Spain – Buying Property

Can foreign nationals legally buy and own property in Spain?

Spain imposes no blanket legal restrictions on foreign nationals purchasing real estate. Whether you are an EU or non-EU citizen, and regardless of whether you hold Spanish residency, you are entitled to buy and own property here. This openness puts Spain in a distinctly different category from markets in Southeast Asia or parts of the Middle East, where foreigners are often limited to leasehold arrangements or minority stakes in property companies.

Every foreign buyer must, however, obtain an NIE (Número de Identificación de Extranjero) — a personal tax identification number that underpins all legal, financial, and property transactions in the country. You can apply for an NIE either at a Spanish consulate in your country of residence or at a police station with a foreigners’ unit once you are in Spain. Without this number, it is impossible to finalise a property purchase or settle the associated tax obligations.

One major policy shift that all prospective buyers should be aware of came into force on 3 April 2025: the real estate route to Spain’s Golden Visa was abolished. Purchasing an expensive property no longer automatically confers the right to residency. Anyone pursuing Spanish residency must now explore other avenues, including employment-based routes, family reunification, the digital nomad visa framework, or alternative qualifying investments.

Non-EU buyers in particular should stay alert to further legislative developments. In 2025, the Spanish Socialist Workers’ Party (PSOE) put forward a proposal that would introduce a State Complementary Tax on Transfer Tax for non-EU residents buying Spanish property, levied at a 100% rate on the taxable base — calculated on whichever is higher between the cadastral reference value and the market price. At the time of writing this proposal had not been passed into law, but it signals a clear political intention to curb speculative overseas buying and support housing affordability. Always verify the current legal position with a qualified Spanish property lawyer before proceeding.

For authoritative guidance on property ownership and registration, refer to the Colegio de Registradores (Land Registrars of Spain) and the Ministerio de Justicia (Ministry of Justice).

What are average property prices in Spain, and how do they vary by region?

Spain’s Housing Price Index recorded an average rise of 12.7% across 2025 — the steepest annual increase since 2007. During Q3 2025, the national average reached €2,153/m², while asking prices on the Indomio portal stood at €2,708/m² for residential listings by January 2026. These national figures serve only as a rough guide, however, since regional variation is enormous.

At the top of the price ladder sit Madrid (€3,733/m²), the Balearic Islands (€3,672/m²), and Gipuzkoa (€3,222/m²), with Barcelona province at €2,981/m² and the Basque Country averaging €2,866/m². The most affordable corner of the country is Castilla-La Mancha, where property values remain the lowest on a per-square-metre basis.

The range of prices within the market is vast: modest homes in inland towns can be found for under €100,000, while prime properties in major coastal cities or upscale urban neighbourhoods can exceed €1 million. In Andalusia — home to the sun-drenched Costa del Sol — the market is growing strongly, with the Costa del Sol averaging around €2,500/m² and Seville sitting at approximately €2,100/m². Despite sustained price rises, Spanish property continues to look competitively priced when set against equivalent homes elsewhere in Western Europe.

Prices shift frequently and can differ dramatically from one street to the next. For live market data, consult established portals such as Idealista or Fotocasa, and cross-reference with official statistics from Spain’s Instituto Nacional de Estadística (INE).

Where are the most popular locations to buy property in Spain?

Foreign buyers are most concentrated in the Balearic Islands, the Costa del Sol, and sections of the Valencian Community, where estimates place overseas ownership at 12–15% of total housing stock. Each of these destinations has its own distinct pull for international purchasers.

Costa del Sol (Málaga province): Stretching from Nerja to Estepona and taking in Marbella and Fuengirola along the way, this coastline is one of the most internationally recognised property markets on the continent. Year-round sunshine, a well-established expat community, high-quality international schools, and direct flight connections through Málaga-Costa del Sol Airport all contribute to its enduring appeal. Prices in the most sought-after coastal and luxury segments are at a significant premium.

Balearic Islands (Mallorca, Ibiza, Menorca): The Balearics hold the distinction of being Spain’s most expensive region for property, and demand shows no sign of easing — prices jumped 15.3% in a single year. Mallorca in particular draws both lifestyle buyers and high-net-worth investors, combining spectacular scenery, a sailing culture, reliable international flight routes, and well-regarded schools.

