Buying Property in Spain as a Foreigner: Full 2025 Guide

Owning a home in Spain has become one of the most attractive real estate opportunities for international buyers. The combination of Mediterranean climate, rich culture, affordable living costs, and strong rental yields draws thousands of foreign investors each year.

Recent data shows that foreign buyers account for nearly 15% of all Spanish property transactions in 2025. British, German, and American investors lead the market, with growing interest from buyers in the UAE and Asia. Post-Brexit regulations have not deterred non-EU buyers. Spain remains open and welcoming to international property ownership.

This guide walks you through every step of buying property in Spain as a foreigner. You will learn about legal requirements, financing options, common mistakes to avoid, and the best locations for investment.

Who Can Buy Property in Spain?

Yes, foreigners from any country can buy property in Spain — residency or citizenship is not required. The process is simple and legally protected.

You’ll need an NIE number (Número de Identificación de Extranjero), which is required for signing contracts, paying taxes, and registering ownership.

Non-residents have the same rights as locals — you can buy, sell, rent, or inherit property freely. Buyers from the US, Canada, Australia, or outside the EU face no restrictions.

Opening a Spanish bank account is also recommended for smooth payments and added financial credibility.

Step-by-Step: How to Buy Property in Spain

Step 1: Choose Your Location

Spain offers incredible diversity — from vibrant cities to serene coastal towns.

Barcelona is perfect for those seeking culture and strong rental demand, while Valencia offers coastal living at more affordable prices. Alicante and Costa Blanca attract retirees and second-home buyers for their warm weather and value. For luxury villas and exclusive amenities, Marbella stands out, while Madrid provides stable investment options in the capital.

Step 2: Work with Tharros Brokers and a Property Lawyer

Partnering with Tharros Brokers ensures a smooth, transparent buying experience in Spain. We specialize in helping foreign buyers find the right property and manage paperwork effortlessly.

A Spanish property lawyer is also essential for verifying ownership, checking debts, and reviewing contracts to protect your investment.

Step 3: Get Your NIE and Open a Bank Account

You’ll need an NIE (Número de Identificación de Extranjero) to buy property. Apply at a Spanish consulate or local police station—processing takes about one to four weeks.

Required documents:

• Passport
• Completed EX-15 form
• Proof of property purchase
• Application fee

Next, open a Spanish bank account with your NIE and passport. Most major banks support international clients in English.

Step 4: Search and Make an Offer

Explore trusted platforms like Idealista or Fotocasa, and schedule viewings. When you find your ideal home, your agent will handle negotiations and submit your formal offer.

Step 5: Sign the Reservation Agreement

Once accepted, you’ll sign a Contrato de Reserva and pay a deposit (usually €3,000–€6,000) to secure the property. This is deducted from the final price. Always review terms carefully with your lawyer before signing.

Step 6: Conduct Due Diligence

Your lawyer will verify ownership, debts, planning permissions, and other relevant legal records. This crucial step prevents common pitfalls of buying property in Spain and ensures your investment is secure.

Step 7: Sign the Purchase Deed

Finally, sign the Escritura de Compraventa before a notary. You’ll pay the remaining balance and receive proof of ownership. The property is then registered under your name—congratulations, you now own a home in Spain!

Financing Your Spanish Property Purchase

Spanish banks offer mortgages to non-residents. Expect loan-to-value ratios of up to 70%, meaning you’ll need to provide a 30% down payment.

Interest rates for non-residents are higher than for Spanish residents. In 2025, rates range from 3.5% to 5.5% depending on the lender and your financial profile.

Required documents for a mortgage application include:

• NIE number
• Passport and proof of identity
• Proof of income (tax returns, pay slips, bank statements)
• Employment contract or business documentation
• Credit history report
• Property valuation

The mortgage approval process takes four to eight weeks. Spanish mortgage lenders for non-residents include Banco Sabadell, BBVA, CaixaBank, and Bankinter.

International lenders sometimes offer better rates for foreign buyers. Compare options carefully to find the best terms.

Legal and Tax Obligations

Buying property in Spain involves key taxes and fees — knowing them helps you plan your budget wisely.

Main Taxes:

• Property Transfer Tax (ITP): 6%–10% on resale properties (varies by region).
• VAT (IVA): 10% on new builds, 4% for social housing.
• Stamp Duty (AJD): 0.5%–1.5% on new properties.
• Annual Property Tax (IBI): 0.4%–1.1% of the cadastral value, paid to the local council.

