How to Buy Property in Spain as a Foreigner

Spain is one of the most attractive destinations for international buyers looking to invest in real estate. With its warm climate, beautiful coastlines, and affordable property prices compared to other European countries, Spain remains a top choice. But how can you buy property in Spain as a foreigner? The short answer is: yes, you can! In this guide, we’ll cover the legal requirements, taxes, and best areas to invest.

Legal Requirements for Foreigners Buying Property in Spain

Unlike some countries, Spain imposes no restrictions on foreigners purchasing property. However, there are a few legal steps to follow:

1. Obtain a NIE (Número de Identificación de Extranjero)

The NIE is a tax identification number required for any financial transaction in Spain.
You can apply at a Spanish police station or through the Spanish consulate in your home country.
For detailed information on obtaining the NIE, refer to the official guidelines.

2. Open a Spanish Bank Account

While not mandatory, it simplifies transactions such as utility payments, taxes, and mortgage processing.
Some banks offer services in English and other languages to assist foreign buyers.

3. Sign a Reservation Agreement

A deposit (typically 1-5% of the property price) secures the property while legal checks are conducted.

4. Hire a Lawyer (Recommended)

A local real estate lawyer will ensure there are no legal issues with the property, such as unpaid debts or zoning restrictions.
Find out more about the importance of hiring a lawyer when buying property in Spain.

5. Sign the Purchase Contract (Contrato de Compraventa)

Typically, you pay 10% of the property price at this stage.

6. Final Signing at the Notary

The final contract (Escritura de Compraventa) is signed before a notary.
You receive the property title and pay the remaining balance.

Taxes and Costs Involved When Buying Property in Spain

Foreign buyers should consider the additional costs beyond the property price:

Property Transfer Tax (ITP): 6-10% (for resale properties)
VAT (IVA) & Stamp Duty: 10% VAT + 1-2% stamp duty (for new properties)
Notary Fees: 0.5-1%
Legal Fees: 1-2%
Property Registry Fees: 0.5-1%

For a comprehensive breakdown of property-related taxes in Spain, consult this resource.

Best Places for Foreigners to Buy Property in Spain

Spain offers a variety of locations suited to different lifestyles and investment goals:

1. Costa del Sol – Popular among British and Scandinavian buyers, with excellent beaches and golf courses.

2. Barcelona – A vibrant city with strong rental demand and international appeal.

3. Madrid – Ideal for urban investors looking for long-term value appreciation.

4. Alicante & Costa Blanca – Affordable properties and a relaxed Mediterranean lifestyle.

5. Balearic Islands (Mallorca, Ibiza) – Luxury market with high rental yields.

Read our guide on the best places to invest in Spain.

Can Foreigners Get a Mortgage in Spain?

Yes, Spanish banks offer mortgages to non-residents, typically financing up to 60-70% of the property value. Requirements include proof of income, credit history, and a deposit.

Learn more about mortgage options for non-residents in Spain here.

Conclusion

Buying property in Spain as a foreigner is a straightforward process with no restrictions. However, it is essential to understand legal requirements, taxes, and costs. With the right guidance and a good location choice, purchasing property in Spain can be a great investment or a dream home for the future.

For a complete guide on purchasing property in Spain as a foreigner, visit this page.

FAQs

1. Do I need to be a resident to buy a house in Spain?

No, Spain allows both residents and non-residents to purchase property.

2. How long does the buying process take?

It typically takes between 1-3 months, depending on legal checks and mortgage approval.

3. Can buying property in Spain grant me residency?

Yes, Spain offers a Golden Visa for property investments over €500,000, which provides residency benefits.

Note that as of April 2025, the Spanish government has announced the elimination of the Golden Visa program.

If you’re considering purchasing a property in Spain, working with experienced real estate professionals can help simplify the process and ensure a smooth transaction.