Madrid: Spain’s capital is the first port of call for those seeking urban investment or a city base. Madrid posted year-on-year price growth of 13.26% in Q2 2025, underpinned by robust rental demand from students, professionals, and visitors. World-class infrastructure, a rich cultural scene, and a central geographic position within the country all enhance its investment credentials.

Barcelona and Catalonia: Barcelona city averages around €3,700/m², reflecting the city’s unique architectural heritage, Mediterranean frontage, and dynamic economy. Buyers should be mindful, however, that Barcelona maintains strict rules governing short-term rentals and has at various times introduced additional layers of regulation on foreign investment activity.

Valencia and Alicante (Costa Blanca): Both Valencia city and Alicante continue to deliver strong value relative to Madrid or Barcelona, attracting a broad spectrum of international buyers. Valencia has evolved into a major lifestyle magnet — its City of Arts and Sciences, vibrant food culture, urban beaches, and growing expatriate community have drawn a wave of buyers seeking an alternative to the pricier northern cities.

Canary Islands (Gran Canaria, Tenerife, Lanzarote): The Canary Islands have seen prices rise by around 11% in recent periods. Their permanent warm climate, status as EU territory, and a distinct tax framework — where the IGIC replaces mainland VAT — make them a particularly compelling choice for retirees and rental investors alike.

Are there any emerging or up-and-coming areas worth considering in Spain?

A number of regions are drawing increasing buyer interest from those seeking value before prices fully catch up. These locations combine comparative affordability with improving infrastructure, quality of life, and strengthening demand.

Murcia and the Costa Cálida: Murcia recorded the highest year-on-year property price growth of any Spanish region in Q2 2025 at 14.57%, reflecting a surge in buyer interest in an area long overlooked in favour of its coastal neighbours. The Mar Menor lagoon area, together with Cartagena and Murcia city, offers coastal living at markedly lower prices than the Costa del Sol or the Balearics.

Málaga city (inland and suburbs): While the Costa del Sol has attracted buyers for decades, Málaga city itself has undergone considerable reinvention. Districts such as Soho and the historic centre, alongside peripheral neighbourhoods like El Palo and Pedregalejo, have been transformed by cultural investment, a burgeoning technology and start-up ecosystem, and strong transport links — making the city a magnet for remote workers and younger purchasers.

Granada: Granada presents a compelling case to buyers who prioritise authenticity over resort living. Its extraordinary architectural heritage, a large and permanent student population that sustains rental demand, and prices well below coastal equivalents have made it a recurring entry on Spain’s best-value investment city lists. It is drawing growing numbers of international buyers seeking genuine character.

Extremadura and rural Castilla y León: Among the lowest property prices anywhere in Spain are to be found in Extremadura — which borders Portugal — and in provinces such as Toledo and Ciudad Real in Castile-La Mancha. These areas appeal to buyers in search of substantial rural properties, farmhouses, or fincas at a fraction of coastal prices, often as primary residences for those able to work remotely or as lifestyle purchases.

La Rioja and Aragón: La Rioja registered year-on-year price growth of 13.74% and Aragón 13.7% in Q2 2025, indicating that buyers and investors are increasingly casting their eyes beyond the established coastal and urban hotspots toward the interior wine country and Pyrenean foothills. Both regions offer solid value against national averages, with expanding tourism industries and strong regional identities adding to their appeal.

What are the current trends in the property market in Spain?

Spain’s real estate sector entered 2025 in robust health, with sustained price growth and strong demand continuing despite broader economic uncertainty. Unsubsidised housing prices rose 12.7% across 2025 — the biggest annual jump since 2007 — extending what has now become 12 consecutive years of price gains.

A chronic shortage of supply is the principal driver of price pressure. In the period from 2021 to 2023, new housing construction consistently lagged behind the rate of household formation, creating a structural supply deficit that continues to push values upward. New-build dwelling prices rose by 12.1% year-on-year in Q2 2025. Although housing starts have picked up, completions are not yet meeting demand in the most active markets.

The widespread shift to remote and hybrid working has had a lasting effect on buyer behaviour. Freed from the obligation to live within commuting distance of major offices, many purchasers have turned to mid-sized cities — Valencia, Málaga, Alicante, Seville — and to rural or semi-rural properties with reliable broadband and outdoor amenities. This shift is reflected in the above-average price growth recorded in regions such as Murcia, La Rioja, and Aragón that were previously off the main investment radar.

