Buying property in Spain does not have to be a far-fetched dream because the country has made it accessible and easy for foreign nationals. If you are a buyer interested in sunny Costa del Sol, the tech-driven Málaga, or the historic Madrid, Spain is one of the global markets where foreigners can enjoy the same ownership rights as locals. To buy property in Spain, international buyers will need a valid passport, a NIE number (Foreigner ID, a Spanish bank account, and a budget for upfront costs like taxes and fees.
This guide will explain the process of buying a property in Spain, the requirements, taxes, and some of the best places to buy property.
Buying property in Spain: Key Takeaways
Can a foreigner buy property in Spain?
Yes, foreigners can buy property in Spain with no limitations for both EU and non-EU citizens. However, to buy property in Spain, you must first get a NIE, a foreign identification number, a valid passport, a Spanish bank account, and follow other legal steps to verify the property and have it legally handed over. Even with the country’s openness, anyone buying property in a foreign country is recommended to consult a Spanish lawyer who is knowledgeable in Spanish law and real estate to make the process easier.
What are the benefits of buying property in Spain?
What are the benefits of buying property in Spain?
- High rental yields (5%–7%): Spain is one of the world’s biggest tourist destinations, which means there are many opportunities and demand for short-term and mid-term rentals. In cities like Madrid, Barcelona, and Valencia, long-term rental yields average 4%–5%, and in other highly sought-after coastal areas like Marbella, Alicante, and the Balearic Islands, where holiday rentals are more popular, yields can reach 7% or more per year.
- Improved tax benefits for non-EU buyers: Non-EU investors from countries such as the UK, USA, Canada, and Australia now receive equal tax treatment, allowing them to deduct real expenses such as repairs, management fees, insurance, and utilities from the rental income. The rental income is also taxed at 19% on net profit rather than 24% on gross income.
- Capital growth and market certainty: Spain faces a structural housing shortage, meaning not enough new homes are being built. Therefore, property prices are expected to rise by 2%–4% per year nationally, with even higher growth in prime coastal areas.
- Affordable luxury compared to other countries: Luxury property in Spain is much more affordable than in other European countries. For instance, A €1,000,000 budget that buys a small apartment in London or Paris can often buy a villa with a pool on the Costa del Sol or a luxury penthouse in Valencia.
- Residency options still available: Even though the Spanish Golden Visa ended, owning property still helps support other residency paths. This includes the Spain Digital Nomad Visa for remote workers, which also comes with the benefit of qualifying for a 24% flat tax under the Beckham Law for 6 years. There is also the Spanish Non-Lucrative Visa targeted to retirees.
Requirements for Buying Property in Spain
- NIE: You first need to obtain your NIE, a foreign identification number that will allow you to buy property in Spain.
- Open a bank account: Buyers need a bank account to pay the seller and cover their water and utilities.
- Extra funds for taxes and fees: You should budget an extra 10–15% of the purchase price to cover taxes and costs 6–10% transfer tax for resale homes, or 10% VAT for new builds, plus notary and registration fees. Spanish banks do not tend to provide loans for taxes and transfer fees.
- Property checks (due diligence): Make sure you have a lawyer to run the due diligence and ensure the property is legal, free of debts, and has an Energy Performance Certificate (EPC).
- Private purchase contract: Buyers also need to sign a private purchase contract and pay a 10% deposit, which legally binds both the buyer and the seller.
- Notary and registration: The sale must be completed in front of a notary by signing the public deed, and ownership is secured by registering the property with the Land Registry.
- Source of Funds: Due to strict anti-money laundering laws, you must provide clear documentation (bank statements, tax returns, or sale of assets that prove the legal origin of your money.
Take a look at our
Spain Non-Lucrative Visa Guide and speak to our immigration specialists to help you start your journey
Step-by-Step Process of Buying a House in Spain as a Foreigner
Step 01/ Find a reputable lawyer
If you are looking for property in Spain, it is advisable to have a lawyer by your side. Global Citizen Solutions has a team of real estate experts and lawyers who can help you find the perfect home without any hidden debts and help with visa applications if needed.
Step 02/ Take care of the administration before you shop
Make sure you have your Spanish ID, because this will allow you to buy a house. You can get this tax ID from a Spanish consulate or a local police station. Buyers will also need a Spanish bank account to pay the seller and set up their monthly electricity/water bills later.
Step 03/ Find the house and settle on a price
Start the search for a house, and once you have found one that suits you and your needs, negotiate the appropriate price based on your preferred budget.
Step 04/ Due Diligence
Once you have found the house, it is time to seal the deal. The lawyer will prepare a document called Nota Simple, which proves the seller actually owns the house and shows if they owe any money on it.
