Property & investment · Spain

The considered buyer's guide

to property in Spain.

Spain received over 93,000 foreign property transactions in 2024 — nearly one in five of all purchases. The process is well-regulated and legally secure, but it is genuinely different from buying property in the UK, the US or most of Asia. This is what you need to know before you sign anything.

Property & investment

14 min read

Spain · All nationalities

Comprehensive guide

Spain's property market is open to all nationalities without restriction. The process rewards those who understand it before they begin.

Spain is one of the world's most popular destinations for foreign property buyers, and has been for decades. The combination of climate, culture, connectivity and — relative to Northern Europe, the US and much of Asia — cost has produced a sustained and broadly rational demand from international buyers that shows no sign of diminishing. Foreign buyers accounted for 19.3% of all Spanish property transactions in the first half of 2025, totalling over 71,000 transactions according to notary data. Approximately 93,000 foreign buyers completed purchases across the full year of 2024.

The Spanish property purchase process is regulated, transparent and legally sound. It is also genuinely different from systems that foreign buyers may be accustomed to — in its structure, its tax mechanics, its use of the notary, and its treatment of costs. The buyers who navigate it best are those who understand the sequence before they begin, rather than those who discover it stage by stage under time pressure.

This guide covers the full process: from establishing the legal prerequisites to completing at the notary, understanding what you will pay in taxes and fees, and knowing what ongoing obligations you acquire as a property owner in Spain.

Important · Golden Visa abolished April 2025

Spain's property-based Golden Visa was formally ended on 3 April 2025 under Organic Law 1/2025. Purchasing property in Spain — at any price — no longer grants residency rights. Property ownership remains entirely legal and unrestricted for all nationalities. It simply no longer qualifies for a residency permit in its own right. If residency alongside property purchase is your goal, the Non-Lucrative Visa, Digital Nomad Visa or other pathways should be explored separately.

Who can buy: the short answer is everyone.

There are no nationality-based restrictions on purchasing property in Spain. Citizens of EU member states, the UK, the US, Hong Kong, Singapore, mainland China, Australia, Canada — any country — may purchase residential or commercial property under the same fundamental rules as a Spanish citizen. The only legal prerequisite is a NIE (Número de Identificación de Extranjero), Spain's tax identification number for foreigners. Without a NIE, no property transaction can be completed.

Non-residents may purchase property freely and hold it for as long as they wish. They may rent it out. They may sell it. They may leave it to heirs. What changes for non-residents is the tax treatment — specifically the Non-Resident Income Tax (IRNR), which applies to rental income and, where a property is not rented, to an imputed income calculated on the cadastral value. These obligations are manageable and straightforward when known in advance. They are occasionally surprising when they are not.

The eight steps: from decision to deed.

Obtain your NIE

The NIE is required before any property transaction can be completed in Spain. Apply at a Spanish consulate in your country of residence, or at a National Police station in Spain. Processing typically takes one to three weeks in Spain; longer from abroad due to appointment availability. If you cannot travel to Spain, a Spanish lawyer can obtain the NIE on your behalf via power of attorney — a common and entirely legitimate approach used by the majority of international buyers purchasing remotely.

Open a Spanish bank account

Not a legal requirement in every technical sense, but practically essential. You will need a Spanish account to pay purchase taxes, notary fees, utilities, community charges and, if applicable, mortgage payments. Spanish banks are strict on anti-money laundering documentation for large transfers — prepare your source-of-funds documentation in advance. Non-resident accounts are available at major Spanish banks with a passport and proof of address from your country of residence.

Engage an independent property lawyer

This is not optional for any buyer who understands what it protects against. Your lawyer checks the Nota Simple — the Land Registry extract confirming ownership, outstanding mortgages, liens and encumbrances. They verify building licences, community debts, utility contracts and planning status. They review all contracts before you sign and often manage the transaction with power of attorney if you are not physically present at completion. Legal fees typically run to 1–2% of the purchase price. It is money well spent.

