Buying property in Spain as a foreigner

Spain places no restriction on foreigners buying homes. A British, American or Emirati buyer follows the same steps as a Spaniard. What trips foreign buyers up is everything around the purchase: the tax number, regional taxes that change the cost by thousands of euros, non-resident tax, and the belief that a purchase still brings a visa. Here is what a broker must explain in October 2026.

The short version

1. Foreigners can buy freely. The buyer needs an NIE, and in practice a Spanish bank account.
2. An independent lawyer should check the property before any deposit is paid.
3. The usual sequence: reservation, arras contract (often about 10%), then the deed before a notary and registration at the Land Registry.
4. Resale homes pay transfer tax (ITP), set by each region: 7% in Andalusia, 9% in the Valencian Community (11% above €1 million), 10% to 13% in Catalonia, 6% in Madrid.
5. New homes pay 10% VAT plus stamp duty (AJD), for example 1.2% in Andalusia and 1.4% in Valencia.
6. Non-residents pay an annual tax on a home they own, even if they never rent it out.
7. The golden visa for property ended on 3 April 2025. A purchase gives no residence right.
8. Non-resident mortgages usually cover 60% to 70% of the value.

Who buys and where

Registradores data reported by Alicante Plaza in August 2025 put the foreign share of home purchases at 14.1% nationally, about 43% in Alicante province and about 33% in Málaga. British, Belgian and Dutch buyers led. On the Costa Blanca and the Costa del Sol, a broker who cannot explain this process in English loses clients.

Step 1: NIE and bank account

The NIE (foreigner identity number) is needed to sign the deed, pay the taxes and get a mortgage. In Spain, the buyer applies on form EX-15 at a police station or foreigners’ office, with an appointment, a passport and the fee on form 790 code 012 (€9.84 per Universidad Autónoma de Madrid). From abroad, the buyer applies at the Spanish consulate, which can take two to eight weeks, so start early.

A Spanish bank account makes the rest easier: paying the price by traceable transfer, direct debits for local taxes and community fees, and any mortgage.

Step 2: lawyer and checks

Costa Luz Lawyers advise instructing an independent lawyer before paying any reservation fee. The lawyer works for the buyer, unlike the notary, who is neutral. The core checks:

• Nota simple: a short extract from the Land Registry (Registro de la Propiedad) showing the owner, the description and any charges such as mortgages (Your Overseas Home). The buyer gets it before signing anything.
• Catastro: the separate cadastral register describes the property and sets the cadastral value used for local tax. It does not always match the Land Registry, and a mismatch must be explained.
• Licences: for a new build, confirm the first occupation licence. Without it, the buyer may not be able to connect utilities or sell later (Costa Luz Lawyers).
• Debts: Legálitas recommends that the seller brings a certificate from the community of owners showing no unpaid fees at signing.
• On the coast, check whether the Coastal Law (Ley de Costas) limits works on the property.

Step 3: reservation, arras and deed

1. Reservation. A small sum takes the property off the market while the lawyer checks.
2. Arras contract. A private contract with a deposit, often around 10% of the price (Your Overseas Home). Under arras penitenciales (Article 1454 of the Civil Code), a buyer who walks away loses the deposit and a seller who walks away pays back double. If the contract does not say which type of arras it is, the law presumes confirmatory arras, under which the injured party can demand performance or termination plus damages (Legálitas). Make sure the contract says which type it is.
3. Deed (escritura) before a notary. The notary checks identity, the payment and the legality of the sale, and keeps the original deed.
4. Registration. The deed is registered at the Land Registry, which makes the purchase effective against third parties. Legálitas notes that registration can only happen once the taxes are paid.

Buyer costs by region

Resale homes: transfer tax (ITP). Each region sets its own rate.

Region	General ITP rate on homes	Source
Andalusia (Costa del Sol)	7%	Interforo, April 2026
Valencian Community (Costa Blanca)	9%, and 11% on the whole price above €1 million	Taxdown and Guía Fiscal
Catalonia	10% up to €600,000, 11% to €900,000, 12% to €1.5 million, 13% above	Osborne Clarke
Madrid	6%	Gibobs, July 2026

Notes:

• Valencia cut its general rate from 10% to 9% under Law 5/2025. Taxdown and Guía Fiscal give the start date as 1 June 2026. The tax is due on the date of the deed, so check which rate applied when your client signed.
• Catalonia applies a flat 20% to buyers who are large holders (more than 10 homes, or 5 in a stressed market zone) and to purchases of whole residential buildings, since Decree-law 5/2025.
• Andalusia has reduced rates for some buyers of a main home, such as 6% up to €150,000 and 3.5% for buyers under 35 and some other groups, with price limits.

