Can tourists buy property in Spain?

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INVESTROPA

A team specialized in real estate investing in European countries

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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At INVESTROPA, we explore the Spanish real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Madrid, Barcelona, and Valencia. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

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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 non-residents legally buy property in Spain?

Yes, non-residents can legally buy property in Spain as of September 2025, with no nationality restrictions currently in place.

However, the Spanish government has proposed significant changes that could heavily restrict property purchases for non-EU citizens starting in 2025. These proposed rules may include doubling taxes on property purchases or completely banning second home acquisitions for non-resident buyers from outside the European Union.

The legislation specifically targets non-EU nationals purchasing properties outside their country of residence, particularly second homes and tourist apartments. While these restrictions have been proposed, they have not yet been finalized or implemented, meaning foreign buyers can still purchase property under current regulations.

EU citizens continue to have unrestricted access to the Spanish property market, regardless of residency status. Non-EU buyers should act quickly if they're considering a purchase, as the regulatory landscape may change significantly in the coming months.

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

What types of properties can foreigners purchase in Spain?

Foreigners can purchase virtually all types of residential and commercial properties in Spain, including apartments, villas, townhouses, bungalows, and rural land.

The Spanish property market offers both new construction and resale properties to international buyers. Apartments range from studio units in urban centers to luxury penthouses with sea views. Villas and townhouses are available in coastal areas, suburbs, and rural locations, often featuring private gardens and pools.

Rural and agricultural land purchases are permitted for foreigners, allowing investment in farming operations or development projects subject to local zoning laws. Commercial properties, including office buildings, retail spaces, and warehouses, are also available for purchase by non-residents.

Country properties and fincas (rural estates) attract many foreign buyers seeking lifestyle changes or investment opportunities in Spain's countryside. These properties often include extensive land, traditional buildings, and agricultural facilities.

No legal restrictions exist on property type for non-residents, though upcoming regulatory changes may specifically target tourist apartments and second homes in certain areas.

Are there location restrictions for foreign property buyers?

Currently, no major legal restrictions limit where non-residents can buy property in Spain, with coastal zones, rural areas, and historic city centers remaining open to foreign investment.

Municipalities may enforce special regulations for historic buildings or properties in protected rural areas, requiring additional permits or architectural compliance. Coastal properties are fully accessible to foreign buyers, though some developments may have community rules about rental activities.

However, the proposed 2025 restrictions specifically target popular tourist and coastal areas where non-EU citizens frequently purchase second homes. These regulations would likely affect regions like the Costa del Sol, Balearic Islands, Canary Islands, and Valencia's coastline.

Historic city centers in places like Barcelona, Madrid, and Seville may face tighter regulations on tourist apartment purchases as part of efforts to control housing availability for local residents. Protected natural areas and certain agricultural zones maintain existing environmental restrictions regardless of buyer nationality.

Regional governments retain authority to implement additional restrictions on foreign property ownership, particularly in areas experiencing housing shortages or overtourism concerns.

What are the minimum investment amounts and average property prices?

City/Region	Average Price per sqm	Minimum Property Cost
Zamora (cheapest)	€1,174/sqm	€60,000-€90,000
National Average	€2,237/sqm	€120,000-€180,000
Madrid	€5,104/sqm	€250,000-€400,000
Barcelona	€4,707/sqm	€250,000-€400,000
San Sebastián	€5,846/sqm	€300,000-€450,000
Palma de Mallorca	€4,523/sqm	€250,000-€380,000
Valencia	€2,800/sqm	€150,000-€220,000

What taxes and fees must foreign buyers pay?

Foreign buyers face different tax rates depending on whether they purchase new or resale properties in Spain, with total costs ranging from 6% to 11% of the property value.

For new properties, buyers pay 10% VAT (IVA) plus Stamp Duty (AJD) at 0.5% to 1.5% depending on the region. Resale properties are subject to Transfer Tax (ITP) instead of VAT, with rates varying by autonomous community from 6% to 11% of the purchase price.

Additional mandatory costs include notary fees and Land Registry fees, which combined typically amount to 0.5% to 1% of the property value. Legal representation is highly recommended and usually costs 1% to 1.5% of the purchase price.

Non-EU buyers may face additional taxes starting in 2025 under proposed legislation, potentially up to 100% of the property value, though these measures have not been finalized. Annual property taxes include the municipal tax (IBI) and non-resident income tax at 24% for non-EU owners.

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

Do foreign buyers need a Spanish bank account or NIE number?

All foreign buyers must obtain an NIE (Foreigner Identification Number) to purchase property in Spain, while opening a Spanish bank account is highly recommended but not strictly mandatory.

The NIE serves as your tax identification number in Spain and is required for all property transactions, utility connections, and tax payments. You can obtain an NIE at Spanish consulates abroad or at National Police stations in Spain, typically taking 1-2 weeks to process.

A Spanish bank account significantly simplifies the buying process, allowing you to transfer funds, pay deposits, and handle ongoing expenses like utilities and taxes. Most sellers and real estate professionals expect payment through Spanish banking channels.

Banks typically require proof of income, identification documents, and a local address to open an account. Non-resident accounts often have higher fees but provide essential services for property ownership.

Without a Spanish bank account, you'll face complications with mortgage applications, utility setup, and annual tax payments, making property ownership more challenging and expensive.

How long does the property buying process take?

