Buying Property in Spain as a Foreigner: Process, Costs and Taxes
Buying a home in another country sounds harder than it is. The Spanish process is old, well-worn and surprisingly orderly: a reservation, a private contract, a notary, a registry entry. Three things make it smooth: the right order of steps, the money in the right place at the right moment, and your own lawyer for the checks.
This guide walks through buying property in Spain as a foreigner, from the first viewing to the keys, with the costs and taxes named as they fall. We work in Estepona on the Costa del Sol, so the examples come from Andalusia; the process is the same across the country, only the regional tax rate changes.
Can foreigners buy in Spain at all?
Yes, with the same rights as a Spanish buyer and without a residence permit. The one legal exception is a small number of designated defence zones, where a buyer from outside Spain needs military authorisation and the notary must check it before signing. Nationality changes none of your rights as an owner. What it does change is the tax rate you pay as a non-resident owner, and whether you may live in the home all year or only visit it.
Since the investor visa closed in April 2025, a purchase no longer brings residency with it, so treat the two as separate projects that happen to run in parallel. You may also have read about a proposed tax of up to 100% on purchases by non-EU residents: a bill was admitted to parliament in May 2025 and has not been passed, so it is not law. Our guide to whether Americans can buy property in Spain sets out both the defence zones and the proposal in detail.
How long it takes, and what sets the pace
From accepted offer to keys, a cash purchase of a resale runs six to eight weeks in normal circumstances. With a mortgage, add several weeks for the bank's valuation and approval, so ten to fourteen is realistic. A title with a complication, an inheritance not yet registered, an extension without a licence, a boundary that does not match the cadastre, can add months, and your lawyer will find that in the first week rather than the last.
An off-plan purchase runs to the building, not to you: typically 12 to 30 months from contract to handover, paid in stages. That sounds slow until you are also applying for a visa, at which point the two timelines fit together neatly.
Before you look: NIE, bank account and a lawyer
The NIE number
The NIE is your Spanish identity number for anything official. You apply at the Spanish consulate that covers your address at home, or at a police station in Spain, or you give a power of attorney and your lawyer does it. Start it early: nothing else can be completed without it. Our guide to the NIE number in Spain covers the three routes, the official fee and the five-day legal deadline.
A Spanish bank account
You need one for the notary cheque, the utilities and the community fees. Non-residents can open an account with a certificate of non-residency that the bank arranges, and the exchange rate you use to feed that account matters more over the years than most buyers expect.
Your own lawyer
Spain does not require a lawyer for a purchase, and that is exactly why you want one. The notary confirms identities and formalities; the notary is not there to check whether the terrace is legal or the community has a pending special levy. An independent lawyer, chosen by you and not by the seller or the agent, does that work. Expect roughly 1% of the price plus VAT, and ask for a fixed quote.
The process, step by step
- Offer and reservation. Once your offer is accepted, a reservation fee, often €6,000 to €10,000, takes the property off the market for a few weeks. It should be held by the agency or the lawyer and be refundable if the legal checks turn up a problem.
- Legal checks. Your lawyer requests the nota simple from the land registry, confirms the owner, debts, charges and mortgages, checks the licence of first occupation, the planning status, the community statutes and any pending levy, and confirms the property matches what is actually built.
- Private purchase contract. Usually signed within two to four weeks of the reservation, with a deposit of around 10%. In the common arras penitenciales form: if you pull out you lose the deposit, if the seller pulls out they repay it twice over.
- Mortgage, if you need one. Spanish banks lend to non-residents at lower loan-to-value ratios than to residents and will want your income documents translated. Start the application in parallel with the private contract, not after it.
- Notary and completion. Everyone signs the escritura, the balance is paid by banker's cheque or transfer, taxes are settled and the keys change hands the same day.
- Registration and the switch-over. Your lawyer registers the deed at the land registry and moves utilities, IBI and community fees into your name. Registration takes a few weeks and is what makes your ownership public.
