A flat with a sea view in Alicante, a farmhouse in Galicia, a townhouse in Palma: Spanish property is one of the great European dreams. It is also a market where the price on the advert is only the start of the sum. Buying property in Spain as an EU citizen is open and legally simple. The traps lie in the paperwork and the taxes, which change from one region to the next.
Can a foreigner buy property in Spain?
Yes. As a citizen of the EU you buy like a Spaniard, and the only document you must obtain beforehand is the NIE (read our NIE guide). A bank account helps too: see opening a bank account in Spain.
There is a corner of the law that catches Swiss, Norwegian and British buyers: in "zones of restricted access to foreign ownership" linked to national defence, a non-EU foreigner needs a military authorisation before buying. EU citizens are exempt. Zones declared of national tourist interest are deemed authorised. The notary checks this point.
What is the step-by-step process for buying property in Spain?
- Get your NIE and open a bank account.
- Ask for a nota simple. This land registry extract is available online from the registrars or at an office. It lists the owner, the mortgages and charges, and gives information on community fees and the local property tax (IBI).
- If you buy off-plan or new, check that the developer and the land are registered, that a building permit exists and that your payments go to a dedicated account. At delivery you should receive a defects insurance, the building book (Libro del Edificio) and the energy certificate.
- Sign a deposit contract (contrato de arras) if you wish. With "penitential" arras (article 1454 of the Civil Code), a buyer who pulls out loses the deposit and a seller who pulls out returns it doubled. Confirmatory and penal arras have different effects, so have the contract checked.
- If you borrow, the bank must give you the standard offer (FEIN) at least 10 days before the signature, and you see a notary at the latest the day before.
- Sign the escritura pública at the notary, usually with the seller and, if there is a loan, the bank's representative.
- Pay the purchase taxes (below).
- Register the deed at the Registro de la Propiedad. Registration is not compulsory, but it protects you as owner, and a mortgage legally exists only once registered.
- Afterwards: register at the padrón (see padrón and Cl@ve), pay the IBI each year and declare the property in your tax return.
What taxes do you pay on top of the price?
It depends on whether the home is new or second-hand, and on the region.
New home bought from a developer: VAT of 10% (4% for certain protected housing, 21% for other property such as a commercial unit), plus the stamp duty on documented legal acts (AJD). The rate is set by the region, 0.50% by default; in Madrid it is generally 0.75%.
Resale home between individuals: the transfer tax (ITP, Impuesto sobre Transmisiones Patrimoniales), managed and set by the region. If the region has set none, it is 6%, and 6% is also the general rate in Madrid. Reduced rates exist for large families, young buyers or people with disabilities, so check the tax website of your region before budgeting.
The Canary Islands: a new home pays the local IGIC instead of VAT. The general rate is 7%, and reduced rates apply in some cases, for example for a main home within price limits that depend on the buyer's situation. The limits and rates are updated in the regional budget law, so check them with the Canary tax agency before you budget.
Ceuta and Melilla: the transfer tax is run by the state (model 600). A new home from a developer pays the local IPSI instead of VAT, at rates set by each city.
The Basque Country and Navarre: the purchase taxes are run by the provincial Haciendas forales with their own rates.
The Balearic Islands apply the regional rates set by their own government, so check them with the Balearic tax office before you make an offer.
What do the notary and registry cost?
Official scales (aranceles) apply: Royal Decree 1426/1989 for notaries and 1427/1989 for the property registry. They decrease with the price. Ask the notary for a quote before the signing. Unless you agree otherwise, the seller pays for the deed and the buyer for the first copy and later costs (article 1455 of the Civil Code). On a mortgage, the valuation is yours, but the bank pays the administration, notary and registry fees of the mortgage deed.
What is the non-resident withholding of 3% when buying property in Spain?
You retain 3% of the price and pay it to the tax agency with model 211 within one month of the sale. If you forget, you are liable for it, and the property itself answers for the unpaid amount. The municipal capital gains tax (plusvalía municipal) is normally the seller's, but if the seller is not resident, the buyer pays it. The tax agency's website explains the other taxes you will meet as an owner.
How much should you budget in total?
Think of the price as the base and add four layers: the purchase tax, the notary and registry fees, any agent's fee agreed with the seller, and your own advisers. The purchase tax is a percentage of the price: on a new home it is VAT (generally 10%) plus stamp duty at your region's rate, and on a resale it is the transfer tax set by your region. That difference is why "new" and "second-hand" are not interchangeable in a budget. Check the rates your region applies on its tax website before you make an offer.
If you take a mortgage, add the valuation (tasación), which is yours to pay. The law of 2019 puts the other mortgage expenses on the bank. Our guide to opening a bank account in Spain goes through your rights as a borrower, including the early repayment ceilings.
Do you need a lawyer or an adviser?
Spanish law does not oblige you to hire one for the purchase. The notary is a public officer who checks that the deed is legal and that you understand it, but the notary does not negotiate for you or check every commercial detail of the property. Many foreign buyers pay an independent lawyer to review the deposit contract, the nota simple and the community accounts before they sign. It is a sensible expense when the language or the legal system is new to you.
Whoever you pick, choose someone who works for you and not for the seller or developer, and ask for a written fee. Do not sign an arras contract in a hurry because the agent says another buyer is waiting.
Where should you look?
The coast gets the attention, but the practical differences between regions are real. The purchase tax, the wealth tax, the local property tax and the availability of services all differ by region and by town. If you are weighing the islands against the mainland, read living in the Canary and Balearic Islands, and for a region-by-region overview, best places to live in Spain.
Which mistakes cost people most?
- Buying with debts attached. Unpaid IBI and some community charges follow the property. Ask for the nota simple, the last IBI receipt and the administrator's certificate that community fees are up to date.
- Not knowing which arras you signed.
- Skipping registration.
- Hidden defects. The seller answers for them even if unaware. For new builds, guarantees last 10 years for the structure, 3 years for defects that make the home unfit to live in and 1 year for finishes.
- Ignoring empty or tourist homes. Under the October 2026 decree-law (RDL 29/2026), still awaiting validation by Parliament, town halls may add a surcharge of up to 50% of the IBI on homes left empty for more than two years (outside tight market zones, only for owners of four or more homes; inside them, for any owner) and, in tight market zones, on homes used for tourist accommodation. Higher percentages apply to owners of several properties, and the details are set by each town hall. It is aimed at those owners, not at someone buying a home to live in.
If you keep the home as a second residence, you pay non-resident income tax on it every year even if you do not rent it out, and the next buyer will withhold 3% when you sell.