San Sebastián was a fortress town until it was destroyed in the early nineteenth century, then rebuilt on a grid. In the late nineteenth century the Spanish royal family adopted it as a summer residence, and the aristocracy followed, building the belle-époque casino, the grand hotels and the seafront villas. That origin as a resort for the rich left a city that is still geared to a demanding clientele.
Its modern identity is shaped by food. A generation of cooks transformed Basque cuisine in the late twentieth century, and the city now has an extraordinary number of starred restaurants for its size, a gastronomy university and an everyday bar culture of the highest standard. The Basque Country has its own tax arrangements and funds high public spending, which shows in the clean streets, the buses and the public services.
A narrow valley, hills and the sea limit space, and demand from residents, second-home buyers and visitors is intense. Household income per person is €23,700 a year (2024), and prosperity comes out strong. A typical 70 m² flat rents for about €979 a month (2024), and buying costs €5,208 per square metre (Q2 2026).
The city is educated and long-lived. Adults with a university degree make up 66% (2024), and life expectancy is 83.9 years (2023). The population is old: median age is 51.2 years (2025), and seniors make up 26.2% (2025). Jobs come out above average, with unemployment at 5.6% (2025).
The one weak mark is safety, which comes out below average. Recorded crime is 58.5 per 1,000 people (2024). The cause is again visitors: phones, bags and bicycles are stolen from crowded beaches, bars and festival crowds, and the rate is counted per resident, not per person present. Sexual offences are 0.64 per 1,000 people (2024), which is high for the north of Spain.