Buying Property in Spain: The Complete Guide for Foreigners 2025
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Dreaming of owning a slice of sunny Spain? You’re not alone!
Many folks are drawn to Spain’s vibrant culture, stunning landscapes, and laid-back lifestyle. Before diving into the property market, it’s wise to get a feel for the local vibe.
That’s why we chose to rent first. We wanted to make sure that the city and neighborhood was the right fit for us. Sure enough we moved within a year of arriving, but it definitely gave us the time to understand the ins and outs of buying property like a local. We chose to buy our family home, as well as another property which we rent out.
Now, we’re happily settled and couldn’t be more thrilled with our decision! Here we are on the varanda of our home in Spain – we just love the view.
If you’re feeling overwhelmed with the bureaucracy and all the hoops you seem to be jumping through to get your move to happen, check out my How to Move Abroad e-book to help you make the right decisions and make your transition as smooth as possible.
Buying a Property in Spain is a bit of a maze! Especially since you have to do it all in Spanish. That’s why I thought this guide would be helpful to walk you through the essential steps to buying a house in Spain. I discuss the legal requirements as well as how to navigate the buying process. I hope it helps you make informed decisions and turn your Spanish property dreams into reality!
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Can Foreigners Buy a House in Spain?
Yes, foreigners can absolutely buy property in Spain! There are no restrictions on who can purchase property here, whether you’re an EU citizen or coming from elsewhere.
In fact, Spain is one of the most popular countries in Europe for international buyers, thanks to its incredible climate, diverse regions, and relatively affordable property prices compared to other parts of Western Europe.
That being said, buying property in Spain isn’t as simple as just finding a dream home and signing on the dotted line. There are specific steps and requirements you need to know, especially if you’re not a resident.
For instance, you’ll need to get a NIE (Número de Identidad de Extranjero), which is essentially your foreigner’s ID number, and set up a Spanish bank account. But don’t worry—I’ll explain all of that in the next sections.
🔥 Hot Tip! If you don’t speak Spanish fluently, it’s a good idea to hire a local lawyer who does or even a Gestor when you’re starting our the process. They’ll not only help with the paperwork but also ensure everything is legit and your rights are protected.
Are There any Requirements to Buy a House in Spain?
Before you dive into the property market, it’s important to know what you’ll need as a foreigner to buy a house in Spain. While Spain is quite welcoming to international buyers, there are a few legal and financial steps you must complete before signing that final contract.
🏠 NIE (Número de Identidad de Extranjero)
This is your foreigner’s identification number and is essential for almost any legal or financial activity in Spain, including buying property. You’ll need to apply for this at a police station or a Spanish consulate in your home country.
🏠 A Spanish Bank Account
You’ll need a local bank account to manage your property purchase, pay taxes, and handle other expenses. This step is pretty straightforward, but having your NIE first is crucial, as most banks require it to open an account. Some banks do have a non-resident account, which you can open without a NIE, but these accounts have a very high monthly fee (around 30€) which I don’t recommend since you’ll need a NIE anyways.
🏠 Proof of Funds or Mortgage Pre-Approval
If you’re financing your purchase with a mortgage, you’ll need to show proof of income and meet the bank’s requirements. Non-residents can typically borrow up to 50–70% of the property value, so having cash saved for the rest is essential.
🏠 Legal Representation
While it’s not mandatory by law to hire a lawyer, I highly recommend it. A lawyer will make sure the property is free of legal issues (like unpaid debts or ownership disputes) and that the purchase process complies with local regulations.
🔥 Hot Tip! We hired a Gestor (a professional administrative assistant) at the beginning, in addition to a lawyer. A Gestor can help with paperwork, bank accounts, and navigating Spain’s sometimes complicated bureaucracy. They often have contacts which reduce wait times for paperwork and obviously speak Spanish fluently. If you can afford it, this makes life so much easier! Reach out and I can provide you with a few fantastic references of local Gestors.
Steps to Buying a House in Spain
Buying a property in Spain might feel like navigating a maze, but don’t worry—we’ll break it down step by step to make the process as smooth as possible. From getting your paperwork in order to signing the final contract, here’s everything you need to know:
1. Get a NIE and Open a Bank Account
Before you can do anything, you’ll need to get your NIE (Número de Identidad de Extranjero) and set up a Spanish bank account. The NIE is essential for all financial and legal transactions in Spain, including buying property. Think of it as your Spanish ID number.
