The ultimate guide to buying property in Spain

Spain is a culturally rich country with a diverse range of regions and cities. Whether you're dreaming of a holiday home on the Costa del Sol, planning your retirement in a sun-soaked village, or looking to invest in the Spanish property market, this article has got you covered.

From legal requirements and mortgages to currency tips and taxes, here’s everything you need to know to buy a home in Spain with confidence.

Can foreign buyers purchase property in Spain?

Yes, foreign buyers are allowed to buy property in Spain, and the purchasing process is relatively straightforward compared to other countries. Whether you’re a citizen of the European Union or from outside the EU, you can buy a house in Spain without needing a visa or residency permit.

Once you buy, you enjoy the same ownership rights as Spanish citizens. However, it’s important to be aware that regional regulations can vary, and these may influence aspects such as zoning laws and short-term rental licences, depending on how you intend to use the property.

Foreign buyers can purchase a variety of property types including residential homes, commercial buildings, and plots of land.

Buying a home in Spain

If you're buying a residence, your main concerns will likely revolve around local living conditions and amenities. If you're buying to rent out, you’ll need to pay close attention to local regulations, particularly those affecting short-term holiday lets, which are tightly controlled in some regions like Barcelona or the Balearics.

Buying commercial property in Spain

If you're thinking about buying a commercial property in Spain, like an office, a shop, or even a warehouse, you’ll need to get to grips with local planning and zoning rules. These regulations can affect what kind of business you’re allowed to run in certain areas, so it’s worth doing your homework early on.

Purchasing Spanish land

For those purchasing land in Spain, planning permission and land use rules vary from one region to another, and not all land is approved for building, so it’s a good idea to look into this upfront.

Special categories

Certain properties may fall under special categories with additional regulations. For example, properties designated as heritage sites or located in protected areas may have restrictions on alterations and usage. Similarly, properties intended for short-term rentals (such as those on platforms like Airbnb) may be subject to local authority regulations and licensing requirements.

Visa and residency options when buying property in Spain

While purchasing a property in Spain does not automatically entitle you to live there full-time, it does demonstrate a tangible link to the country which can be beneficial when applying for a visa.

Since the golden visa scheme was discontinued in April 2025, foreign buyers seeking to spend significant time in Spain must consider other visa routes.

Below is an overview of the options. For a full breakdown of the eligibility criteria and detailed guidance, read our article How UK citizens can secure visas and residency in Spain.

Schengen area 90/180 rule

People from qualifying countries – including the UK – can visit visa-free for up to 90 days within any 180-day period under the Schengen area’s 90/180 rule. This means you can spend roughly three months at a time in Spain (or across other Schengen countries) before you need to leave the zone or apply for a different type of visa. It’s perfect for seasonal use of your property, but not for living year-round.

Non-lucrative visa

Those seeking longer-term stays might consider the non-lucrative visa, which is popular with retirees or individuals with independent income. It allows for residency without the right to work and requires proof of sufficient financial income.

Digital nomad visa

Spain’s digital nomad visa offers a middle ground for remote workers. It’s open to non-EU citizens who work for companies outside Spain or run their own businesses remotely. The visa initially lasts for one year and can be renewed for up to five, making it a flexible option for those who want more than a holiday but less than full relocation.

Work and entrepreneur visa

There are also visas tailored for working professionals or entrepreneurs. The standard work and residence visa is necessary for non-EU nationals who wish to live and work in Spain. The entrepreneur visa may be an option if your property investment is part of a broader business venture that benefits the public interest.

Long-term residency

After legally residing in Spain for five years, property owners may apply for permanent residency. With ten years of legal residence, it is possible to apply for Spanish citizenship, provided you meet additional requirements such as language proficiency and knowledge of Spanish culture.

Taxes and legal fees when purchasing property in Spain

When buying a property in Spain, it’s important to understand the taxes involved, as they vary depending on the type of property you intend on purchasing.

Property taxes when buying in Spain

Resale properties are subject to transfer tax (ITP), while new builds incur value added tax (IVA on the mainland, IGIC in the Canary Islands) along with stamp duty (AJD).

In general, tax rates are the same for foreign buyers as they are for Spanish residents. However, the buyer’s residency status and the location of the property can affect the overall tax liability. For example, transfer tax in particular varies by community.

Below is an overview of the typical tax rates applied to residential property purchases in Spain:

For non-residential properties, the VAT rate is usually 21%, and the stamp duty may still apply. Learn more about Spanish property taxes.

Additional charges for foreign buyers

While some regions apply higher property transfer taxes on luxury or second homes, but there are currently no official surcharges that specifically target foreign buyers.

However, in 2025 the Spanish government floated the idea of imposing a 100% tax on properties bought by non-resident buyers from outside the EU, including the UK. While there is some scepticism that such a measure could be passed into law, it’s certainly something future buyers should be aware of.

