Buying Property in Spain: Complete 2026 Guide for Foreign Buyers

Table of contents

• Overview: Foreign property ownership in Spain
• Getting your NIE: the first essential step
• Finding the right property
• Understanding Spanish property types
• The buying process: step by step
• Legal checks and due diligence
• Purchase costs and taxes
• Mortgages for non-residents in 2026
• The notary signing and completion
• After purchase: ongoing obligations
• Avoiding common buying mistakes
• Regional differences: where to buy
• Selling Spanish property in the future
• FAQs

Overview: Foreign property ownership in Spain

Spain welcomes foreign property buyers with open arms. Foreign nationals enjoy the same ownership rights as Spanish citizens, with no restrictions on where you can buy, how many properties you can own, or what you can do with them. In 2024, foreign buyers accounted for approximately 15% of all Spanish property transactions—over 87,000 purchases—demonstrating robust international demand.

This openness continues in 2026 despite the end of the Golden Visa program in April 2025. That program granted residency to those investing €500,000 or more in real estate, but its cancellation only removed the automatic residency benefit. Property ownership itself remains completely unrestricted for non-residents.

Foreign buyers come primarily from the UK, France, Germany, Belgium, and increasingly from the United States and Latin America. Popular regions include the Costas (Costa del Sol, Costa Blanca, Costa Brava), the Balearic Islands, the Canary Islands, and major cities like Madrid, Barcelona, and Valencia.

Whether you’re buying a holiday home, rental investment, or planning future relocation, Spanish property offers:

• Strong legal protections: Spain’s property registry system provides security and transparency.
• Diverse options: From beachfront apartments to rural fincas to city penthouses.
• Rental income potential: Tourist rentals yield 6-8% annually in popular areas, though regulations vary by region.
• Lifestyle appeal: Mediterranean climate, rich culture, and excellent infrastructure.
• EU integration: Property ownership in an EU country provides stability and access.

The key is understanding the process, costs, and obligations before committing. This guide walks you through every step of buying Spanish property in 2026.

Getting your NIE: the first essential step

Before you can sign any property contract or open a Spanish bank account, you need an NIE (Número de Identificación de Extranjero). This foreigner identification number is essential for all financial and legal transactions in Spain.

You can apply for an NIE from abroad through a Spanish consulate or in person at a Spanish police station if you’re already in Spain. The process requires:

• Completed EX-15 application form.
• Passport and copies.
• Justification letter explaining why you need it (property purchase).
• Fee payment (€9.84).

Processing takes anywhere from same-day to several weeks depending on location and appointment availability. For detailed instructions, consult our NIE application guide.

Many buyers appoint a Spanish representative with power of attorney to handle NIE applications and property transactions on their behalf, particularly useful if you’re abroad and want to expedite the process.

Finding the right property

Spain’s property market offers something for every budget and preference. Start by defining your priorities:

Location considerations

Coastal properties: Popular with holidaymakers and retirees. Costas offer beaches, golf courses, marinas, and international communities. Prices range from €150,000 for apartments to several million for villas.

City properties: Madrid, Barcelona, Valencia, Seville, and Málaga provide urban lifestyle, cultural attractions, and stronger rental demand. Apartments start around €200,000 in secondary neighborhoods, rising to €500,000+ in prime areas.

Rural properties: Inland regions like Andalusia, Extremadura, and Castile offer traditional village houses and fincas (country estates) from €100,000-300,000. Perfect for those seeking authenticity and space, though amenities and resale markets are more limited.

Islands: Balearics (Mallorca, Ibiza, Menorca) and Canaries (Tenerife, Lanzarote, Gran Canaria) combine beach lifestyle with unique character. Prices vary widely; expect premiums in popular zones like Palma or Playa Blanca.

Property search resources

Online portals: Idealista, Fotocasa, Kyero, and A Place in the Sun list thousands of properties with photos, descriptions, and contact details. Filter by price, location, size, and features.

Estate agents: Local agencies know their markets intimately and can show you properties matching your criteria. Commission (typically 3-5% of purchase price) is usually paid by the seller, not the buyer.

Direct from developers: New-build properties offer modern specifications, energy efficiency, and sometimes payment plans. Developers often have show flats and sales offices on-site.

Property finders: Professional buyers’ agents charge you a fee (1-2% of purchase price) to search, negotiate, and coordinate your purchase. Worth considering for busy buyers or complex situations.

Viewing properties

Visit Spain to view properties in person whenever possible. Photos and videos don’t capture neighborhood atmosphere, build quality, or potential issues. Schedule multiple viewings, visit at different times of day, and explore the surrounding area.

