Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Madrid's property market is included in our pack
If you're a foreigner thinking about buying property in Madrid, you're probably wondering what you can actually own, what paperwork you'll need, and how the whole process works in 2026.
This guide covers everything from legal ownership rules and visa requirements to mortgages, taxes, and the step-by-step buying process in Madrid.
We constantly update this blog post to reflect the latest regulations and market conditions in Madrid's real estate market.
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 Madrid.
Insights
- Spain's golden visa program ended on April 3, 2025, meaning property purchases in Madrid no longer provide a pathway to residency regardless of the investment amount.
- Non-resident foreign buyers in Madrid typically receive mortgage financing of 60% to 70% loan-to-value, compared to up to 80% for Spanish residents.
- Total closing costs in Madrid range from 8% to 10% for resale properties and 11% to 13.5% for new builds, with transfer tax or VAT being the largest component.
- The NIE (foreigner identification number) is practically mandatory for any property purchase in Madrid, as notaries, banks, and tax authorities all require it.
- Madrid's IBI property tax is calculated on cadastral value, which often sits at just 30% to 50% of market value, making annual taxes lower than many foreigners expect.
- Non-resident landlords in Madrid pay 19% income tax on rental earnings if they're from the EU or EEA, but 24% if they're from outside Europe.
- Short-term tourist rentals in Madrid require registration with the Comunidad de Madrid and compliance with city zoning rules, plus approval from your building's community of owners.
- Spanish mortgage rates for foreigners in January 2026 typically range from 3.2% to 4.2%, with a premium of 0.3% to 0.7% over what residents pay.
What can I legally buy and truly own as a foreigner in Madrid?
What property types can foreigners legally buy in Madrid right now?
In January 2026, foreigners can legally buy any type of residential property in Madrid, including apartments, penthouses, townhouses, and detached houses, with full ownership registered in their own name.
The most important legal requirement for foreign buyers in Madrid is obtaining an NIE (Número de Identidad de Extranjero), which is Spain's identification number for foreigners and is needed for signing at the notary, paying taxes, and opening a bank account.
When you buy property in Madrid, you receive full ownership title registered at the Property Registry (Registro de la Propiedad), and for apartments, this includes your private unit plus a share of common areas like stairs, elevators, and the building structure.
There is a rare exception for properties in areas designated as national defense zones, where non-EU buyers may need prior authorization, but this almost never applies to central Madrid and is mostly relevant for coastal or border regions.
Finally, please note that our pack about the property market in Madrid is specifically tailored to foreigners.
Can I own land in my own name in Madrid right now?
Yes, foreigners can own land in their own name in Madrid, and when you buy a house or townhouse, the land underneath is included in your ownership title just like it would be for a Spanish citizen.
This applies to virtually all types of residential land in Madrid, with the only theoretical exception being certain defense-zone areas that require prior authorization for non-EU buyers, which is extremely uncommon in the Madrid region.
For houses and townhouses, title clarity matters more than for apartments, so you should verify that boundaries are correctly described in the registry and that no unexpected burdens are recorded against the land.
As of 2026, what other key foreign-ownership rules or limits should I know in Madrid?
As of early 2026, the most impactful rule for foreign buyers in Madrid is that short-term tourist rentals require registration with the regional government, compliance with Madrid city planning rules, and often approval from your building's community of owners.
There is no foreign-ownership quota for apartments or condos in Madrid, meaning buildings can have any percentage of foreign owners without restriction.
Foreign buyers must register their purchase with the Property Registry after signing at the notary, pay the applicable transfer tax (ITP) or VAT within 30 days, and ensure their NIE is valid throughout the process.
The most significant recent regulatory change is that Spain ended its golden visa program on April 3, 2025, so property purchases no longer provide a pathway to residency regardless of investment amount.
What's the biggest ownership mistake foreigners make in Madrid right now?
The biggest ownership mistake foreigners make in Madrid is paying a large deposit (arras) before obtaining and reviewing the nota simple from the Property Registry to verify the seller actually owns the property and that no mortgages or liens are registered against it.
If you make this mistake, you could discover after paying that the property has an existing mortgage, that the registered owner differs from the seller, or that there are legal restrictions on the property that make your intended use impossible.
