buying property in spain as a foreigner

If you are contemplating the purchase of a house in Spain as a foreigner, you’ll need to go through some essential legal procedures before you can call any property your own.

The Spanish property market is marked by its unique characteristics, and it pays to do thorough research before taking the leap. Knowing what to anticipate can save you from potential pitfalls: property scams, debts that stay with the house and a transfer tax that changes by region.

The steps to be followed when acquiring a house may not always seem straightforward, and it’s vital to have a clear understanding of the taxes and expenses you’ll encounter on your path to property ownership.

Whether you are seeking property on the coast or in Madrid or Barcelona, this guide gives you the steps, the 2026 tax rates and the latest notary prices.

Are there any requirements to buy a house in Spain?

The only thing you need when buying a property in Spain as a foreigner (in legal terms) is the NIE (Número de Identificación de Extranjero), besides your passport. The notary must record it in the deed (article 23 of the Notarial Law), so you must have it before signing. The NIE is not complicated to obtain, but it can take weeks; our lawyers can usually apply for it with a power of attorney.

In addition, although it is not compulsory, having a bank account in Spain will make all the formalities easier, as it will make payments faster and will probably save you some commissions.

Finally, a tax representative is only compulsory if the tax office asks an owner living outside the EU for one, or if you live in a country with no effective tax information exchange with Spain (article 10 of the Non-Resident Income Tax Law).

Can foreigners buy property in Spain?

Yes. Outside defence zones, Spain does not limit home ownership by nationality or by residence: an American, a British buyer after Brexit or someone who has never set foot here buys on the same terms as a Spaniard.

The military permit is narrow: non-EU buyers need it only inside zones declared restricted for foreign ownership (article 18 of Law 8/1975), which leave out the urban areas of towns away from the border (article 16).

In the notary data for August 2025 to July 2026, Americans were among the five largest groups of foreign buyers in Madrid (5% of foreign purchases), Barcelona (5%) and Seville (6%), and the largest of all in the old town of Valencia (postcode 46001), with 20%. British buyers still lead in Mijas (18%) and Marbella (11%).

The 100% tax on homes bought by non-EU residents that you may have read about is only a bill in Congress (122/000196), not law, so nobody pays it.

How to buy a home in Spain step by step

Although each buying process differs significantly, in general, the phases found in any real estate operation would consist of the following:

Tax and budget planning before buying a house in Spain

The costs of acquiring a house are mainly paid by the buyer, and vary from region to region. Taxes and other costs paid by the buyer include:

• Property transfer tax of 4% to 13% (existing properties) / VAT (or IVA) at 10% (new properties);
• Notary costs, title deed tax (new properties only) and land registration fee: about 1% to 2.5%;
• Legal fees: about 1% to 2% (including VAT).

Get your NIE

Apply for your NIE at a police station or foreigners’ office in Spain, or at a Spanish consulate if you are abroad. You don’t need a bank account to buy a house, but we advise you to get one before buying the house. Here you can check out the best bank accounts in Spain.

Search for properties in Spain

Our lawyers can help you find properties in Spain. If you feel confident enough, you can also search yourself on portals like Idealista or Fotocasa, making sure the ads are not scams. This is what you should look for:

• The qualifications of the attorneys or real estate agents engaged.
• There is adequate planning approval from the town hall, and the Land Registry (Registro de la Propiedad) shows the seller as the owner.
• There are no outstanding obligations on the property: the home answers for unpaid community fees of the year of sale and the three before it (article 9 of the Horizontal Property Law).
• That the structure of the property is sound (either a surveyor or an architect can do this).

Buying land in Spain? Check first whether the plot is urban or rustic, because building a home on rustic land is heavily restricted.

Reservation agreement and deposit contract

When a buyer pays a fee and reserves the right to acquire a property in Spain for a set length of time (the reservation term), it is known as a reservation agreement.

The next step is usually the deposit contract (contrato de arras), with about 10% of the price. Under the usual withdrawal deposit (arras penitenciales, article 1454 of the Civil Code), a buyer who walks away loses it and a seller who backs out returns it twice over.

Payment of the Property Transfer Tax or VAT

Sign the deed before a notary, pay the applicable taxes and update the Land Registry with the new information. The transfer tax is due within the deadline your region sets (30 working days under the state rule).

Do you get residency if you buy a house in Spain?

Buying property in Spain does not give you residency, whatever the price. If you already hold a Golden Visa, you can renew it under the rules that applied when it was granted (transitional provisions of Law 14/2013), and our advisors handle those renewals (see our Golden Visa page).