Hot Tip! Apply for your NIE early—it can take a few weeks to process. If you’re applying in Spain, you’ll do this at the local police station, but if you’re still abroad, check with the nearest Spanish consulate.
2. Budget for Taxes and Extra Costs
Buying a house in Spain involves more than just the purchase price. You’ll need to budget for additional costs, which can add up to 10–15% of the property’s value. Here’s a breakdown:
These costs can vary depending on the property type and location, so ask your lawyer for an estimate to avoid surprises.
🔥 Hot Tip! Always leave a buffer in your budget for unexpected expenses like surveyor fees or additional legal checks. We were taken by surprise by an expensive surveyor fee!
3. Look for Properties in Spain
This is the fun part—house hunting! You can explore listings online, work with a local real estate agent, or even visit property expos. However, don’t rush this step. Do your due diligence to avoid future headaches.
What to check for:
A qualified attorney did all of this for us and the real estate agent was great with all the contacts and made sure everything was above board.
🔥 Hot Tip! Ask for a “Nota Simple” from the Land Registry (Registro de la Propiedad). This document provides key details about the property, including ownership and legal status.
4. Make an Offer and Sign a Reservation Agreement
Once you’ve found the perfect property, it’s time to make an offer. If accepted, you’ll sign a reservation agreement and pay a small deposit—typically €3,000 to €6,000 (or about 1% of the purchase price). This agreement takes the property off the market while the final details are ironed out.
5. Private Purchase Contract (Contrato Privado de Compraventa)
This is a detailed contract that lays out the terms and conditions of the sale. At this stage, you’ll usually pay a larger deposit, around 10% of the purchase price. Make sure the contract includes everything discussed, like any fixtures or furniture included in the sale.
🔥 Hot Tip! Use a bank guarantee or escrow account for installment payments to protect your funds until the deal is finalized. Your lawyer should review or draft this contract to ensure it’s airtight.
6. Finalizing the Sale at the Notary
The final step is completing the sale with a notary. You’ll pay any remaining taxes (like the property transfer tax or VAT) and update the Land Registry to reflect the new ownership. The notary ensures everything is legally binding and that all parties fulfill their obligations.
🔥 Hot Tip! Bring multiple forms of ID and make sure you have all payments ready (usually via a bank transfer). If you’re not fluent in Spanish, bring your Gestor or have your lawyer present.
Property Taxes in Spain as a Foreigner
Owning property in Spain comes with its share of taxes. As a foreigner, it’s really important to understand these obligations to avoid any surprises. Here’s what you need to know:
💸 Non-Resident Income Tax (IRNR)
Even if you don’t rent out your Spanish property, the Spanish tax system assumes you earn a “deemed rental income.” This imputed income is subject to Non-Resident Income Tax (Impuesto sobre la Renta de no Residentes or IRNR) on a yearly basis.
- Tax Rate: For EU, Iceland, and Norway residents, the rate is 19%. For residents of other countries, it’s 24%.
- Calculation: Typically, the taxable amount is 1.1% of the property’s cadastral value (a value assigned by the local authorities). For example, if your property’s cadastral value is €150,000, the taxable amount would be €1,650. Applying a 24% tax rate results in a tax payable of €396.
- Filing: Use Form 210 to declare this income. The deadline is December 31st of the following tax year.
🔥 Hot Tip! Always check the cadastral value of your property, as it directly impacts your tax calculation. This value can be found on your local town hall’s website or on your annual IBI bill.
💸 Impuesto sobre Bienes Inmuebles (IBI)
The IBI is an annual local property tax paid to the municipality where your property is located.
- Rate: Typically ranges from 0.4% to 1.1% of the cadastral value, depending on the municipality.
- Payment: Usually due once a year, but some municipalities offer installment options.
💸 Wealth Tax (Impuesto sobre el Patrimonio)
Spain imposes a wealth tax on individuals whose net assets exceed a certain threshold. As a non-resident, this tax applies only to your assets located in Spain.
- Exemption Threshold: Varies by region, but generally, the first €700,000 of net assets are exempt.
- Rates: Progressive rates starting from 0.2% up to 2.5% for assets exceeding the exemption threshold.
🔥 Hot Tip! Keep detailed records of your property’s value and any associated debts, as these can affect your net asset calculation for wealth tax purposes.
💸 Taxes When Buying Property
When buying a home in Spain, these are the taxes you’ll need to pay on receival:
- VAT (IVA): For new properties, a 10% VAT is applied to the purchase price.