On the rental side, prices climbed more than 11% during 2024, driven by constrained supply and high occupier demand. A new Housing Lease Reference Index (IRAV) came into effect on 1 January 2025, replacing temporary rent caps and establishing a more structured framework for annual adjustments. This change has direct implications for investors considering buy-to-let purchases.

Eco-conscious construction and energy efficiency are also increasingly shaping the market. New developments routinely incorporate solar energy systems, heat pumps, and high insulation standards, partly in response to EU building directives and partly because buyers are actively seeking them. Properties holding an Energy Performance Certificate rating of A or B achieve premium prices and sell more quickly. For the most up-to-date market statistics, consult the INE and the Ministerio de Vivienda y Agenda Urbana.

Is buying property in Spain a good investment?

Spain’s property market has shown considerable resilience in the face of economic headwinds, with a recovery trajectory that has grown progressively stronger. The post-crisis low of €1,456/m² was reached in Q3 2014, and by September 2025 the market had climbed 2% above its 2008 peak. For those who acquired property at or near the bottom of the cycle, the returns have been substantial.

Well-run long-term rental portfolios in selected coastal and urban locations are now generating yields of up to 7%. Short-term holiday lets can achieve higher gross returns in tourist hotspots, though these are subject to ever-tighter regulation: prospective landlords should investigate local licensing requirements carefully before buying, as cities including Barcelona and Madrid, together with much of the Balearic Islands, have introduced strict caps on new tourist rental licences or halted fresh authorisations altogether.

Currency exposure is a genuine consideration for buyers whose wealth or income is denominated in a currency other than the euro. Exchange rate movements can be material: a swing in GBP/EUR from 1.16 to 1.12 shifts a £500,000 budget by €20,000, and USD/EUR fluctuations through 2024 produced affordability swings of 8–12%. Engaging a specialist foreign exchange provider rather than a retail bank typically reduces transaction costs significantly.

As Europe’s sixth-largest economy, Spain offers a stable backdrop for property investment, with encouraging indicators that include rising tourism revenues, GDP growth, improving fiscal performance, and moderating inflation. The market is not without its risks, however: coastal areas are particularly susceptible to tourism cycles, and the proposed supplementary tax on non-EU purchasers — if enacted — could weigh on demand and affect resale values in certain market segments. As with any asset class, property investment is not without risk, and independent financial advice is strongly recommended before making a commitment.

What types of property are commonly available to buy in Spain?

Spain’s property stock is remarkably varied, and what is available to buy differs considerably depending on where you look. Familiarising yourself with the local terminology and understanding what each property type entails will make your search considerably more efficient.

• Apartamento / Piso (apartment/flat): The most prevalent property type in both cities and coastal zones. Options range from compact city-centre studios to spacious penthouses with panoramic sea views. Many are set within residential complexes (urbanizaciones) that offer communal swimming pools and landscaped gardens.
• Adosado (townhouse / terraced house): A semi-detached or terraced property, typically arranged across two or three floors. These are frequently found in residential estates on town peripheries and in coastal resort developments, often with a small private garden or terrace.
• Chalet / Villa: A standalone detached house, usually with a private garden, swimming pool, and more generous grounds. Chalets and villas are found along the coast, in rural settings, and on the outskirts of major cities, ranging from modest single-storey bungalows to expansive luxury residences.
• Casa de pueblo (village house / townhouse): Traditional stone or rendered properties embedded in inland villages and historic town centres. Many require restoration work and appeal strongly to buyers seeking genuine character and a sense of place. They can represent outstanding value in rural areas.
• Finca / Cortijo: Rural properties, often with associated land. The term finca refers broadly to a country estate, while cortijo denotes a traditional Andalusian farmhouse. These can include agricultural land, olive groves, or vineyards. Land classification — urban, urbanisable, or rustic/agricultural — is critical, as it determines what building and renovation rights apply.
• Obra nueva (new build): Off-plan or recently completed developments sold directly by the developer. Particularly widespread on the Costa del Sol, Costa Blanca, and in urban regeneration corridors. These attract VAT at 10% rather than ITP.
• Solar (plot): Bare land intended for self-build. Availability and the extent of permitted building rights depend on the local urban planning instrument (Plan General de Ordenación Urbana). Always confirm planning status before committing to a plot purchase.