Bring a notebook to record impressions, take photos, and ask questions about:

• Property age and condition.
• Community fees (for apartments).
• Included fixtures and fittings.
• Local services and amenities.
• Rental potential (if relevant).

Understanding Spanish property types

Spanish property law recognizes several ownership structures:

Pleno dominio (full ownership)

You own the property and the land outright. This is standard for houses, villas, and some apartments. You have complete control and can sell, rent, or modify subject to planning permissions.

Piso/apartamento (apartment in a community)

You own your specific unit plus a proportional share of communal areas (gardens, pools, elevators, lobbies). A homeowners’ association (comunidad de propietarios) manages shared spaces, and you pay monthly community fees (gastos de comunidad) for maintenance, insurance, and services.

Community fees vary widely—from €50 monthly for basic buildings to €300+ for complexes with extensive amenities. Review the community’s financial statements and meeting minutes before purchasing to identify any special assessments or disputes.

Obra nueva (new build)

Properties sold directly by developers that have never been occupied. New builds offer modern designs, warranties, and energy efficiency but may be located in developing areas with limited amenities initially.

Buying off-plan (before construction completes) can offer discounts but carries risks if the developer faces financial difficulties. Always verify the developer’s solvency, request bank guarantees, and hire a lawyer to review contracts.

Rustic property (finca rústica)

Rural land or country properties not classified as urban. Rustic properties have restrictions on construction and development. Verify building permits and legal status carefully, as many older rural homes have compliance issues.

The buying process: step by step

Step 1: Make an offer

Once you’ve found your property, make a formal offer. In Spain, verbal offers have limited legal weight, so submit offers in writing through your agent or lawyer.

If the seller accepts, you typically sign a reservation contract (contrato de arras or contrato de reserva) and pay a reservation deposit—usually €3,000-10,000 or 1% of the purchase price. This takes the property off the market while you complete due diligence.

Reservation contracts vary. Ensure yours:

• Clearly states the purchase price and deposit amount.
• Includes a realistic completion timeline (usually 30-90 days).
• Specifies conditions for refunding or forfeiting the deposit.
• Lists any fixtures, fittings, or furniture included.

Step 2: Hire a Spanish lawyer

This step is non-negotiable. Spanish property law is complex, and buying without legal representation invites problems. Your lawyer (abogado) will:

• Conduct property searches and due diligence.
• Verify the seller’s ownership and legal capacity to sell.
• Check for debts, liens, or encumbrances on the property.
• Review contracts and negotiate terms.
• Calculate taxes and fees.
• Attend the notary signing and ensure proper registration.

Expect to pay €1,000-2,500 for legal fees depending on property value and complexity. This investment protects you from costly mistakes.

Step 3: Due diligence and searches

Your lawyer orders an official property certificate (nota simple) from the Land Registry (Registro de la Propiedad). This document confirms:

• Current registered owner.
• Property boundaries and size.
• Any mortgages, liens, or legal charges.
• Planning classifications and restrictions.

For apartments, your lawyer also requests:

• Community of owners’ statutes and rules.
• Financial statements showing community debt or liabilities.
• Minutes from recent community meetings.
• Certificate confirming the seller has paid all community fees.

Additionally, your lawyer verifies:

• The property’s IBI (property tax) receipts showing payments are current.
• Any building licenses or certificates of habitability (cédula de habitabilidad) required by regional law.
• Energy performance certificate (certificado de eficiencia energética), mandatory for all property sales.

Step 4: Arrange financing (if applicable)

If you need a mortgage, apply early. Spanish banks require extensive documentation and processing can take 4-8 weeks. See the mortgage section below for details.

Step 5: Open a Spanish bank account

You’ll need a Spanish bank account to pay the purchase price, set up direct debits for utilities and taxes, and receive rental income if you let the property.

Most banks require:

• Passport and NIE.
• Proof of address (from your home country initially).
• Reference letter from your home bank.
• Initial deposit (€50-500).

Choose a bank with English-speaking staff if your Spanish is limited. Major banks like BBVA, Santander, CaixaBank, and Sabadell have international departments familiar with expat needs.

Step 6: Sign the private purchase contract

After due diligence confirms everything is satisfactory, you sign a private purchase contract (contrato privado de compraventa). This legally binding agreement details:

• Purchase price and payment schedule.
• Completion date for the notary signing.
• Penalties if either party withdraws.
• Condition of the property at handover.
• Included fixtures, furniture, and appliances.

