Buying property in Spain as a foreigner: full guide

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

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INVESTROPA

A team specialized in real estate investing in European countries (Spain, Portugal, Italy, France, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Spain. If you'd like to learn more about us, you can check our presentation page.

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Anna Siudzinska 🇵🇱

Real Estate Agent

Anna Siudzińska is a dynamic business strategist and experienced manager with a proven track record in sales, marketing, and corporate expansion. With years of experience navigating both domestic and international markets, she specializes in driving growth, strengthening companies' market positions and helping clients find lucrative real estate opportunities in Spain.

Can foreigners buy property in Spain without restrictions?

Yes, foreigners can currently buy property in Spain, but significant changes are coming in 2025.

As of June 2025, the Spanish government has proposed new restrictions targeting non-EU citizens, including Americans and Britons. These proposals would require non-EU buyers to already reside in Spain to purchase second homes, with a potential 100% tax on purchases by non-resident foreign buyers.

EU citizens maintain full property rights without restrictions, while non-EU buyers face an evolving regulatory landscape. The proposed measures haven't passed through Spanish Congress yet, so the current open market remains, but buyers should monitor these developments closely.

Despite these proposed changes, Spain's property market attracted 14% foreign buyers in 2024, demonstrating its continued appeal to international investors.

It's something we develop in our Spain property pack.

Do I need residency or a visa to purchase Spanish property?

No residency or visa is required to buy property in Spain as a foreigner.

Property ownership and residency rights are completely separate legal matters in Spain. You can purchase real estate as a tourist on a standard 90-day Schengen visa, but this doesn't grant you the right to live in Spain beyond tourist stays.

The confusion often arises because Spain previously offered a Golden Visa program, where property investments over €500,000 provided residency rights. This program ended in April 2025, closing this pathway to residency through property investment.

For long-term stays in your Spanish property, you'll need to apply for appropriate visas or residence permits based on other qualifying criteria like employment, retirement income, or family reunification.

What visa options allow me to live in my Spanish property?

Several visa pathways exist for foreigners wanting to reside in their Spanish properties in 2025.

The Non-Lucrative Visa remains the most popular option for retirees and remote workers, requiring proof of €28,800 annual income (400% of IPREM) for a single applicant. This visa prohibits working in Spain but allows residence for property owners with sufficient financial means.

Work visas and self-employment permits offer alternatives for those planning to work in Spain, while the Digital Nomad Visa suits remote workers earning from non-Spanish sources. Student visas provide temporary residence for those enrolled in Spanish educational institutions.

Each visa type has specific requirements and application processes, typically taking 2-3 months to process through Spanish consulates.

Must I travel to Spain to complete the property purchase?

Physical presence in Spain isn't mandatory to complete a property purchase.

You can grant power of attorney (poder notarial) to a Spanish lawyer or trusted representative who can handle the entire transaction on your behalf. This includes signing contracts, completing the notarial deed, and registering the property.

However, visiting Spain is highly recommended for property viewing, area assessment, and establishing banking relationships. Many buyers visit for the initial property search and offer stage, then use power of attorney for the final closing if they cannot return.

The power of attorney must be properly notarized and apostilled in your home country or created before a Spanish notary during a visit.

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What's the step-by-step process for buying Spanish property?

The Spanish property purchase process follows a structured 10-step sequence.

First, obtain your NIE (Número de Identidad de Extranjero), the foreigner identification number required for all property transactions. Next, search for properties and make an offer, typically 5-10% below asking price in the current market.

Sign a reservation contract (contrato de reserva) with a €3,000-6,000 deposit to remove the property from the market. Your lawyer then conducts due diligence, checking the property's legal status, debts, and ownership clarity.

Essential documents include passport, NIE, proof of funds, bank statements showing money origin, and marriage certificates if applicable. The seller must provide the property deed, IBI receipts, community fee statements, and energy certificate.

Should I hire a lawyer when buying property in Spain?

Hiring an independent lawyer is strongly recommended though not legally mandatory.

Spanish notaries oversee transaction legality but don't protect buyer interests or conduct due diligence. Your lawyer performs crucial checks including verifying clean property title, checking for debts or liens, ensuring building legality, and reviewing all contracts.

Legal fees typically range from €1,500-3,000 plus VAT for properties under €500,000. This investment prevents costly mistakes like buying illegally built properties, inheriting previous owner's debts, or signing unfavorable contract terms.

Choose a lawyer independent from the real estate agency and fluent in your language. Many foreign buyers who skip legal representation face problems that cost far more than lawyer fees.

We cover this extensively in our Spain property pack.

Can foreigners get Spanish mortgages and what are the terms?

Spanish banks actively lend to foreign buyers, though terms differ from resident mortgages.

Non-residents typically need 30% down payment and can borrow up to 70% of purchase price or valuation (whichever is lower). Residents may qualify for 80% financing with 20% down. Interest rates for foreigners in June 2025 range from 2.5% to 4%, slightly higher than resident rates.

