How to Buy a House in Spain as a Non-Resident Foreigner

More and more people from France, Germany, the United Kingdom, the United States or Russia are choosing Spain to buy a property as a second home or with the intention of moving here.

Prices tend to be much lower than in other European capitals, and profitability is already close to 6%, according to the study “La rentabilidad de la vivienda en España en 2025”, conducted by Fotocasa Research, making Spain a very attractive option both for living and investing.

But how do you buy a house in Spain as a foreigner? What do you need? At Fotocasa, we explain everything you need to carry out the process safely and simply.

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Can you buy a house in Spain as a non-resident foreigner?

Yes. Anyone can buy a property in Spain, whether they are a citizen of the European Union or come from a non-EU country. There are no general legal restrictions based on nationality when it comes to acquiring property in Spanish territory.

In addition, property purchases by foreigners continue to play a very significant role in the Spanish real estate market. According to official data from the Colegio de Registradores de la Propiedad, in the first quarter of 2025, purchases by foreigners accounted for 14.1% of the total property transactions registered in Spain during that period.

These transactions are especially concentrated in tourist cities and areas such as the Costa del Sol, the Balearic Islands or the Canary Islands, where buyers are looking for both holiday homes and investment opportunities.

To begin the purchase process, the essential requirement is to have an NIE (Número de Identificación de Extranjero). Without this number, you cannot formalise the purchase or carry out the necessary legal procedures before a notary or the tax authorities.

The first legal step to buying a house in Spain as a foreigner: obtaining an NIE

The NIE (Número de Identificación de Extranjero) is the key to any legal purchase in Spain: without an NIE, you cannot sign documents, open a bank account or register the property.

In the case of European Union citizens, there are two types of NIE available depending on the individual’s situation:

• Non-resident or temporary NIE: intended for foreigners who will be in Spain only for a limited period, such as students, people coming for temporary work, or those who want to carry out the purchase of a property.
• Resident NIE: for those who wish to remain in Spain permanently or for a long period. In this case, as residents, the property purchase process in Spain will be the same.

For citizens from outside the European Union, there are also two possibilities:

• Resident NIE: for those who live in Spain for more than 183 days per year and acquire tax resident status.
• Non-resident NIE: for those who want to buy a property in Spain or carry out other procedures that require an NIE, such as opening a bank account, without habitually residing in the country.

The NIE is the document that legally identifies you in Spain and is essential for any official procedure, including buying a house. Without it, there is no way to register properly or formalise the transaction, meaning the purchase could not go ahead.

With your NIE in hand, the purchase process will be very similar to that of any resident in Spain.

Where to obtain the NIE

The NIE must be requested in person. It can be done by the applicant themselves or by an authorised representative who holds a notarised power of attorney.

• If you are in Spain: You can apply for the NIE at immigration offices or at certain National Police stations.
• If you are not in Spain: Foreign nationals who are not in Spain can apply for the NIE through the consular office in their country of residence. An NIE issued through a consular office allows you to carry out procedures before the Public Administration, but it does not grant residency in Spain.

How to buy a house in Spain as a foreigner step by step

The process of buying a property in Spain as a foreigner is similar to that of a person residing in Spain:

• Obtain the corresponding NIE.
• Find the property and agree on the price with the seller.
• Sign a deposit agreement (contrato de arras) (optional, but common practice).
• If a mortgage is needed, apply for financing.
• Sign the deed of sale before a notary. This is one of the most important steps, as the notary will check that all the required purchase documentation is correct and in line with Spanish legislation. At this point, the full payment for the property is made and ownership is officially transferred to the buyer.
• Finally, the property must be registered with the corresponding Registro de la Propiedad. The Registro de la Propiedad is responsible for recording ownership of the property. If this is not done, the buyer cannot be legally recognised as the owner.

Taxes for Foreigners Buying Property in Spain

What should you consider before buying a house if you do not live in Spain?

Some key points to bear in mind when buying a house as a non-resident in Spain:

• Stricter financing requirements: banks usually impose more conditions when applying for a mortgage, as well as higher guarantees and larger deposits.
• It is possible to buy without a mortgage.
• Same taxes: non-residents pay the same as any Spanish buyer. Tax rates vary depending on whether you are buying a new-build or a resale property, and on the autonomous community.
• Notary fees: notary costs vary depending on the price of the property, the number of pages and copies, and how complex the contract is. Notary fees usually range between 0.2% and 0.5% of the property’s value. For a €100,000 property, for example, the costs would range between €200 and €500.
• Registro de la Propiedad: a different fee applies depending on the value declared in the public deed. According to the official fees set out in Royal Decree 1427/1989, the minimum fee for registering a property in the Registro de la Propiedad is €24.04 for the first €6,010.12. From there, an incremental rate is applied in brackets until reaching the maximum fee of €2,181.67, which applies to properties valued at more than €601,012.10. For a €100,000 flat, the cost would be €133.
• Property valuation costs: if you apply for a mortgage, a valuation will be required. The cost will depend on various factors such as the size and location of the property, but it usually ranges between €250 and €600.
• Ongoing costs as a homeowner: in addition to purchase taxes, you should consider IBI, municipal fees and other taxes such as income tax.