At signing, you typically pay 10% of the purchase price as a deposit. This deposit is non-refundable if you withdraw without valid reason, but if the seller withdraws, they must return double the deposit amount.

The contract should be conditional upon:

• Mortgage approval (if applicable).
• No undisclosed debts or legal issues arising before completion.
• Property condition remaining unchanged.

Step 7: Pay taxes and complete at the notary

On the agreed completion date, all parties meet at a Spanish notary’s office to sign the escritura de compraventa (title deed). This public document transfers legal ownership.

Before the notary appointment, you must pay:

• Remaining purchase price (90% if you paid 10% deposit, or the balance after your mortgage).
• Transfer tax or VAT (see tax section below).
• Notary fees.
• Land registry fees.
• Your lawyer’s fees.

Funds are usually transferred directly to the seller’s account, though some transactions use the notary’s client account for security.

The notary verifies identities, reads the deed aloud (or provides translations if needed), and ensures everyone understands the transaction. Once signed, the notary registers the deed with the Land Registry within days, and you receive an official copy stamped as registered.

Legal checks and due diligence

Your lawyer’s due diligence protects you from hidden problems:

Title verification

Confirms the seller legally owns the property and has the right to sell. Identify any co-owners who must consent to the sale.

Debts and charges

Reveals outstanding mortgages, unpaid community fees, unpaid taxes, or legal judgments against the property. In Spain, debts can transfer with the property if not cleared before sale.

Planning and permissions

Verifies the property is legally built with proper licenses. Many older rural and coastal properties have illegal constructions or lack required certificates. Buying an illegal property exposes you to fines or demolition orders.

Boundaries and measurements

Confirms the property size matches official records. Discrepancies can affect value and future sales.

Restrictions and easements

Identifies rights of way, rental contracts, or other limitations on your use of the property.

If due diligence uncovers problems, you have options:

• Renegotiate the price to reflect the issue.
• Require the seller to resolve the problem before completion.
• Withdraw from the purchase and reclaim your deposit (if the contract includes appropriate conditions).

Never proceed with a purchase if your lawyer advises against it. The savings aren’t worth the risk.

Purchase costs and taxes

Beyond the purchase price, budget for these additional costs totaling 10-15% of the property value:

Transfer tax (ITP - Impuesto de Transmisiones Patrimoniales)

Applied to resale properties. Rates vary by autonomous region:

• Andalusia, Valencia, Catalonia: 10% (with reductions for certain buyers).
• Madrid, Murcia: 6-7%.
• Balearics, Canary Islands: 6.5-7%.

First-time buyers under certain age and income thresholds may qualify for reduced rates—ask your lawyer.

VAT (IVA - Impuesto sobre el Valor Añadido)

Applied to new-build properties purchased directly from developers:

• Standard rate: 10% of purchase price.
• Plus stamp duty (AJD): 1-1.5% depending on region.

You pay VAT plus stamp duty rather than transfer tax. The total is usually slightly higher than transfer tax on resales.

Notary fees

Notaries charge according to official scales based on property value. Expect €600-1,200 for typical residential properties. More expensive properties pay slightly more, but fees are capped.

Land registry fees

Similarly, registry fees follow official scales: €400-1,000 for most properties.

Legal fees

As mentioned, €1,000-2,500 depending on complexity.

Other costs

• Bank arrangement fees (if using a mortgage): 1-2% of loan amount.
• Valuation fee (required for mortgages): €300-600.
• Survey (optional but recommended): €300-800.
• Mortgage deed notary fees: €300-600.
• Gestor fees (for administrative tasks like NIE, tax registrations): €200-500.

Total example calculation

Property price: €300,000 (resale in Andalusia)

• Transfer tax (10%): €30,000
• Notary fees: €1,000
• Land registry: €600
• Legal fees: €1,500
• Gestor and admin: €400
• Total additional costs: €33,500 (11.2% of purchase price)

Always request a breakdown from your lawyer before committing, as regional variations affect costs significantly.

Mortgages for non-residents in 2026

Spanish banks lend to non-residents, but terms are less favorable than for residents.

Loan-to-value (LTV) ratios

• Residents: Up to 80% LTV.
• Non-residents: Typically 60-70% LTV.

This means you need a larger deposit—at least 30-40% of the property value plus purchase costs.

Interest rates

Non-residents pay higher rates, typically 0.5-1% above resident rates. In 2026, expect:

• Fixed rates: 3.5-4.5% for 10-20 year terms.
• Variable rates: 3-4%, tied to Euribor plus a margin.

