Buying Property Spain

Buying Property in Spain as a Foreigner: 2025 Guide

Spain continues to be one of the top destinations in Europe for foreign property buyers. Whether you’re purchasing a holiday home, retiring under the sun, or investing in real estate, the Spanish property market offers great opportunities—but it also comes with legal, tax, and administrative challenges. In this guide, we’ll walk you through everything non-residents need to know about buying property in Spain in 2025.

Can Foreigners Buy Property in Spain?

Yes, absolutely. There are no restrictions for foreigners buying property in Spain. Whether you’re an EU citizen or from outside the EU (like the UK, USA, or Canada), you can legally purchase residential or commercial real estate in Spain.

However, non-residents must follow certain tax and legal steps, especially if they plan to rent out the property or become Spanish residents.

Step-by-Step: How to Buy a House in Spain

1. Get a NIE Number

You’ll need a NIE (Número de Identificación de Extranjero) before you can buy property. This is your tax ID in Spain and is required for all legal transactions.

2. Open a Spanish Bank Account

Most payments related to the purchase (deposit, taxes, notary fees) must be made from a Spanish bank account.

3. Find a Property

Work with a reputable real estate agent, especially if you’re buying remotely. Make sure to visit the property in person or have someone trustworthy inspect it.

4. Hire a Lawyer

Hiring an independent lawyer is crucial to review contracts, check property debts, confirm legal ownership, and represent you at signing if needed. The best option is to find a lawyer who has NOT been recommended to you by the broker who is interested of finalizing the sale.

5. Sign a Reservation Contract (Contrato de Reserva)

This contract removes the property from the market while your lawyer does due diligence. A small deposit is paid (usually €3,000–€6,000).

6. Sign the Purchase Contract (Contrato de Arras)

A 10% deposit is typically paid at this stage. If the buyer pulls out, they lose the deposit. If the seller pulls out, they must return double.

7. Sign at the Notary

The final deed (“Escritura de Compraventa”) is signed in front of a notary. The balance of the purchase price and all associated taxes and fees are paid.

8. Register the Property

Your lawyer or gestor will register the deed with the Spanish Land Registry (Registro de la Propiedad).

Costs of Buying Property in Spain

Besides the property price, budget around 10–14% extra for taxes and fees:

• Transfer tax (ITP): 6–10% (resale properties)
• VAT (IVA): 10% (new builds)
• Notary & registration fees: 1–2%
• Legal fees: ~1% (recommended)
• Bank/mortgage fees: Varies

 Taxes for Non-Resident Property Owners

Even if you don’t live in Spain, owning property there may subject you to:

• Non-resident income tax (Modelo 210): Based on the cadastral value.
• Rental income tax: 19% for EU/EEA residents, 24% for others.
• Wealth tax: Applies if the value of your Spanish assets exceeds certain thresholds.
• IBI (local property tax): Paid annually to the town hall.

Mortgage Options for Foreign Buyers

Spanish banks do offer mortgages to foreigners. Conditions depend on your nationality, income, and the property value:

• Up to 70% loan-to-value (LTV) for non-residents
• Proof of income required
• Term: Usually 20–25 years

Can Buying Property Lead to Spanish Residency?

Previously a Golden Visa program existed but it was somewhat controversial and shut down by the Government in 2025. The Golden Visa would in some cases qualify you for a Visa if you invested at least €500,000 in Spanish real estate. The Golden Visa, used to grant you and your family residency rights. EU-nationals do not usually need a Visa to buy a property in Spain so it has rarely been an issue.

• No minimum stay required
• Renew every 2 years
• Includes spouse and children under 18

 Avoiding Common Pitfalls

• Don’t skip legal due diligence. If you plan to renovate, talk to a lawyer or an architect and DO NOT rely on a brokers advice as they often tell you “anything is possible” so they can finalize the sale.
• Don’t rely only on the seller’s agent.
• Be aware of unpaid utility bills or community fees.
• Understand currency exchange and bank transfer rules.

Expert Support Makes a Difference

At Taxadora, experts in spanish tax forms, we help non-residents navigate the Spanish taxes from start to finish. Once you have found your dream home, you have to yearly file the non-resident tax return and if you receive rental income you also have to file a separate tax return for the income. In some regions Wealth tax may apply even for Non-Residents. If you finally decide to move to Spain permanently, we are happy to help you with your income taxes. We make sure you stay compliant and avoid costly surprises.

 Final Thoughts

Buying property in Spain as a foreigner can be a smooth and rewarding process when done right. Always work with independent professionals, understand the tax implications, and take your time.

For more guidance on Spanish property tax, NIE applications, or non-resident income tax, visit our blog or get in touch today.