Authored by the expert who managed and guided the team behind the Spain Property Pack
Everything you need to know before buying real estate is included in our Spain Property Pack
Yes, US citizens can legally buy residential property in Spain in 2026, and the process is more straightforward than many people expect.
Spain welcomes foreign property buyers, though you will need a few specific documents and should budget for taxes and fees that add around 10 to 15 percent on top of your purchase price.
We constantly update this blog post to reflect the latest rules, tax rates, and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Spain.
Can a US citizen legally buy residential property in Spain right now?
Can I buy a home in Spain as a US citizen in 2026?
As of early 2026, US citizens can legally purchase apartments, houses, and most types of residential property in Spain without any special restrictions based on nationality.
The standard buying process requires you to obtain an NIE (a foreigner identification number), open a Spanish bank account, hire a lawyer or conveyancer, sign a purchase contract before a notary, and register the property at the Land Registry.
This process typically takes between one and three months from offer to completion, and having a good local lawyer makes everything much smoother since they can handle paperwork while you are abroad.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Spain.
Are there many Americans buying property and living in Spain in 2026?
As of early 2026, Americans represent a visible but relatively small slice of foreign property buyers in Spain, with UK and EU nationals making up larger shares of the international market.
American expats and property owners in Spain tend to cluster in Madrid neighborhoods like Salamanca, Chamberí, and Centro, in Barcelona areas such as Eixample, Gràcia, and Sarrià-Sant Gervasi, and along the Costa del Sol in places like Marbella and Málaga Centro.
The top three reasons Americans choose to buy property in Spain are the lower cost of living compared to major US cities, the Mediterranean lifestyle with excellent weather, and access to high-quality healthcare at affordable prices.
The American expat community in Spain is growing steadily, driven by remote work flexibility, retirement planning, and the appeal of European travel access from a Spanish home base.
Do foreigners have the same buying rights as locals in Spain?
Foreign buyers, including US citizens, have nearly the same property rights as Spanish locals, with the main differences being extra paperwork like obtaining an NIE and sometimes facing stricter bank compliance checks.
The only notable restrictions apply to properties located in designated "defense interest" zones near military installations or borders, where non-EU foreigners may need special authorization from the Ministry of Defense before purchasing.
We cover all these things in length in our pack about the property market in Spain.
Can I buy property in Spain without a residence permit?
You do not need a Spanish residence permit to buy property in Spain, and many Americans purchase homes while living full-time in the United States.
The process for non-resident buyers involves obtaining an NIE remotely through a Spanish consulate, granting power of attorney to a local lawyer, and completing the transaction without needing to be physically present for every step.
As of early 2026, buying property in Spain no longer grants automatic visa or residency rights since Spain ended its "golden visa" real estate investment program in 2025.
The main practical challenge for remote buyers is coordinating time zones for signatures, ensuring funds transfer smoothly between countries, and relying on your lawyer to conduct thorough property inspections on your behalf.
Can US citizens own land in Spain?
US citizens can own land outright in Spain under full freehold ownership, which is the standard form of property ownership in the country.
Spain uses a full title ownership system called "pleno dominio" where you own the property completely and register it in your name at the Property Registry, unlike some countries where leasehold arrangements are common.
The only geographic restrictions that may affect US citizens are properties in designated "defense interest" zones, where non-EU buyers may need prior authorization from military authorities before completing a purchase.
Please note that we have a dedicated blog article about the land buying process in Spain here.
What documents will I need to buy in Spain?
The essential documents a US citizen needs to buy property in Spain include a valid passport, an NIE (foreigner identification number), proof of funds such as bank statements, and documentation showing the source of your money for anti-money-laundering compliance.
Yes, you will need an NIE, which serves as your tax identification number in Spain for all property-related transactions including buying, paying taxes, and setting up utilities.
While not legally mandatory, opening a Spanish bank account is highly practical because you will need it to pay property taxes, utility bills, community fees, and mortgage payments if you have financing.
Banks and notaries in Spain typically ask foreign buyers for proof of funds showing how you will pay for the property, and having a local address for receiving official notices is useful even if you use your lawyer's office.
We have a whole section dedicated to all the documents you need in our Spain property pack.
Can a foreign-owned company buy property in Spain?
Yes, a foreign-owned company can legally purchase residential property in Spain, though this approach involves more paperwork and compliance requirements than buying as an individual.
Some Americans do use company structures similar to LLCs to hold Spanish property, but Spanish banks and notaries will require full disclosure of beneficial ownership, and this can create additional US tax reporting obligations.
