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Everything you need to know before buying real estate is included in our Spain Property Pack
As we reach mid-2025, Americans are buying property in Spain at record rates, paying the highest average prices among all foreign buyers.
The Spanish property market experienced an 11.16% price increase in Q1 2025, making it crucial for American buyers to understand the complete purchasing process, legal requirements, and tax implications before investing in Spanish real estate.
If you want to go deeper, you can check our pack of documents related to the real estate market in Spain, based on reliable facts and data, not opinions or rumors.
Americans can legally buy property in Spain with the same rights as Spanish citizens, though proposed new regulations could impose a 100% tax on non-EU buyers.
The Spanish Golden Visa program was abolished on April 3, 2025, eliminating the €500,000 property investment pathway to residency.
| Requirement | Details for Americans | Current Status (June 2025) |
|---|---|---|
| Legal Right to Buy | Yes, no restrictions currently | Proposed 100% tax under consideration |
| Golden Visa Available | No, program ended April 2025 | Applications before April 3 still processed |
| Mortgage Availability | 60-70% LTV for non-residents | Rates 3.5-4% in 2025 |
| Physical Presence Required | No, power of attorney possible | NIE can be obtained at consulate |
| Purchase Taxes | 6-11% transfer tax or 10% VAT | Plus 2-3% additional fees |
| Annual Property Tax | 0.4-1.1% (IBI) + non-resident tax | 24% rate for non-EU residents |
| U.S. Tax Reporting | Required on worldwide income | Double taxation treaty applies |
Can Americans legally buy property in Spain, and are there any restrictions compared to Spanish citizens or other foreigners?
Americans can legally buy property in Spain with exactly the same rights as Spanish citizens and most other foreigners.
There are currently no restrictions preventing Americans from purchasing residential real estate for personal use, investment, or rental purposes. The Spanish government treats American buyers equally to EU citizens in terms of property ownership rights.
However, the Spanish government is actively considering new regulations that could significantly impact American buyers. A proposed measure would impose a 100% tax on property purchases by non-EU citizens who are not Spanish residents, effectively doubling the purchase price. This tax would specifically target non-resident Americans buying second homes or investment properties.
Additionally, there are discussions about restricting non-EU citizens from buying second homes unless they are residents of Spain. These measures are designed to address the housing affordability crisis affecting Spanish citizens.
As of June 2025, these restrictions have not been implemented, but American buyers should monitor the situation closely as the government has shown strong commitment to introducing these measures within the next 12-18 months.
What types of visas or residency permits do Americans need if they want to live in the property they buy in Spain?
Purchasing property in Spain does not automatically grant residency rights to Americans.
Americans can stay in Spain for up to 90 days within any 180-day period as tourists, but to live in their Spanish property longer requires obtaining a long-stay visa and residency permit.
The Spanish Golden Visa program, which allowed Americans to obtain residency through a €500,000 property investment, was officially abolished on April 3, 2025. Applications submitted before this date are still being processed, but new applications are no longer accepted.
Alternative visa options for Americans include the Non-Lucrative Visa (requiring proof of €28,800-32,000 annual passive income), the Digital Nomad Visa (for remote workers with non-Spanish employers), work visas (requiring Spanish employment), or student visas (for educational pursuits).
It's something we develop in our Spain property pack.
Is it necessary for Americans to be physically present in Spain at any point during the property purchase process?
Americans do not need to be physically present in Spain to complete a property purchase.
The entire buying process can be managed remotely by appointing a Spanish lawyer with a power of attorney. This legal document allows your representative to act on your behalf for all purchase-related activities, including signing contracts and completing the final deed.
However, Americans will need to obtain a NIE (Número de Identificación de Extranjero), which is Spain's tax identification number for foreigners. This can be obtained at a Spanish consulate in the United States or in Spain itself.
While physical presence isn't required for the purchase, many American buyers choose to visit Spain at least once to view properties in person and meet with their legal representatives, though this is entirely optional.
Remote purchases have become increasingly common, especially since 2020, with many Americans successfully completing transactions entirely from the United States.