Eligibility criteria

Spanish banks assess:

• Income: Minimum monthly income thresholds, usually €2,000-3,000 depending on loan amount.
• Debt-to-income ratio: Total monthly debts shouldn’t exceed 35-40% of gross income.
• Employment stability: Permanent contracts or established self-employment.
• Credit history: From your home country.

Required documentation

• Passport and NIE.
• Employment contract or business financial statements.
• Last three months’ pay slips or bank statements.
• Tax returns for the past two years.
• Bank statements showing savings for deposit and fees.
• Property valuation ordered by the bank.

Mortgage process

1. Pre-approval: Submit documents to obtain a preliminary offer outlining loan amount, rate, and terms. Takes 1-2 weeks.
2. Property valuation: Bank appoints an official surveyor. Costs €300-600, paid by you.
3. Final approval: Bank reviews the valuation and confirms the loan offer. Takes 2-4 weeks.
4. Mortgage deed signing: Separate notary appointment to sign the mortgage deed (hipoteca). You pay mortgage setup costs (1-2% of loan amount) plus notary and registry fees for the mortgage.

Currency considerations

If your income is in dollars, pounds, or another currency, exchange rate fluctuations affect your repayments. Some borrowers hedge this risk through:

• Currency mortgages: Loans denominated in your home currency (less common).
• Forward contracts: Locking in exchange rates in advance.
• Regular transfers: Using specialized currency exchange services offering better rates than banks.

The notary signing and completion

The notary appointment is the culmination of your purchase. Here’s what happens:

Before the appointment

Your lawyer confirms:

• All searches are clear.
• Funds are ready in your Spanish account.
• Taxes have been calculated and are ready to pay.
• The seller has provided keys and relevant documents.

At the notary

The notary (notario) is a public official, not representing either party. They ensure the transaction complies with Spanish law and that everyone understands the terms.

The meeting typically lasts 30-60 minutes:

1. Identity verification: Everyone presents passports and NIE certificates.
2. Reading the deed: The notary reads the escritura aloud in Spanish. If you don’t speak Spanish, you must bring an official interpreter or your lawyer translates key passages.
3. Questions and clarifications: The notary answers any questions and confirms understanding.
4. Signing: All parties sign the deed. The notary stamps it with their official seal.
5. Payment: Funds transfer to the seller immediately or shortly after, depending on arrangements.
6. Key handover: The seller provides keys, alarm codes, and any relevant manuals or warranties.

After signing

Your lawyer ensures the deed is registered at the Land Registry within days. Once registered, you receive:

• Registered title deed: Official proof of ownership.
• Registration certificate: Nota simple showing you as the registered owner.

Keep these documents safe. You’ll need them for future sales, inheritance planning, or property modifications.

After purchase: ongoing obligations

Owning Spanish property comes with annual responsibilities:

Property tax (IBI - Impuesto sobre Bienes Inmuebles)

Annual local tax based on the property’s cadastral value. Rates vary by municipality: €200-800 annually for typical homes, more for valuable properties. Paid to the local ayuntamiento (town hall).

Non-resident income tax (IRNR)

If you don’t live in Spain, you’re deemed to receive notional income from your property and pay tax on it annually. The tax is calculated as 1.1-2% of the property’s cadastral value, taxed at 19% for EU residents or 24% for non-EU residents.

Annual liability typically ranges from €200-600. File via Form 210 by December 31 each year.

Wealth tax

Some regions levy wealth tax on property exceeding certain thresholds (typically €700,000-1 million). Rates are progressive, starting at 0.2-0.3%. Madrid and Andalusia have abolished wealth tax for residents.

Community fees (if applicable)

Monthly or quarterly fees for apartment buildings, ranging from €50-300+ depending on facilities.

Utilities and services

• Electricity: €50-150 monthly depending on usage and property size.
• Water: €20-50 quarterly.
• Internet and TV: €40-80 monthly.
• Property insurance: €300-800 annually.

Rental income tax

If you rent your property, you pay Spanish income tax on rental profits:

• Residents: Rental income added to other income, taxed at progressive rates (19-47%).
• Non-residents: 19% on gross rental income (EU residents) or 24% (non-EU).

You can deduct expenses like community fees, maintenance, property management fees, and mortgage interest.

Avoiding common buying mistakes

Learn from others’ errors:

Mistake 1: Skipping legal representation

Some buyers try to save money by not hiring lawyers. This is penny-wise and pound-foolish. Thousands in legal fees pale compared to discovering hidden debts or illegal constructions after purchase.

Mistake 2: Buying without viewing

Purchasing based solely on photos or virtual tours is risky. Always view properties in person, preferably multiple times.

