Property in Spain
Buying a house in Spain as a foreigner — the complete 2026 guide
Foreigners can buy property in Spain freely. But the conveyancing process, tax costs, and some important legal realities are different from what British and American buyers expect. This guide covers all of it.
Buying property in Spain is one of the most common aspirations among expats and Digital Nomad Visa holders who have spent time in the country. After a year or two of renting, many DNV holders decide Spain is the permanent base they were looking for — and buying their own property is the natural next step.
The good news is straightforward: foreigners can buy property in Spain, and do so freely. There are no restrictions on foreign ownership. The buying process is transparent and well established. But there are important differences from the UK and US conveyancing systems that you must understand before you commit — particularly around costs, the role of the notary, and the critical importance of your own independent lawyer.
Can foreigners buy property in Spain?
Yes — emphatically. There are no restrictions on foreign ownership of property in Spain, whether you are an EU citizen or from outside the EU. You do not need to be a resident. You do not need a visa. The only practical requirement is a Spanish NIE (Número de Identificación de Extranjero), which serves as your tax identification number for the transaction.
Non-residents can obtain an NIE specifically for a property purchase, through the Spanish consulate in their home country or a dedicated NIE appointment in Spain. DNV holders already have their NIE as part of their TIE card — they are well placed to proceed immediately.
Property purchase vs residency — an important distinction
Buying a property in Spain — at any price — does not automatically give you the right to live there as a resident. Non-EU nationals still need a valid visa or residency permit. The Spanish Golden Visa (residence by investment at €500,000+) is a separate and specific route — a standard property purchase does not grant it.
The Spanish property conveyancing process — step by step
Spanish conveyancing follows a defined sequence. Here is how it works in practice:
Step 1: Nota Simple
The Nota Simple is a land registry extract that confirms who legally owns the property, whether any mortgages or charges are registered against it, and the basic physical description of the property. Your lawyer will obtain a Nota Simple from the Registro de la Propiedad as the first step in due diligence. It costs approximately €10 and is essential — never proceed without reviewing it.
Step 2: Reservation contract and deposit
Once you have found a property and agreed a price, you will typically sign a reservation contract and pay a small reservation deposit (usually €3,000–€6,000) to take the property off the market while due diligence proceeds. This deposit is usually refundable if the sale falls through for legal reasons identified during due diligence — but the terms vary, so read the reservation contract carefully before signing.
Step 3: Arras contract (private purchase contract)
The contrato de arras is the main private contract between buyer and seller. It is signed before the notarial completion and is legally binding. Typically, you pay a deposit of 10% of the purchase price at this stage. Under the most common form (arras penitenciales), if you withdraw from the purchase you forfeit your 10% deposit; if the seller withdraws, they must pay you back double the deposit. The arras contract sets out the completion date, price, and conditions. Your lawyer must review this before you sign.
Step 4: Mortgage (if applicable)
If you require a mortgage, this is the stage at which your bank finalises the offer. You will receive a FEIN (Ficha Europea de Información Normalizada — the European standardised information sheet) and a FiAE (binding offer sheet). Spanish law requires a mandatory 10-day reflection period between receiving your mortgage documentation and signing at the notary — this cannot be waived.
Step 5: Completion at the notary (escritura pública)
The final completion takes place at a Spanish notary (notaría). Both buyer and seller (or their legal representatives under Power of Attorney) attend to sign the escritura de compraventa — the public deed of sale. The notary witnesses the signing, confirms the parties' identities, and reads the deed aloud. The balance of the purchase price is transferred at this stage, typically via bank cheque (cheque bancario). The signed deed is the legal transfer of ownership.
Step 6: Post-completion registrations and taxes
After completion, you must pay the applicable transfer taxes (ITP or IVA — see below) and register the property in your name at the Registro de la Propiedad. Your lawyer handles this, but you must pay the taxes within 30 days of completion. Failure to do so incurs surcharges and interest. Registration at the Land Registry takes several weeks to complete.
The total cost of buying property in Spain
This is the figure that catches many buyers off guard. Spanish property purchase taxes and fees add 10–12% to the purchase price. This is significantly more than the UK (where SDLT starts at 0–5% for most buyers) and must be budgeted for carefully.
| Cost item | Resale property | New-build (from developer) |
|---|---|---|
| Transfer tax (ITP) | 6–10% (varies by region) | Not applicable |
| IVA (VAT) | Not applicable | 10% (standard residential) |
| AJD (stamp duty on new builds) | Not applicable | 0.5–1.5% (varies by region) |
| Notary fees | ~0.5–1% | ~0.5–1% |
| Land Registry fees | ~0.4–0.6% | ~0.4–0.6% |
| Independent legal fees | ~1% | ~1% |
| Total additional costs | ~10–12% | ~12–14% |
For a €300,000 resale property, this means budgeting an additional €30,000–36,000 on top of the purchase price. On a €500,000 property, additional costs reach €50,000–60,000. These figures are non-negotiable — they are taxes and fees, not optional.