Other classic pitfalls in Madrid include assuming you can do short-term tourist rentals without checking building community rules, underestimating closing costs (which run 8% to 13% of the price), and not budgeting for the NIE application process which can take several weeks.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Madrid?
Do I need a specific visa to buy property in Madrid right now?
You do not need a specific visa to buy property in Madrid, and foreigners can legally purchase real estate while visiting on a tourist stay, though you will need an NIE (foreigner identification number) to complete the transaction.
The single most common administrative blocker for foreign buyers in Madrid is not having an NIE ready in time, since notaries, banks, and tax authorities all require this number before you can sign or pay taxes.
Yes, you effectively need a local tax ID before buying property in Madrid, and the NIE serves this purpose for foreigners, following you through the entire purchase process and beyond for utilities, community fees, and annual taxes.
A foreign buyer in Madrid typically needs to present their passport, valid NIE, proof of funds or mortgage pre-approval, and bank drafts or wire transfer confirmations for the purchase amount and taxes.
Does buying property help me get residency and citizenship in Madrid in 2026?
As of early 2026, buying property in Madrid does not help you get residency or citizenship, because Spain ended its investor visa (golden visa) program linked to real estate purchases on April 3, 2025.
Before the change, a property investment of at least 500,000 euros could qualify you for a residence permit, but this route is now completely closed and property ownership provides no immigration benefit.
If you want to live in Spain, you'll need to pursue other pathways such as the non-lucrative residence visa (for retirees or people with sufficient passive income), the digital nomad visa (for remote workers), or work, study, or family reunification routes.
Can I legally rent out property on my visa in Madrid right now?
Your visa status does not prevent you from renting out property you own in Madrid, meaning non-residents and tourists who own property can legally earn rental income, though you'll be taxed as a non-resident.
You do not need to live in Spain to rent out your Madrid property, but you will need to file non-resident income tax returns and may want to hire a local property manager or fiscal representative.
Foreign landlords in Madrid must understand two distinct rental worlds: long-term residential rentals are straightforward but require tax compliance, while short-term tourist rentals require registration with the Comunidad de Madrid, compliance with city rules, and often your building community's permission.
We cover everything there is to know about buying and renting out in Madrid here.
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How does the buying process actually work step-by-step in Madrid?
What are the exact steps to buy property in Madrid right now?
The standard sequence to buy property in Madrid is: find a property and make an offer, obtain the nota simple from the Registry, arrange financing if needed, sign the arras (deposit contract), prepare documents and funds, sign the escritura (public deed) at the notary, pay taxes within 30 days, and register your ownership at the Property Registry.
You do not have to be physically present to buy property in Madrid, as Spain commonly uses power of attorney (poder notarial) that allows your lawyer or representative to sign the deed on your behalf.
The step that makes the deal legally binding in Madrid is typically the signing of the arras contract, where you pay a deposit (usually 10% of the price) and both parties commit to completing the sale, with financial penalties if either side backs out.
The typical timeline from accepted offer to final registration in Madrid ranges from 4 to 8 weeks for a straightforward cash purchase, or 8 to 12 weeks if you need mortgage approval.
We have a document entirely dedicated to the whole buying process in our pack about properties in Madrid.
Is it mandatory to get a lawyer or a notary to buy a property in Madrid right now?
A notary is functionally mandatory to buy property in Madrid because the standard, legally secure transfer requires signing a public deed (escritura pública) before a notary, which is then registered to prove your ownership.
The key difference is that the notary in Madrid is a public official who verifies identities, witnesses signatures, and formalizes the deed, while a lawyer actively protects your interests by reviewing contracts, checking for hidden problems, and coordinating the entire transaction.
One key item to include in your lawyer's engagement scope is verification of the property's legal status, including reviewing the nota simple, checking for unpaid community fees or utility debts, and confirming there are no planning violations or restrictions on your intended use.
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.
What checks should I run so I don't buy a problem property in Madrid?
How do I verify title and ownership history in Madrid right now?
The official authority to verify title and ownership history in Madrid is the Registro de la Propiedad (Property Registry), where every property transfer, mortgage, and legal burden is recorded.
The key document to request is the nota simple, which shows the current registered owner, the property description, and any mortgages, easements, or other encumbrances recorded against the property.
