How to Buy Property in Spain

Buying property in Spain as a foreigner requires no permit, but you'll need a NIE. Before signing, request a nota simple from the land registry and determine whether you're buying an older property (regional ITP tax) or a new build from a developer (10% VAT plus AJD) — the difference amounts to single-digit percentage points, typically thousands to lower tens of thousands of euros for a standard apartment. Sign the reservation agreement only after you understand what type of arras it contains. And the golden visa for real estate no longer exists — it was abolished in April 2025.

Spain is one of the most common entry points into the foreign property market for Central European buyers. Legally, it's a relatively welcoming country — purchases are not conditional on citizenship or government approval. Almost all unpleasant surprises come from elsewhere: taxes that vary by region and paperwork you have to request yourself.

1. Who May Buy Property

Spain does not restrict foreigners from buying real estate. As an EU citizen, you have the status of a domestic buyer — no reciprocity requirements, no ministerial approval, no limit on the number of properties. Non-EU buyers stand on equal footing for the purchase itself; the difference appears only in residence rules (Chapter 9).

The only true requirement is administrative: you cannot complete the purchase without a NIE.

2. What to Arrange Beforehand

NIE — Foreigner Identification Number

NIE (Número de Identidad de Extranjero) is a personal number Spain assigns to foreigners for their economic, professional, or social interests in the country. The notary will ask for it at signing, the tax authority when you file your return, and the bank when you open an account.

According to the Ministry of Interior, you apply using form EX-15 either in person at a Spanish immigration office (Oficina de Extranjería) or police station, or through a Spanish consulate abroad. Your application must include your passport and you must state the reason — for a property purchase, this is typically a reservation agreement or letter from the real estate agent. The process should be completed within five days of submission.

Practical tip: Obtain your NIE before you start signing anything with deadlines, so time pressure doesn't catch you off guard.

Bank Account and Power of Attorney

A Spanish bank account is not required by law, but practically you'll want one — deposits, utility bills, property tax (IBI), and community fees flow through it. If you don't want to fly back repeatedly for signatures, the entire purchase can be handled via power of attorney (poder notarial) granted to your Spanish lawyer or tax advisor. It must be notarized and apostilled for use from abroad.

3. What You'll Pay Beyond the Price

This is where the biggest budgeting errors occur in Spain — because tax varies by region and depends on whether you're buying a resale property or a new build.

Resale Property: Transfer Tax (ITP)

The buyer pays this; it's declared after contract signing. The rate is set by the autonomous community, not the state:

Valencian rates were introduced by law 5/2025 of May 30, 2025, effective June 1, 2026, and are published in the Generalitat Valenciana tax updates summary; the Murcia reduction was approved in the region's 2025 budget law (law 3/2025, effective July 25, 2025) and is noted by the regional tax authority. Both are recent — if you read 10% or 8% elsewhere, you're reading outdated text.

Both regions also offer reduced rates for primary residence, first-time buyers, large families, or persons with disabilities.

Tax basis: not necessarily the price you pay. The basis is the land registry reference value (valor de referencia), and if the agreed price is higher, tax is calculated on that. Buying "on paper below value" won't reduce tax — it may only create problems for you.

New Build from Developer: VAT Instead of ITP

The first sale of a residential building or flat from a developer is a supply of goods, so VAT applies instead of ITP. Under Article 91 of law 37/1992, the supply of buildings or parts thereof suitable for housing is taxed at a reduced rate of 10%, including up to two garage spaces and accessories, if conveyed with the flat. Regional AJD is added for notary recording (rates in the table above).

The difference is substantial and must not be overlooked: at the same price, a new build costs more in tax than a resale — in Valencia 10% VAT plus 1.4% AJD against 9% ITP; in Murcia 11.5% against 7.75%. And a garage bought separately falls out of the reduced VAT rate.

Everything Else

• Notary — fee per the state tariff; depends on property value.
• Land registry — registration fee, also per tariff.
• Gestoría — office that files your tax return and handles the registry recording. Not mandatory, but practically indispensable.
• Independent lawyer (abogado) — not required. Recommendation: on your first purchase, hire one independent of the seller or developer.
• Real estate agent commission — negotiable; no legal standard. Always get written confirmation of who pays it and what's included.