Additional Costs:

• Notary fees: €600–€1,200
• Land Registry: €400–€650
• Lawyer fees: 1%–2% of price
• Agent commission: usually paid by the seller

For a €300,000 property, expect extra costs of €30,000–€40,000.

When Selling:

• Capital Gains Tax: Non-residents pay 19%; residents 19%–26% based on profit.
• Inheritance Tax: Varies by region, with possible reductions for close relatives.

💡 Tip: Consult a legal expert to ensure compliance and optimize your tax planning.

Common Pitfalls When Buying Property in Spain

Avoiding common mistakes can save you time, money, and stress when purchasing property in Spain.

• Skip legal checks at your peril — verify ownership, debts, and liens via the Land Registry.
• Always hire a lawyer — Spanish property law is complex and legal help prevents fraud.
• Don’t rely on unverified translations — get contracts professionally translated before signing.
• Budget accurately for renovations — obtain detailed quotes for older properties.
• Avoid off-plan purchases without permits — check developer licenses and track record.
• Never pay cash to sellers — use secure bank transfers with documented proof.
• Don’t rush — research, compare, and confirm every detail before committing.

Best Places to Buy Property in Spain in 2025

1. Barcelona

Barcelona remains one of Spain’s top real estate markets, blending culture, business, and coastal charm. Homes range from modern apartments to historic flats in the Gothic Quarter. Strong rental demand from tourists and students makes it ideal for investment.

2. Valencia

Valencia offers affordable coastal living with vibrant city life. Its growing popularity among remote workers has driven steady property value increases. Great food, sunshine, and festivals make it perfect for lifestyle buyers.

3. Alicante & Costa Blanca

Alicante and Costa Blanca are favorites for retirees and holiday homeowners. The region offers year-round sun, beaches, and affordable living, with strong expat communities and excellent healthcare.

4. Marbella

Marbella is Spain’s luxury hub. Villas here attract global elites seeking exclusive amenities, golf resorts, and a high-end lifestyle. While prices are premium, so is the quality of life.

5. Madrid

Spain’s capital combines stability and opportunity. From elegant apartments to suburban homes, Madrid’s rental market thrives due to strong demand from professionals and students. Excellent transport links enhance its appeal.

6. Seville & Granada

These southern gems offer authentic Spanish charm at lower prices. Rich history, architecture, and cultural vibrancy make Seville and Granada perfect for those seeking beauty and affordability.

Start your journey with Tharros Brokers — your trusted partner in finding the perfect home or investment in Spain.

Buying a Holiday Home or Investment Property

Spain's tourism industry creates strong rental opportunities. Buying a holiday home in Spain can generate income when you're not using it.

Short-term rental platforms like Airbnb are popular but face regional regulations. Some cities limit tourist rentals to control housing availability for residents. Check local rules before planning rental income.

Popular tourist areas offer the best rental yields:

• Costa del Sol
• Costa Blanca
• Balearic Islands (Mallorca, Ibiza)
• Canary Islands

Properties near beaches, golf courses, or major attractions rent more easily and command higher rates.

Consider management companies if you plan to rent your property. They handle bookings, cleaning, maintenance, and guest services. Fees typically range from 15% to 25% of rental income.

Tips for Safe Property Purchase

Stay protected and avoid costly mistakes with these key tips:

• Verify ownership – Check the seller’s identity and property records in the Land Registry.
• Work with professionals – Use licensed agents, lawyers, and notaries.
• Get it in writing – Only trust signed written contracts.
• Avoid cash – Use secure bank transfers with proof.
• Insure early – Protect your property right after purchase.
• Keep records – Store all legal and tax documents safely.
• Learn from others – Join expat groups for helpful advice.

Final Thoughts

Buying property in Spain as a foreigner is achievable and rewarding. The country offers diverse locations, strong legal protections, and attractive investment potential.

Success requires preparation and professional guidance. Work with experienced lawyers and agents who understand foreign buyer needs. Take time to research locations and understand all costs involved.

Spain welcomes international property buyers and makes the process accessible. With proper planning, you can secure your dream home or investment property in one of Europe's most desirable countries.

Ready to start your property search? Contact Tharros Brokers today to explore financing options and find the perfect Spanish property for your needs.

Frequently Asked Questions