Buyers in Madrid commonly review ownership history going back at least 10 to 15 years to check for any irregular transfers, inheritance disputes, or patterns that might indicate future claims.
A clear red flag that should stop or pause your purchase is finding that the person selling the property is not the registered owner, that there are active mortgages that won't be cleared at completion, or that there are legal annotations suggesting ongoing litigation.
You will find here the list of classic mistakes people make when buying a property in Madrid.
How do I confirm there are no liens in Madrid right now?
The standard way to confirm there are no liens on a property in Madrid is to request a nota simple from the Property Registry, which lists all registered mortgages, embargoes, and legal encumbrances.
One common type of lien to specifically ask about in Madrid is unpaid community fees (gastos de comunidad), because while these may not always appear in the Registry, the buyer can inherit responsibility for the previous owner's debts to the building community.
The best written proof of lien status is the nota simple itself, dated as close to your completion date as possible, ideally within the week before signing to ensure no new encumbrances have been registered.
How do I check zoning and permitted use in Madrid right now?
The authorities to check zoning and permitted use in Madrid are the Catastro (for the official classification and cadastral reference) and Madrid City Hall or the Comunidad de Madrid (for planning rules and tourist rental restrictions).
The documents that confirm zoning are the cadastral certificate showing the property's official use classification (residential, commercial, etc.) and any urban planning certificates (cédula urbanística) available from the local planning office.
The most common zoning pitfall foreign buyers miss in Madrid is assuming they can operate short-term tourist rentals without checking, when in reality many buildings have community rules prohibiting tourist use and the city has specific zones where new tourist licenses are restricted or unavailable.
Buying real estate in Madrid can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Madrid, and on what terms?
Do banks lend to foreigners for homes in Madrid in 2026?
As of early 2026, yes, Spanish banks do lend to foreigners for home purchases in Madrid, with several major banks actively marketing mortgage products specifically for non-residents and international buyers.
The realistic loan-to-value range for foreign borrowers in Madrid is 60% to 70% of the lower of the purchase price or valuation, compared to up to 80% that Spanish residents can often obtain.
The most common eligibility requirement that determines whether a foreigner qualifies is proof of stable income, which typically means providing tax returns, employment contracts, or business accounts from your home country, often requiring certified translations.
You can also read our latest update about mortgage and interest rates in Spain.
Which banks are most foreigner-friendly in Madrid in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in Madrid are Bankinter, Banco Santander, and CaixaBank, all of which have dedicated non-resident mortgage products and English-speaking staff or international banking units.
What makes these banks more foreigner-friendly is that they have established processes for accepting foreign income documentation, work with international property valuers, and have experience navigating the extra complexity of non-resident lending.
Yes, these banks will lend to non-residents in Madrid, meaning you do not need Spanish residency to get a mortgage, though you'll typically face lower LTV limits and slightly higher rates than resident borrowers.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Madrid.
What mortgage rates are foreigners offered in Madrid in 2026?
As of early 2026, foreigners in Madrid are typically offered mortgage rates ranging from 3.2% to 4.2%, with the national average for new mortgages sitting around 2.8% according to the latest INE data, and non-residents paying a premium of roughly 0.3% to 0.7% over resident rates.
Fixed-rate mortgages in Madrid typically cost 0.2% to 0.5% more than variable-rate mortgages at the start, but variable rates are tied to the Euribor and can fluctuate, so many foreign buyers prefer the certainty of a fixed rate even at a slightly higher initial cost.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Madrid?
What are the total closing costs as a percent in Madrid in 2026?
The typical total closing cost in Madrid in 2026 is around 8% to 10% of the purchase price for a resale property, or 11% to 13.5% for a new build from a developer.
The realistic range that covers most standard transactions is 8% to 13.5%, with the main variable being whether you're buying a resale home (taxed with ITP transfer tax at 6%) or a new build (taxed with VAT at 10% plus stamp duty).
The specific fee categories that make up closing costs in Madrid include transfer tax (ITP) or VAT plus stamp duty (AJD), notary fees, Property Registry fees, legal fees if you hire a lawyer, and sometimes bank fees if you're getting a mortgage.
