Can Foreigners Buy Property in Spain?
Yes, absolutely. Spain has no restrictions on foreign property ownership. Non-residents and non-EU citizens can freely purchase residential and commercial property. Spain is one of the most popular destinations for foreign property buyers in Europe.
Step 1: Get Your NIE Number
The NIE (Número de Identificación de Extranjero) is your Spanish tax identification number — you cannot legally purchase property without it.
How to get it:
- Apply at a Spanish consulate in your country, OR
- Apply in person at a Foreigner's Office (Oficina de Extranjeros) in Spain
- Processing time: 1–6 weeks
- Cost: ~€10
Step 2: Open a Spanish Bank Account
Most notaries and property registries require payments to originate from a Spanish bank account. Opening one as a non-resident requires:
- Passport
- NIE number
- Proof of address
- Tax declaration from your home country
Step 3: Find Your Property & Make an Offer
Work with a registered real estate agent (look for agents registered with the API — Agentes de la Propiedad Inmobiliaria). Once you find a property:
- Make an offer
- If accepted, sign a Contrato de Arras (reservation deposit agreement) — typically 10% of purchase price
- This locks in the purchase; if the seller pulls out they must return double the deposit
Step 4: Legal Due Diligence
Before signing anything, your lawyer should verify:
- Nota Simple — Property registry extract confirming ownership and any debts/liens
- Certificado de Eficiencia Energética — Energy efficiency certificate (legally required)
- IBI receipts — Proof property taxes are paid
- Community fees — No outstanding debts to the community of owners
- Planning permissions — Especially important for rural properties
Step 5: Sign at the Notary
The final purchase is completed before a Spanish Notario (Notary Public). Both buyer and seller (or their legal representatives with power of attorney) must be present.
You'll sign the Escritura de Compraventa (title deed) and pay the balance.
Taxes and Costs to Budget For
For Resale Properties (Second-hand)
| Cost | Amount |
|---|---|
| ITP (Transfer Tax) | 6–10% of purchase price (varies by region) |
| Notary fees | 0.2–0.5% |
| Land registry | 0.1–0.25% |
| Legal fees | 1–2% |
| Total extra costs | ~8–14% on top of purchase price |
For New-Build Properties
| Cost | Amount |
|---|---|
| IVA (VAT) | 10% (or 21% for commercial) |
| AJD (Stamp Duty) | 0.5–1.5% |
| Notary + registry | 0.3–0.75% |
| Legal fees | 1–2% |
Regional ITP Rates (2025)
- Andalucía: 7%
- Cataluña: 10%
- Madrid: 6%
- Valencia: 10%
- Baleares: 8–11% (sliding scale)
Common Mistakes to Avoid
- Buying without a lawyer — Never skip independent legal advice
- Ignoring community debts — You inherit unpaid fees from the previous owner
- Rural land issues — Some rural properties have illegal constructions that can't be regularized
- Currency risk — If you're paying in non-EUR currency, use a specialist FX broker
Annual Costs as a Property Owner
- IBI (Municipal property tax): 0.4–1.3% of cadastral value
- Community fees: €50–€300/month depending on building
- Rubbish collection tax: €100–€200/year
- Non-resident income tax (if not living in Spain): 1.1–2% of cadastral value/year