Higher taxes for second homes and investment properties

If you're buying a second home or an investment property in Spain, be aware that you might face higher taxes. Many regions charge extra for additional properties, and the rates can vary quite a bit depending on where you're buying.

To avoid any surprises, it’s a good idea to check the local tax rules or speak to a property expert in the area who can help you understand exactly what you’ll need to pay.

Legal fees when buying a home in Spain

Legal and professional fees should also be factored into your budget. Hiring a solicitor or conveyancer is highly recommended and usually costs between 1% and 1.5% of the purchase price. Notary fees and Land Registry costs generally add up to around €600 to €1,000 combined.

If you choose to have a building survey carried out, which is especially wise for older properties, this may cost between €300 and €1,000 depending on the depth of the inspection.

Exemptions on Spanish property purchases

It’s useful to note that some property transactions may qualify for exemptions from certain taxes. Transfers of property between spouses or direct family members under specific conditions may be exempt from ITP and VAT.

Similarly, properties inherited from family members can also benefit from tax exemptions or reductions, although this also varies by region. Again, it’s advisable to consult with a tax professional to determine if your transaction qualifies for any of these exemptions.

Getting a mortgage to buy property in Spain

Foreign buyers can access Spanish mortgages, though the terms are usually more demanding than for local residents.

When it comes to mortgages for non-residents in Spain, buyers typically need to provide a larger deposit, often between 30% and 40% of the property’s value, and may be offered slightly higher interest rates.

Spanish mortgage requirements

To apply for a mortgage, you’ll need to provide documentation proving your financial standing. This includes:

• Proof of income, e.g. bank statements

• Tax returns

• Credit history

• Your NIE (Número de Identificación de Extranjero), which is your Spanish tax identification number

Major Spanish banks such as Banco Santander, BBVA and CaixaBank offer mortgage products designed for foreign buyers.

In addition, working with a mortgage broker who specialises in international clients can make the process smoother and may help you find better rates and conditions.

Buying a Spanish property with cash

Buying a Spanish property with cash can be an attractive option if you want speed, simplicity and stronger negotiating power. Without the need for mortgage approval, cash purchases often move faster and are less likely to fall through, which can make sellers more willing to agree on price or terms.

You also avoid long-term interest costs and the uncertainty of changing rates. For buyers considering overseas property, paying in cash can be a clean, confident way to secure the right home – as long as you understand the process and plan carefully.

For a deeper look at how cash purchases work in practice, including the pros, risks and key steps, read our full guide to buying property in Spain with cash.

How exchange rates impact your Spanish property purchase

If you're buying property in Spain, chances are you'll need to send money internationally, and that means dealing with exchange rates.

What a lot of buyers don’t realise is how much those rates can move day to day, and how that can affect your budget. Even a small shift in the pound to euro exchange rate can make a big difference between when you agree on a price and when you complete the purchase.

While many people still use traditional banks to transfer money abroad, working with a currency specialist like Currencies Direct could actually save you a lot of money, sometimes thousands.

Currency specialists tend to offer better exchange rates, along with different transfer options and personalised tools to help you time your transfer.

It’s worth thinking about international money transfers early on, rather than as an afterthought, as planning ahead could help you get a better rate.

Legal due diligence when buying a property in Spain

When purchasing a home in Spain, it’s vital that you do your legal due diligence with the help of a solicitor. This will include checking the title of the property, any existing debts or encumbrances, and compliance with relevant local laws.

Engaging a solicitor for your Spanish property purchase

The process often begins with hiring a qualified solicitor who can verify that the seller has legal ownership of the property and that there are no existing debts or encumbrances.

Your solicitor will conduct a title search through the Land Registry and confirm that all property taxes have been paid. They will also check for any planning restrictions, zoning issues, or pending fines. If the property is part of a community, they will verify that there are no outstanding community fees.

The solicitor will also make local authority searches to check whether there are any proposals which may affect the property, such as road schemes, planning applications, environmental issues or enforcement notices.

Surveys and certificates

You should also arrange for a property survey, especially for older homes. This can identify potential structural issues that may not be visible on a casual viewing.

Another essential document is the Energy Performance Certificate (EPC), which is required by law and rates the property’s energy efficiency.

Resale restrictions on Spanish property

Foreign buyers should also be aware of potential restrictions on reselling property in Spain.

Some properties, particularly those that are government subsidised or located in protected areas, may have limitations on when and to whom they can be sold, and understanding these restrictions is important for long-term planning.

The settlement process when purchasing property in Spain

Once all due diligence is complete, the settlement process moves into its final phase. Initially, you may sign a reservation agreement to take the property off the market. This is followed by the private purchase contract (contrato de arras), which usually involves a 10% deposit.

If you’re financing the purchase with a mortgage, now is the time to finalise the agreement and ensure all funds are ready for transfer. At settlement, the buyer and seller sign the public deed of sale (escritura pública) in front of a notary. This document officially transfers ownership of the property.

Finally, the property must be registered in your name at the local Land Registry. This legal step confirms your ownership and is typically managed by your solicitor. It’s also useful to note that funds for taxes and fees are also transferred at this stage.

