Foreigners buy tens of thousands of homes in Spain every year, to live in, holiday in or invest. The market has recovered strongly since the 2008 crisis and in recent years prices have risen sharply, especially in big cities, on the coasts and on the islands, while the supply of new homes is scarce. This page summarises the process; for legal and tax aspects see legal and financial procedures, and for risks problems in the property market.
Where to buy
- Costa Blanca (Alicante, Torrevieja, Dénia, Jávea, Altea) and Costa Cálida (Murcia): among foreigners' favourite areas, with prices still affordable inland and in less central areas.
- Costa del Sol (Málaga, Marbella, Estepona, Nerja): more expensive and international, with an excellent airport.
- Canaries and Balearics: ideal climate, but high prices in the Balearics and heavy tourist pressure.
- Valencia, Madrid, Barcelona: for city living, with fast-rising prices.
- Inland Spain: in Aragon, Castile, Extremadura and Galicia village houses can be very cheap, but in depopulated areas.
How to find a property
The most used portals are Idealista, Fotocasa, Habitaclia, pisos.com and Kyero for foreigners. Estate agents (inmobiliarias) are not always tightly regulated: check they are on regional registers where these exist, and clarify who pays the commission, usually the seller. View the property several times, at different times of day, and find out about the area, services and the owners' association (comunidad de propietarios).
Steps of the purchase
- NIE: you need a foreigner identification number to buy, even if you do not live in Spain (see moving to Spain).
- A Spanish bank account, useful for paying taxes and utilities.
- Checks: request a nota simple from the Land Registry, showing the owner and any mortgages or charges, check the energy certificate and the occupancy licence (cédula de habitabilidad or licencia de primera ocupación), that there are no community-fee or IBI debts and that the property complies with planning rules.
- Contrato de arras: the preliminary contract, with a deposit, usually 10% of the price. With arras penitenciales, the most common form, if the buyer withdraws they lose the deposit; if the seller withdraws they return double.
- Escritura pública: completion before the notary (notario), with payment of the balance.
- Taxes and registration: taxes are paid and the property is entered in the Land Registry.
Extra costs
Besides the price, budget around 10-15% in extra costs: for resale homes ITP (Impuesto de Transmisiones Patrimoniales), between 6% and 11% depending on the autonomous community; for new builds VAT at 10% plus stamp duty (AJD); then notary, registry, any lawyer or gestoría fees and, if applicable, the mortgage. Every year you pay IBI (municipal property tax), community fees and, for non-residents, non-resident income tax on the property.
Mortgages and the golden visa
Spanish banks lend to non-residents too, usually up to 60-70% of the value. On 3 April 2025 Spain abolished the golden visa, the residence permit for non-EU investors buying property worth at least 500,000 euros; nothing changes for EU citizens.