What is the typical step-by-step process for buying property in Spain?

Spain operates one of the most transparent property markets in Europe, yet the process can still feel daunting given the language, legal, and administrative requirements involved. Unlike the Australian system — where contracts exchange simultaneously at auction or following a cooling-off period — or the American model, in which title companies administer escrow, Spain’s approach is notary-led. A private contract phase takes place before the formal deed is executed. Understanding the full sequence from the outset prevents expensive errors and unnecessary delays.

1. Obtain your NIE (Número de Identificación de Extranjero). Every foreign buyer must hold a Spanish NIE, as it is a prerequisite for all legal and financial dealings in Spain — including the property transfer itself, tax payments, and setting up utilities. The process typically takes one to two weeks. You may apply at a Spanish consulate before travelling, or at a police station (Comisaría) with a dedicated foreigners’ office once you are in Spain.
2. Open a Spanish bank account. A Spanish bank account is essential for the purchase transaction, any mortgage repayments, and routine outgoings such as utility bills and community charges. Channelling all payments through a Spanish account allows the notary to verify the source of funds and ensures the transaction meets Spanish anti-money-laundering requirements.
3. Engage an independent property lawyer. The notary is a neutral state official whose role is to formalise the transaction, not to protect your interests as a buyer. Your own lawyer investigates the property’s title history, outstanding debts, planning compliance, and community rules, and reviews and negotiates all contracts on your behalf. Instruct a lawyer before putting pen to paper on anything.
4. Submit an offer and sign a reservation contract. Once you have identified a property, you submit an offer — usually through the selling agent. If the seller accepts, a reservation contract (contrato de reserva) is drawn up and a deposit of typically €3,000–€6,000 is paid to withdraw the property from the market while your lawyer conducts due diligence.
5. Carry out due diligence. Your lawyer will confirm that the property carries no outstanding debts — including unpaid community fees, utility arrears, or taxes — verify that no liens, mortgages, or legal proceedings are registered against it, ensure that all building licences and planning permissions are valid, and cross-reference the physical property against both the Land Registry and cadastral records. This is done by obtaining a nota simple from the Registro de la Propiedad.
6. Execute the private purchase contract (Contrato de Arras Penitenciales). This is the binding preliminary agreement. A deposit equivalent to 10% of the purchase price is standard at this stage. Should you withdraw after signing, you forfeit the deposit; should the seller withdraw, they are legally required to return double what you paid.
7. Arrange mortgage finance if required. Non-residents are generally offered loan-to-value ratios in the region of 60–70%, so a substantial deposit plus closing costs must be available upfront. The lender will commission an official valuation (tasación). Budget three to six weeks for the approval process.
8. Sign the title deed (Escritura Pública) at a notary. The formal transfer of ownership takes place before a Notary Public, at which point the Escritura Pública de Compraventa is signed by both parties. The notary acts as an impartial representative of the Spanish state and confirms that all legal requirements have been satisfied. On completion, with full payment made, the keys are handed over.
9. Settle taxes and fees. ITP on a resale purchase must be paid within 30 days of the notarial signing. On new-build purchases, VAT (IVA at 10%) and Stamp Duty (AJD) fall due at completion. Buyers should budget an additional 10–13% of the purchase price to cover all acquisition costs — including notary fees, Land Registry fees, and legal fees.
10. Register the property at the Land Registry. Following the signing, your lawyer or the notary’s office will register the transfer at the Registro de la Propiedad in your name. This final step establishes your legal ownership and secures your title against future claims. Registration typically takes between two and six weeks, after which you will receive a certified copy of the registered deed.

Do I need a lawyer to buy property in Spain, and how do I find a reputable one?

Hiring a Spanish property lawyer is not a statutory requirement, but it is strongly advisable — particularly for overseas buyers unfamiliar with the legal landscape. Legal fees generally fall between 1% and 2% of the purchase price plus VAT at 21%. Relative to the value of the asset being acquired, this is one of the most cost-effective investments you can make in the entire transaction.