Make an offer and sign the reservation contract

Once you have identified a property, a reservation contract (contrato de reserva) and a holding deposit — typically €3,000–€10,000 — secures it while legal checks proceed. This removes the property from the market. Do not pay a reservation deposit before your lawyer has confirmed the Nota Simple is clean.

Sign the private purchase contract (arras)

The arras penitenciales is the binding private contract between buyer and seller, signed before notarial completion. The buyer pays 10% of the purchase price at this stage. This contract is legally significant: if you withdraw, you forfeit the deposit. If the seller withdraws, they must return double the deposit. Your lawyer should review this contract in full before you sign.

Arrange financing if required

Spanish banks offer mortgages to non-residents, but typically at 60–70% Loan-to-Value — meaning you need at least 30–40% of the purchase price plus taxes in cash. Interest rates for non-residents run between 3.5% and 4.7% depending on profile and lender, compared to approximately 3% for residents. Mortgage approval should be secured before signing the arras. Your bank will require a property valuation (tasación) by a certified Spanish valuer.

Complete at the notary (escritura pública)

The final transaction takes place before a Spanish notary (notario), who verifies both parties' identities, checks for outstanding tax debts against the property and oversees the signing of the public deed of sale (escritura pública de compraventa). The balance of the purchase price is paid, typically by banker's draft. Both parties, or their lawyers acting under power of attorney, must be present. The notary's fees are regulated and typically amount to 0.5–1% of the purchase price.

After completion, the signed deed must be registered at the Registro de la Propiedad. Until registration is complete, your ownership is not fully protected against third-party claims. Your lawyer typically handles this. Registration takes two to eight weeks depending on the region and current workload.

Understanding the taxes: the most important numbers.

The single most common source of genuine surprise for foreign property buyers in Spain is the total cost of taxes and fees on top of the purchase price. The figure varies by property type and region, but the range is well-established: budget between 10% and 15% of the purchase price in additional costs. For a €500,000 property, this means up to €75,000 in taxes, fees and costs on top of the headline price. Understanding this before you negotiate the purchase price is considerably more useful than discovering it at the notary.

| **

Tax or fee** | Applies to | Rate | Notes |

Worked example · €500,000 resale property in Andalucía

€35,000

ITP transfer tax at 7% (Andalucía rate)

€7,500

Notary, registry and legal fees (est. 1.5%)

€42,500

Total additional costs on top of purchase price

Mortgages for non-resident buyers.

What Spanish banks offer non-residents

60–70% LTV for most nationalities (UK, EU, US, Hong Kong, Singapore)
Up to 75% LTV for UAE and Gulf residents at some lenders
Interest rates 3.5–4.7% (vs ~3% for residents)
Maximum term typically 25–30 years
Repayment mortgage (capital + interest) standard — interest-only uncommon
Mortgage approval before arras signing strongly recommended

Documents typically required

Passport and NIE
Last 3 years' tax returns from country of residence
Last 3 months' payslips or income statements
Last 6 months' bank statements
Employment contract or business ownership proof
Credit reference report from country of residence
Source-of-funds documentation for deposit

"Budget between 10% and 15% of the purchase price in additional costs. For a €500,000 property, this means up to €75,000 on top of the headline figure. Knowing this before you negotiate changes how you negotiate."

Ongoing costs and tax obligations after you buy.

Property ownership in Spain does not end at the notary. A range of ongoing costs and tax obligations attach to the property from the moment ownership is registered. Non-residents are sometimes surprised by these — not because they are onerous, but because they apply regardless of whether the property is used, rented or left empty.

IBI (Impuesto sobre Bienes Inmuebles)

Annual local council tax on the property, based on cadastral value. Paid to the local municipality regardless of residency status or usage.

Annual

Non-Resident Income Tax (IRNR)

Non-residents pay 19% (EU/EEA citizens) or 24% (non-EU citizens) on rental income. If the property is not rented, an imputed income of 1.1–2% of the cadastral value is taxed annually. Filed quarterly or annually depending on usage.

19% / 24%

Community fees (Gastos de comunidad)

Monthly or quarterly charges for shared building maintenance, common areas, lift, pool and garden upkeep. Mandatory for all apartment and community property owners.