What the tax rate depends on
Transfer tax is set by the region, not by Madrid, and the spread across Spain is wide: the rate in Andalusia is 7%, while other regions sit both below and well above that. It is the single biggest reason a purchase in one region is not comparable with the same price elsewhere, and it is worth knowing before you fall in love with a listing two provinces away.
What buying property in Spain costs
The predictable part of buying property in Spain is the bill: the rule of thumb in Andalusia is to add 10 to 13% to the price. The biggest single item is the tax, and it depends on whether the home is new or a resale.
| Cost | Resale | New build |
|---|---|---|
| Transfer tax (ITP) | 7% | — |
| VAT (IVA) | — | 10% |
| Stamp duty (AJD) | — | 1.2% |
| Notary, registry, lawyer | about 2–3% | about 2–3% |
Two details that surprise people. First, the reference value: if the tax office's value for the property is higher than what you paid, the tax is calculated on that higher figure, so your lawyer should check it before you sign, not after. Second, if the seller is a non-resident, you as the buyer must withhold 3% of the price and pay it to the tax office on form 211 within a month. It is not an extra cost for you, it is part of the price that goes to the state rather than to the seller, but it has to be done correctly or the property answers for it.
The checks that earn your lawyer's fee
These checks are what make buying property in Spain safe and predictable. Your lawyer runs them in the first days after the reservation.
- Nota simple from the land registry: who owns it, what charges, mortgages or embargoes sit on it
- Cadastre cross-check: does the registered property match what is physically built, including terraces and pool
- Licences: building licence, licence of first occupation, and any extension built without one
- Community: fee statement, certificate of no debts, statutes, minutes of recent meetings and any agreed special levy
- Utilities: contracts in the seller's name, no arrears, meters that match the property
- Energy certificate: legally required from the seller, and a useful predictor of summer bills
- Rural or rustic land: whether the house is legal, legalisable or neither, which is a different question from whether it is beautiful
One item on that list deserves a sentence of its own, because it attaches to the property rather than to the person. Under Article 9 of the Horizontal Property Act, a buyer of an apartment or townhouse in a community is liable, with the property itself, for the unpaid community fees of previous owners for the current year and the three calendar years before it, even after the purchase is registered. The same article protects you: the seller must declare at the notary that the fees are paid and produce a certificate from the community confirming it, and without that certificate the notary may not complete the deed unless you expressly waive it. Never waive it. The community must issue the certificate within seven days of being asked, so there is no reason to proceed without one.
Buying off-plan: how your money is protected
Off-plan in Spain is well protected by law. Once the building licence is granted, every payment towards the price must go into a special account and be secured by a bank guarantee or insurance, with the tax on it and interest on top. Our guide to buying off-plan in Spain sets out what to check before you pay, and how the guarantee works in practice.
What a new build gives you that a resale does not
- Ten-year structural warranty and shorter warranties for finishes and installations.
- Current standards for insulation, glazing and air conditioning, which show up on the electricity bill.
- Choice: floor, aspect and often kitchens and bathrooms, while the building goes up.
- Time: the construction period covers the months your visa paperwork needs anyway.
Selling later, and the tax that follows you
Nobody buys thinking about selling, and every good purchase decision includes it anyway. A non-resident seller pays 19% on the gain, the buyer withholds 3% of the price on account, and the town hall charges plusvalía on the land. Keep every invoice for improvements and every receipt for purchase costs from day one, because they reduce the taxable gain; our guide to non-resident property tax in Spain covers the sale in detail.
Paying for it: mortgages and money
A Spanish mortgage as a non-resident
Spanish banks lend to non-residents, usually at a somewhat lower loan-to-value than for residents. The loan is calculated on the bank's own valuation rather than the asking price. Start before you sign the private contract, and put a financing condition in writing so your deposit is covered. Our guide to the Spanish mortgage for non-residents explains the costs the bank must carry by law, the ten-day binding offer and the caps on early repayment fees.
Currency: the best rate, every month
On a six-figure transfer a specialist's rate can make a real difference against your bank's default rate, and the same applies to the standing order that funds the community fees. Compare, ask for the all-in rate rather than the headline one, and decide before completion, not on the morning the notary is booked.
Personally, jointly or through a company?