It is important to understand that the notary’s function does not include protecting the buyer. Notaries exist to formalise the transaction as an impartial state official, in a role broadly comparable to the signing of a deed in the UK — but their duty of care is owed to the transaction rather than to either party. Only your own independently appointed lawyer is exclusively on your side.

Among the services a property lawyer provides: checking that no debts, mortgages, or encumbrances are registered against the property; verifying that all planning permissions and occupation licences are in order; ensuring that the physical property corresponds to what appears on cadastral and registry records; and reviewing and negotiating all contractual documentation before you sign.

Your lawyer must be a qualified Spanish abogado and should ideally be registered with the local Bar Association (Colegio de Abogados). The national professional body is the Consejo General de la Abogacía Española, and a lawyer’s standing can be confirmed at www.abogacia.es. International buyers requiring English-language legal support will find that many Spanish firms actively serve overseas clients, and the Law Society of England and Wales maintains a directory of Spanish-qualified practitioners. Crucially, always select a lawyer who has no connection to the agent or developer selling the property.

If you are unable to attend the final signing in person, your lawyer can act on your behalf under a Power of Attorney. A notarised POA typically costs €150–€300. Ensure it is drafted specifically for the transaction in question and carries a defined expiry date.

What are the most common pitfalls and problems expats encounter when buying property in Spain?

Purchasing property in Spain comes with a distinct set of risks for the uninitiated, from navigating the legal complexities of the local system and correctly calculating the full tax burden, to identifying planning irregularities and avoiding fraudulent transactions. The following are the issues that most frequently catch foreign buyers off guard:

• Illegal or unlicensed construction: A significant number of properties — particularly rural homes and coastal buildings erected before stricter planning legislation was introduced — were constructed without the necessary building permits or on land where residential development is not permitted. Acquiring such a property can mean you are unable to sell, mortgage, or insure it, and you may receive no compensation if a demolition order is issued. Your lawyer should always request and verify the licencia de obra and licencia de primera ocupación.
• Undisclosed debts and charges: Property in Spain can be encumbered by unpaid community of owners fees, annual council tax (IBI), outstanding utility bills, or an existing mortgage that the seller has not disclosed. A thorough search at the Land Registry and with the community administrators is essential to confirm a clean title.
• Discrepancies between cadastral and registry records: The dimensions and boundary lines of a property as recorded in the Registro de la Propiedad and in the Catastro — the fiscal register used for taxation purposes — do not always agree. These inconsistencies can create legal complications and delays. Your lawyer should cross-check both records as standard practice.
• Off-plan purchase risks: Buying before construction is complete exposes the buyer to specific vulnerabilities — the developer may enter insolvency, the project may overrun by months or years, or the completed property may not match what was sold on the brochure. Spanish law requires developers to provide bank guarantees (avales bancarios) protecting stage payments; always confirm these are in place before transferring funds.
• Currency transfer costs: Moving a large sum of money from your home country into euros carries costs that should not be underestimated, particularly when converting from sterling, dollars, or other currencies. Specialist foreign exchange providers typically offer substantially better rates and lower fees than high-street banks, potentially saving thousands of euros on a single transaction.
• Unlicensed agents: Spain does not impose a mandatory national licensing requirement on estate agents, although certain autonomous communities — notably the Comunitat Valenciana — maintain their own registration systems. Exercise caution around any agent who pressures you to sign quickly, discourages independent legal advice, or appears reluctant to provide documentation.
• Tax compliance for non-resident owners: Even owners who neither live in Spain nor let out their property still face Spanish tax obligations. The Spanish tax authorities treat a property as a notional income-generating asset, and non-resident income tax is levied on an imputed basis calculated from the cadastral value. Failing to file the required annual returns can result in penalties and surcharges.
• Short-term rental regulations: The rules governing tourist lettings are set at regional and municipal level and vary enormously. In many popular areas, obtaining a new licence is extremely difficult or effectively impossible. If you are considering buying a property with tourist rental potential, always verify whether the existing licence — if there is one — is transferable to a new owner.

Can I buy property in Spain through a company, and is it worth doing?

The taxes that apply at the point of purchase are the same whether the buyer is a private individual or a corporate entity — the determining factor is the type of property, not the ownership structure. However, the ongoing tax treatment and legal implications can diverge significantly, and there are circumstances in which holding property through a company is entirely rational.