The Spanish property buying process typically takes 4 to 10 weeks from making an offer to completing the ownership transfer at the notary's office.

The timeline begins with offer acceptance and contract signing, usually within 1-2 weeks if financing is not required. Due diligence, including property searches and legal checks, typically takes 2-3 weeks to complete thoroughly.

Mortgage applications for non-residents require additional documentation and can extend the process by 3-4 weeks. Banks need to verify foreign income sources, employment status, and creditworthiness before approval.

Final preparations, including notary appointment scheduling and fund transfers, usually require 1-2 weeks. Complex properties with legal issues, multiple owners, or planning permission problems can significantly extend the timeline.

Cash purchases without financing typically complete faster, within 4-6 weeks, while mortgaged purchases often take 8-10 weeks due to bank requirements and additional documentation.

Can non-residents get Spanish mortgages and how much can they borrow?

Non-residents can obtain Spanish mortgages, typically borrowing 60% to 70% of the property value, requiring a down payment of 30% to 40%.

Spanish banks offer mortgages to non-residents but with stricter requirements than for residents. Interest rates for non-residents typically range from 3% to 5%, higher than resident rates due to perceived higher risk.

Applicants must provide proof of stable income, employment contracts, bank statements from their home country, and sometimes require guarantors. Income requirements typically demand that monthly mortgage payments not exceed 30% to 35% of gross monthly income.

The maximum loan term for non-residents is usually 25-30 years, though this may be reduced based on the applicant's age. Some banks require life insurance and property insurance as loan conditions.

EU citizens generally receive better terms than non-EU applicants, with some banks offering up to 80% financing to EU nationals with stable employment. Pre-approval letters help strengthen purchase negotiations and demonstrate serious buyer intent.

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 are the ongoing costs of owning property in Spain?

Spanish property owners face several annual costs including municipal taxes, community fees, utilities, insurance, and non-resident income tax.

1. **Municipal Tax (IBI)**: Annual property tax paid to local councils, varying by location and property value2. **Community fees**: For apartments and complexes, typically €600 to €1,500 per year covering maintenance, cleaning, and shared facilities3. **Utilities**: Water, electricity, gas, internet, and garbage collection fees4. **Property insurance**: Mandatory for mortgaged properties, optional but recommended for cash purchases5. **Non-resident income tax**: 24% flat rate for non-EU owners on deemed rental income, even if not rented

Does buying property grant residency rights in Spain?

Buying property in Spain does not automatically grant residency rights or the legal right to live in the country long-term.

Property ownership allows tourists to stay up to 90 days within any 180-day period under standard tourist visa rules. For longer stays, foreign buyers must apply for appropriate visas or residency permits through separate immigration processes.

EU citizens can live in Spain indefinitely regardless of property ownership, though they must register as residents after three months. Non-EU citizens need specific visas for extended stays, such as work permits, student visas, or investor visas.

Property ownership may support visa applications by demonstrating ties to Spain, but it doesn't guarantee approval. The Golden Visa program provides an exception, offering residency in exchange for significant property investment.

Long-term residency requires meeting specific requirements including financial means, health insurance, and sometimes language proficiency, independent of property ownership status.

What is Spain's Golden Visa program and investment requirements?

Spain's Golden Visa program allows non-EU nationals to obtain residency by investing at least €500,000 in Spanish real estate, though this program may be restricted or eliminated in 2025.

The investment must be unencumbered, meaning no mortgage financing, and can be spread across multiple properties totaling the minimum amount. Applicants receive initial two-year residency permits, renewable for five-year periods if investment requirements are maintained.

Golden Visa holders can live, work, and study in Spain, and travel freely within the Schengen Area. Family members including spouses, children under 18, and dependent adult children up to 25 are eligible for derivative visas.

The Spanish government has proposed eliminating the real estate route for Golden Visas, potentially ending this program in 2025. Current investors may maintain their status, but new applications could be restricted to other investment types.

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

What are common pitfalls and scams affecting foreign property buyers?

Foreign buyers in Spain commonly face problems with undisclosed property debts, unauthorized construction, legal encumbrances, and unscrupulous agents demanding excessive deposits.

1. **Property debt and encumbrances**: Previous owner debts, unpaid community fees, or tax arrears that transfer with the property2. **Illegal construction**: Unpermitted additions, extensions, or buildings that may face demolition orders3. **Agent scams**: Unregistered agents demanding large deposits or fees before showing authentic properties4. **Hidden costs**: Surprise tax bills, community fee arrears, or utility connection fees not disclosed during negotiation5. **Documentation fraud**: Fake property titles, forged permits, or misrepresented property boundaries6. **Overpricing**: Inflated prices targeting foreign buyers unfamiliar with local market values7. **Planning permission issues**: Properties marketed as developable land without proper permits or zoning approval

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. Balcells Group - Legal Steps to Buy Property in Spain
2. My Spanish Residency - Buying House in Spain
3. The Golden Partners - Buy Real Estate in Spain
4. Hola Properties - Foreign Buyers Ban Spain
5. Idealista - Types of Properties in Spain
6. Visit Ukraine - Spain Restrict Home Purchases
7. BBC News - Spain Property Restrictions
8. Lawants - Buying House Spain
9. The Property Finders - Spanish Property Market 2025
10. Idealista - Cheapest Spanish Cities Houses 2025