Mistake 3: Ignoring ongoing costs

Budget for all annual expenses—taxes, fees, utilities, maintenance—not just the purchase price. Properties in premium communities with pools and gardens have significant ongoing costs.

Mistake 4: Overpaying in hot markets

Property markets fluctuate. Research recent comparable sales and don’t let emotions drive you to overpay. Your lawyer or a surveyor can provide objective valuations.

Mistake 5: Assuming rental income covers expenses

Many buyers plan to rent properties to offset costs. However, rental regulations are tightening, particularly for tourist lets. Verify local rules, calculate realistic occupancy rates, and factor in management fees before assuming profitability.

Mistake 6: Neglecting tax planning

Understand tax implications in both Spain and your home country. Some jurisdictions tax worldwide income, creating potential double taxation. Consult cross-border tax advisors before purchasing.

Mistake 7: Buying illegal constructions

Especially common in rural areas and coastal zones, illegal builds lack proper permits. Authorities can fine you or order demolition. Always verify legal status through your lawyer.

Regional differences: where to buy

Spain’s property markets vary dramatically by region:

Andalusia

Largest region by area, offering everything from Costa del Sol beaches to historic cities (Seville, Granada, Córdoba) to rural villages. Property prices remain moderate outside prime coastal areas. €800-2,000 per square meter in cities; €1,500-4,000/sqm on the coast.

Catalonia

Barcelona drives the market, with high prices (€3,000-6,000/sqm in the city center) and strong rental demand. Costa Brava offers beaches with less development than southern coasts. Catalonia has higher transfer taxes (10%) and stricter rental regulations.

Valencia region

Excellent value with growing popularity. Valencia city offers culture and beaches at lower prices than Madrid or Barcelona (€1,500-2,800/sqm). Costa Blanca (Alicante, Benidorm, Torrevieja) attracts retirees and holidaymakers. Prices: €1,200-2,500/sqm depending on location.

Madrid

Capital city with strong economy and rental market. Prices range from €2,500/sqm in outer districts to €5,000+/sqm in prime neighborhoods (Salamanca, Chamberí). Lower transfer taxes (6%) than other regions.

Balearic Islands

Mallorca, Ibiza, Menorca, and Formentera command premium prices due to limited supply and high demand. Expect €3,000-8,000+/sqm depending on location and views. Strict regulations limit new construction.

Canary Islands

Year-round sunshine and subtropical climate attract northern Europeans. Tenerife and Gran Canaria are most developed; Lanzarote and Fuerteventura offer volcanic landscapes. Prices: €1,500-3,500/sqm for coastal properties.

Selling Spanish property in the future

When the time comes to sell, understand the process and tax implications:

Capital gains tax

Residents and non-residents pay tax on the profit (sale price minus purchase price and improvement costs):

• Residents: Progressive rates from 19-26% depending on gain amount.
• Non-residents: Flat 19% (EU residents) or 24% (non-EU).

You can deduct legitimate costs: purchase taxes, legal fees, improvements (not maintenance), and sales costs like agent commissions.

Retention

When non-residents sell, the buyer must withhold 3% of the sale price and pay it directly to the Spanish tax authority as a deposit against your capital gains tax. You file a tax return after sale and receive a refund if the 3% exceeds your actual tax liability.

Plusvalía municipal

A local tax charged by town halls on the increase in land value during your ownership. Calculated based on cadastral value and years owned. Typically €500-2,000 but can be more for expensive properties or long ownership periods.

Timing

The Spanish property market peaks in spring and early summer when foreign buyers visit. List properties in February-May for optimal exposure.

Use a reputable estate agent familiar with the local market and international buyers. Expect to pay 3-5% commission on the sale price.

FAQs

Can I buy property in Spain if I don’t have residency?

Yes. Property ownership and residency are separate. Non-residents can buy freely, though owning property no longer grants automatic residency after the Golden Visa ended.

What happens if I die owning Spanish property?

Spanish succession law applies to assets located in Spain. However, EU regulations allow you to choose your home country’s succession law to govern your worldwide estate. Include Spanish property in your will and consult a cross-border estate planning lawyer to avoid complications for your heirs.

Are property prices rising or falling in 2026?

Property markets vary by region. Coastal areas and major cities generally see steady appreciation of 3-5% annually. Less desirable inland areas may stagnate. Research local trends before buying.

Should I buy in my name or through a company?

Most individuals buy in personal names. Company ownership (often through Spanish SLs or foreign structures) can offer tax benefits for rental properties or business use but involves higher setup costs, annual filing requirements, and complexity. Consult a tax advisor to evaluate your situation.

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