The structures most commonly used are a Spanish Sociedad Limitada (SL, broadly equivalent to a limited liability company), a Spanish Sociedad Anónima (SA, similar to a public limited company), or a non-Spanish holding vehicle such as a UK Ltd, a Dutch BV, or a similar entity. Each carries its own cost profile and administrative obligations.

The principal potential advantages of purchasing through a Spanish SL include: the ability to deduct property-related expenses — financing costs, maintenance, and management fees — from rental income for corporate tax purposes; a potentially cleaner framework for inheritance planning where multiple beneficiaries are involved; and, in some cases, a more straightforward mechanism for disposing of a property portfolio by transferring company shares rather than individual assets.

On the other side of the ledger, corporate ownership brings higher formation and ongoing accountancy costs; the obligation to file annual statutory accounts; Spanish corporate tax at the standard rate of 25% on profits; and the reality that the Spanish tax authorities scrutinise company-owned residential property with particular care — especially where the predominant use is personal occupation rather than commercial letting. Non-resident companies holding Spanish real estate are also subject to non-resident income tax (IRNR) and may face a 3% withholding on sale proceeds.

The appropriate structure is entirely dependent on your personal situation, the value and intended use of the property, your residency status, and your longer-term objectives. Independent legal and tax advice from a qualified Spanish abogado and gestor (licensed tax administrator) is essential before committing to any corporate purchase route.

What taxes and ongoing costs should I budget for when owning property in Spain?

Many overseas buyers are taken aback to discover how substantially the headline purchase price diverges from the total cost of acquisition. Depending on the location and nature of the property, taxes, fees, and associated charges can add between 11% and 15% to the overall outlay. The table below summarises the main upfront costs, as of 2025. Always confirm current figures with your lawyer and the Agencia Tributaria (Spanish Tax Agency) before proceeding.

Recurring annual costs following completion include:

• IBI (Impuesto sobre Bienes Inmuebles): Spain’s annual municipal property tax, conceptually similar to council tax in the UK or local rates in Australia. IBI is typically charged at 0.4–1.1% of the cadastral value, which commonly represents 40–60% of market value, yielding an effective rate of roughly 0.2–0.6% of market value.
• Non-resident income tax (IRNR): Even where a property sits vacant and generates no rental income, the Spanish tax authorities treat it as a notionally productive asset and charge non-resident income tax on an imputed basis, calculated on 1.1% to 2% of the cadastral value. Where the property is let, actual rental income is taxed: EU and EEA residents pay 19% after allowable deductions, while non-EU residents are taxed at 24% on gross rental receipts (as of 2025).
• Wealth Tax (Impuesto sobre el Patrimonio): Spain’s annual wealth tax applies to net assets above a threshold that varies by autonomous community. Madrid currently offers a full exemption; other regions take different approaches. A qualified Spanish tax adviser can confirm current thresholds and rates applicable to your situation.
• Community fees (gastos de comunidad): Monthly charges levied by the community of owners typically range from €60 to €200, rising to higher figures for properties with pools, gardens, lifts, or concierge services.
• Basura (refuse collection tax): A modest annual municipal charge for rubbish collection, usually amounting to a few hundred euros per year.
• Home insurance: A legal requirement if the property is mortgaged, and strongly advisable in all circumstances.

For up-to-date tax rates, refer directly to the Agencia Tributaria and to the tax authority of the relevant autonomous community, since many property-related taxes in Spain are administered at the regional level.

What are the official sources I should consult when buying property in Spain?

The bodies and resources listed below are the authoritative starting points for independent research. Given that regulations, fees, and procedures change regularly, always verify information at source before acting on it.

• Registro de la Propiedad (Land Registry) / Colegio de Registradores: The national authority overseeing property registration. Provides access to nota simple extracts summarising a property’s legal status, encumbrances, and ownership. www.registradores.org
• Agencia Tributaria (Spanish Tax Agency): The central authority for all tax matters relevant to property ownership, including non-resident income tax, IVA, and AJD. www.agenciatributaria.es
• Catastro (Directorate General of Cadastre): Spain’s official fiscal property register. Essential for verifying cadastral values, land boundaries, and the classification of a plot. www.catastro.hacienda.gob.es
• Ministerio de Vivienda y Agenda Urbana (Ministry of Housing): The government department with responsibility for housing policy and legislative proposals. www.mivau.gob.es
• Consejo General del Notariado (Notarial Council): The professional body for Spain’s notaries. Enables buyers to locate a notary and understand notarial procedures. www.notariado.org
• Consejo General de la Abogacía Española (Spanish Bar Association): The national body for verifying a lawyer’s registration and professional standing. www.abogacia.es
• Instituto Nacional de Estadística (INE): Spain’s national statistics institute, which publishes the official Housing Price Index (IPV) and a wide range of market data. www.ine.es
• Banco de España (Bank of Spain): The financial regulator, whose resources are relevant to mortgage finance, consumer credit regulation, and currency matters. www.bde.es