Step 05/ Reserve the property
Once the lawyer has completed the due diligence, you will reserve the property. This entails paying a small fee between €3,000 €6,000 to take the house off the market for about 14 days. The buyer will then be required to sign the Arras Contract, which requires you to pay a 10% deposit.
Step 06/ Become the official owner
The seller and a Notary meet in person, and the final payment is handed over. The buyer will then have 30 days to pay the purchase tax, which is about 10% of the property price. The lawyer will also send the paperwork to the government to have your name placed on the property permanently.
Types of Spanish Property
Spain has a diverse selection of property types available on the real estate market. These are some of the common types.
- Apartments: Many people in Spain live in flats or apartments, called a ‘piso.’ Apartment buildings are common across the country and come in many sizes and qualities, from small studios to large duplexes and penthouses.
- Villas: A villa is a fully detached house. Villas are less common among locals compared to countries like the UK or the US, but you can find many along the coast and in rural areas.
- Townhouses: A ‘casa adosada’ is like a townhouse in the US. These homes are usually compact, detached or semi-detached, and come with shared gardens or swimming pools, especially near the Mediterranean.
- Quad Houses: Quad houses are connected to two other homes on perpendicular sides, but still have their own entrance. They are becoming more popular in Spain because they offer a balance between privacy and community living.
- Cave Houses: In southern Spain, especially in Granada, you can find cave houses called ‘trogladitas.’ Most are in the Altiplano de Granada, between the Sierra Nevada and Sierra de Castril. The rock walls keep the homes cool in summer, so they are energy efficient and give them a unique style.
Property Taxes When Buying Property in Spain
| Cost Category | New Build Property | Resale Property | Notes |
|---|---|---|---|
| Main Tax | 10% IVA (VAT) | 6% – 11% ITP | ITP varies by region (e.g., Madrid 6%, Andalusia 7%, Valencia 10%). |
| Stamp Duty (AJD) | 0.5% – 2% | 0% | Only applies to new builds; rate depends on the region. |
| Notary Fees | €600 – €1,200 | €600 – €1,200 | Fixed by law based on property price. |
| Land Registry | €400 – €800 | €400 – €800 | Fee to record your name as the new owner. |
| Legal Fees | ~1% (+IVA) | ~1% (+IVA) | Highly recommended for due diligence. |
| TOTAL BUDGET | ~12.5% – 14% | ~8% – 13% | Total percentage to add to the purchase price. |
Ongoing property costs in Spain for non-residents
| Tax Type | Estimated Amount | Frequency |
|---|---|---|
| IBI (Local Tax) | ~€1,200 | Annual |
| IRNR (Imputed Tax) | ~€418 (EU) / ~€528 (Non-EU) | Annual |
| Waste Disposal (Basura) | ~€100 | Annual |
| TOTAL | ~€1,718 – €1,828 | — |
Where are the best places to purchase property in Spain?
You can buy property anywhere in Spain. Ultimately, it comes down to what region you prefer and the lifestyle you want. Moving to a new country might be stressful, but it’s important to find a kind and welcoming community that will help you fit in when you buy properties in Spain.
Below are some of the best places to buy property in Spain.
Madrid
Madrid is one of the safest choices for property investors. The prices in the city are rising, especially in the northern parts. Some of the most popular areas, like Salamanca and Chamberí, are at record-breaking prices, while neighborhoods such as Tetuán and Arganzuela are becoming popular because they offer good growth potential. The average price in Madrid can be about €5,800 per m² and typical 80 m² apartment can cost around €464,000.
Barcelona
Barcelona is a big attraction to international tech workers, especially in the Poblenou area. Even with strict rental rules, demand remains high because of the city’s global appeal. Buyers are focusing more on renovated, energy-efficient apartments, particularly to reduce long-term costs and improve sustainability. The average price for a property in Barcelona is €5,150 per m² and a 80 m² apartment: is about €412,000.
Málaga
Málaga is one of the fastest-growing markets. Many large tech companies such as Vodafone have moved to the city and turned it into a year-round business center. This has created a shortage of modern apartments, especially in areas like Soho and Huelin, where prices are rising quickly. An interested buyer can plan to pay about €3,865 per m² with an 80 m² apartment being about €309,200.
Valencia
Valencia is known for its high quality of life and more affordable prices than Madrid or Barcelona. The city has improved with the addition of high-speed railways, which have made it even more attractive, and areas like El Cabanyal are popular for their beach access. The average price per m² for a house is €3,230, and a typical 80 m² apartment is about €258,400.
Alicante
Alicante is a popular choice for rental investors. Property prices are still relatively low, while the demand from remote workers and tourists is still very strong. Investors are especially interested in the city center and Playa de San Juan, where rentals remain occupied year-round. Average prices starts at €2,660 per m² and an 80 m² apartment is about €212,800.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