Ongoing taxes and costs for Spanish property owners

Once you own a property in Spain, there are several ongoing costs to consider.

Ongoing property taxes in Spain

The most common tax you’ll have to pay following your successful property purchase is the local property tax, known as IBI (Impuesto sobre Bienes Inmuebles). This is calculated based on the cadastral value of the property, and generally ranges from 0.4% to 1.1%.

If you rent out your property, the income is subject to tax. Non-EU/EEA residents pay a flat rate of 24% on gross rental income, with no deductions allowed.

In addition, non-residents must also pay imputed income tax on properties that are not occupied or rented out year-round, calculated as 1.1% or 2% of the cadastral value.

Capital gains tax of 19% applies when you sell the property, and inheritance tax may also be due if the property is passed to heirs.

Non-residents in Spain are also subject to wealth tax, but only in respect of their assets in Spain. Although this varies by region, generally there is an allowance of €700,000 before this tax rate applies.

Ownership costs on your Spanish property

If your property is part of a community or development, you’ll also be responsible for paying community fees. These cover maintenance of communal areas such as pools, lifts, and gardens.

Insurance is another important ongoing expense. Building insurance is typically mandatory if you have a mortgage in Spain, and contents insurance is strongly advised to protect your belongings.

Resources and contacts for foreign property buyers in Spain

The Spanish real estate sector offers a wide range of opportunities for property buyers, but purchasing a property in the country can be a complex process, and having the right expertise and support is essential.

Real estate agents

Local real estate agents can provide valuable insight into neighbourhoods, pricing trends, and availability. Look for an agent with experience dealing with international clients.

Buyer’s agent

A buyer’s agent may be a useful alternative if you want more personalised service. They represent the buyer exclusively and can help you source properties, carry out due diligence, and negotiate prices.

Government resources

Government and official websites are also excellent resources. The Spanish Tax Agency (Agencia Tributaria) offers detailed information on property-related taxes, while your local town hall (ayuntamiento) can help with issues like planning permissions and local rates.

Community resources

Joining expat communities or online forums can also be extremely helpful. These platforms allow you to connect with people who have already gone through the process and can share real-world tips, recommendations, and referrals.

Where to buy a home in Spain

Spain is made up of 17 autonomous regions, each offering its own mix of culture, climate, and property prices, and understanding the regional differences can help you choose the best area for your needs.

Andalusia

Andalusia in the south is famous for cities like Seville and Granada and offers a warm climate, Moorish architecture, and affordable rural retreats.

Catalonia

Home to Barcelona, this region is cosmopolitan and culturally rich, though property prices here are some of the highest in Spain.

Valencia

Valencia is another popular choice, blending historic charm with modern beachside living. The city of Valencia is more affordable than Barcelona or Madrid, and the region is well known for its relaxed lifestyle.

The Balearic Islands

The Balearic Islands, which include Mallorca, Menorca, and Ibiza, are hotspots for holiday homes and luxury retreats. Expect higher prices, particularly for seafront properties.

Galicia

In the northwest, Galicia offers lush landscapes, Celtic heritage, and some of the best property value in Spain. It's ideal for those seeking tranquillity and a slower pace of life.

Our article on the best places to buy property in Spain goes into more depth if you’d like explore some of the most popular locations for home buyers.

Life in Spain after purchasing a property

Beyond the technicalities of property buying, it’s important to remember what makes Spain such a compelling destination in the first place.

Living in Spain offers a lifestyle that blends culture, comfort, and community. With a warm Mediterranean climate, diverse regional cuisines, and a vibrant mix of modern cities and traditional villages, there’s truly something for everyone.

Spain’s healthcare system is ranked among the best in the world, offering both public and private options that are accessible and affordable.

The education system includes prestigious universities and international schools, making it a viable choice for families as well as retirees and professionals.

The cost of living in many parts of Spain is considerably lower than in other Western European countries, particularly outside of Madrid and Barcelona. Whether you’re dining out, shopping at local markets, or enjoying low-cost public transport, everyday expenses are often much more manageable.

From cultural festivals and music events to peaceful countryside walks and sun-drenched beach days, the pace of life in Spain encourages both activity and relaxation.

Whether you're looking for a permanent move, a part-time residence, or a rental investment, the Spanish lifestyle is one of its strongest selling points.

Final thoughts

Buying a property in Spain is an exciting adventure, whether it’s a holiday escape, a smart investment or a relocation.

But like any major purchase, it pays to be prepared. Taking the time to understand the legal process, account for taxes and fees, and handle your currency transfers carefully can make all the difference.

With the right planning and support from trusted professionals, your Spanish property dream is not only possible, but well within reach.

If you want to find out more about how we can support the currency side of things when buying Spanish property, get in touch with the team and we’d be happy to help.

Alternatively, we have lots of handy guides and articles about buying property in Spain and living abroad which you may find useful.