Buying Guide

Spain has seen a sharp increase in foreign real estate investment since 2009. British buyers lead the trend, followed closely by Germans and French nationals. This surge is driven by Spain’s appealing lifestyle, mild Mediterranean climate, and competitive property prices.

High-net-worth individuals often buy in Spain for investment purposes. The 2008 financial crisis significantly lowered property prices, giving foreign buyers — particularly from less-affected economies — a chance to acquire properties at attractive rates. While prices in major cities have rebounded, many regions still offer great value.

Spain’s global reputation as a tourism hotspot makes it an ideal location for short-term rentals. Properties in coastal or high-traffic urban areas generate strong returns, especially in peak seasons. A beachside rental can command €2,500 per week in summer, while apartments in cities like Madrid or Barcelona often rent for €80–€120 per night.

Many foreigners purchase second homes in Spain for vacation use, with the option of future retirement. Popular regions for holiday homes include the Balearic Islands, the Valencian Community, and Andalusia — all prized for their warm weather, relaxed lifestyle, and affordable living costs.

Any non-resident can purchase property in Spain, but they must first obtain a Foreigner Identification Number (NIE).

• Temporary NIE (EX-15): For those not residing in Spain but requiring the NIE for property transactions.
   
• Permanent NIE (EX-18): For EU citizens residing in Spain for more than 3 months.
   

• Non-Resident NIE (EX-15): For those purchasing without plans to reside. Valid for 3 months, renewable if needed.
   
• Resident NIE/TIE (EX-17): A residency card for those staying in Spain for more than 6 months.
   

Applications can be submitted at Spanish embassies abroad or police stations within Spain.

• Affordable Prices: Property values in Spain remain lower than in other Western countries, partly due to the delayed recovery from the 2008 crisis.
   
• High Purchasing Power: Foreigners with stronger currencies and higher incomes find Spanish real estate very accessible.
   
• Tourist Rental Income: High rental demand in vacation zones allows owners to earn strong seasonal returns.
   

Buying property in Spain can take 1 to 6 months. Typical steps include:

• Finding a property

• Hiring an attorney to complete the paperwork on your behalf 

• Obtaining a NIE (attorney can process it for you) 

• Opening a local bank account
   
• Signing reservation and deposit contracts
   
• Securing financing, or transferring funds to your bank in Spain
   
• Executing the purchase before a notary
   
• Registering the property
   

• Foreigners can obtain mortgages from Spanish banks, though terms are generally stricter.
   
• Spanish residents may receive up to 95% financing; foreigners typically receive up to 80%, or 60–70% for second homes.
   

• New Properties:
   
  • VAT (IVA): 10% (7% in the Canary Islands)
     
  • Stamp Duty: 0.4–1.5% based on region
     
• Resale Properties:
   
  • Transfer Tax (ITP): 4–10%, varying by region (e.g., Andalusia: 7%, Madrid: 6%, Catalonia: 10%)
     
• Mortgage Stamp Duty: Paid by banks since 2018.
   

Other common expenses include notary fees, land registry fees, legal services, and property appraisals.

• Non-Resident Income Tax:
   
  • 1.1–2% of the cadastral value imputed as income
     
  • Taxed at 19% for EU residents, 24% for non-EU
     
• Annual Property Tax (IBI):
   
  • Paid to local municipalities, based on property location and cadastral value
     
• Wealth Tax (if applicable):
   
  • Properties valued above €700,000 may be subject to capital gains or wealth tax, depending on total net worth and regional laws.
     

Spain continues to be one of Europe’s most attractive real estate markets for foreigners. Whether for investment, vacation, or future relocation, Spain offers excellent value, high rental income potential, and a lifestyle unmatched in many parts of Europe. However, buyers should be mindful of local regulations, taxes, and the procedural timeline to ensure a smooth transaction. Browse our extensive database of properties to find your perfect match. Filter by location, price, and more.