What is the complete step-by-step process for an American to purchase property in Spain, including required documents and timelines?
The Spanish property purchase process for Americans follows nine essential steps with specific documentation requirements.
Step 1: Obtain a NIE (Foreigner Identification Number) from a Spanish consulate in the U.S. or in Spain. This typically takes 1-2 weeks and costs approximately €10.
Step 2: Open a Spanish bank account, which requires your NIE and passport. This process takes 3-5 business days and facilitates all financial transactions.
Step 3: Property search and viewing, either in person or through virtual tours. Most Americans spend 2-4 weeks identifying suitable properties.
Step 4: Make an offer and sign a reservation agreement, paying a deposit of 1-5% of the purchase price to secure the property.
Step 5: Hire a Spanish lawyer for due diligence, contract review, and legal representation. Legal fees typically cost 1-2% of the purchase price.
Step 6: Sign the private purchase contract (Contrato Privado de Compraventa) and pay an additional deposit of 10% of the purchase price.
Step 7: Complete legal checks and property verification, including title searches and debt clearance certificates. This process takes 4-8 weeks.
Step 8: Sign the public deed (Escritura de Compraventa) at the notary office, pay the remaining balance, and complete all tax obligations.
Step 9: Register the property at the Land Registry to officially record ownership. The entire process typically takes 3-6 months from initial offer to completion.
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Do Americans need to hire a lawyer or notary to buy property in Spain, and what are the typical costs and responsibilities of each?
Americans are strongly advised to hire a lawyer but are required to use a notary for Spanish property purchases.
A Spanish lawyer protects your interests throughout the transaction, conducts due diligence on the property, reviews all contracts, and ensures clear title transfer. Lawyers typically charge 1-2% of the purchase price and provide essential services including property history verification, debt clearance confirmation, and contract negotiation.
The notary is a government-appointed official who witnesses and authenticates the final deed signing. Unlike lawyers, notaries are impartial and cannot provide advice or represent your interests. Notary fees are fixed by law at approximately 0.2-0.5% of the purchase price.
While hiring a lawyer isn't legally mandatory, skipping legal representation exposes Americans to significant risks including undisclosed debts, planning violations, or title issues. Spanish property law differs substantially from U.S. real estate law, making professional legal guidance essential.
Many Americans also hire a qualified tax advisor to navigate the complex Spanish and U.S. tax implications of property ownership, which typically costs an additional 0.5-1% of the purchase price.
Are mortgages available to Americans buying property in Spain, and what are the current rates, conditions, and best tips to improve approval chances?
Spanish mortgages are available to Americans, though with stricter conditions than for Spanish residents.
Non-resident Americans can typically borrow 60-70% of the property value, compared to up to 80% for Spanish residents. Current interest rates for Americans range from 3.5-4% for fixed-rate mortgages, with loan terms usually limited to 20-25 years rather than the 30-year terms available to residents.
As of June 2025, the average mortgage rate for non-residents is approximately 3.7%, with some premium clients securing rates as low as 2.9%. Variable rates are rarely offered to non-residents, with most banks preferring fixed-rate products to minimize currency risk.
To improve approval chances, Americans should maintain a debt-to-income ratio below 35%, provide comprehensive financial documentation including tax returns from the past three years, and demonstrate stable employment or retirement income. Having an existing relationship with an international bank with Spanish operations can also facilitate the approval process.
The mortgage application process typically takes 4-6 weeks, and Americans must factor in additional costs including property valuation fees (€300-500), arrangement fees (1-1.5% of loan amount), and mandatory property and life insurance.
What are the tax implications for Americans owning property in Spain, both locally and in the U.S., and how does double taxation work?
Americans face tax obligations in both Spain and the United States when owning Spanish property.
Spanish taxes include transfer tax (ITP) of 6-11% for resale properties or 10% VAT for new properties, annual municipal property tax (IBI) of 0.4-1.1% of cadastral value, and non-resident income tax of 1.1-2% of cadastral value taxed at 24% for non-EU residents.
When selling, Americans pay Spanish capital gains tax at 19% for EU residents or 24% for non-EU residents on the profit from the sale.