Most homes are bought in personal names, often jointly between spouses, and for a home you use yourself that is usually the simplest answer. Company structures exist and occasionally make sense for genuinely commercial holdings, but they bring annual obligations and their own tax treatment. It is a question for a Spanish tax adviser with your full picture in front of them, before completion, because changing the owner afterwards means buying the property a second time.
Your will, once you own here
Owning in Spain makes a Spanish will worth having, even if you already have one at home. Under the EU Succession Regulation you may choose the law of your nationality to govern your estate, and saying so explicitly saves your family a slow and expensive argument later. A Spanish will covering only your Spanish assets, signed before a notary, is a short and inexpensive document.
New build or resale: which suits you
The honest answer is that it depends on your timeline, not on which is objectively better. A resale can be yours in six to eight weeks and you can see exactly what you are getting, including the neighbours. A new build takes as long as the building takes, usually 12 to 30 months, and in exchange you get a home nobody has lived in, with warranties and a payment schedule you can plan around.
The price gap that used to settle this argument has narrowed. On our own market analysis, new builds in Estepona were asking only about 3% more per m² than resales in the same town in September 2026, while resale asking prices stood at around €5,000 per m² in August 2026 after a rise of roughly 98% over five years. Those are past figures across a whole town, not a forecast, but they explain why buyers who arrive planning to renovate so often end up buying new.
New developments in Estepona
How the payment plan works
An off-plan purchase is paid in stages, and the schedule is written into the contract: a reservation, then a first payment on signing the private contract, then instalments tied to construction milestones, then the balance at the notary when the home is finished and the licence of first occupation is in place. Every payment before completion must be secured by the guarantee described above, and the VAT is paid alongside the instalments rather than in one lump at the end.
What we tell buyers to check in that schedule: what happens if the completion date slips, whether the instalments are fixed dates or milestone-based, and what the developer may change in the specification without your consent. Reputable developers answer all three in writing without hesitation.
The ten-year warranty and what it covers
A new build in Spain comes with layered warranties: ten years for structural defects, three for elements affecting habitability such as insulation and waterproofing, and one for finishes. That is a genuine advantage over a resale, where the seller's liability for hidden defects is narrower and harder to enforce, and it is one of the reasons buyers who arrive planning to renovate change their minds when they compare the two.
Handover day for a new build
When the building is finished the developer invites you to the handover, and this is the moment to be fussy. Walk through with a list, open every window and door, run every tap, test the air conditioning, check the terrace drainage and photograph anything that is not right. The snagging list is agreed before you sign, and the remaining items are fixed under warranty afterwards. Bring someone who does this often; two hours of attention here saves months of emails.
Letting it out when you are not there
Your home can earn while you are away, and the rules split in two. Long-term letting is simple: a contract, a tenant, and income tax. Holiday letting in Andalusia needs the property registered in the regional tourism register, and the community statutes can restrict or forbid it, so both must be checked before you count on the income. The national registration scheme introduced in July 2025 was annulled by the Supreme Court in 2026 as an encroachment on regional powers, which is why the regional rules are the ones that matter.
The tax side is where plans meet reality: a non-resident owner pays 24% on the gross rent, with no deduction of expenses, against 19% with deductions for EU and EEA residents. Run that number before you buy something because it "will pay for itself".
Visas, residency and the 90-day limit
Buying does not make you a resident, and since the investor visa closed in April 2025 nothing about a purchase changes your immigration status. Without a permit you are a visitor: 90 days in any rolling 180-day period across the Schengen area, now counted automatically at the border.
If you intend to live here, the routes are the non-lucrative visa at €2,400 a month plus €600 per family member, or the digital nomad visa at €2,849 a month in 2026, and they are applied for at the Spanish consulate for your home address. It is worth deciding early, because the visa timeline and a new build's construction period fit together well, while a resale bought in a hurry often leaves you waiting for paperwork in a home you cannot yet legally live in full time.
Where buyers on this coast end up looking
Spain is not one market, and the advice that works in Alicante does not transfer to Málaga province. On the western Costa del Sol the question is usually narrowed to a handful of towns within forty minutes of each other, and the differences are about daily life rather than the sea view.