New homes: VAT and AJD. A new home bought from the developer pays 10% VAT, whether it is a main or a second home, under Article 91 of the VAT Law. Up to two garage spaces and a storage room sold with it in the same deed also pay 10%. Only special-regime protected housing pays 4% (Interforo). On top comes stamp duty (AJD) on the deed: 1.2% in Andalusia and 1.4% in the Valencian Community from 1 June 2026 (Guía Fiscal).

Notary, registry and help. Interforo gives rough ranges of €500 to €1,000 for the notary and €400 to €650 for the Land Registry, plus about €300 for an optional gestoría. Lawyers set their own fees, so agree them in writing. Interforo estimates that taxes and costs add 8% to 11% to the price in Andalusia.

Worked examples

These use the rates above and rough fees. A lawyer must confirm them for each deal.

Resale apartment in Marbella, €400,000. ITP 7%: €28,000. Notary and registry about €1,500. Total before the lawyer: about €29,500, or 7.4% of the price.

Resale villa near Alicante, €650,000, deed after 1 June 2026. ITP 9%: €58,500. Notary and registry about €1,600. Total before the lawyer: about €60,100.

New-build apartment in Estepona, €400,000. VAT 10%: €40,000. AJD 1.2%: €4,800. Total taxes: €44,800, before notary, registry and lawyer.

Local taxes and running costs

• IBI: the yearly municipal property tax, based on the cadastral value. The owner on 1 January owes the year’s bill (Your Overseas Home). Legálitas notes it is usually shared in proportion to time of ownership unless the parties agree otherwise.
• Plusvalía municipal: a municipal tax on the rise in land value while the seller owned it. By law the seller pays, unless the contract says otherwise (Legálitas).
• Community fees: in a building or urbanisation, the owner pays the community of owners for shared costs.

Non-resident tax

A non-resident who owns a Spanish home pays non-resident income tax (IRNR) each year, even if the home is never rented. The tax agency sets the taxable amount at 1.1% of the cadastral value (for municipalities with a recent revaluation) or 2% for other properties. The rate is 19% for residents of the EU, Iceland, Norway and Liechtenstein, and 24% for everyone else. The return is filed on form 210.

Example. A UK resident owns a flat with a cadastral value of €150,000 in a revalued municipality. Taxable amount: 150,000 x 1.1% = €1,650. Tax: 1,650 x 24% = €396 a year.

When a non-resident sells, the buyer must withhold 3% of the price and pay it to the tax agency on form 211 within one month of the sale. The seller then uses that payment against the tax on the gain in their own form 210. As a broker, make sure the buyer’s lawyer handles this at the notary.

The golden visa is gone

Spain’s investor residence visa, available for property purchases above €500,000, was abolished by Organic Law 1/2025 with effect from 3 April 2025, according to the government’s press office. Do not market Spanish property as a route to residence. A buyer who needs to live in Spain must qualify under another permit.

Mortgages for non-residents

Gibobs reports that Spanish banks usually lend non-residents 60% to 70% of the appraised value, using the lower of appraisal or price. Expect to provide:

• Passport and NIE.
• Payslips or contract, and the latest tax return.
• Six months of bank statements.
• A credit report from your home country.
• A tax residence certificate, with sworn translations where needed.

So a buyer needs 30% to 40% of the price plus 10% to 14% for costs from their own funds. Say this in the first meeting.

What a broker must explain

• The NIE takes time; start it the day the client decides to buy.
• The buyer’s lawyer checks before the deposit, not after.
• Which type of arras the contract uses, and what each party loses by walking away.
• The tax rate in that region on the date of the deed, with a written cost estimate.
• The yearly non-resident tax and local taxes after the purchase.
• That a purchase gives no visa.

Tax rates in Spain are set by each region and change often. This guide was checked on the date shown above. It is general information, not legal or tax advice. CloserPass is not affiliated with any Spanish authority, notary or bank.

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