Owning through a company can change which taxes apply and how expenses are deducted, but for most individual homebuyers it does not significantly lower the overall tax burden and may actually increase compliance costs.
The main drawback of company ownership is the extra complexity: you face Spanish corporate compliance requirements, potential US reporting triggers on Form 8938 for foreign entity interests, and higher ongoing administrative costs.
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What taxes and fees will I pay in Spain in 2026?
What are buyer taxes in Spain in 2026?
As of early 2026, the total buyer tax on a property purchase in Spain ranges from about 7 to 12 percent of the purchase price depending on whether you buy a resale or new-build home, so on a 300,000 euro property (around 325,000 USD), expect to pay between 21,000 and 36,000 euros in taxes.
For resale properties, you pay ITP (Property Transfer Tax) which ranges from 6 to 10 percent depending on the region, while new-build purchases incur 10 percent VAT plus around 0.5 to 1.5 percent in stamp duty (AJD).
Tax rates in Spain do not differ based on whether the buyer is foreign or local, though some regions offer reduced rates for primary residences or first-time buyers that may be harder for non-residents to qualify for.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Spain.
What are other closing costs in Spain in 2026?
As of early 2026, you should budget around 2 to 3 percent of the purchase price for closing costs beyond taxes, which means an extra 6,000 to 9,000 euros (about 6,500 to 9,800 USD) on a 300,000 euro property.
The main closing cost categories include notary fees at around 0.3 to 0.5 percent (roughly 900 to 1,500 euros), land registry fees at 0.2 to 0.4 percent (600 to 1,200 euros), legal fees typically around 1 percent (3,000 euros), and property valuation if you need a mortgage (300 to 500 euros).
Legal fees are somewhat negotiable, and you can shop around for lawyers, while notary and registry fees are regulated and fairly standard across Spain.
The closing cost that tends to surprise foreign buyers most is the "gestoría" fee, an administrative agent who handles paperwork and tax filings, which can add 300 to 600 euros that many buyers do not expect.
Are there hidden fees foreigners miss in Spain right now?
Foreign buyers in Spain commonly overlook between 1,000 and 3,000 euros (1,100 to 3,300 USD) in fees and ongoing costs that are not immediately obvious during the purchase process.
The top three hidden fees are the non-resident imputed income tax (a yearly tax on the theoretical rental value of your home even if you do not rent it out, typically 200 to 500 euros annually), IBI (the annual municipal property tax, often 400 to 1,500 euros depending on property value), and community fees for apartments (ranging from 50 to 300 euros monthly).
After purchase, foreign property owners often underestimate ongoing annual costs including mandatory home insurance, utility connection deposits, and potential special assessments from the community of owners for building repairs.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Spain.
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.
Can I get a mortgage as a US citizen in Spain in 2026?
Do banks lend to US citizens in Spain in 2026?
As of early 2026, Spanish banks do lend to US citizens, though the process involves more documentation than for local residents and approval is not guaranteed.
US citizens generally receive similar treatment to other non-EU foreign nationals, meaning banks apply the same non-resident lending criteria regardless of whether you are American, Canadian, or Australian.
Some Spanish banks are cautious about lending to Americans specifically because of FATCA compliance requirements, which create extra reporting obligations for banks dealing with US persons.
The typical approval rate for US citizens with strong documentation, stable income, and a good down payment is reasonably high at major international-facing banks, though smaller regional banks may decline non-resident applications more often.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Spain.
What down payment do American people need in Spain in 2026?
As of early 2026, US citizens typically need a minimum down payment of 30 to 40 percent, so for a 300,000 euro property (around 325,000 USD) you should plan to bring at least 90,000 to 120,000 euros (98,000 to 130,000 USD) in cash.
The typical down payment range for foreign buyers in Spain runs from 30 percent at the low end with strong financials to 40 percent or more for buyers with less documentation or unconventional income sources.
Yes, a larger down payment almost always improves your mortgage terms, as banks offer better interest rates and are more likely to approve your application when you finance only 50 to 60 percent of the property value.
You can also read our latest update about mortgage and interest rates in Spain.
What interest rates do US citizens get in Spain in 2026?
As of early 2026, US citizens can expect mortgage interest rates in the range of 3.3 to 4.3 percent, which is slightly higher than the average rate for Spanish residents.
Interest rates for foreign buyers typically run about 0.3 to 0.8 percentage points higher than rates offered to local residents, reflecting the additional risk and complexity banks associate with non-resident lending.
Both fixed-rate and variable-rate mortgages are available to foreign buyers in Spain, with fixed rates being increasingly popular and typical terms ranging from 15 to 25 years depending on the borrower's age and property value.
