keys inside or accidentally lock themselves out on balconies. Navigating unfamiliar Spanish streets remotely is also extremely difficult. "The illusion that managing a property remotely is easy quickly fades, as you need to respond not only to messages but also to unexpected guest demands – fixing something or bringing extra bedding," Ivanauskas noted. Poor remote maintenance can lead to low guest ratings, drastically reducing bookings, and issues like mold or ant infestations can arise.

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The illusion that managing a property remotely is easy quickly fades, as you need to respond not only to messages but also to unexpected guest demands – fixing something or bringing extra bedding.