We work in Estepona, and the reason buyers keep landing here is that it still functions as a town outside August: almost 80,000 residents, a restored old town where the alleys are hung with flowers, 21 kilometres of coastline, Málaga airport 84 kilometres away and Gibraltar 45. Marbella is half an hour up the road when you want it, and priced accordingly.
What to bring on a viewing trip
- Passport, and your NIE if it has already been issued
- A shortlist with the community fees you have asked for in writing
- Your lawyer's contact details, appointed before you travel
- Proof of funds or a mortgage agreement in principle
- A note of the afternoon sun direction for each property
- Time to see at least one town in the evening, not only at midday
The first month after buying property in Spain
A short list in the first month, and your new home is fully set up.
- Register the deed at the land registry. Your lawyer files it; expect a few weeks.
- Move the utilities into your name and set up direct debits, including the community fee and IBI.
- Insure the home from the day of completion, not the day you move in.
- Introduce yourself to the administrator of the community and get the contact for repairs and the pool season.
- Diarise the taxes: the first non-resident return, or your first Spanish return if you are moving here.
- Make a Spanish will covering your Spanish assets, which takes one appointment and saves your family months.
After the purchase: what you owe every year
Ownership brings a short list of recurring obligations, and they are easier to set up once than to repair later.
| What | Who pays |
|---|---|
| IBI property tax, rubbish collection | every owner, annually to the town hall |
| Community fees | every owner in a development, monthly or quarterly |
| Non-resident tax return, form 210 | owners not tax resident in Spain: 24% non-EU, 19% EU/EEA |
| Spanish income tax and form 720 | owners who become tax resident here |
The filing calendar for the non-resident return changed in June 2026, and on a new build no imputed income is charged while the home is still under construction. Both are set out in our guide to non-resident property tax in Spain.
If you plan to let the home out when you are not using it, holiday letting in Andalusia needs the property registered in the regional tourism register, and the community statutes can restrict it. A national registration scheme introduced in July 2025 was later annulled by the Supreme Court, which found the state had encroached on regional powers, so the regional rules are the ones that count.
Viewing trips that actually decide something
A viewing trip is not a holiday with appointments, and the ones that work look different from the ones that do not. Three or four properties a day is the limit before they blur; six is a wasted afternoon. See the same area twice, once in the morning and once after dark, because parking, noise and the walk home change completely between the two.
Ask in every property what the community fee is, what the IBI was last year and what the energy rating says, and write the answers down. By the third viewing you will have a comparison your memory could never produce. And build one slow afternoon into the trip: sit on a terrace in the town you think you want, for two hours, doing nothing. It is the cheapest due diligence there is, and it will tell you more about whether a town is right than any spreadsheet.
If you are looking at penthouses or villas, add the show home to the list even if that particular unit is sold: the specification is the same, and it is the only way to see what you are buying before it exists.
Five tips for buying property in Spain with confidence
With these five points in place, the purchase runs calmly and safely.
- Reservation into a client account. The money goes to the agency's or lawyer's client account.
- Licence of first occupation. It confirms the home can be occupied and connected to utilities.
- Compare like with like. Built, useful and terrace square metres are different numbers; compare prices on the same basis.
- Get to know the community. Its accounts, reserve fund and rules on letting show what your home costs and what you can do with it.
- Plan tax early. How you buy and when you arrive in the tax year are easiest to shape at the start.
A Spanish purchase follows a calm, clear sequence. Take the time you need.
Questions worth asking at every viewing
Four questions that come up when buying property in Spain, each with a clear answer.
Can I buy jointly with my children?
Yes, and it can be a good succession plan; it has tax consequences on both sides of the border, so plan it carefully. Put it to a Spanish tax adviser and, if the children live elsewhere, to an adviser in their country too, before completion rather than after.
What if the property is not yet registered as the seller describes it?
With resales, a closed terrace, a converted basement or a pool is sometimes not yet on the plans. Your lawyer checks this in the first week, and any regularisation is agreed with the seller before you sign. With a New Build, everything is registered from the start.
