Spain welcomes foreign property buyers, including non-EU nationals, with no ownership restrictions. The process is straightforward but requires navigating legal, financial, and administrative steps. Whether purchasing a vacation home or an investment property, understanding the process ensures a smooth transaction.
In the article, we’re going to discuss how to buy property in Spain. We will explain all subtleties of the process and highlight pitfalls. Below, readers will find updated information on all aspects related to property for sale in Estepona area and other regions.
Can Foreigners Buy Property in Spain?
Answering the question «Can foreigners buy property in Spain?», note that Spain is a country that offers a favorable policy for foreign investments in the form of buying real estate. The thing is that it hasn’t managed to recover from the economic crisis of 2008. So, foreigners, including non-EU citizens, can freely buy property, both residential and commercial.
However, some differences are observed in relation to EU and non-EU buyers. Thus, it’s important to understand the difference when considering how to purchase a property in Spain. So, let’s start by clarifying this difference.
If you’re an EU citizen who wants to buy real estate in Spain, easier mortgage access is set. Moreover, EU residents do not need visas to stay in the country for up to 90 days. For non-EU buyers, stricter mortgage terms are set, and some foreigners may require a visa to enter the country. Tax implications are another tricky point; non-residents pay annual Non-Resident Income Tax (even if no income is registered) and have higher property tax rates.
Key Steps to Buying Property
The procedure of purchasing real estate in the country is unified and documented. Thus, it won’t cause trouble if you follow all stages and keep in mind tips. Here’s a detailed guide to buying a property in Spain. Every foreign buyer must pass through the following steps:
Obtaining an NIE (Número de Identificación de Extranjero — Foreigner Identification Number). It is required for all kinds of legal transactions. There are several types of NIE, depending on the status of foreigners.
For EU citizens, temporary and resident (permanent) NIEs are available. The first option is issued for individuals who are visiting the country to purchase real estate only without residing in Spain. The second solution is provided for foreigners who are planning to reside in the country.
For non-EU residents, resident and non-resident NIEs are provided. The first option implies that an applicant plans to live in Spain for more than 183 days per year. The second solution is provided for foreigners who do not plan to stay in the country for long but only want to buy real estate.
Opening a Spanish bank account. It’s the next step of buying property in Spain as a foreigner. Buyers won’t be able to conduct money transfers without the account. The bank account is necessary for processing payments and tax purposes.
The first thing you need to figure out is who is opening the account — a resident or a non-resident of Spain. In the first case, you must provide a residence permit, passport, and income documents. In this case, there is no need to translate the documents since everything will be in Spanish anyway.
Now let’s look at the procedure for opening the account for non-residents. First, a non-resident needs grounds. For example, to buy real estate or to open a business.
Secondly, decide on a bank. Here, it is worth considering not only tariffs or simplified conditions for opening the account but also further servicing of the account and its features.
Thirdly, you need to collect the necessary documents, namely:
Foreign passport.
Income confirmation (for hired workers, income certificate indicating wages for the last full year).
Agreement on payment of a deposit for the purchase of real estate (reserve agreement).
Buying real estate in Spain for foreigners entails some specifics. If you do not work officially or your monthly income is small, then you must provide the source of the money for the purchase of real estate (a contract for the sale of real estate, a car, a garage, or any other property; a deposit agreement; an agreement on the ownership of securities, a deed of gift, etc.)
If you plan to formalize the purchase of real estate for 2 family members (for example, a husband and wife), then you will need to open one account for both. You must provide a foreign passport and documents confirming income of the second buyer.
Signing a preliminary contract. Both sides sign a pre-contract, in which terms and penalties are specified. A buyer pays a deposit (usually 10%) to secure the property.
Conducting legal due diligence. Hire a lawyer to ensure the property has no debts (no mortgages, unpaid taxes, or community fees) and is legally registered.
Finalizing the purchase. Sign the title deed before a notary and complete the transaction by transferring the resting sum of the property.
The procedure of buying property in Spain for US citizens is standard and does not require special knowledge. However, it takes some effort and time for preparing all documents and agreeing upon terms.
Costs and Taxes Associated with Buying Property
Purchasing real estate entails taxation. Thus, when considering how to buy an apartment in Spain, be ready for the entailed fees and keep in mind the following taxes:
Purchase taxes:
Impuesto sobre Transmisiones Patrimoniales (ITP) is imposed for reselling real estate. Its size varies from 6 to 10%, depending on the region.
10% VAT (IVA) + 1.5% Stamp Duty (AJD) is charged from new property.
Additional Fees:
Notary/land registry: 1–2.5% of property value.
Legal fees: 1–2%.
Annual Costs:
Non-Resident Income Tax: ~19–24% of imputed rental income.
Local property tax (IBI): 0.4–1.1% of cadastral value.
Parties should pay all the taxes arisen from the sale of a property in Spain within 30 banking days of the date of signature of the public title deed. If parties expire the payment period, an additional 20% can be charged as fines and interests.
