Buying a house in Spain as a foreigner: the complete legal guide

Foreigners can buy property in Spain freely, with no restrictions on nationality and no requirement to be a resident. Americans, British citizens and other non-EU nationals purchase Spanish homes every day. What you do need is a NIE number, a Spanish bank account and proper legal checks before you sign anything. Budget roughly 10% to 15% on top of the purchase price for taxes and fees. One important change to be aware of: since 3 April 2025 buying a property no longer grants residency in Spain, because the Golden Visa was abolished.

In this guide, updated for 2026, our Spanish property lawyers walk you through the entire process, the real costs, the ongoing taxes you will pay as a non-resident owner and the pitfalls that catch foreign buyers out. With more than 13 years of practice and 2000 cases handled, we act for buyers from across Europe, the United Kingdom, the United States and Latin America.

Can foreigners buy property in Spain?

Yes. Spanish law places no restriction on foreign nationals owning property, whether or not they live in Spain and whether or not they hold an EU passport. There are no quotas, no minimum investment and no need for government approval in ordinary cases. A buyer from Chicago, Manchester or Buenos Aires has the same rights of ownership as a Spanish national.

There is one narrow exception worth knowing about. Under legislation dating from 1975, non-EU nationals still require military authorisation to acquire property in certain areas classified as strategic for national defence, which include parts of the border regions and some zones in the Balearic and Canary Islands. It rarely affects ordinary residential purchases, but it must be checked before committing to a property in those areas.

Does buying a house in Spain give you residency?

No, not any more, and this is the single most outdated piece of advice circulating online. Spain’s investor residence permit, universally known as the Golden Visa, allowed non-EU nationals to obtain residency by investing 500,000 euros or more in Spanish property. It was abolished on 3 April 2025 by Organic Law 1/2025, whose twenty-first final provision repealed the articles of Law 14/2013 that created it.

What this means in practice:

• No new applications are accepted, and there is no replacement scheme or grace period.
• Existing permits remain valid for the period for which they were issued, and renewals are governed by transitional rules.
• Buying and residency are now entirely separate. You can own a Spanish home without acquiring any right to live here, and you can obtain residency through other routes without buying anything.

Non-EU owners who want to spend time in their Spanish property are subject to the Schengen rule of 90 days in any 180 day period. If you plan to stay longer, the alternatives now are the non-lucrative visa, the digital nomad visa or a work or family based permit, each with its own requirements. Anyone told that a property purchase still secures residency is being given advice that is over a year out of date.

Step 1: get your NIE number

The NIE (Número de Identidad de Extranjero) is your Spanish tax identification number, and nothing can be completed without it: you cannot sign the deed, pay the taxes or register the property. It can be applied for at a Spanish police station, at a Spanish consulate in your own country, or through a representative acting under a power of attorney. Apply early, because appointment waiting times vary considerably.

Step 2: due diligence before you commit

This is where a purchase is won or lost, and where most foreign buyers are exposed. Before signing anything or paying a deposit, your lawyer should check:

• The nota simple from the Land Registry, confirming who legally owns the property and whether it carries mortgages, embargoes, easements or other charges.
• Outstanding debts. In Spain, certain debts follow the property rather than the seller: unpaid community of owners fees and unpaid IBI (local property tax) can become your problem after completion.
• Planning and licences, including the certificate of occupancy, the first occupation licence for new builds and confirmation that any extension, pool or conversion was legally authorised.
• The cadastral description matching the physical reality of the property.
• Rental or occupancy status, since a sitting tenant or occupier does not simply disappear on completion.
• Community rules, particularly if you intend to let the property to tourists, because many communities now prohibit it.

For new builds, additional checks apply, including the developer’s bank guarantee for amounts paid in advance and the ten year structural insurance. You can read more about the requirements, procedures and taxes involved in buying a home in our detailed guide.

Step 3: the deposit contract

Once the checks are clear, the parties normally sign a contrato de arras, a deposit contract that reserves the property, typically for 10% of the price. Under the most common form, the penalty deposit, a buyer who withdraws loses the deposit and a seller who withdraws must repay double. It is a binding contract with real financial consequences, so it should never be signed on the basis of a translation you do not fully understand. We explain the mechanics of a private contract between parties in a separate article.

Step 4: completion before the notary

The purchase is completed by signing the escritura pública before a Spanish notary, at which point the price is paid and the keys handed over. The notary verifies identity and legality but, and this matters, the notary does not act as your adviser or negotiate on your behalf. That is your lawyer’s role.

After signing, the deed must be registered at the Land Registry and the corresponding taxes paid. Registration is what makes your ownership enforceable against third parties, so it should never be left undone.

Buying without travelling to Spain

You do not need to be physically present. By granting a power of attorney to your Spanish lawyers, signed before a notary in your own country with an apostille and a sworn translation into Spanish, the entire purchase can be handled on your behalf, including the NIE application, the deposit contract, completion and tax filings. Many of our foreign clients complete this way and travel only once the property is theirs.

What does it really cost to buy a property in Spain?

The headline price is not the final figure. Expect to add approximately 10% to 15%, depending on the region and whether the property is new or resale:

Two points foreign buyers frequently miss. First, Transfer Tax is a regional tax, so the same purchase costs noticeably more in one autonomous community than in another. Second, the tax is calculated on the higher of the price paid and the reference value set by the Cadastre, which means buying below that value does not reduce the tax bill. Our guide to Transfer Tax in Spain explains how it is calculated.

