How to Buy Property in Spain

Can Foreigners Buy Property in Spain?

Yes. There are no nationality restrictions on property ownership in Spain. Citizens of any country — EU or non-EU — can purchase residential, commercial, or rural property. The only mandatory prerequisite is a NIE (Número de Identidad de Extranjero), Spain's foreigner identification number.

Non-EU buyers face no additional restrictions on purchase, though they do face higher mortgage requirements and must comply with non-resident tax obligations.

Getting Your NIE Number

The NIE is required for every financial and legal transaction in Spain — opening a bank account, paying taxes, signing a purchase deed, and connecting utilities. Without it, you cannot buy property.

How to apply

• From your home country: Apply at the nearest Spanish consulate. Processing takes 2–4 weeks. You will need your passport, a completed EX-15 form, and proof of reason (e.g., a property search letter from an agent).
• In Spain: Apply at a Comisaría de Policía Nacional with a foreigners' office. You may need an appointment (cita previa) booked online. Same-day issuance is possible but not guaranteed.
• Via a representative: A lawyer with a notarised power of attorney (poder notarial) can apply on your behalf.

Step-by-Step Buying Process

The Spanish property purchase process typically takes 6–12 weeks from accepted offer to completion:

1. Reservation Contract (Contrato de Reserva)

Once you agree a price, the seller's agent will ask you to sign a reservation contract and pay a deposit of €3,000–€6,000. This takes the property off the market for an agreed period (usually 2–4 weeks) while your lawyer conducts due diligence.

2. Due Diligence

Your lawyer should verify:

• The Nota Simple from the Land Registry — confirming ownership, boundaries, and any charges or encumbrances
• Outstanding debts on the property (community fees, IBI tax, utility bills)
• Building licences and certificates of occupancy (licencia de primera ocupación)
• Energy performance certificate (certificado energético)
• Urban planning status — confirming the property is not subject to demolition orders or illegal construction

3. Deposit Contract (Contrato de Arras)

The arras contract is binding. The buyer pays 10% of the purchase price. Under a standard arras penitenciales contract: if the buyer withdraws, the deposit is forfeit; if the seller withdraws, they must return double the deposit amount.

4. Completion at the Notary

Both parties (or their representatives with power of attorney) attend the notary to sign the escritura pública (public deed). The buyer pays the balance, and the notary confirms the property is free of encumbrances. If the buyer is non-resident, the notary will also ensure the 3% CGT retention is arranged.

5. Land Registry Registration

The signed deed is submitted to the Registro de la Propiedad. Registration takes 1–3 months and provides the definitive legal proof of ownership.

Costs and Taxes by Region

Spain's autonomous communities set their own transfer tax rates. This means the total cost of buying an identical property varies significantly depending on location:

Source: Agencia Tributaria and regional tax authority publications. Rates current as of April 2026. New-build properties pay 10% IVA (VAT) nationwide, plus the AJD stamp duty shown above.

Other buyer costs

Total buyer transaction costs in Spain typically range from 10–15% of the purchase price, depending on the region, property type, and whether a mortgage is involved.

Valor de Referencia System

Since January 2022, Spain uses a "valor de referencia" (reference value) system administered by the Catastro (cadastral office) to set the minimum tax base for property transfer taxes. This is the price the tax authority considers the property to be worth, regardless of the actual sale price.

If you buy a property for €200,000 but the valor de referencia is €230,000, you will pay ITP on €230,000. You can appeal, but the burden of proof falls on the buyer to demonstrate the property is worth less than the reference value.

Mortgage Options for Non-Residents

Spanish banks offer mortgages to non-residents, though on less favourable terms than for residents:

Major banks offering non-resident mortgages include CaixaBank, Santander, BBVA, and Sabadell. A Spanish mortgage broker can compare offers across lenders — their fee is typically 0.5–1% of the loan amount, sometimes covered by the bank.

Risks and Common Pitfalls

Spain's property market carries specific risks that foreign buyers should evaluate carefully:

• Illegal constructions: Particularly in Andalusia and Valencia, properties may have extensions or buildings constructed without proper licences. These can face demolition orders — even after purchase. Always verify the licencia de primera ocupación.
• Coastal Law (Ley de Costas): Properties within 100m of the coastline may be subject to restrictions or demolition under Spain's coastal protection law. This has affected properties in Almería, Málaga, and other coastal areas.
• Community debts: Under Spanish law, outstanding community fees (comunidad de propietarios) transfer to the new owner for the current year and three preceding years. Your lawyer must obtain a certificate of outstanding debts before completion.
• Non-resident tax obligations: Even if you don't rent the property, Spain imputes income on non-resident property owners at 1.1–2% of the cadastral value, taxed at 19% (EU/EEA residents) or 24% (non-EU). This annual tax return (Modelo 210) is mandatory.
• Currency risk: A 10% move in EUR/GBP or EUR/USD over a 5-year holding period can significantly affect total returns — especially for leveraged purchases.
• Market cyclicality: Spanish property prices fell 37% peak-to-trough during 2008–2014, according to INE data. The current market has recovered but certain coastal areas remain below 2008 peaks.

Spain Golden Visa (Discontinued)

Spain's Golden Visa programme, which granted residency permits to non-EU nationals investing €500,000+ in Spanish real estate, was discontinued in April 2025. The Spanish government cited housing affordability concerns in its decision to end the programme.

Existing Golden Visa holders retain their permits and can renew them. However, new applications through the property investment route are no longer accepted. Non-EU nationals seeking Spanish residency should explore alternative routes such as the non-lucrative visa, entrepreneur visa, or highly qualified professional visa.