Foreigners can generally buy homes, apartments and commercial property in Spain without being resident. The process is open to EU and non-EU nationals, but ownership does not automatically give you the right to live in Spain. Before signing anything, arrange independent legal advice, check how the purchase will be taxed, and confirm that the property has a clean legal and planning history.
Getting an NIE
The Número de Identidad de Extranjero, or NIE, is the foreigner identification number used for property purchases, tax filings, bank accounts and many other formal transactions. You can request it in Spain through a Policía Nacional office or, in some circumstances, through a Spanish consulate in your country of residence. Applications usually require a completed form, identification, the relevant fee payment and evidence of why you need the number, such as a purchase agreement or property search.
An NIE is not a residence permit. It identifies you for administrative and tax purposes, so do not assume that obtaining one grants a visa or permission to remain in Spain.
The purchase process
Once you have found a property, your lawyer should obtain a recent nota simple from the Land Registry. This shows the registered owner, mortgages, liens, restrictions and the legal description. Your lawyer should also check planning status, licences, unpaid community charges, IBI receipts, rental obligations, rights of use and whether the building complies with regional and municipal rules.
A reservation agreement may temporarily take the property off the market. The more important preliminary contract is often the contrato de arras. It normally records the price, deadline, deposit and consequences if either party withdraws. Arras penitenciales commonly allow the buyer to lose the deposit or the seller to return double, but the wording matters. Do not pay a substantial deposit before legal checks and mortgage conditions are understood.
At completion, the parties sign the public deed of sale, known as the escritura pública, before a Spanish notary. The buyer normally pays the balance, the seller hands over the keys and the deed is authorised. The notary verifies identity, authority and the transaction, but the notary is not a substitute for an independent buyer’s lawyer and does not perform every planning or commercial check.
After completion, the deed is submitted to the relevant Registro de la Propiedad. Registration protects your ownership against later claims and updates the public record. The registration process can take weeks or longer depending on the office and whether corrections are needed. Keep the deed, tax receipts, Land Registry information, energy certificate and community documentation securely.
Taxes when buying
Tax depends mainly on whether the property is new or a resale, its location and the buyer’s circumstances. For a resale, the buyer generally pays Impuesto sobre Transmisiones Patrimoniales (ITP), with rates and brackets set by the autonomous community. The rate is commonly within a broad range of approximately 6% to 11%, although regional rules, property value and reliefs can produce different results. ITP is usually calculated using the applicable tax reference value or other legally required basis, not simply the price you expected to pay.
For a new home bought from a developer, the buyer generally pays IVA, usually 10% for a standard dwelling and 4% for certain officially protected homes. The buyer may also owe Actos Jurídicos Documentados (AJD), a regional stamp duty applied to the deed, with the rate varying by autonomous community and circumstances. Commercial property and plots can follow different VAT and transfer-tax rules, so obtain specific advice before exchanging contracts.
IBI, the annual property tax, is charged by the municipality where the property is located. It is calculated from the cadastral value and local rate, rather than directly from the purchase price. The sale contract should state how the year’s IBI is apportioned between buyer and seller, while the local authority’s records and direct-debit arrangements should be checked after completion.
Other costs to budget for
In addition to the purchase tax, allow approximately 1% to 2% for notary, Land Registry and administrative costs in a straightforward transaction, although the final amount varies. Independent legal fees may be charged as a fixed amount or as a percentage, often around 1% plus VAT depending on the work and property value. Estate-agent fees are normally agreed with the seller, but confirm whether any buyer charge applies. Translation, power of attorney, survey, valuation and bank costs may be extra.
Mortgages for non-residents
Spanish banks do lend to non-residents, but approval depends on nationality, income, currency, employment, existing debts and the property. Non-resident borrowers commonly receive a lower loan-to-value than residents, often approximately 60% to 70%, so a larger deposit is needed. Banks will request documents such as passports, NIEs, tax returns, payslips or accounts, bank statements, details of debts and proof of assets. Documents from abroad may need sworn translation and legalisation or an apostille.
Obtain an indicative offer before signing binding contracts, and make any arras agreement conditional on mortgage approval if appropriate. Compare the annual percentage rate, arrangement charges, valuation fee, insurance requirements, early-repayment terms and whether the loan is fixed, variable or mixed. A Spanish mortgage valuation is normally required, but it does not replace a building survey.
The Golden Visa property route
Spain’s property-based Golden Visa route is no longer available for new applications. The investor residence provisions were abolished with effect from 3 April 2025, so buying property in Spain does not now qualify a new applicant for investor residency, regardless of the purchase price. Existing holders and certain applications made before the change may benefit from transitional rules or renewal arrangements, which should be checked with an immigration lawyer. Buyers seeking residence should instead examine routes such as the digital nomad visa, non-lucrative visa, work permits or family-based options, depending on their circumstances.
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