The plusvalía municipal, a local tax on the increase in land value, is payable by the seller in a sale, although it should always be confirmed in the negotiation. We cover it in our guide on how to calculate the plusvalía municipal.

Ongoing taxes for non-resident owners

Owning a Spanish home carries annual obligations that surprise many buyers, particularly those who leave the property empty:

• IBI, the annual local property tax, payable to the town hall, plus refuse collection charges.
• Community of owners fees, where the property forms part of a building or development.
• Non-resident income tax (IRNR). This is the one that catches people out. Even if the property is empty and generates no income, non-residents must file an annual return on an imputed income, calculated as 1.1% or 2% of the cadastral value depending on when that value was last revised. The rate is 19% for residents of the EU, Norway and Iceland and 24% for everyone else, which since Brexit includes British owners.
• Rental income, if you let the property, is taxed under the same regime, and only EU, Norwegian and Icelandic residents may deduct expenses.

Mortgages in Spain for non-residents

Spanish banks do lend to non-residents, but on tighter terms than to residents. As a general rule, expect financing of around 60% to 70% of the valuation, compared with up to 80% for residents, which means a larger deposit. Banks will assess your income and existing debts wherever you live, and generally apply the rule that total debt repayments should not exceed roughly a third of your net income. You will need your NIE, proof of income, tax returns from your home country and a Spanish bank account. Approval takes longer for non-residents, so the mortgage should be arranged before, not after, signing the deposit contract.

Buying a holiday home in Spain

Most foreign purchases in Spain are second homes rather than main residences, and a holiday home raises a few specific questions. The purchase process and the taxes are identical, but three points deserve attention before you choose a property.

First, if you intend to let it out when you are not using it, check both the regional rules on tourist licences, which are now restricted or suspended in several cities and coastal areas, and the statutes of the community of owners, since many communities have voted to prohibit short term letting. Buying with rental income in mind and discovering afterwards that it is not permitted is an expensive mistake.

Second, remember the non-resident income tax on imputed income: a holiday home that sits empty for most of the year still generates an annual tax return in Spain. Third, factor in the running costs, including community fees, IBI, utilities standing charges, insurance and, in many developments, a key holder or maintenance service.

The main pitfalls of buying property in Spain

These are the problems we are most often asked to resolve, and almost all of them are avoidable:

• Inheriting the seller’s debts. Unpaid community fees and IBI attach to the property, not the person. Always obtain a certificate confirming the community account is up to date.
• Illegal extensions and unlicensed builds. A pool, a terrace enclosure or an extra room built without a licence can lead to fines or demolition orders. Rural properties in particular require careful checking.
• Signing the deposit contract too early, before the legal checks are complete. Withdrawing afterwards means losing the deposit.
• Relying on the estate agent for legal advice. The agent is paid by the seller and represents the seller’s interests.
• Assuming you can let the property to tourists. Tourist rental licences are restricted in many cities and prohibited by many communities of owners.
• Hidden defects. Structural problems, damp or defective installations that were not apparent at the viewing may give rise to a claim against the seller, but the deadlines are short. See our guide on hidden defects in a property.
• Off plan purchases without guarantees. Money paid in advance to a developer must be covered by a bank guarantee or insurance policy.
• Underdeclaring the price. Still occasionally suggested, it is tax fraud and it increases the seller’s exposure and your own on a future sale.

Buying property in Spain after Brexit

British buyers are often told that Brexit changed their right to buy. It did not: UK nationals can still purchase Spanish property on exactly the same terms as before. What changed is everything around the purchase. As third country nationals, British owners are limited to 90 days in any 180 day period in the Schengen area unless they obtain a visa, pay non-resident income tax at 24% rather than 19%, cannot deduct expenses from rental income, and may need to appoint a fiscal representative in certain cases. The property itself is as accessible as ever; the time you can spend in it, and the tax on it, are not.

Selling later as a non-resident

Worth understanding before you buy. When a non-resident sells a Spanish property, the buyer is legally obliged to withhold 3% of the price and pay it directly to the Spanish Tax Agency as an advance against the seller’s capital gains tax. If the actual tax due is lower, the seller can reclaim the difference, but only by filing the corresponding return. Sellers also remain liable for the plusvalía municipal. Planning the exit at the point of purchase, particularly how the property is held, can save a considerable amount later.

If your family is helping you buy

Where parents or relatives contribute funds towards the purchase, that transfer is a gift under Spanish law and is taxable in Spain when the recipient is resident here, even if the money comes from abroad. Regional reductions can bring the cost close to zero, but the gift must be properly documented and declared within 30 business days. We explain the rules in our guide to gift tax in Spain on cash gifts and family loans.

How we can help

We handle the entire purchase: NIE applications, full legal due diligence on the property, review and negotiation of the deposit contract, coordination with the notary and the bank, completion, tax filings and Land Registry inscription, acting under power of attorney if you cannot travel. Our 92% success rate and an average client rating of 4.6/5 reflect how we work. Tell us about the property you are considering and we will tell you what to check before you commit.

Frequently asked questions about buying property in Spain as a foreigner