Frequently asked questions

Do I need to be a resident in Spain to buy property there?

No residency of any kind is required to purchase property in Spain. Both EU and non-EU nationals are free to buy real estate regardless of where they live. You will, however, need to obtain an NIE (Número de Identificación de Extranjero) and open a Spanish bank account before you can complete the purchase.

What is an NIE and how do I get one?

The NIE is a mandatory tax identification number issued to foreign nationals in Spain. It is required for every legal and financial transaction in the country, including the property purchase itself, paying the associated taxes, and registering utilities. You can apply either at a Spanish consulate in your home country or at a police station with a foreigners’ unit inside Spain. The process is straightforward but can take one to two weeks, so it is wise to begin your application as early as possible.

Is the Spanish Golden Visa still available through property purchase?

No. Legislation that came into force on 3 April 2025 removed the property investment route from the Golden Visa programme. It is no longer possible to acquire Spanish residency simply by purchasing high-value real estate. Anyone seeking to establish residency in Spain must now pursue an alternative pathway, such as employment, family reunion, the digital nomad visa framework, or another qualifying form of investment.

How much should I budget for taxes and fees on top of the purchase price?

You should set aside an additional 10–13% of the purchase price to cover all acquisition costs. These include notary fees, Land Registry fees, legal fees, and either Property Transfer Tax (ITP) for resale properties or VAT (IVA) and Stamp Duty (AJD) for new builds. Regional tax rates differ, so always confirm the applicable figures with your lawyer before exchanging contracts.

Can I get a mortgage in Spain as a non-resident?

Yes, though lenders typically restrict non-residents to loan-to-value ratios of around 60–70%, meaning a substantial cash deposit plus closing costs must be available upfront. Major Spanish banks including BBVA, Santander, and CaixaBank all offer mortgage products aimed specifically at foreign buyers. Allow additional time for the documentation process and approval compared to a standard resident application.

Do I have to pay Spanish tax if I own property but don’t live there?

Yes. Even if you leave your property vacant throughout the year, the Spanish tax authorities impute a notional rental income to it and charge non-resident income tax accordingly, calculated on the cadastral value. In addition, annual IBI (local property tax) is payable regardless of your residency status. Consult the Agencia Tributaria for current rates and filing deadlines.

What is the difference between buying a resale property and a new build in Spain?

The principal distinction lies in the tax treatment at purchase. Resale properties are subject to Property Transfer Tax (ITP), whereas buying directly from a developer attracts IVA (VAT) and Stamp Duty (AJD) instead. New-build purchases also require additional scrutiny around the developer’s financial guarantees, the protection of stage payments made during construction, and the issuance of the final occupation certificate upon completion.

Are there any restrictions on renting out my Spanish property to tourists?

Yes, and the rules differ substantially from one region or municipality to another. Barcelona, large parts of the Balearic Islands, and certain areas of Madrid have all capped the number of new tourist rental licences in circulation or suspended the issue of new ones entirely, while others require registration with a regional tourism authority. If you intend to let your property on a short-term basis, investigate the local licensing situation thoroughly before buying — purchasing a property without a valid and transferable tourist licence can be a costly mistake.

What happens if the seller pulls out after I have signed the Arras contract?

The Contrato de Arras Penitenciales is a legally binding preliminary agreement with built-in financial penalties for both sides. If you as the buyer withdraw after signing, you lose your deposit — typically 10% of the agreed purchase price. If the seller is the party who backs out, Spanish law obliges them to pay you twice the amount of the deposit you handed over. This reciprocal penalty structure gives both parties a strong financial incentive to proceed and is a standard and well-established feature of Spanish property law.