The single biggest contributor to closing costs in Madrid is the transfer tax (ITP at 6% for resale) or VAT (10% for new builds), which together typically account for 60% to 75% of your total closing costs.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Madrid.
What annual property tax should I budget in Madrid in 2026?
As of early 2026, you should budget roughly 500 to 1,500 euros per year for IBI (property tax) on a typical apartment in Madrid, with the exact amount depending on your property's cadastral value, which is usually 30% to 50% of market value.
Annual property tax in Madrid (IBI) is calculated by applying the city's tax rate (around 0.4% to 0.5%) to the cadastral value of your property, not the market price, which is why the actual euro amount often feels lower than foreigners expect.
How is rental income taxed for foreigners in Madrid in 2026?
As of early 2026, the effective tax rate on rental income for foreign landlords in Madrid is 19% if you're from an EU or EEA country, or 24% if you're from outside Europe.
Non-resident landlords in Madrid must file quarterly tax returns (Modelo 210) declaring their rental income, and while EU/EEA owners can deduct certain expenses from their taxable rental income, non-EU owners are generally taxed on gross rent with very limited deductions.
What insurance is common and how much in Madrid in 2026?
As of early 2026, typical annual home insurance premiums in Madrid range from 200 to 450 euros for an apartment and 350 to 900 euros or more for a townhouse or detached house.
The most common type of property insurance in Madrid is a multi-risk home policy (seguro multirriesgo del hogar) that covers building damage, contents, theft, water damage, fire, and third-party liability.
The biggest factor that affects insurance premiums in Madrid is the rebuild value and size of the property, with larger homes, houses with gardens, and properties in flood-prone areas costing more to insure than standard city apartments.
Get the full checklist for your due diligence in Madrid
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 Madrid, 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 |
|---|---|---|
| Boletín Oficial del Estado (BOE) | Spain's official law gazette is the primary source for what the law actually says. | We used it to confirm the legal end of the golden visa and the effective timing. We anchored all "as of 2026" legal statements to this official source. |
| Consejo General del Notariado | Spain's notary council explains the official conveyancing steps and legal meaning of deeds. | We used it to describe how deposit contracts, public deeds, and signing work. We explained why the notary is central to every property purchase in Madrid. |
| Colegio de Registradores | The Property Registry is the definitive record of ownership, mortgages, and recorded burdens in Spain. | We used it to explain how buyers verify title and check for liens. We defined the nota simple in plain language and why you need it before paying. |
| Ministry of the Interior | The official authority for immigration and foreigner ID requirements in Spain. | We used it to clarify the NIE requirement for all foreign buyers. We shaped the practical checklist of documents needed for purchase. |
| Comunidad de Madrid (Tax Authority) | The official regional tax authority for the Madrid region. | We used it to confirm ITP rates for resale homes. We anchored our closing cost estimates for second-hand purchases in Madrid. |
| Agencia Tributaria (AEAT) | Spain's national tax agency is the primary source for VAT and ITP treatment rules. | We used it to explain when you pay VAT versus ITP. We clarified that you generally pay one or the other, not both. |
| Dirección General del Catastro | The official cadastre database for property location, use, and cadastral values in Spain. | We used it to explain how buyers verify cadastral references and values. We connected cadastral value to annual IBI tax calculations. |
| Ayuntamiento de Madrid | The city's official statement of local property tax rates. | We used it to anchor the annual IBI budgeting section. We converted cadastral values into realistic annual cost estimates for Madrid homes. |
| Instituto Nacional de Estadística (INE) | Spain's national statistics institute provides official mortgage rate data. | We used it to anchor the "what rates look like" section with the latest published data. We triangulated bank offers against the national average. |
| Ministerio de Inclusión (Migraciones) | The official source for Spain's residence authorization requirements. | We used it to explain residency options that exist independently of buying property. We avoided implying property purchase grants residency in 2026. |
| Comunidad de Madrid (Tourism) | The official regional portal for tourist rental registration requirements. | We used it to explain the registration layer for short-term rentals. We showed that tourist rental compliance is multi-layered in Madrid. |
| Bankinter | A major Spanish bank with explicit non-resident mortgage products. | We used it as evidence that banks actively serve foreign buyers. We referenced their non-resident programs when discussing foreigner-friendly banks. |
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.