4. How to Verify the Seller Owns the Property

Spain's land registry is called Registro de la Propiedad and the extract from it is a nota simple.

According to the College of Registrars, it shows the property identification, the identity of the person or persons holding registered rights — full ownership, mortgages, usufruct — and their scope, nature, and limitations. It costs €9.02 plus VAT per property under the official tariff and can be requested online.

Two things often confused:

1. Nota simple is informational only. The conclusive proof of what the registry contains is a certificación signed by the registrar. For routine pre-purchase checks, nota simple suffices; if the property is disputed, request the certificación.
2. Request a fresh one shortly before signing. Between reservation and closing, months may pass and a mortgage or enforcement action can appear anytime.

What to look for: does the registered owner match the person selling to you? Are there mortgages or encumbrances? Does the area and description match what you've seen?

5. Five Local Pitfalls

1. Unpermitted construction. An extension, extra floor, or swimming pool built without approval is common in rural Spain and Andalusia. The property then doesn't match the registry record, and legalization is lengthy. Compare the actual condition against the nota simple and cadastral description.

2. Community debt transfers with the flat. Unpaid comunidad de propietarios fees pass to the new owner within the scope set by law. Before signing, request a certificate of non-indebtedness from the community manager — it's a standard document and the seller is obliged to obtain it.

3. Coastal zone. The coastal law (Ley de Costas) designates a band of public property by the sea. A building within it may sit on state land under a concession with a limited term. For a first-line beachfront property, this is the first thing your lawyer must verify.

4. Seller who is not a tax resident. If the seller doesn't live in Spain, you as buyer must withhold 3% of the purchase price and remit it to the tax authority as a deposit on the seller's tax. It's filed on form Modelo 211 within one month of the transfer and you give the seller a copy so they can claim the withholding. The Agencia Tributaria adds a crucial note: if you fail to remit the withholding, the property itself is liable for it. This is not a formality; it's your risk.

5. Municipal land appreciation tax (plusvalía municipal). Paid by the seller on sale, but it's another place where a non-resident seller's obligation can shift to you. Have your tax advisor confirm in writing who files what and who pays.

6. How the Transaction Works

1. Reservation. A small deposit to take the property off the market, typically for a few weeks.
2. Arras — deposit agreement. This is where the seriousness of the deal is decided. The most common type is arras penitenciales under Article 1454 of the Civil Code: "Si hubiesen mediado arras o señal en el contrato de compra y venta, podrá rescindirse el contrato allanándose el comprador a perderlas, o el vendedor a devolverlas duplicadas." That is: the buyer backs out and loses the deposit; the seller backs out and returns it doubled. Other types of arras don't allow withdrawal — the contract text must state which kind applies.
3. Checks. New nota simple, community non-indebtedness, energy certificate, and for new builds, warranty and completion documents.
4. Escritura pública. Signing before the notary. The notary verifies identity, reads the contract, and the remaining price is paid at that moment.
5. Tax and registration. The tax office files ITP (or AJD for new builds) within the statutory deadline and the registry application is submitted. Usually the gestoría handles this.

You become the owner upon notary signature and handover; registry recording protects your right against third parties.

7. Money

• Exchange rate. The property is in euros; your savings are likely in another currency. For amounts in the millions, the rate matters — decide on it deliberately, not on signing day.
• Source of funds. Spanish banks and notaries ask where the money comes from. Prepare documentation in advance; it's standard practice, not suspicion.
• Mortgage for non-residents. Spanish banks do lend to non-residents, but typically with a higher down payment than domestic buyers. Terms vary by bank — compare and expect the bank to commission its own appraisal.

8. After Purchase: What You Pay Each Year

Modelo 210 surprises almost everyone. Spain taxes non-resident owners on an imputed income from the property that doesn't actually exist. Per the Agencia Tributaria, the basis is 1.1% of the cadastral value for properties in municipalities where values were reappraised since 2012, and 2% for others. The tax rate is 19% for residents of EU, Iceland, Norway, and Liechtenstein and 24% for others. Tax accrues on December 31.

If you rent the property, the regime differs and as an EU resident you may deduct expenses — that's work for a tax advisor.

9. Residence and Visa

There is no golden visa for property investment in Spain. Organic law 1/2025 abolished it, effective April 3, 2025. In the consolidated text of law 14/2013 on the BOE website, Articles 63–67 — the entire investor visa and residence regime — are now marked as "(No content)," without text.

