Fractional housing in Spain: 2025 guide to invest in prime housing without paying 100% of the purchase price

Can you imagine enjoying a top apartment in the best destinations in Spain and without tying up all your capital? Spain is experiencing a time when second homes and urban pied-à-terre are converging with more flexible property models. Among them, fractional apartments (co-ownership by fractions with planned use) have gone from being a niche alternative to a solid way to enter prime housing without tying up 100% of the capital. The proposal is much simpler than you think: varios buyers share ownership and enjoyment of the same asset, with clear rules, 360° professional management and orderly exit of the investment.

Throughout this guide you will find definitions, differences with respect to other figures, frequent legal models, the purchase process in Spain, common costs and taxes, areas of opportunity and a checklist to evaluate projects with criteria.

What exactly is a split-level apartment?

In previous articles we explored the implications of fractional investment in Madrid and which projects stand out in prime areas, but it is worth looking at the essence of the model to understand why it is gaining so much traction in Spain.

A fractional apartment is a property whose ownership and use is divided into fractions. Each fraction grants:

• Real economic rights over assets (quotas or participations).
• Right of use during certain periods of the year, with a predefined calendar and equitable allocation rules.
• Proportional obligations (expenses, reserve fund) and access to operating services (maintenance, cleaning, insurance, community, administration).

The objective is not only to lower the entry ticket, but also to professionalize the experience: less friction in day-to-day management, homogeneous maintenance and preservation of value over time.

How does it differ from other figures: timeshares and REITs?

To locate the fractional model on the map, it is convenient to contrast it with similar figures. The difference depends on what you acquire (real economic rights or just the right of use), how the asset is managed on a day-to-day basis and what exit you have if you want to sell your stake. With this criterion, the practical distinctions are:

• 100% ownership: maximum control and enjoyment, but requires 100% of the capital and full assumption of management and expenses.

• Timeshare / timeshare: usually grants temporary use but not real economic rights over a specific asset. Fractional ownership does.

• REIT / SOCIMI: financial vehicle that owns portfolios; the investor participates in rents/valuations, but does not enjoy private use of the property.

Typical legal models in Spain that support investments in fractional apartments

There is no single mold, but the most common formats are:

• SPV (S.L.): a limited liability company acquires the property and each co-owner buys shares in that company.
• Advantages: clear corporate governance, orderly transfers, ease of partner agreements.
• Considerations: corporate/accounting costs and formal obligations.

• Direct co-ownership (horizontal property): each investor acquires a registered share of the property.
• Advantages: simplicity of registration.
• Considerations: more complex coordination if there is no professional operator and robust rules of use.

• Community of goods: less frequent in institutional projects due to their fiscal/managerial nature, but feasible in specific contexts.

The choice of the scheme must be accompanied by legal and tax advice, taking into account si el buyer is a resident or not, the intended use (exclusively residential or with permitted rental) and the exit horizon.

Purchasing process in Spain

Before converting the intention into ownership, it is advisable to follow a clear itinerary that reduces risks and aligns expectations among partners. The order may vary depending on whether it is acquired via SPV or direct co-ownership, but the milestones are common: verify the assets, agree on governance and formalize before a notary, with the corresponding tax treatment. In practice, the path looks like this:

1. Reservation and verification of identity (NIE/NIF if applicable), terms of return and project launch conditions.
2. Legal and technical due diligence of the asset (nota simple, charges, community, ITE, licenses, energy efficiency).
3. Contracting: bylaws/partners' agreement, rules of use, expense regime, reserve fund, improvement and exit policy.
4. Public deed or transfer of shares before a notary public.
5. Tax liquidation (VAT/ITP and, if applicable, AJD) and registration.
6. Start-up: registration of supplies, insurance, owner's portal, maintenance protocol and reservations.

Investment process: step-by-step with Nolab and Noulivin

To deliver a transparent process with no surprises, we follow an itinerary with clear milestones, escrow funds and an execution threshold that ensures project viability before moving forward. This way you know exactly when the deal is confirmed and when you can start planning your stays. The process is as follows:

1. Reserve: €5,000 on independent escrow account, refundable if you decide not to continue; prompt return.
2. Certainty threshold: the purchase is executed only when 6/8 fractions (75%) are collected. If it is not completed, you can transfer your reserve to another asset or receive a refund.
3. Down payment and deed: 30% after 15 days; 70% upon signing (usually within 60 days).
4. Structure and closing: acquisition via SPV; you receive shares and the shareholders' agreement.
5. Use planning: access the calendar and reserve your first cycle blocks.

To guarantee the optimal operation of your fraction, Nolab has developed Noulivin; a management system that operates the asset as a "private hotel" for co-owners: a comprehensive "end-to-end" management for tourist apartments and extra-hotel accommodation for short, medium and long stays, aimed at maximizing performance with personalized attention to both owners and guests.