For U.S. taxes, Americans must report all worldwide income to the IRS, including rental income from Spanish property and capital gains from property sales. Rental income is taxed at ordinary income rates, while capital gains receive preferential treatment if the property was held for more than one year.
The U.S.-Spain tax treaty prevents double taxation through foreign tax credits. Taxes paid to Spain can be credited against U.S. tax liability, though Americans may still owe additional U.S. taxes if the Spanish tax rate is lower than the U.S. rate.
Americans who use their Spanish property as a primary residence may qualify for the $250,000 ($500,000 for married couples) capital gains exclusion on home sales if they meet IRS residency requirements.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Where do Americans typically buy property in Spain, and which areas are currently best for living, renting out, or long-term investment?
Americans concentrate their Spanish property purchases in specific high-demand regions with established international communities.
Costa del Sol (Málaga province) attracts 38.4% of all foreign buyers, making it the top destination for Americans seeking luxury villas, golf course properties, and beachfront homes. Average prices range from €3,000-6,000 per square meter with rental yields of 4-6%.
Madrid appeals to Americans for urban living and business opportunities, with average prices of €4,000-5,000 per square meter in prime areas and rental yields of 4-5%. The capital offers strong rental demand and steady capital appreciation.
Barcelona and the Costa Brava provide cultural appeal and Mediterranean lifestyle, with average prices of €4,000-6,000 per square meter and rental yields of 3-5%.
Valencia has emerged as a favorite among American digital nomads and retirees, offering excellent value with average prices of €2,000-3,000 per square meter and higher rental yields of 5-6%.
The Balearic Islands (Mallorca, Ibiza) command premium prices of €3,500-6,000 per square meter but offer strong rental income from luxury tourism markets with yields of 4-6%.
It's something we develop in our Spain property pack.
What are the latest statistics on property prices by city and region in Spain, including Madrid, Barcelona, Valencia, the Costa del Sol, and the Balearic Islands?
Spanish property prices increased dramatically across all major regions in 2024-2025, with nationwide prices rising 11.16% in Q1 2025.
| Region/City | Average Price per m² (2025) | Annual Price Change |
|---|---|---|
| Madrid (Prime Areas) | €4,500-5,200 | +10.8% |
| Barcelona (Center) | €4,200-5,800 | +9.5% |
| Valencia | €2,100-3,200 | +12.3% |
| Costa del Sol (Marbella) | €3,800-6,500 | +11.7% |
| Mallorca (Prime) | €4,000-7,000 | +8.9% |
| Ibiza (Luxury) | €5,500-8,000 | +7.4% |
| Bilbao | €2,800-3,600 | +9.8% |
Americans are paying the highest average prices among all foreign buyers, with an average of €3,390 per square meter compared to €2,362 for all foreign buyers and €1,713 for Spanish nationals.
Property experts forecast continued price growth of 4-6% annually through 2026, driven by limited supply and strong international demand. New construction prices increased 10.7% year-on-year in H1 2024, significantly outpacing existing property price growth of 6.5%.
Regional price variations remain significant, with coastal areas and major cities commanding premium prices while inland regions offer better value propositions for American investors seeking higher rental yields.
How do the best areas in Spain perform in terms of rental yields, tourism numbers, liveability, and capital appreciation forecasts?
Spanish regions show varying performance across key investment metrics, with clear winners emerging for different investor priorities.
Valencia leads in rental yields at 5-6%, benefiting from strong university demand, growing expat population, and relatively affordable purchase prices. The city attracted 2.8 million tourists in 2024 and offers excellent quality of life with modern infrastructure and Mediterranean climate.
Costa del Sol provides balanced performance with 4-6% rental yields, 12.3 million annual tourists, and strong capital appreciation forecasts of 5-7% annually. The region's established international community and year-round appeal make it ideal for both personal use and investment.
Madrid delivers 4-5% rental yields but leads in capital appreciation potential with 6-8% annual growth forecasts through 2026. The capital's economic dynamism and job market ensure consistent rental demand.
