Can Foreigners Buy Property in Spain?
Yes — Spain places no restrictions on foreign property ownership. Buyers from any country, whether EU or non-EU, can purchase residential or commercial property. The legal process is the same as for Spanish nationals, with a few additional steps: obtaining an NIE, potentially opening a Spanish bank account, and understanding the tax implications of owning property as a non-resident.
Getting Your NIE
The NIE (Número de Identificación de Extranjero) is the single most important administrative step for any foreign buyer. This tax identification number is required for signing the purchase deed, paying taxes, opening a bank account, and connecting utilities.
How to apply
- In Spain — apply at a Policía Nacional station with a foreigners' office (Oficina de Extranjeros). Bring your passport, completed EX-15 form, and proof of reason (such as a property reservation document). Processing: 1–3 weeks. Fee: approximately €12 (Tasa 790).
- From abroad — apply at the nearest Spanish consulate. Processing typically takes 4–8 weeks.
- Through a representative — your lawyer or a gestoría can apply on your behalf with a notarised power of attorney. Their fee is usually €100–200 on top of the government fee.
Apply for your NIE as early as possible — ideally before you start property viewings. NIE delays are one of the most common causes of purchase hold-ups for foreign buyers.
Opening a Spanish Bank Account
A Spanish bank account isn't legally required to buy property, but it makes the process far simpler. You'll need it for the notary transfer, utility direct debits, tax payments, and any mortgage repayments.
Most major Spanish banks offer non-resident accounts. Bring your passport, NIE (or proof of application), and a proof of address from your home country. Some banks also require a certificate of non-residency tax status from your home country's tax authority.
Banks experienced with foreign buyers include Santander, CaixaBank, BBVA, and Sabadell. Some have English-speaking staff in branches on the Costa del Sol and Costa Blanca.
The Buying Process for Foreign Buyers
The legal purchase process — from offer to notary signing — is the same whether you're Spanish or foreign. For a detailed walkthrough of each step, see our step-by-step buying guide. The key stages are:
- Property search and legal due diligence
- Reservation contract (€3,000–6,000 deposit)
- Contrato de Arras — private purchase agreement with 10% deposit
- Mortgage arrangement, if applicable
- Completion at the notary — signing the escritura pública and paying the balance
- Land Registry registration
If you cannot attend the notary signing in person, your lawyer can sign on your behalf using a poder notarial (notarised power of attorney). This is common for foreign buyers and is a routine procedure.
Financing: Mortgages for Non-Residents
Spanish banks lend to foreign buyers, though terms differ from those offered to residents. Non-residents can typically borrow 60–70% of the property's appraised value, with fixed interest rates currently in the 3.5–5% range. This means you need at least 30–40% as a cash deposit, plus another 10–12% for purchase taxes and fees.
For a full guide to the mortgage process, documents required, and a worked cost example, see our mortgage guide for foreign buyers.
Taxes and Costs
Budget for approximately 10–13% of the purchase price on top of the property price. The breakdown:
| Cost | Resale Property | New-Build |
|---|---|---|
| Purchase tax | ITP: 6–10% (7% in Andalusia) | IVA: 10% + AJD: 1–1.5% |
| Notary + Registry | €1,000–2,500 | €1,000–2,500 |
| Lawyer | 1% or €1,500–3,000 | 1% or €1,500–3,000 |
Detailed breakdowns are in our articles on taxes and fees and hidden costs.
Currency Transfer
If your funds are in a non-euro currency, the cost of transferring money to Spain deserves careful attention. On a €350,000 property, the difference between your bank's default exchange rate and a specialist currency service could be €5,000–10,000.
Specialist FX services (Wise, Currencies Direct, moneycorp, and others) offer rates much closer to the interbank mid-market rate. Many also offer forward contracts, allowing you to lock in a rate now for a transfer that will happen at completion — useful for budgeting when you've signed the contrato de arras but completion is weeks away.
Tax Residency and Ongoing Obligations
Buying property in Spain does not automatically make you a Spanish tax resident. You become tax-resident if you spend more than 183 days per year in Spain or if your "centre of vital interests" is in Spain. This has significant implications for your worldwide tax obligations.
As a non-resident property owner, you will owe:
- Annual imputed income tax — even if the property is not rented, Spain taxes non-residents on a notional income (1.1–2% of cadastral value, taxed at 19% or 24%)
- Rental income tax — if you rent the property, income must be declared quarterly (Modelo 210)
- Annual property tax (IBI) — payable to the local municipality
- Wealth tax — may apply depending on the property's value and the region's threshold
A Spanish tax advisor (asesor fiscal) can set up your annual filings and ensure you comply with both Spanish and home-country tax obligations.
Residency Options
Owning property in Spain does not grant residency. The Golden Visa programme, which previously offered residency to non-EU buyers investing €500,000 or more, has been abolished for new applications as of 2025. However, other routes remain:
- Non-lucrative visa — for people with sufficient passive income who do not plan to work in Spain. Requires proof of income (typically €28,000+/year) and health insurance.
- Digital nomad visa — for remote workers employed by or contracting with non-Spanish companies. Requires proof of employment and minimum income.
- EU free movement — EU/EEA citizens can live and work in Spain without a visa, though they must register with local authorities after 3 months.
Residency requirements are separate from property ownership and should be discussed with an immigration lawyer if relevant to your situation.
For the common pitfalls foreign buyers encounter, see our guide to common mistakes.