• Integrated operation: revenue management with optimal pricing and daily updates.
• Hospitality and maintenance: check-in/out, professional cleaning, 24/7 maintenance and 24-hour care.
• Marketing and distribution: photography, channel positioning and visibility management.
• Incentive model: performance-related booking fee.
• Owner's portal: calendar, reservations and KPIs in real time.
• Technology stack: Hostaway (PMS), PriceLabs (dynamic pricing) and Check-In (onboarding/verification).
• Efficiency and traceability: end-to-end processes with operational control and continuous reporting.
• Benefit for the partners: with Noulivin as an intermediary, the co-owners are relieved of the operation and keep the apartment under the best available care.

How does the rental, resale or exit of the fractional model work?

In addition to enjoying your weeks, the model contemplates responsible flexibility: if the community approves, you can make periods profitable and, when your plans change, sell your fraction with rules that protect the coexistence and value of the asset. The idea is to combine lifestyle and investment discipline with a predefined exit path.

• Rent: only if approved collectively and always in 30+ day tranches. The operation can be carried out by Noulivin.
• Resale/exit: minimum permanence of 12 months; thereafter you can sell the fraction. Right of first refusal applies in favor of the other partners. The exit price will depend on the demand for fractions and the evolution of the asset.

Legal framework and governance (legal peace of mind for your cross-border investment)

The strength of the fractional apartment investment scheme rests on its legal and governance architecture: ownership channeled through the SPV, assembly rules for sensitive decisions, and operational transparency at all times. This framework aligns interests among co-owners, reduces friction and provides predictability in decision-making.

• Ownership via SPV: security of registration and separation of assets.
• Governance: clear rules of use and assembly, with qualified majority for sensitive issues.
• Transparency: dashboard with legal status of the asset, reserve progress and cycle milestones.

Where to look to invest in fractional apartments in Spain next?

Undoubtedly, this 2025 has brought challenges for the real estate sector in Latin America and Europe, in the particular case of Spain, two cities are those that have concentrated the greatest interest from international investors: Madrid and Ibiza. Madrid is the heart of the model due to its liquidity, depth of demand and the scarcity of well-rehabilitated prime product, in addition to an urban environment that favors medium-long stays, perfect for equitable fractional calendars. Ibiza provides the lifestyle vector (sea, golf, hospitality, international services) and a constant foreign demand that supports occupancy and appreciation.

• Salamanca (Goya, Castellana): classic luxury, proximity to Retiro, high-end retail.
• Chamberí (Almagro, Ponzano): stately architecture, gastronomic scene and great connectivity.
• Ibiza: Mediterranean lifestyle and privileged ocean views.

Current fractional investment floors

• Alonso Cano 3 (Almagro, Chamberí): 152-154 m² approx., 3 bedrooms, 3 bathrooms, 5th floor exterior with balcony. Price per fraction: 282.900 €.
• Casa Tarida II, (Ibiza): 100 m², 3 bedrooms, 2 bathrooms, white sand, turquoise waters and dreamlike sunsets. Price per fraction: 175.000 €.

For whom does this type of investment make sense and what should you consider before making it?

If you travel to Madrid or Ibiza several times a year and your actual usage is around 3-6 weeks, fractional fits like a glove: you get access to prime locations without paying 100% or becoming a second home manager. It is also ideal if you value organization (fair and rotating calendar), professional management (maintenance, cleaning, concierge, administration) and want exposure to the capital gain of top neighborhoods with a planned exit (resale of your fraction under clear rules).

Realistically and without surprises: this model contemplates prorated operating expenses and a management fee, in exchange for a turnkey operation. In liquidity, it is halfway: it is usually more agile than selling a complete property for its lower ticket, although not as immediate as a share; from 12 months you can resell your fraction with the support of the platform and the appraisal between partners. As in any real estate asset, the value may vary; that is why we prioritize defensible locations, high quality and rigorous management to favor the preservation and creation of value over time.

✅ Express checklist before signing for your new fractional apartment

• Location (exact street, orientation, noise, services).
• Building (ITE, elevator, accessibility, common areas).
• Legal structure (SPV/co-ownership) and rights/obligations.
• Usage policy (rotation, cancellations, exchange of weeks).
• Expenses (opex/capex detail, reserve fund, operator's fee).
• Exit (resale of fractions, bidding, brokerage commission).
• Insurance (building, contents, CR, use by third parties).
• Transparency (quarterly reports, audits, digital records).
• History (actual occupancy times, incidents, satisfaction).
• Improvement plan (expected capex and approval criteria).

Finally, the gap between lifestyle and investment is narrowing! With fractional apartments, you have access to prime addresses without paying 100%, with planned use, clear governance and 360° management to make your time worth more. The result: Madrid and Ibiza in the first person, with the peace of mind of a professional structure and the flexibility to move in and out under predictable rules. The next step? Check availability, choose your calendar and let's talk 1:1 to design your smart entry into the prime market in Spain with Nolab.