Barcelona offers 3-5% rental yields with moderate capital appreciation of 4-6% annually. Tourism numbers exceeded 15.6 million in 2024, though recent regulatory changes have restricted short-term rentals in the city center.
The Balearic Islands command 4-6% rental yields with exceptional seasonal rental potential during summer months. Mallorca and Ibiza attract 13.8 million annual tourists combined, supporting premium rental rates but showing slower capital appreciation of 3-5% annually.
Liveability rankings favor Valencia and Madrid for year-round living, while coastal regions excel for lifestyle and retirement purposes.
What are the most common mistakes or pitfalls Americans face when buying property in Spain, and how can they avoid them?
Americans frequently encounter specific pitfalls when purchasing Spanish property that can be easily avoided with proper preparation.
The most costly mistake is inadequate due diligence, with many Americans failing to verify property titles, outstanding debts, or building permits. Always hire a qualified Spanish lawyer to conduct comprehensive property searches and title verification before signing any contracts.
Underestimating total costs catches many Americans off-guard, as additional taxes and fees add 10-15% to the purchase price. Factor in transfer taxes (6-11%), notary fees (0.2-0.5%), legal fees (1-2%), and ongoing annual costs including property tax and non-resident income tax.
Language barriers lead to contract misunderstandings and miscommunication with Spanish authorities. Insist on professional translation of all documents and work with English-speaking professionals throughout the process.
Ignoring U.S. tax obligations creates future problems, as Americans must report worldwide income including Spanish rental income and capital gains. Consult with a U.S. tax advisor familiar with international property ownership before purchasing.
Rushing the timeline without understanding Spanish legal processes results in poor decisions. The Spanish system operates differently from U.S. real estate transactions, requiring patience and local expertise.
Failing to obtain proper insurance leaves Americans vulnerable to property damage and liability claims. Secure comprehensive property insurance and consider umbrella liability coverage.
It's something we develop in our Spain property pack.
How does the Spanish property market differ from the U.S. system, especially in terms of negotiations, legal protections, and due diligence?
The Spanish property system operates fundamentally differently from the U.S. market in structure, legal protections, and transaction processes.
Spanish negotiations are more formal and typically conducted through lawyers and agents rather than direct buyer-seller communication common in the U.S. Price negotiations are generally less aggressive, with most properties selling within 5-10% of asking price compared to the wider negotiation ranges common in American markets.
Legal protections favor transparency but place greater responsibility on buyers for due diligence. Unlike the U.S. system where title insurance protects buyers, Spanish purchasers must rely on thorough legal searches and property verification by their lawyers.
The Spanish contract system involves two stages: a private contract (Contrato Privado) followed by the public deed (Escritura de Compraventa) signed before a notary. This differs from the single closing process typical in the U.S.
Due diligence requirements are more extensive in Spain, requiring verification of property registration, debt clearance certificates, planning compliance, and community fee payments. Spanish buyers cannot rely on title insurance to cover oversights as American buyers typically do.
Financing terms are more conservative in Spain, with stricter loan-to-value ratios and shorter repayment terms compared to U.S. mortgages. Spanish banks conduct more rigorous income verification and require higher down payments from non-residents.
Property taxes are structured differently, with ongoing annual obligations including municipal property tax (IBI) and non-resident income tax that don't exist in most U.S. jurisdictions.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Americans can currently purchase Spanish property with minimal restrictions, but significant regulatory changes are pending that could dramatically increase costs for non-EU buyers.
The abolition of the Golden Visa program in April 2025 has eliminated the main residency pathway through property investment, requiring Americans to explore alternative visa options if they plan to live in Spain long-term.
Sources
- Global Property Guide - Spain Price History
- Think Spain - Property Market 2025
- Reuters - US Buyers Pay Highest Prices
- CaixaBank Research - Spanish Real Estate Market
- Echeverria Abogados - Golden Visa Abolished
- Blevins Franks - Spain Ends Golden Visa
- How to Buy in Spain - Mortgage Rates 2025
- My Spanish Residency - Spanish Mortgages
- Idealista - Housing in Spain 2025
- PTI Returns - Spanish Mortgages for Non-Residents