- Property Transfer Tax (ITP): For resale properties, the ITP ranges between 6% and 10%, depending on the region.
- Stamp Duty: Typically between 0.5% and 1.5% of the purchase price, varying by region.
🔥 Hot Tip! We’ve set up a direct debit with our Spanish bank account to make sure payments are made on time for all the yearly payments we need to make on the house.
Should I Get a Solicitor?
I don’t think we could have bought a house without our solicitor (abogado). I highly recommend it! His expertise saved us a lot of headaches and he really did make everything run smoothly. Here’s why I recommend one:
Choose the Right Solicitor!
We just looked for someone registered with the Colegio de Abogados who was experienced in property law, and he was fluent in English. This made all the difference!
Costs
Legal fees are usually 1–2% of the property price, including VAT—a worthwhile investment for peace of mind.
🔥 Hot Tip! Skipping a solicitor to save money is risky. Don’t do it! We met a couple who regretted not hiring one because their property had hidden debts and incomplete paperwork. Protect yourself by involving a professional from the start!
As an Owner, Can I Rent Property in Spain?
Yes, you can rent out your property in Spain, but there are specific rules depending on whether you’re renting short-term to tourists or long-term to tenants. We have rented several properties all over Spain. Here’s what you need to know:
Short-Term Rentals
If you’re planning to rent out your property to tourists, obtaining a tourist rental license (licencia de alquiler turístico) is mandatory in most regions. Each autonomous community in Spain has its own rules, so check the local requirements.
- Tourist License Requirements: Your property must meet specific standards, such as having air conditioning, heating, and smoke alarms. Inspections are often required before the license is granted.
- Zoning Restrictions: Certain areas have zoning laws that prohibit or limit short-term rentals. For example, Madrid restricts short-term rentals to a maximum of 90 days per year without a special permit, and Barcelona and the Balearic Islands have a cap on tourist licenses. Research carefully before purchasing a property you intend to rent!
- Tax Implications: Income from short-term rentals is taxable under Non-Resident Income Tax (IRNR). EU residents are taxed at 19%, while others pay 24%.
🔥 Hot Tip! If your property is part of a community of owners (comunidad de propietarios), there may be additional rules or restrictions on rentals. Always check the community statutes before buying since this can be a nightmare of a situation!
Long-Term Rentals
For long-term rentals, you don’t need a tourist license, but you must still declare your rental income to Spanish tax authorities.
- Lease Agreements: Long-term leases are typically more regulated, with tenants having legal protections.
- Taxes: Similar to short-term rentals, rental income is taxed under IRNR. EU residents can deduct expenses like maintenance costs, while non-EU residents generally cannot.
🔥 Hot Tip! If you’re renting long-term, make sure to sign a written lease agreement to avoid disputes. Spanish law strongly favors tenants, so understanding the terms is really important.
Average Cost per Square Meter
Here’s a snapshot of average property prices per square meter in some of Spain’s popular cities:
| City | Average Price per m² | Year-on-Year Change |
|---|---|---|
| Madrid | €3,722 | +4.1% |
| Barcelona | €4,430 | +7.2% |
| Valencia | €2,554 | +14.7% |
| Málaga | €3,912 | +21% |
| Seville | €2,000 | +5% |
| Bilbao | €3,276 | +2.4% |
| Palma de Mallorca | €4,144 | +9.4% |
| Alicante | €1,948 | +17.9% |
| San Sebastián | €5,391 | +5% |
| Granada | €1,800 | +6% |
Note: Prices are approximate and can vary within different neighborhoods of each city.
These numbers give you a general idea of property costs across various Spanish cities, helping you gauge the market as you plan where you’d like to buy.
How do Down Payments and Mortgages work in Spain?
Non-residents can apply for mortgages in Spain, but the terms differ slightly from those for residents. Here’s what to expect:
Down Payment
When you decide to purchase a property in Spain, you’ll need to make a down payment. For non-residents, this is typically 30% to 50% of the property’s purchase price.
The down payment is paid in installments—starting with a reservation deposit, usually between €3,000 and €6,000, to take the property off the market. This is followed by paying 10% of the property’s price upon signing the private purchase contract (Contrato Privado de Compraventa).
Your lawyer should make sure that all payments are documented and clearly outlined in the contract to protect your interests.
Mortgages
Things to consider when deciding on a mortgage:
Steps to Getting a Mortgage
What about the Golden Visa in Spain?
