Buying property in Spain as a foreigner is possible and easier than you think: we guide you step-by-step with legal and tax advice, plus support in your language, so you can make confident decisions without complications, no matter where you are
The Ultimate Guide to Buying Property in Spain (for Foreigners)
We explain step-by-step everything you need to know: from getting your NIE number and calculating taxes to the notary signing and post-sale management, with professional support in your language.
1. The Spanish Real Estate Market
In 2025, the Spanish market continues to be a magnet for international buyers, especially in the Costa Blanca, Costa del Sol, and major cities. Demand is focused on second homes and rental investments, driven by favorable exchange rates and competitive mortgage conditions.
2. Budgeting and Financing
Costs & Taxes to Expect
Budget an extra 10% to 15% on top of the purchase price to cover:
✔️ ITP (6-10%): For resale properties.
✔️ VAT (10%) + Stamp Duty (1-1.5%): For new builds.
✔️ Notary & Registry Fees: Approx. 1%.
Financing for Non-Residents
Spanish banks offer mortgages to non-residents, typically covering up to 70% of the appraisal value.
It's crucial to compare offers and work with a specialized mortgage broker.
3. Searching for and Choosing a Property
Define your key criteria before you start: area, purpose (residence or investment), budget, and personal needs. Work with a local agent who speaks your language for viewings (real or virtual) and don't choose on emotion alone: always evaluate the property's legal status and potential.
4. The Earnest Money Agreement (Arras)
What is it?
A private contract to reserve the property in exchange for a deposit (usually 10%). It sets the price, deadline, and penalties if either party backs out.
Key Advice for Foreigners
Never sign an Arras contract without having it reviewed by your own trusted, bilingual lawyer. It is your most important legal safeguard before the final deed.
5. Getting Your NIE & Key Legal Steps
The NIE (Foreigner Identification Number) is your Spanish tax ID number, and it is mandatory for buying property. Without it, you cannot sign the deed or pay taxes.
You can obtain it at a Spanish consulate in your home country, at a police station in Spain, or through a legal representative with a power of attorney.
6. Post-Sale Management & Annual Obligations
Immediate Procedures
After signing, it is crucial to transfer utilities (water, electricity), register at the town hall (empadronamiento), and set up direct debits for payments.
Annual Taxes as a Property Owner
✔️ IBI: An annual municipal property tax.
✔️ IRNR (Form 210): Non-resident income tax, which must be filed yearly.
Frequently Asked Questions
Do I need a visa to buy property?
No. A visa is not required to purchase a property, only if you plan to reside in Spain for more than 90 consecutive days. See Golden Visa Spain.
Can I buy without being present?
Yes. It can be done remotely by granting a Power of Attorney to your trusted lawyer or legal representative.
How long does the process take?
Typically, between 2 and 6 weeks from signing the deposit agreement to the final deed at the notary.
Can I rent out my new property?
Yes, for both long-term and short-term (holiday) lets. In some regions, you will need a tourist license. See long-term vs holiday rentals.
Prefer an expert to guide you every step of the way?
This guide gives you the knowledge. Our service gives you peace of mind. Let our team of lawyers and tax advisors manage the entire process for you.