What this means in practice:

• Previously issued permits remain valid for the period they were granted; no one's residence is revoked due to the reform.
• New permits are not issued for real estate purchases, regardless of amount.
• As an EU citizen, you don't need a residence visa anyway — you have freedom of movement. For stays over three months, you register in the EU citizen registry.

If you find an article or agent still offering residence for a €500,000 investment, the text is older than April 2025.

10. Let AI Find Listings for You

Spain's coast is a market where there are more listings than hours to browse them. Increasingly, people skip clicking through portals and instead ask ChatGPT, Claude, or Perplexity — "find me a two-bedroom apartment under €250,000 within 20 minutes of the beach in Alicante province."

But the answer is built only from what AI can access, and most real estate portals block crawlers.

AssetLog (assetlog.ai) is an open platform: listings are structured, robots.txt allows AI crawlers, and via the address https://api.assetlog.ai/mcp it connects directly as a tool in ChatGPT or Claude. You can then ask naturally — about budget, distance to sea, and property type.

Summary

Spain doesn't restrict foreigners from buying, but it rewards the prepared. Get your NIE before committing to deadlines. Determine whether you're buying a resale or a new build — it decides the tax and means single-digit percentage point differences in price. Request nota simple twice, last time shortly before signing. For arras, read what type it is. And if the seller is not tax-resident in Spain, don't forget the 3% withholding — the property you're buying is liable for it.

Rates and deadlines verified as of September 6, 2026 against primary sources cited in the text. Tax rates change in individual autonomous communities; confirm them with your tax advisor or lawyer before signing. This is an informational guide, not legal or tax advice.

Can I as a foreign citizen buy property in Spain?

Yes, without restriction. Spain does not condition property purchases on citizenship or government permission — as an EU citizen, you have the same status as a Spanish national. The only practical requirement is that you obtain a Spanish foreigner identification number (NIE), because without it the notary won't record you in the purchase contract.

What is NIE and how long does it take to obtain?

NIE (Número de Identidad de Extranjero) is a personal identification number Spain assigns to foreigners for their economic, professional, or social interests in the country. You apply using form EX-15 at an immigration office or police station in Spain, or through a Spanish consulate. According to the Ministry of Interior, the application should be processed within five days of submission.

How much will I pay beyond the property price?

The largest item is tax. For a resale property (transfer between owners), you pay regional transfer tax ITP — 9% in the Valencian Community, 7.75% in the Region of Murcia. For a new build from a developer, you pay 10% VAT and the regional notary recording tax AJD instead. On top of that are notary and registry fees, gestoría costs, and a possible independent lawyer. Budget your ancillary costs by region, not by a single number found online.

What is nota simple and why request it?

It's an extract from Spain's land registry (Registro de la Propiedad). It shows the property identification, who is the registered owner, and what rights and encumbrances are on it — mortgages, easements, restrictions. Per the registrar tariff, it costs €9.02 plus VAT per property. However, it is informational only; the conclusive proof of what the registry contains is a certificación signed by the registrar.

What happens if I back out after signing the arras?

With the most common type — arras penitenciales — Article 1454 of the Spanish Civil Code governs it: the buyer withdraws and forfeits the deposit; the seller withdraws and returns it doubled. This is why it's crucial to have in your reservation contract in black and white what type of arras applies; other types do not allow withdrawal.

Do I pay taxes in Spain even if I don't live there and don't rent out the property?

Yes. Spain taxes non-resident owners on what is called imputed income. The basis is 1.1% of the cadastral value (for properties in municipalities reappraised since 2012), or 2% for others. The rate is 19% for residents of the EU, Iceland, Norway, and Liechtenstein, and 24% for others. You file form Modelo 210 and tax accrues on December 31. On top of that come municipal property tax (IBI) and community fees.

Can I obtain Spanish residence by buying property?

No. Spain abolished the so-called golden visa for real estate investment — organic law 1/2025 took effect on April 3, 2025, and Articles 63–67 of law 14/2013, which governed the investor visa, are now marked as "without content" in the consolidated text. Previously issued permits remain valid; new ones are not issued for property purchases. As an EU citizen, you don't need a residence visa anyway — you have freedom of movement.