If you’ve been dreaming of getting residency in Spain through the Golden Visa program, there’s some big news—you’ll need to explore other options. As of late 2024, Spain has decided to phase out the Golden Visa program.
This scheme allowed non-EU citizens to gain residency by investing €500,000 or more in real estate, but it’s no longer accepting new applications. The reason? The government wants to address housing affordability and reduce speculation in the property market.
But don’t worry! If you already hold a Golden Visa, your rights remain intact. And for those looking for alternative residency options, Spain still has some great pathways.
Alternatives to the Golden Visa
Spain still has some fantastic ways to make living the Spanish lifestyle a reality. There are a few visa options for retirees, remote workers, and entrepreneurs too.
✔ Non-Lucrative Visa (NLV)
Best For: If you’re financially independent and not planning to work.
- This visa is perfect if you’ve got savings or passive income and just want to enjoy life in Spain.
- You can’t work with this visa, and you’ll need to apply from your home country.
✔ Digital Nomad Visa (DNV)
Best For: Remote workers or freelancers working for clients outside Spain.
- This visa lets you work remotely while soaking up the Spanish lifestyle.
- At least 80% of your income must come from non-Spanish sources, but you can earn a little locally too.
✔ Entrepreneur Visa
Best For: Those ready to start a business in Spain.
- If you’ve got a great idea that’ll boost Spain’s economy, this visa is for you.
- You’ll need a solid business plan, and the Spanish government has to give it the green light.
Buying Property in Spain after Brexit
As a UK citizen, post-Brexit changes mean you’re now treated like other non-EU nationals when buying property in Spain. Here’s what that entails:
Property Purchase Rights
You can still buy property in Spain without restrictions. However, purchasing near military bases or sensitive areas may require special permits from the Spanish Ministry of Defence.
Residency and Stay Limits
Without a visa, you’re allowed to stay in Spain for up to 90 days within any 180-day period. For longer stays or residency, you’ll need to apply for the appropriate visa, such as the Non-Lucrative Visa or Digital Nomad Visa.
Tax Implications
As a non-EU resident, different tax rates apply:
- Rental Income Tax: You’re taxed at 24% on gross rental income, with no deductions allowed.
- Non-Resident Property Tax: You now need to pay an annual tax based on your property’s cadastral value.
Additional Considerations
- Healthcare: Access to public healthcare isn’t automatic anymore. Make sure you have comprehensive private health insurance.
- Legal Requirements: You’ll need to get a Foreigner’s Identification Number (NIE) for to buy property.
Buying Property in Spain: FAQ
When you buy a property in Spain, the total taxes can add up to a significant amount. For new properties, you’ll pay 10% VAT (IVA) on the purchase price, plus Stamp Duty (AJD), which ranges from 0.5% to 1.5%, depending on the region. For resale properties, instead of VAT, you’ll pay the Property Transfer Tax (ITP), typically between 6% and 10%, also varying by region.
On top of these, you’ll have notary fees, land registry fees, and legal fees, which together add around 1% to 2.5%. Altogether, you can expect the total one-time taxes and costs to be about 10% to 15% of the property’s purchase price.
In general, Portugal is slightly cheaper than Spain, especially in rural areas or smaller towns. That said, Lisbon and Porto are catching up with Spain’s pricier cities like Madrid and Barcelona. Ultimately, affordability depends on the specific location and property type.
In addition to the property price, budget for:
Notary and Land Registry Fees: 1–2.5% of the purchase price.
Legal Fees: Around 1–2% (recommended to avoid legal headaches).
Mortgage Costs: Includes arrangement fees and property valuations.
Home Insurance: Often required for mortgage approval.
All these extras can add about 10 % to your purchase cost, so plan accordingly!
Owning a property doesn’t automatically give you residency. To live in Spain full-time, you’ll need a residence visa like the Non-Lucrative Visa, which is perfect for retirees or those not working. While the Golden Visa was phased out, other options like the Digital Nomad Visa may work if you’re remote working.
Buying a House in Spain: The Wrap-Up
Buying property in Spain can seem a bit overwhelming, but once you understand the process and prepare for the costs, it’s absolutely worth it. Plan to relax in a charming coastal town, enjoy city life in Madrid, or invest in a rental property! Spain offers plenty of opportunities for the adventurous!
Take your time, do your research, and don’t hesitate to get professional help—it’ll save you stress in the long run. With the right planning, buying property in Spain isn’t just an investment, it’s the start of an amazing adventure. ¡Buena suerte!
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