Monthly

Wealth Tax (Impuesto sobre el Patrimonio)

Non-residents are taxed on Spanish-located assets only. The personal allowance is €700,000. Property in Madrid and Andalucía benefits from regional bonification that reduces or eliminates this tax — a significant factor for high-value property owners choosing their region.

Annual

Capital Gains Tax (Plusvalía Municipal & IRNR)

On eventual sale, non-residents pay 19% (EU/EEA) or 24% (non-EU) on the capital gain. The municipal plusvalía (a local tax on land value appreciation) is also levied by the local council on sale. Buyers should be aware that 3% of the purchase price is withheld by the buyer at completion as a tax retention when purchasing from a non-resident seller.

On sale

Due diligence: the checks that matter most.

The Nota Simple from the Land Registry is the first document your lawyer should obtain — and the one that tells you most. It confirms who owns the property, whether there is an outstanding mortgage, whether there are any liens, easements or encumbrances, and whether the property's registered description matches the physical reality. In Spain, properties are occasionally sold with extensions or modifications that were never properly licensed or registered. Buying such a property means inheriting the problem.

Community debts are the second critical check. In Spanish law, outstanding community fees follow the property, not the seller. If the previous owner was three years in arrears on community charges, those arrears become the buyer's responsibility on completion. Your lawyer should request a certificate of no outstanding community debts (certificado de estar al corriente de pago) from the community administrator before contracts are exchanged.

For rural properties, additional checks are required around land classification — urban, urbanisable or rustic — as building rights and permitted uses differ significantly. Properties in rustic land classifications can have severe restrictions on construction, extension and, in some cases, habitation. The cases of illegal builds in Andalucía and Valencia in particular have a history that any buyer of rural property in those regions should understand before proceeding.

Zedista · Property coordination

Zedista is not a real estate agent and holds no financial interest in which property you buy or which agent you use. Our role in property purchases is coordination: introducing buyers to vetted Spanish property lawyers, gestores and mortgage brokers; facilitating NIE and bank account setup before the search begins; and remaining available throughout the process to ensure nothing falls between the parties. If you are beginning the process of researching property in Spain, the Aspire session is a useful starting point — a clear conversation about what the process looks like for your specific situation before any commitments are made.

Five things most buyers wish they had known earlier.

Budget the full cost from the start. The 10–15% in taxes and fees is not a surprise if you know it is coming. It becomes a surprise — and occasionally a problem — when buyers negotiate a purchase price at the top of their budget without accounting for it. Work backwards from your total available funds, not forwards from the listing price.

Secure mortgage approval before signing the arras. The 10% deposit paid at the private contract stage is non-refundable if you withdraw. If your mortgage is subsequently declined after signing, you lose that deposit. Pre-approval from a Spanish lender before signing the arras is not optional for any buyer depending on financing.

Your lawyer and the agent's lawyer are not the same person. In Spain, it is standard for the estate agent to recommend a lawyer — and standard for that recommendation to involve an arrangement between the agent and the legal firm. An independent lawyer, appointed and paid by you, with no relationship to the agent, is a different thing. The cost difference is negligible. The protection difference is not.

The notary works for the process, not for you. The Spanish notary is a public official whose function is to verify the legality of the transaction, not to advise either party on its merits. The notary will not tell you if you are overpaying, if the community has a history of disputes, or if the property has an unregistered extension. Your lawyer does that.

Non-resident tax obligations start immediately. The day you own a property in Spain, you acquire Spanish tax obligations. The IRNR applies from the first year of ownership, whether or not the property is rented. Engaging a Spanish gestor to manage annual filings from the outset is the practical way to ensure compliance without ongoing attention.

All tax rates, fees and legal references current as of May 2026. ITP rates vary by autonomous community and are subject to change. This article is informational and does not constitute legal, tax or investment advice. Always consult a qualified Spanish property lawyer before entering into any purchase contract. Sources: Idealista, Investropa, AEAT, Notariado, Registro de la Propiedad.

The considered buyer’s guide to property in Spain.