Property in Spain: buying and support

On resale property, a regional transfer tax (ITP); on new-builds, 10% VAT plus stamp duty. Annually, the municipal IBI tax.

Budget around 10–13% depending on the region and the type of property. Resale: property transfer tax (ITP), at a rate set by the autonomous community. New-build: 10% VAT plus stamp duty (AJD), also set regionally. In every case: notary, registration of title, legal fees and, with a mortgage, valuation and bank charges. Annually the owner pays the municipal IBI tax, and a non-resident also pays imputed income tax on the property even if it is not let.

1. Obtain an NIE — the foreigner's identification number. Without it you can neither buy nor open an account. 2. Check the property: extract from the property register, absence of debts and charges, and that the floor area and status match the planning documents. 3. Deposit contract (contrato de arras), usually 10% of the price. 4. Sign the deed before a notary and settle in full. 5. Register the title and transfer the utility contracts. The deal can be done under power of attorney — the buyer need not travel.

Spanish banks lend to non-residents, usually up to 60–70% of the valuation. An NIE, proof of income and tax filings from your country of residence are required.

The Golden Visa for purchases from €500,000 was abolished on 3 April 2025: Organic Law 1/2025 left articles 63–67 of Law 14/2013 without content. No new investor applications are accepted. Applications filed before the cut-off and permits already granted remain valid and renewable under the previous rules. Alternatives for those who want to live in Spain: the non-lucrative visa for applicants with sufficient passive income, and the digital nomad visa for remote work for non-Spanish employers. A purchase is not a ground in itself, though it helps evidence accommodation.

Short-term tourist letting in Spain is regulated at municipal level, and in several cities licences are restricted or suspended. Whether a specific property holds a licence is checked before purchase — it is not granted automatically. Long lets carry tenant protections that should be factored into your exit scenario.

What to check before the deal: — unpaid utilities and community-of-owners fees follow the property; — discrepancies between the actual layout or floor area and the register are a common cause of problems on resale; — whether a tourist letting licence exists, if that is the purpose of the purchase; — promises of a Golden Visa: since April 2025 there is none, and such an offer is a reason to doubt the seller's good faith. Checked in September 2026. Thresholds, rates and programme terms change — confirm the current requirements with a lawyer in the country before you buy.