Everything you need to know about buying property in Spain
Buying property in Spain attracts many international buyers drawn by the climate, attractive prices and quality of life. Understanding acquisition fees – ITP, IVA, notary, registry – is essential to properly prepare your budget and avoid surprises.
ITP: the main tax for resale property in Spain
The ITP (Impuesto de Transmisiones Patrimoniales) is the Spanish equivalent of transfer duties. This tax applies when buying resale property (segunda mano) and ranges from 6 to 10% depending on the autonomous community. It is 7% in Andalusia, 10% in Catalonia up to €600,000 (11 to 13% above) and 6.5% in the Canary Islands. In the Valencian Community (including the Costa Blanca), the rate has been 9% since 1 June 2026 (11% above one million euros). Our simulator uses an average rate of 8%.
IVA and AJD: taxes for new build purchases (obra nueva)
For new build property in Spain (obra nueva), the buyer pays IVA (Impuesto sobre el Valor Añadido) at 10% of the sale price (4% for social housing). Additionally, AJD (Actos Jurídicos Documentados) stamp duty of 0.5 to 1.5% applies depending on the region (1.2% average). Total fees for new builds amount to approximately 11 to 12%.
Spain Golden Visa: invest and obtain residency
The Spanish Golden Visa program allows non-EU investors to obtain a residence permit by purchasing property worth at least €500,000. This visa is renewable and grants access to the Schengen area. Note: this program was modified in 2024 and may be subject to new conditions. Check current rules. EU citizens do not need a visa to buy or reside in Spain.
Most popular regions for international buyers
International buyers favor certain regions of Spain: the Costa Brava and Catalonia, Barcelona and Madrid (dynamic cities), the Costa Blanca (Alicante, Benidorm), the Costa del Sol (Malaga, Marbella), the Balearic Islands (Mallorca, Ibiza) and the Canary Islands (Tenerife, Gran Canaria). Prices vary considerably: from €1,500/m² in rural areas to over €5,000/m² in premium zones.
Non-resident tax obligations in Spain
As a non-resident property owner in Spain, you are subject to several taxes: IRNR (Impuesto sobre la Renta de No Residentes) – a flat tax of 19% (EU residents) on rental income or 24% for non-EU, IBI (Impuesto sobre Bienes Inmuebles) – equivalent to property tax, and the plusvalía municipal on resale. Even without renting out, an imputed income tax (1.1 to 2% of cadastral value) is due.
NIE and purchase procedure for foreigners
Every foreign buyer must obtain a NIE (Número de Identificación de Extranjero), a tax identification number essential for signing the purchase deed and opening a bank account in Spain. The process involves several steps: obtaining the NIE, signing the contrato de arras (deposit contract with 10% deposit), securing financing, then signing the escritura pública (notarized deed) before the notario. The gestoría plays a key role in managing all administrative procedures.
Financing your purchase: mortgages in Spain
Spanish banks generally offer loans covering 60 to 70% of the property value for non-residents (versus 80% for residents). You can also finance through a French bank using property in France as collateral. Spanish interest rates are often variable (Euribor + spread), though fixed rates are gaining popularity. Plan for a deposit covering at least the acquisition fees (10-12% of price).
Pitfalls to avoid when buying in Spain
Several pitfalls await buyers in Spain: check for debts and charges on the property via the nota simple (registry extract), ensure all planning permissions are in order, avoid properties with illegal constructions (common in rural areas), and verify the cédula de habitabilidad (habitability certificate). Always engage an independent lawyer (abogado) to protect your interests.
ITP rates by autonomous community: a complete breakdown
The ITP rate differs dramatically across Spain's 17 autonomous communities. Madrid offers a flat 6%, making it one of the most competitive regions. Catalonia charges 10% up to 600,000 euros, then 11%, 12% and 13% on higher brackets (scale in force since 27 June 2025), with a reduced rate of 5% for buyers aged 35 or under meeting income criteria. Andalusia has applied a flat 7% rate since October 2021, whatever the price. The Balearic Islands use a progressive scale from 8% to 13% based on price brackets, making high-end purchases significantly more expensive. In the Canary Islands, the ITP sits at 6.5%. Valencia has applied a standard 9% since 1 June 2026 (10% before, 11% above one million euros), and buyers under 35 purchasing their first main home may qualify for an 8% reduced rate. Always confirm the current rate with a gestor before finalizing your budget.
NIE application process: step-by-step guide for foreigners
The NIE (Numero de Identificacion de Extranjero) is your essential tax identification number in Spain. Without it, you cannot sign a purchase deed, open a bank account, or pay taxes. EU citizens can apply at Spanish consulates abroad or directly at a Comisaria de Policia or Oficina de Extranjeria in Spain. The process requires your passport, a completed EX-15 form, proof of the reason for application (such as a preliminary purchase agreement), and a fee of approximately 12 euros. Processing times vary: consulates abroad may take 2 to 6 weeks, while in-person applications in Spain are often resolved within 1 to 3 weeks. Consider appointing a representative (representante) via power of attorney if you cannot travel to Spain for the appointment. Many gestoria firms offer NIE processing services for approximately 100 to 150 euros.
Tax residency and double taxation considerations
If you spend more than 183 days per year in Spain, you become a Spanish tax resident and must declare worldwide income to the Agencia Tributaria. Double taxation treaties between Spain and most countries prevent being taxed twice on the same income. The Beckham Law regime allows qualifying expatriates to pay a flat 24% rate on Spanish-source income for six years, without taxation on foreign earnings. Non-residents who own property face the IRNR at 19% (EU residents) or 24% (non-EU) on rental income. Even if you do not rent the property, Spain imputes a notional income of 1.1% to 2% of the cadastral value, which is then taxed at the non-resident rate. Proper tax planning with a qualified asesor fiscal before purchasing can save thousands of euros annually.
Understanding Spanish mortgage options for international buyers
Spanish lenders typically offer non-residents financing of up to 60-70% loan-to-value (LTV), compared to 80% for residents. Variable-rate mortgages (hipotecas variables) are linked to the 12-month Euribor plus a bank spread of 1% to 2.5%. Fixed-rate mortgages (hipotecas fijas) have gained popularity, offering certainty with rates typically 1% to 2% higher than variable equivalents. Mixed mortgages combine a fixed period (usually 3 to 10 years) followed by a variable rate. Loan terms generally extend up to 25 to 30 years, though some banks limit non-resident terms to 20 years. Required documentation includes proof of income (payslips or tax returns for the last two years), bank statements, a credit report from your home country, and the property valuation (tasacion). Budget 1% to 2% of the loan amount for mortgage-related fees including the tasacion, mortgage arrangement fee (comision de apertura), and notarial costs for the mortgage deed.