Buying property in Spain as a foreigner

Can foreigners buy property in Spain?

Yes. Anyone, whether or not they live in the European Union, can buy in Spain on the same terms as a Spanish citizen. The only prerequisite is an NIE, the foreigner identification number.

Since 3 April 2025, buying a home no longer gives access to the so-called golden visa: property investment no longer grants residence. In 2025 the government proposed a special tax for non-EU buyers who do not live in Spain; as of October 2026 it has not been approved.

The process, step by step

1. Set a budget that includes taxes and fees, not just the price.
2. Apply for your NIE and open an account with a Spanish bank.
3. Search and view homes; many viewings can be done by video call.
4. Make an offer and, once accepted, sign a reservation with a small deposit.
5. Legal checks: land registry extract, charges, community and council tax debts, and occupancy certificate where applicable.
6. Deposit contract (arras): usually 10% of the price, with a fixed completion date.
7. Signing before a notary, payment of the balance, handover of keys and registration at the Land Registry.

With a mortgage, expect six to ten weeks from reservation; a cash purchase can complete in three to four weeks if the paperwork is in order.

Taxes and buying costs

Allow 8% to 13% on top of the price, depending on the region and whether the home is new or resale. The tax base is the higher of the deed price and the Land Registry reference value (valor de referencia).

• Resale homes, transfer tax (ITP, general rate): Madrid 6%; Andalusia 7%; Valencia region 9% since 1 June 2026; Catalonia 10% up to €600,000 and higher rates above that.
• New builds: 10% VAT plus stamp duty (AJD) of 0.5% to 1.5% depending on the region.
• Notary, land registry and administration: around 1%–2% of the price.
• With a mortgage: valuation and, if used, broker fees.

Mortgages for non-residents

Spanish banks lend to non-residents, usually up to 60%–70% of the valuation. They ask for proof of income, a credit report from your home country and an account with the lending bank. Get approval in principle before signing the deposit contract.

What you pay once you own it

• Council tax (IBI) and refuse collection, set by each town hall, plus community fees.
• If you do not live in Spain and do not let the home: an annual non-resident tax on deemed income of 1.1% or 2% of the cadastral value, at 19% (EU/EEA) or 24% (others).
• If you let it: 19% on net income for EU/EEA residents, and 24% on gross income for everyone else.
• When a non-resident sells, the buyer withholds 3% of the price on account of capital gains tax.

Buying to let

Long-term rentals follow the Urban Leases Act (LAU). Holiday letting is different: since 3 April 2025, a new tourist flat in an apartment building needs the approval of three fifths of the owners' community, as well as a regional licence and a registration number to advertise it. Several cities restrict or suspend new licences in certain areas.

Before you buy for this purpose, we check the building's bylaws and local rules so the yield you calculate is the real one.

How we help

We work directly with owners in Alicante, Málaga, Valencia, Madrid and Barcelona. We help you define the search, view homes with you, coordinate lawyer, notary and bank, and stay with you after completion.