Buying Property in Spain: What Foreign Buyers Need to Know in 2026

Can foreigners buy property in Spain

Yes. Both EU and non EU nationals can buy, and you do not need to be a resident to own a home here. The two practical requirements are a NIE number, which is your Spanish tax and identity number, and usually a Spanish bank account to handle the payments and bills. Non residents also appoint a fiscal representative to deal with the tax office on their behalf.

The 100 percent tax headline, explained

You may have read that Spain plans to tax non EU buyers up to 100 percent of a property's value. It is worth being precise here. As of 2026 this is a proposal, not law, and it would need to pass formal legislation before it could apply to anyone. For now foreign buyers remain welcome and the existing tax rules described below are what you actually pay. We will update this page if the position changes.

The buying process, step by step

• Get your NIE and open a Spanish bank account so you can pay deposits and taxes.

• Agree the purchase and sign a contrato de arras, a private deposit contract that is usually around 10 percent and legally binds both sides.

• Run a nota simple from the Registro de la Propiedad to confirm the seller owns the property and to reveal any debts or charges against it.

• Sign the escritura publica, the title deed, in front of a notary, who confirms identities and that taxes can be paid.

• Register the new deed at the Registro de la Propiedad in your name.

• Pay the purchase taxes within the deadline.

Most buyers use a gestor or a lawyer to manage the paperwork and translations. If you still need the basics in place, our guides on the NIE and on opening a bank account cover the first two steps.

Taxes and fees when you buy

The biggest variable is the purchase tax, and it depends on whether the home is resale or new build.

• Resale homes carry the transfer tax, the ITP, which ranges from roughly 6 to 13 percent of the price depending on the comunidad autonoma.

• New builds bought from a developer carry IVA at 10 percent plus a stamp duty, the AJD, instead of the ITP.

• Notary, land registry and gestor fees together usually add about 1 to 2 percent.

A safe rule of thumb is to budget roughly 10 to 15 percent on top of the price for taxes and costs, then keep the exact figure for your region and property type.

The ongoing cost of owning

Owning a home brings yearly costs that are easy to underestimate. The IBI is the municipal property tax, based on the cadastral value held by the Catastro. If your home sits in a building or development you also pay comunidad de propietarios fees, and most areas charge a rubbish collection tax.

There is one tax that surprises many non residents. Even if you never rent the property out, Spain charges an imputed income tax on second homes, filed each year on Modelo 210. It is calculated on a small percentage of the cadastral value, taxed at 19 percent for EU and EEA residents and 24 percent for everyone else. If you do rent the property out, the rental income is taxed instead.

Mortgages for non residents

Spanish banks lend to non residents, though usually at a lower loan to value than for residents, often around 60 to 70 percent of the price or valuation. You will need proof of income and the bank will arrange a valuation. The mortgage itself, the hipoteca, is registered against the property at the Registro de la Propiedad.

Selling later: capital gains and plusvalia

When you sell, a non resident pays capital gains tax at 19 percent on the profit, and the buyer is required to withhold 3 percent of the price and pay it to the tax office as an advance against that bill. On top sits the plusvalia municipal, a local tax on the increase in land value during your ownership. Factor both in before you decide your asking price.

How property affects your residency and tax

Buying a home does not by itself make you a Spanish resident, and the Golden Visa route that once linked the two closed in 2025. What does change your tax position is time: spend more than 183 days a year in Spain and you become tax resident on your worldwide income. At that point you may also have to file Modelo 720 on foreign assets. It is also wise to make a Spanish will for property held here.