The single factor with the biggest impact on your interest rate is your loan-to-value ratio: the more you put down, the better rate you will receive from Spanish banks.
Can I use US income to qualify in Spain right now?
Spanish banks commonly accept US-sourced income for mortgage qualification, though they require thorough documentation to verify your earnings and employment stability.
Banks typically ask American applicants for two years of US tax returns, recent pay stubs or an employer letter, bank statements showing regular income deposits, and sometimes notarized or apostilled translations of key documents.
If standard US documentation is insufficient, some banks accept alternative verification such as a letter from a US CPA, additional months of bank statements, or proof of other assets that demonstrate your ability to repay the loan.
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How do US taxes interact with owning property in Spain?
Do I have to declare the property to the IRS from Spain?
Simply owning a property in Spain does not by itself require you to report the real estate on your US tax return, since direct foreign real estate ownership is generally excluded from Form 8938 reporting.
You will need to report rental income on your regular US tax return if you rent out your Spanish property, and you must report capital gains when you sell the property, but there is no special IRS form just for owning the home.
The key exception is if you hold the property through a foreign entity like a Spanish company, in which case your ownership interest in that entity may trigger Form 8938 reporting requirements.
Will I pay tax twice in the US and Spain in 2026?
As of early 2026, you can owe taxes in both the US and Spain on property income or gains, but double taxation is usually avoided through treaty protections and tax credits.
Yes, there is a tax treaty between the US and Spain, officially published by the IRS, which provides a framework for allocating taxing rights and ensuring you do not pay the same tax twice on the same income.
The Foreign Tax Credit allows you to offset income taxes paid to Spain against your US tax liability, so if you pay Spanish tax on rental income or capital gains, you can typically claim a credit for that amount on your US return.
Whether Spanish property taxes like IBI are deductible on your US federal return depends on your specific tax situation and current US rules, so this is a question to discuss with your US CPA rather than assume one way or the other.
Do I need FATCA reporting when buying in Spain?
Buying a property in Spain by itself does not trigger FATCA reporting, since FATCA focuses on foreign financial accounts and assets rather than direct real estate ownership.
FATCA reporting via Form 8938 is triggered when your specified foreign financial assets exceed thresholds (50,000 USD for single filers living in the US, higher for those abroad), but direct real estate ownership does not count toward these thresholds.
FATCA and FBAR are different: FBAR requires reporting foreign bank accounts if your combined balances exceed 10,000 USD at any point during the year, so opening a Spanish bank account for your property expenses can trigger FBAR even though the property itself does not.
Consulting a US CPA before buying property in Spain is highly recommended, especially to discuss questions about FBAR filing for your Spanish bank account, how to report rental income, and how to structure ownership to minimize compliance complexity.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Spain, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Spain Official State Gazette (BOE) | The official publication of all Spanish laws. | We used it to confirm the end of the golden visa program. We treat BOE as the definitive source for what Spanish law currently says. |
| Spanish National Police NIE Portal | The official portal for foreigner ID procedures. | We used it to explain how foreigners obtain an NIE. We based our document requirements section on this official process. |
| Spanish Tax Agency (AEAT) | Spain's national tax authority for all tax rules. | We used it to define buyer taxes like ITP and VAT. We translated their guidance into practical percentage ranges for buyers. |
| Spanish Notaries (Notariado) | Notaries are mandatory in Spanish property transactions. | We used it to explain the closing process and documentation. We also referenced their anti-money-laundering guidance. |
| National Statistics Institute (INE) | Spain's official national statistics agency. | We used it to estimate current mortgage interest rates. We anchored our financing section in their official monthly data. |
| Spanish Land Registry (Colegio de Registradores) | The official system for registered property transactions. | We used it to quantify foreign buyer participation. We based our market share statements on their published statistics. |
| Directorate-General for Cadastre (Catastro) | The official system behind cadastral property values. | We used it to explain what IBI property tax is. We referenced their guidance to explain ongoing ownership costs. |
| IRS Form 8938 Guidance | The official IRS clarification on foreign asset reporting. | We used it to explain when US owners must report Spanish property. We highlighted the key exception for entity ownership. |
| IRS Spain Tax Treaty Documents | The official US source for treaty provisions with Spain. | We used it to confirm the treaty exists and explain double-tax relief. We based our tax interaction section on this primary source. |
| CaixaBank (HolaBank) | A major Spanish bank serving non-resident buyers. | We used their published terms to estimate down payment requirements. We referenced their non-resident mortgage offerings as a market benchmark. |
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