To live in the house you buy, you need a permit of its own:

• Non-lucrative visa: for retirees and people living on pensions or savings. €2,400 a month (€28,800 a year), plus €7,200 a year per family member (article 62 of Royal Decree 1155/2024).
• Digital nomad visa: for remote workers of companies based outside Spain (article 74 bis of Law 14/2013). The bar in 2026 is €2,850 a month, counted gross.
• Entrepreneur visa: for an innovative business project with a favourable report from ENISA (articles 69 and 70 of Law 14/2013).

Understanding Tax Obligations After Buying Property in Spain as a Foreigner

Once you’ve purchased a property in Spain, one of the most important taxes you’ll need to pay is the Non-Resident Income Tax (IRNR), which applies if you are not tax resident in Spain. Even if the home sits empty, this tax is calculated annually on 2% of the property’s cadastral value (1.1% where values were revised in the last ten years), at 24%, or 19% if you live in the EU or EEA (article 25 of the Non-Resident Income Tax Law), on Form 210.

Additionally, all property owners, including foreigners, are required to pay the Impuesto sobre Bienes Inmuebles (IBI), a local property tax levied by the municipality. The IBI is also determined by the cadastral value.

When you sell as a non-resident, the gain is taxed at 19% and the buyer holds back 3% of the price on account (article 25.2). Giving the home to your children is a gift: see how gift tax works in Spain.

Renting Out Your Property in Spain: Key Regulations and Tax Obligations for Foreign Buyers

If you plan to rent out your property in Spain, check the local rules first. Short-term rentals need a tourist rental license, and many towns, Barcelona and Palma among them, have frozen new ones. In a building with a community of owners, a new tourist let also needs the approval of three fifths of the owners since 3 April 2025 (article 7.3 of the Horizontal Property Law).

Non-resident owners pay tax on rental income when renting out property in Spain. If you’re a resident of the European Union or the EEA, the tax rate is 19%, and you are allowed to deduct certain expenses related to the rental, such as maintenance costs and mortgage interest. If you live elsewhere (the UK, the US or Canada), the tax rate is 24%, and you are not allowed to deduct any expenses. Rental income is declared yearly on Form 210, from 1 to 20 April of the next year (quarterly up to and including the third quarter of 2026); late filing means surcharges or penalties.

Costs when buying a house in Spain

If you want to know the average price per square metre in the main cities, check the following table: what buyers actually paid in deeds signed between August 2025 and July 2026, not asking prices.

The price per square metre leaves out taxes and fees: a resale home pays 6% transfer tax in Madrid, 9% in Valencia and at least 10% in Barcelona.

FAQs buying property in Spain as a foreigner

Buying a house in Spain: Deposits and Mortgages

In general, non-resident buyers in Spain can get similar mortgage conditions to Spaniards buying a second home: between 60% and 70% of the value, against up to 80% for a first home.

This means that you must have 30% to 40% of the price of the property, plus approximately 10% to 15% extra to pay taxes, lawyer’s fees, notary fees, etc. In addition, your debt should not exceed 30-35% of your income.

Mortgages in Spain are normally taken out for five to thirty years, to be repaid by the age of 75. Each bank has its own risk criteria, which can include your country of residence, and properties abroad are not usually accepted as collateral.

Taxes when buying a house in Spain

Taxes when buying a new property

When buying a brand new property, which is being sold for the first time, you will have to pay 10% VAT on the value of the property (article 91 of the VAT Law) and the stamp duty (Actos Jurídicos Documentados) set by each region, usually 0.5% to 1.5%. In the Canary Islands the local IGIC, 7% as a rule, replaces VAT.

Taxes when buying a resale property

When buying a resale property (a property that has changed hands at least once) you will be required to pay the Transfer Tax or ITP in Spanish, at the rate of your region, on the price or the Catastro’s reference value, whichever is higher (article 10 of the Transfer Tax Law).

Property lawyers in Spain for buying a house

If you are going to buy a property and want to save yourself future problems, it is advisable to seek advice from a property lawyer in Spain. The savings far exceed the cost of legal fees.

Buying your home is usually the largest investment for most individuals, and real estate companies always use lawyers before making an investment.

In short, the services of a lawyer are often more useful for preventive than corrective purposes. But most people still hire them when it’s too late.

How a lawyer can help when buying a house in Spain

Before entering into the purchase of a property, basic tasks of research and analysis must be carried out. It is important to check that the property is in order and that the contracts of purchase and sale and, where appropriate, mortgage loan, will not end up causing problems.

In addition, tax burdens represent a significant percentage of the operation. Together with the associated costs, they add 10% to 15% to the price in most regions. It is therefore a good idea to know this extra before you get a fright. Tell us where you want to buy and our lawyers in Spain will guide you.