Is a survey normal in Spain?
It is not the default as in Britain, and for a modern apartment it is rarely necessary. For an older villa or a rural property, a building surveyor gives you a clear picture of the condition for a modest fee.
What about furniture?
An inventory belongs in the private contract if furniture is included, item by item, not as "as seen". Show homes are often sold furnished, and new builds usually are not, though developers frequently offer a furniture package that is worth pricing against buying it yourself.
Buying property in Spain in five stages, from NIE to keys
From the NIE to the keys there are five clear stages.
- Before you fly Apply for the NIE, get a quote from an independent lawyer, and set a realistic budget including the 10 to 13% in costs.
- Viewing trip See the areas at different times of day, not only the homes. Ask for community fees in writing for every property you shortlist.
- Offer accepted Reservation into a client account, legal checks started, mortgage application in parallel.
- Two to four weeks later Private contract and deposit, with the completion date agreed.
- Completion Notary, balance, keys. Then registration, utilities and direct debits.
Frequently asked questions
Can foreigners buy property in Spain?
Yes. Buying property in Spain is open to foreigners with no restriction, whether you live in the EU or outside it, and you do not need a residence permit to buy. You do need an NIE number, a Spanish bank account and, in practice, your own lawyer.
How much are the costs of buying property in Spain?
When buying property in Spain, budget 10 to 13% on top of the price in Andalusia. A resale pays 7% transfer tax; a new build pays 10% VAT plus 1.2% stamp duty. Notary, land registry and legal fees come on top, and a mortgage adds its own valuation and arrangement costs.
What is an NIE and how do I get one?
The NIE is your Spanish foreigner identity number, and nothing happens without it: no purchase, no utilities, no tax return. You apply at the Spanish consulate that covers your address at home, or at a police station in Spain, and you can also do it through your lawyer with a power of attorney.
Do I need a Spanish lawyer to buy a house in Spain?
It is not a legal requirement, but buy without one and nobody is checking your interests. An independent lawyer checks the land registry entry, debts, planning status, licences and community rules, and drafts or reviews the private contract before you pay anything.
How does buying off-plan work in Spain?
You reserve the unit, sign a private purchase contract with a payment schedule, and pay in stages while the building goes up. By law the developer has to hold your payments in a special account and secure them with a bank guarantee or insurance policy, so the money comes back with interest if the home is not built or finished as agreed.
How long does buying a property in Spain take?
For a resale, six to eight weeks from accepted offer to notary is normal, and faster if you pay cash and the paperwork is clean. A mortgage adds several weeks. An off-plan purchase follows the building, which usually means 12 to 30 months to completion.
What taxes do I pay after buying property in Spain?
Every owner pays the annual IBI property tax and community fees. If you are not tax resident in Spain, you also file an annual non-resident tax return on form 210, taxed at 24% for non-EU owners and 19% for EU and EEA owners, on rental income or on a notional income for your own use.
Is it better to buy a new build or a resale in Spain?
A resale can be yours in weeks and you see exactly what you get. A new build is bought to a specification, with payments secured by a bank guarantee, a ten-year structural warranty and current insulation standards. In Estepona new builds were asking only about 3% more per m² than resales in September 2026, which makes new build the natural choice for many buyers.
Sources & official links
- Agencia Tributaria – Non-resident income tax without permanent establishment (checked 20.09.2026)
- Agencia Tributaria – 3% withholding when the seller is a non-resident (form 211) (checked 20.09.2026)
- Agencia Tributaria – Form 210 for non-resident owners (checked 20.09.2026)
- Agencia Tributaria – Form 720, assets held abroad (checked 20.09.2026)
- BOE – Building Act 38/1999, first additional provision (guarantees for off-plan payments) (checked 20.09.2026)
- EUR-Lex – EU Succession Regulation 650/2012 (checked 20.09.2026)
- Consulate General of Spain in Manchester – Consular services, including NIE (checked 20.09.2026)
- Plataforma One (Spanish government) – Abolition of the investor visa (checked 20.09.2026)