Financing Options for Foreign Buyers
When a foreign investor seeks an answer to the question «How do I buy a property in Spain?», he should know all the existing options. Non-residents (including non-EU citizens) can obtain mortgages in Spain, but the process involves stricter conditions compared to residents. Here’s a detailed breakdown.
Non-residents can apply for mortgages through Spanish banks, international lenders, or specialized brokers. EU and non-EU buyers are treated similarly, but Brexit has reclassified UK nationals as non-EU. Besides, foreigners can apply for Loan-to-Value (LTV); this option typically requires 30–40% down payment.
Spanish vs. International Banks
Buying Property in Spain After Brexit
Since Brexit took full effect in January 2021, UK nationals have lost their EU freedom of movement rights, significantly altering the process of buying property and residing in Spain. While British citizens can still purchase Spanish real estate freely, new visa requirements, tax implications, and residency rules now apply. So, let’s discuss how to buy a property in Spain after Brexit. Post-Brexit status for UK buyers implies the following specifics:
UK citizens can visit Spain for up to 90 days within any 180-day period without a visa (Schengen rules). Staying beyond 90 days requires a visa (e.g., work, study, or residency visa).
Regarding the issue of how to buy property in Spain after Brexit, no restrictions on purchasing residential real estate are set, but ownership does not grant automatic residency.
Residency and Visa Options for Property Owners
Spain offers several visa pathways for non-residents who purchase property, each tailored to different financial and lifestyle goals. So, you can find out how to buy a place in Spain with a visa. There are three popular options.
Golden Visa (Investor Visa)
It is designed for investors who are making significant financial contributions to Spain. It requires a minimum investment of €500,000 in Spanish real estate (residential, commercial, or land). Investment can be made individually or jointly (e.g., with a spouse). It is open to non-EU/EEA/Swiss nationals. A mortgage is allowed, but €500k must be equity. The main benefits of this visa include:
Residency. It grants a 2-year renewable residence permit for the investor, spouse, and dependents.
No minimum stay. Foreigners must stay only 7 days per year in Spain to maintain residency.
Schengen access. It provides visa-free travel across 26 EU countries.
Path to citizenship. Foreigners can apply for citizenship after 10 years of residency (requires passing Spanish language/culture tests).
This option is good for high-net-worth individuals seeking EU residency with minimal physical presence requirements.
Non-Lucrative Visa
It is designed for individuals who can support themselves financially without working in Spain. In this case, owning property is not required, but it can demonstrate ties to Spain and provide accommodation. To obtain this visa, applicants should provide proof of sufficient funds (€27,000–€40,000/year, depending on family size). No employment in Spain is permitted (passive income or savings only). The key advantages are:
Initial residency. It’s a 1-year visa, renewable for 2-year periods.
Path to permanent residency. Foreigners can apply for permanent citizenship after 5 years.
This visa is suitable for retirees, freelancers, or individuals with passive income who want to live in Spain for the long term.
Digital Nomad Visa
This visa is designed for remote workers and freelancers employed by non-Spanish companies. In this case, owning property is optional but can simplify accommodation proof. The visa is provided for remote work contracts or freelance/client agreements. It requires a minimum income of ~€2,300/month. An employer must be outside Spain (if employed). The main benefits of this option include:
Initial residency. It’s a 1-year visa, renewable for up to 5 years.
Tax benefits. Reduced rates are provided for 5 years under Spain’s «startup law» (12% income tax vs. 24% standard non-resident rate).
Legal work while residing in Spain.
It’s good for remote workers, tech professionals, or freelancers seeking a sunny base in the EU.
Common Pitfalls and How to Avoid Them
Purchasing property in Spain can be rewarding, but non-residents often face unique risks due to unfamiliar laws, language barriers, and complex bureaucracy. When considering how can I buy a property in Spain, be aware of common troubles. Keeping them in mind helps avoid them and minimize a negative impact.
Hidden debts or liens on the property. The property may have unpaid taxes, mortgages, utility bills, or community fees that transfer to the new owner.
Illegal construction or zoning issues. Unpermitted extensions, pools, or boundary breaches can lead to fines, demolition orders, or blocked sales.
Fraudulent sellers or title disputes. Sellers may lack legal ownership (e.g., inherited properties with unresolved heirs) or misrepresent the property.
Incomplete due diligence. Skipping legal checks can result in buying a property with legal defects or inflated valuations.
Tax and fee surprises. Underestimating purchase taxes, annual costs, or inheritance tax liabilities can lead to extra expenses.
To avoid these challenges and minimize the risk of misleading, make sure to hire a professional lawyer who will be responsible for checking all documents and property history. By addressing these risks proactively, you can turn your Spanish property dream into a secure and rewarding investment.
Now, you know the answer to such questions as «Can a foreigner buy property in Spain?» and «How easy is it to buy property in Spain?». To draw the line, note that buying property in Spain for EU and US citizens is possible and favorable. The main thing is to be aware of all intricacies and know what aspects deserve particular attention. After all, hiring a professional lawyer is always a good idea since such specialists are aware of all the pitfalls of the Spanish legal system and will assist in completing property deals in accordance with the legislation.