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Mortgages for non-residents: more requirements and stricter conditions

Buying a property in Spain as a non-resident foreigner has certain particularities that are worth knowing, especially when applying for a mortgage.

If financing is needed, the mortgage must be requested from a bank in Spain. This is where the differences compared to residents appear: banks usually apply stricter conditions to those who do not live in Spain.

One of the main limitations is the percentage that can be financed, as banks generally offer a lower loan-to-value ratio to people who want to buy a house in Spain as non-resident foreigners.

This means that more savings are required for the down payment, as the difference must be covered with your own funds.

In addition, the maximum repayment terms are usually shorter, which can increase the monthly instalment.

It is advisable to plan your budget carefully and make sure you have enough savings to cover the down payment and other expenses related to the purchase.

What taxes must be paid when buying a house as a non-resident?

The type of taxes you will pay depends on whether the property is a new build or a resale.

Taxes for a new-build property

• IVA: According to data from the Agencia Tributaria, the VAT applied to a new-build property is generally 10% of the purchase price. If the property is classified as Vivienda de Protección Oficial (VPO), the VAT is 4%.

• IAJD (Impuesto de Actos Jurídicos Documentados): This tax varies depending on the autonomous community and ranges between 0.5% and 1.5% of the purchase price. For a €100,000 property, for example, the IAJD would amount to €500 in the Basque Country and €1,500 in the Valencian Community.

Taxes for a resale property

• ITP (Impuesto de Transmisiones Patrimoniales): The ITP also varies depending on the autonomous community in which the property is located. It ranges from 6% up to 13% of the cadastral reference value. For a €100,000 property, the ITP payable would be €6,000 in Navarre, while in Catalonia it would be €10,000.

Here’s an example for a 100.000 € home:

Once these taxes have been paid at the time of purchase, no further taxes will apply to the transaction as long as the property is used as a main residence or second home.

If the property is rented out and generates income, then an additional tax must be considered: IRNR, which taxes the income obtained from the rental.

Other costs to consider when buying a house

Buying a property in Spain as a foreigner does not only involve paying the purchase price and the corresponding transaction taxes.

There are also other recurring expenses that you should be aware of, especially if you do not live in the country.

This is not a tax paid at the time of purchase, but it may need to be paid afterwards. If you do not live in Spain and decide to rent out the property, you must file an annual IRNR tax return with the tax authorities. This tax is regulated by Real Decreto Legislativo 5/2004, of 5 March.

• Residents of the EU, Iceland and Norway: 16% is paid on the income obtained, and certain expenses related to the rental may be deducted (Article 19).
• Other citizens: 24% is paid, and no expenses may be deducted (Article 25).

In addition, if tax has already been paid in the country of residence, an exemption for double taxation may apply in accordance with international treaties.

If a non-EU foreigner buys a house in Spain, do they automatically obtain residency?

Owning a property in Spain does not automatically grant the right to residency. Moreover, since April 2025, the so-called Golden Visa linked to real estate investment is no longer being granted.

As officially announced by the Government of Spain, from that date onwards residence permits based on property purchases are no longer issued. This measure was adopted to avoid further pressure on the housing market and to prioritise access to housing. However, Golden Visas granted prior to that date remain valid, as do the rights acquired by those who already held this permit.

Therefore, at present, buying a property only allows you to acquire ownership. Non-EU foreign nationals who wish to move to Spain must apply for the corresponding permits in order to reside legally.

How to calculate how much you should pay for a property in Spain

Before buying a property, especially if you are not familiar with the market, it is important to check whether the asking price is in line with market conditions. To do so, it is advisable to take the following factors into account, among others:

• The property’s location: the price varies not only depending on the city or neighbourhood, but also according to access to services, public transport, shopping areas or schools.
• The condition of the property: if it requires renovation, the price should reflect this.
• The size and number of bedrooms, as well as the layout of the space.
• The price of properties with similar characteristics in the same area, to have a real market benchmark.
• The energy efficiency rating, which may influence future housing costs.
• The year the building was constructed, as older buildings may involve higher maintenance expenses.

With the Fotocasa Property Valuation Simulator, you can calculate the value of any property.

In addition, to buy with greater security, it is advisable to seek advice from a real estate professional, who knows the local market and can help you assess the property’s price correctly. In the Fotocasa agency search tool, you can find real estate agencies by applying filters.