To improve approval chances, prepare comprehensive documentation including three months of bank statements, two years of tax returns, employment contracts, and proof of additional assets. Spanish banks particularly value stable income history and debt-to-income ratios below 35%.

Banks like Santander, BBVA, and CaixaBank have dedicated non-resident mortgage departments. Processing typically takes 3-4 weeks, and pre-approval before property searching strengthens your negotiating position.

What are all the taxes and costs when buying Spanish property?

Total purchase costs add 10-12% to the property price in taxes and fees.

For new properties, pay 10% VAT (IVA) plus 1-1.5% stamp duty (AJD). Resale properties incur transfer tax (ITP) of 6-10% depending on the autonomous community, with most regions charging 7-8%.

Additional costs include notary fees (€600-1,200), land registry (€400-800), legal fees (€1,500-3,000), and bank valuation if mortgaging (€300-600). Annual ownership costs include IBI property tax (0.4-1.1% of cadastral value), community fees for apartments (€50-200 monthly), and non-resident income tax on deemed rental income.

When selling, non-residents pay 19% capital gains tax on profit and local plusvalía tax on land value increase. Budget carefully for these costs to avoid financial surprises.

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 should foreigners buy for lifestyle and community?

The Valencia region offers the best combination of lifestyle, value, and expat communities in 2025.

Valencia city provides urban amenities with beach access, strong infrastructure, and property prices 50% below Madrid or Barcelona. The international community thrives in neighborhoods like Ruzafa and El Carmen, with excellent healthcare and international schools.

Costa del Sol, particularly Marbella and Estepona, attracts luxury buyers and retirees with year-round sunshine and established expat services. Madrid suits professionals and families seeking employment opportunities and cultural activities, while Barcelona combines business opportunities with Mediterranean lifestyle despite higher costs.

Mallorca appeals to those seeking island living with excellent connections to mainland Europe, though prices have increased 15% in 2024-2025.

Which Spanish locations offer the best investment returns?

Valencia leads Spanish cities for investment potential in 2025 with rental yields reaching 6%.

Madrid maintains steady 4.5-6% yields driven by corporate rentals and stable demand from professionals and students. The capital's diverse economy and limited housing supply support long-term appreciation despite higher entry prices at €5,104 per square meter.

Málaga emerges as a digital nomad hub with 4-5.5% yields and 12% annual price growth. The city's tech sector development and lifestyle appeal drive both rental and sales markets. Barcelona offers 4-5% yields with premium locations in Eixample and Gràcia commanding higher rents.

Alicante provides affordable entry at €2,000-2,500 per square meter with 5% yields from tourist and long-term rentals. Avoid oversupplied coastal developments in favor of city-center properties with year-round rental potential.

This analysis features prominently in our Spain property pack.

How do property prices compare across Spain in 2025?

Spanish property prices show dramatic regional variations with a 400% difference between cheapest and most expensive areas.

National average stands at €2,237 per square meter as of June 2025. Madrid leads at €5,104/sqm, followed by Barcelona (€4,707/sqm) and Palma de Mallorca (€4,523/sqm). These premium markets reflect strong demand from international buyers and limited supply.

Coastal areas command 20-30% premiums over inland cities. The price gap between prime and secondary markets continues widening, with international demand concentrated in major cities and coastal regions while interior Spain offers value opportunities.

What mistakes do foreigners commonly make buying Spanish property?

The biggest mistake is skipping independent legal representation to save €2,000-3,000 in fees.

Many buyers rely on estate agents or developer-recommended lawyers, missing critical issues like illegal construction, hidden debts, or unclear ownership. Properties built without proper licenses face demolition orders, particularly in coastal areas where illegal building was common.

1. Underestimating total costs by forgetting the 10-12% taxes and fees
2. Not checking the nota simple for debts and ownership clarity
3. Signing contracts without understanding Spanish law differences
4. Assuming property ownership grants residency rights
5. Buying in complexes without reviewing community rules and finances
6. Not verifying the cadastral value matches declared price
7. Skipping building inspection assuming new means problem-free
8. Using Google Translate for legal documents instead of certified translation
9. Paying large deposits without proper contract protections
10. Not understanding capital gains tax obligations as non-residents

Avoid these pitfalls by budgeting properly, hiring independent professionals, and understanding that Spanish property law differs significantly from common law systems.

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.

Sources

1. Hola Properties - Foreign Buyer Restrictions Spain
2. Immigrant Invest - Spain Property Residence Permits
3. Strong Abogados - Property Visa Information
4. Idealista - Spanish Property Prices 2025
5. Lexidy - Foreign Mortgages in Spain
6. Spanish Property Insight - Transaction Costs
7. SpotBlue - Spain Real Estate Market 2025
8. Global Property Guide - Spain Price History
9. Balcells Group - Property and Residency
10. Expatica - Buying Property in Spain Guide