Buying property in Spain: a complete guide

Spain is one of the most established markets for foreign buyers, combining lifestyle, a deep resale market and steady rental demand. This guide walks a non-resident through the full path — from the NIE number to the keys — with the costs, taxes and checks that matter.

Market overview and who it suits

Spain works for several goals at once: a holiday home on the Costas and islands, long-term living in Madrid, Barcelona or Valencia, or a rental investment in a university or coastal city. Prices vary widely by region — inland and secondary cities remain accessible, while prime Balearic and Costa del Sol locations command a premium. It is a mature market with transparent, notary-based procedures.

The buying process, step by step

• Get an NIE (foreigner's tax number) — required for any purchase, taxes and utilities.
• Open a Spanish bank account and engage an independent lawyer (not the seller's).
• Reserve the property and sign a reservation agreement to take it off market.
• Sign the private contract (contrato de arras) with a deposit, usually around 10%.
• Complete before a notary with the public deed (escritura); the lawyer registers the title and settles taxes.

Documents you will need

• Valid passport and NIE.
• Proof of funds and the source of funds (banks apply anti-money-laundering checks).
• The private contract and the notarial deed.
• For a mortgage: income proof, tax returns and a bank valuation.

Taxes and costs of buying

Budget roughly 10–13% on top of the price:

• Resale: transfer tax (ITP), typically 6–10% depending on the region.
• New build: VAT (IVA) 10% plus stamp duty (AJD) ~0.5–1.5%.
• Notary, land registry and legal fees — usually 1–2.5% combined.

Ongoing costs of ownership

Annual property tax (IBI), community/condominium fees, rubbish and utilities, plus non-resident income tax on imputed or actual rental income. Budget a management fee if you let remotely.

Financing and mortgages for non-residents

Spanish banks lend to non-residents, typically up to 60–70% of value, against income and the property valuation. Rates and terms depend on profile and residency; arrange a decision in principle before committing.

Residency

Spain's investor (golden visa) route closed in 2025. Living options now centre on the Non-Lucrative visa (passive income, no work) and the Digital Nomad visa, subject to current eligibility. A purchase does not by itself grant residency — status is decided by the authorities.

Rental and yield

Long-term rental in the big cities is steadier; coastal holiday lets are seasonal and usually require a regional tourist licence (and increasingly face local caps). Model occupancy conservatively, net of fees and taxes — headline yields are indicative, not guaranteed.

Risks and due diligence

• Confirm clean title, no debts or charges, and that the build is licensed and registered.
• Check tourist-licence rules before counting on short-term income.
• Review community charges, reserves and the condition of older buildings.

FAQ

Can foreigners buy in Spain? Yes, with no restriction on non-residents. How long does it take? Typically 6–10 weeks from offer to deed. Do I need to be in Spain? No — a deal can be completed remotely by power of attorney.

How we help

We shortlist properties to your goal and budget, coordinate independent local lawyers for due diligence, and guide you from reservation to registration — in your language. This guide is informational only and not legal, tax or investment advice; verify current rules before you commit.