ITP vs IVA — which tax applies to your purchase?
ITP (Impuesto de Transmisiones Patrimoniales) applies to resale properties — properties being sold by a private individual who previously owned them. The rate varies by autonomous community: Andalucía charges 7%, the Valencian Community 10%, Madrid 6%, and Catalonia 10%. Check the rate in the specific region where you are buying.
IVA (Impuesto sobre el Valor Añadido) applies to new-build properties sold by developers. The standard residential rate is 10%. New-build purchases also attract Actos Jurídicos Documentados (AJD — stamp duty) at 0.5–1.5% depending on the region, on top of the 10% IVA.
Ongoing ownership costs
Once you own the property, two recurring costs are unavoidable:
IBI (Impuesto sobre Bienes Inmuebles)
IBI is the annual Spanish council tax equivalent, charged by the local municipality. It is calculated as a percentage of the valor catastral (official rateable value) of the property — typically 0.4–1.1% of that value per year. For a typical property in a mid-sized Spanish city, IBI might be €400–1,500 per year. IBI is paid annually by direct debit and is lower than comparable council tax or rates in the UK.
Community fees (comunidad de propietarios)
If your property is in an apartment building or residential development with shared areas — lifts, swimming pool, garden, security gate — you will pay monthly or quarterly community fees. These cover maintenance of shared facilities and the building's insurance. Fees vary enormously: a basic apartment block might charge €50–80 per month, while a luxury urbanisation with a large pool and concierge could charge €300–500 per month. Before buying, ask for the last three years of community meeting minutes and the current fee to understand what you are taking on.
Mortgages for foreigners and non-residents
Spanish mortgages are available to foreign buyers, but the terms differ from resident mortgages:
- Loan-to-value (LTV) — non-residents are typically offered 60–70% LTV, meaning you need a minimum 30–40% deposit plus buying costs. Residents can access up to 80% LTV.
- Fixed vs variable rates — Spain offers both. Fixed-rate mortgages have become more popular since interest rate increases in 2022–2023. Your Spanish bank can explain current rates.
- Mortgage term — up to 30 years, though non-residents are sometimes offered shorter maximum terms.
- Documentation — expect to provide at least 3 months of payslips, your last 2–3 years of tax returns, bank statements, and employment contract.
Do not rely solely on the developer's or agent's recommended mortgage
When buying a new-build, the developer's preferred bank will often be presented as the natural mortgage choice. This bank may not offer the most competitive rate or terms for your situation. Always compare at least two or three mortgage offers — use an independent Spanish mortgage broker if needed.
Why you need an independent lawyer — not the agent's recommendation
This point cannot be overstated. In Spain, the notary witnesses the transaction and ensures the deed is legally valid — but the notary does not act for the buyer. The notary is neutral. If there are problems with the property — a charge on the title, unpaid community fees, an undeclared extension built without planning consent, IBI arrears — the notary may not flag these unless specifically asked.
Your independent lawyer protects your interests by conducting full due diligence on the property before you commit. This includes checking the Nota Simple, verifying there are no unpaid community debts (which transfer with ownership), confirming the property's urban planning status, checking for any pending enforcement actions, verifying all building permits are in order, and confirming the habitability certificate is current.
Many estate agents will recommend "their" lawyer or a lawyer with whom they have a referral relationship. This creates a conflict of interest: the lawyer earning referrals from the agent is not fully independent. Always appoint your own lawyer — someone you found independently of the agent selling the property. For property legal services, Platinum Legal Spain can provide referrals to independent Spanish property lawyers.
The 90-day rule and property ownership
This is a common misunderstanding that needs to be addressed directly. Non-EU nationals (such as UK, US, and Australian citizens) who do not hold a Spanish residency permit or long-term visa are subject to the Schengen 90-day rule — they can spend a maximum of 90 days in the Schengen Area in any 180-day period. Owning a property in Spain does not exempt you from this rule. Buying a house does not give you the right to stay longer than 90 days.
If you want to live in Spain full-time, you need a residency visa — such as the Digital Nomad Visa. DNV holders are exempt from the 90-day rule for the duration of their visa. This is precisely why DNV holders who buy property in Spain are in the best position to actually live in it.
Common questions