Real Estate · updated 12.07.2026

Buying property in Spain as a foreigner: steps, taxes and NIE

Updated: 12 July 2026 · Verified by the EuroGarant team against official sources

In short: a foreigner can buy property in Spain without restrictions — citizenship and residence-permit status have no bearing on the right of ownership. The mandatory minimum is the NIE (the foreigner identification number), documented proof of the origin of funds and a properly executed transaction: reservation, deposit agreement (arras), the deed signed before a notary (escritura pública) and registration with the Registro de la Propiedad (the Property Registry). On top of the property price, budget roughly 10–15% for taxes and related costs: on the resale market you pay the ITP transfer tax (6–10% and higher in most regions); on new builds — 10% IVA (VAT) plus the AJD stamp duty. Important: buying a home does not in itself grant any right to reside — the “golden visa” was abolished as of 03.04.2025.

What to know before you start

Spanish law does not divide buyers into “locals” and “outsiders”: a non-resident can take ownership without a visa while in the country on, say, an ordinary tourist visa — this is entirely legal. But a transaction involving a foreigner has three particular features. First, without an NIE number the notary will not sign the deed and the tax authorities will not accept your returns. Second, banks strictly check the origin of funds under the anti-money-laundering law (Ley 10/2010) — transfers must follow a transparent, documented chain. Third, the tax burden depends on the region: ITP rates across the different comunidades autónomas (autonomous regions) vary by almost a factor of two.

And the key strategic caveat: the investor “golden visa” was abolished by Ley Orgánica 1/2025 as of 3 April 2025 — buying property worth €500,000 or more no longer grants a residence permit. A home remains an asset and proof of your place of residence, but a legal basis for relocation must be chosen separately: for an overview of the current options, see the guide “How to Get a Spanish Residence Permit”.

Step by step: from NIE to the Registro de la Propiedad

1. Get an NIE. The Número de Identidad de Extranjero is a foreigner's tax identification number, without which the deed, a mortgage and tax payments are impossible. It is issued through a Spanish consulate abroad or in Spain itself (form EX-15, fee paid via form 790-012). Important: the NIE is only a number, not a residence authorisation. How to obtain it and how it differs from the resident card — in our breakdown “NIE and TIE”.
2. Open an account with a Spanish bank. Formally the law does not require this, but in practice payment is almost always made by banker's cheque or by transfer from an account in Spain. From a non-resident, the bank will request a passport, NIE, proof of income and of the origin of funds.
3. Choose a property and check it. The key document is the nota simple from the Registro de la Propiedad: it shows the owner, floor area, encumbrances, mortgages and liens. Additional checks cover utility and IBI property-tax arrears, and — for new builds — the developer's status and licences.
4. Sign the deposit agreement (contrato de arras). The deposit is usually around 10% of the price. Under Art. 1454 of the Spanish Civil Code, if the buyer withdraws, the deposit stays with the seller; if the seller withdraws, it must be returned doubled. This is the riskiest document of the transaction: exit conditions and deadlines should be scrutinised before signing.
5. Arrange a mortgage (if needed). Spanish banks generally lend non-residents up to 60–70% of the appraised value — you need more of your own funds than a resident would, plus a reserve for taxes and costs. Choosing a bank and negotiating the terms can be done with professional support — see mortgages for non-residents.
6. Sign the escritura pública before a notary. The notary verifies the parties' identity and authority, confirms there are no encumbrances as of the transaction date, and records the transfer of funds. From that moment you are the owner; a buyer who does not speak Spanish will need an interpreter or an authorised representative.
7. Pay the taxes and register your title. You have 30 working days to pay the ITP or AJD. Once paid, the deed is filed with the Registro de la Propiedad — the registry entry definitively protects your ownership against third-party claims.

If you do not yet speak Spanish, interpretation at the notary signing and sworn translations of the transaction documents should be arranged in advance — see interpreter for your transaction.

Taxes on purchase: ITP or IVA + AJD

Which tax you pay depends on the market. Resale property is subject to the ITP transfer tax (Impuesto sobre Transmisiones Patrimoniales) — the rate is set by each autonomous region. A new build bought from a developer is subject to VAT (IVA) at 10% for housing (21% for commercial premises and land) plus the AJD stamp duty, usually 0.5–1.5% depending on the region.

Rates are regularly revised by regional budget laws, so the figure must be verified as of the signing date before the transaction. The tax base is not just the contract price: the tax authorities compare it with the cadastral “reference value” (valor de referencia) and assess additional tax if the latter is higher.

Related costs: how much to budget on top of the price

• Notary — fees are set by law, usually a fraction of a percent of the property price
• Registro de la Propiedad — registration fee, also at the official tariff
• Gestoría (administrative agency) — technical handling of tax filings and registration
• Independent lawyer — checks the property and the contracts; the accepted market benchmark is around 1% of the price
• Appraisal (tasación) — mandatory when taking out a mortgage
• Translator and apostilles — if the buyer's documents were issued outside Spain

Together with taxes, this adds up to the 10–15% on top of the property price on the resale market, and slightly more on new builds because of IVA + AJD. The municipal land value increment tax (plusvalía municipal) is by law paid by the seller — make sure the contract terms do not shift it onto you.

If your own funds fall short for related costs or furnishing, part of the budget can be covered with bank financing — how a foreigner should prepare the application is covered on the page loans from Spanish banks.

What happens after the purchase

Owning property in Spain means annual obligations. The owner pays the municipal IBI tax and homeowners' community fees (comunidad). A non-resident additionally files a non-resident income tax return (IRNR): even if the home is not rented out, tax is charged on imputed income from ownership, and on actual income when it is let. If you relocate and spend more than 183 days a year in the country, you become a tax resident with everything that entails — how this threshold works and what changes for a property owner is covered in our article “Taxes in Spain”.

One separate practical point: the address of your own home is used for empadronamiento — municipal residence registration, needed for a whole range of procedures, including renewing your residence status. The timelines and rules for renewing your card are in the guide “Renewing a Spanish Residence Permit”.

Typical mistakes made by foreign buyers

• Signing the arras before checking the nota simple — risking a property with an encumbrance or a lien
• Starting the transaction without an NIE and hitting a wall at the notary a week before signing the deed
• Failing to document the origin of funds in advance — the bank will block the transfer at the worst possible moment
• Budgeting only for the property price and forgetting the 10–15% in taxes and costs
• Relying on ITP figures “from the internet” without checking the specific region's rate as of the transaction date
• Counting on a residence permit “for the purchase” — the investor programme closed on 03.04.2025; the basis for residence is chosen separately

Other articles about buying, renting and maintaining a home are collected under “Real Estate”, and short answers to specific questions are in “Questions and Answers”.

Disclaimer: tax rates and administrative practice in Spain change regularly and vary between autonomous regions. This material is for reference only and does not replace legal advice — before a transaction, and when choosing a basis for relocation, check the current rules against your specific situation.

Read also

• Renting a Home in Spain: Contract, Deposit, Tenant Rights
• Where to Live in Spain: Comparing the Regions
• Moving to Spain with Your Family: a Typical Scenario

Official sources: Código Civil, Art. 1454 — arras (BOE) · RDL 1/1993 — ITP y AJD (BOE) · Ley 10/2010 — anti-money-laundering law (BOE) · Colegio de Registradores — Registro de la Propiedad · Agencia Tributaria