Spain buying guideSpain still lets almost anyone buy, but the sweeteners are gone. The golden visa was abolished from 3 April 2025, a political debate about taxing non-EU buyers keeps surfacing, and the real cost of a purchase depends on the region you choose. This guide is for buyers who want the sequence, the tax by region, and the traps that catch foreign owners.
Ownership rules in brief
Foreigners, resident or not, can buy any type of real estate in Spain: apartments, houses, villas, penthouses, land and commercial units. Exceptions are narrow: border and military zones require authorisation for non-EU buyers, and agricultural land has its own rules.
Proposals to impose heavy tax on non-EU purchasers have been discussed in political debate. I did not find a law in force, so verify before you plan around it. What did take effect was the end of the golden visa: applications after 3 April 2025 are no longer accepted, though earlier ones were processed under the old rules. Buying a home therefore no longer grants residence.
Purchase sequence
- Obtain an NIE. The foreigner identification number is needed for the purchase, taxes and utilities.
- Open a Spanish bank account. Ideal for paying taxes and community fees.
- Hire an independent lawyer. The lawyer checks the Land Registry (nota simple), debts, licences and planning status.
- Sign the reservation, then the private purchase contract (contrato de arras). The deposit is typically 10 percent. If the buyer defaults they lose it; if the seller defaults they must return double.
- Deed at the notary (escritura). Both parties sign, the balance is paid, and taxes are settled.
- Pay taxes and register. A gestor files the tax return and registers the deed with the Land Registry.
- Switch utilities and community. Change meters, and request community fee statements.
Tax depends on the region
Resale properties pay transfer tax (ITP), set by each autonomous community, while new builds pay VAT and stamp duty. 2026 rates in the table are approximate and change by region.
| Region or case | Approx. rate | Note |
|---|---|---|
| Madrid | 6% | One of the lowest |
| Andalusia | 7% | Flat on resale |
| Valencian Community | 9% from June 2026 | Reduced rates for some groups |
| Catalonia | 10% rising to 13% on high values (scale) | Progressive |
| Balearic Islands | 8-13% | Progressive |
| New build (IVA + AJD) | 10% VAT + about 1.5% stamp duty | Varies by region |
| Notary, registry, gestor | about 1-2% combined | Depends on price |
Region matters more than property: the same flat can cost thousands more in taxes in one community than another.
Ongoing costs and non-resident tax
- IBI: the municipal property tax, usually a few hundred euros for a modest flat.
- Non-resident income tax: owners who do not live in Spain pay tax on imputed income (a percentage of cadastral value) even if the property is vacant, and on actual rental income. Rates are 19 percent for EU/EEA residents and 24 percent for others, with deductions for EU residents.
- Wealth tax: applies in some regions above thresholds.
- Community fees and insurance: pool, garden, lifts.
- Tourist rentals: many regions require registration and impose licence caps, and building statutes can ban them. Check before paying a premium for a "rental-ready" flat.
Residency without the golden visa
Non-EU buyers who want to live in Spain use other routes: the non-lucrative visa for people with passive income, the digital nomad visa for remote workers, work and entrepreneur visas, or family permits. None depends on buying property, and most require proof of income and health insurance. Treat the home as a separate decision. Our Spain market pages and analytics can help set a budget by region.
Mortgages for non-residents
Spanish banks lend to non-residents, commonly up to 60 to 70 percent of the lower of price and valuation, with euro rates tied to Euribor, fixed or mixed. They ask for tax returns, bank statements and a NIE. Fees include valuation and arrangement. See our Spain financing page and the mortgage calculator.
Legal traps
- Unlicensed builds. Houses outside the planning rules may have no habitation certificate or may face demolition orders.
- Debts attached to the property. Community fees and some taxes follow the unit.
- Occupied homes. Squatting (okupación) can make a property hard to recover, so check it is empty at the notary.
- Rustic land. Cannot be built on; verify the classification.
- Cadastre mismatches. A house larger than registered brings fines.
For tighter budgets, check cheaper properties with a lawyer.
Last updated 8 October 2026
Frequently asked questions
Is the Spanish golden visa still available?
No. The golden visa for property investors stopped accepting applications from 3 April 2025. Earlier applications were processed under the previous rules.
What tax do I pay on a resale property?
ITP, a regional transfer tax. Roughly 6 percent in Madrid, 7 percent in Andalusia and 9 to 10 percent in Valencia or Catalonia, with higher bands in some regions.
What is an NIE and when do I need it?
A foreigner identification number needed for any purchase, tax filing or utility contract. Apply before reserving.
Do non-residents pay tax on a vacant property?
Yes. Spain taxes non-resident owners on imputed income based on cadastral value, plus actual rent if you let the property.
Is there a tax on non-EU buyers?
A proposal for a very high tax on non-EU purchasers has been discussed politically, but I found no law in force. Check the current position with a lawyer.
How much deposit should I pay?
Typically 10 percent in the arras contract. Make sure the contract states what happens if either side fails to complete.