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AN Essential Guide for Property Buyers
Spain has long attracted foreign buyers seeking homes in prime destinations like Marbella, Ibiza and the Costa del Sol. However, buying property in Spain as a non-resident involves specific legal and tax considerations that every buyer should understand. This guide explains the key rules for foreign ownership and what to expect before completing a purchase.
1. Obtain Your NIE Number in Spain
The Número de Identificación de Extranjero (NIE) is your Spanish tax identification number, required for all legal and financial transactions, including buying property in Spain. Every foreign buyer must obtain an NIE before completing a purchase. It can be arranged through a Spanish consulate abroad or by your legal representative in Spain.
2. Open a Spanish Bank Account
While opening a Spanish bank account is not a legal requirement to buy property in Spain, it is strongly recommended for foreign buyers. A local account simplifies ongoing payments such as community fees, IBI, and utilities. Once you have your NIE number, the process of opening a bank account is straightforward and can usually be completed within a day.
3. Work with a Qualified Legal Representative
Working with a qualified Spanish lawyer is essential when buying property in Spain. Your legal representative will carry out full due diligence, verifying title deeds, checking for outstanding debts, reviewing urban planning status and building permits, and ensuring that your interests are protected throughout the transaction.
4. Understand Property Taxes and Fees
When buying property in Spain, buyers should budget around 10% to 12% of the purchase price to cover taxes and fees. These costs typically include:
Transfer Tax (ITP) – 7% for resale properties, or VAT (IVA) at 10% plus Stamp Duty (AJD) of 1.2% for new builds
Notary and Land Registry fees – payable on completion
Legal fees – usually around 1% of the purchase price
Understanding these additional costs is essential for accurate budgeting and avoiding surprises during the buying process.
Foreign, non-resident buyers can obtain mortgages in Spain, though terms and conditions may vary. Spanish banks typically lend up to 60–70% of the property’s value to non-residents.
5. Consider Your Financing Options
Foreign buyers can obtain a Spanish mortgage to finance their property purchase, although terms and conditions differ for non-residents. Most Spanish banks lend between 60% and 70% of the property’s value, depending on the buyer’s financial profile and the lender’s criteria. It is advisable to seek pre-approval or consult an independent mortgage broker early in the buying process to understand your available options.
6. Know Your Residency Options
The Spanish Golden Visa programme, which granted residency to property buyers investing over €500,000, is no longer available. However, there are alternative residency options for non-EU buyers, including the Non-Lucrative Visa, which suits those who wish to live in Spain without working, and the Digital Nomad Visa, designed for remote professionals with international income. It’s advisable to consult an immigration specialist to determine the best route for your circumstances.
7. Be Clear on Rental & Rental Income Regulations
If you plan to rent out your Spanish property for short-term or holiday lets, you must obtain a tourist licence and declare any rental income for taxation in Spain. Regulations for holiday rentals (stays of less than 31 days) have recently changed, and requirements vary by region. For up-to-date advice on licences and compliance, please contact our team.
Medium- and long-term rentals are not affected by the new legislation and continue to offer strong, stable yields across many parts of Spain.
