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Spain
Every figure carries its source and last-checked date.
€5.900
Price per m² (capital)
8-13%
Total buying costs
6.5%
Gross rental yield
+50%
5-year price trend
Spain remains the most popular country in Europe for foreign buyers, and for clear reasons. If you want to buy property in Spain you can choose between world cities such as Madrid, where apartments average around EUR 5,900 per square metre, coastal regions at roughly EUR 2,900 per square metre, and rural areas where prices average about EUR 1,450 per square metre. Day-to-day living costs sit around 9 percent below the EU average, and non-EU citizens can stay visa-free for 90 days in any 180-day period.
The market has been strong: prices have risen roughly 50 percent over the past five years, so bargains are rarer than the cliches suggest. Budget realistically for purchase costs too. On top of the price you should expect 8 to 13 percent in taxes and fees, depending mainly on the region, because the transfer tax on resale homes ranges from 6 to 10 percent and runs higher still in a few regions.
Moving to Spain, or simply buying a holiday home there, is legally straightforward: foreigners face no restrictions on ownership. You will need an NIE, a Spanish foreigner identification number, and you should always hire an independent lawyer, since the notary in Spain does not check the property for you. This guide walks you through the process step by step, using verified figures.
Key facts
| Price per m² (capital) | €5.900 | idealista price index, Madrid city (Jan 2026: EUR 5,861/m2, record high; ~EUR 5,984 by May 2026) |
| Price per m² (coast) | €2.900 | idealista coastal data: Costa Blanca avg ~EUR 2,500/m2, Costa del Sol EUR 3,600-5,500/m2 (Marbella EUR 5,485); blended mid-range coastal figure |
| Price per m² (rural) | €1.450 | idealista: rural municipalities averaged EUR 1,459/m2 at end-2025 (urban areas EUR 2,906/m2) |
| 5-year price trend | +50% | INE house price index (2015=100): ~128 in Q1 2021 to ~192 in Q1 2026 (+12.8% y/y in Q1 2026 per Eurostat) |
| Total buying costs | 8-13% | |
| Gross rental yield | 6.5% | idealista: gross rental yield of housing in Spain, Q2 2026 (down from 7.2% a year earlier; Madrid ~4.5%, Barcelona ~4.8%) |
| Cost of living (EU = 100) | 91 | Eurostat price level index, actual individual consumption 2024: Spain 90.7 (EU-27 = 100; household final consumption 92.1) |
Buying costs
Costs on a €250,000 purchase: €20.000 - €32.500
| Transfer tax | 6-10% | ITP on resales, set per region: 6% Madrid, 7% Andalusia, up to 10% Cantabria/Galicia (Catalonia progressive to 11%, Balearics top bracket 13%, Basque Country 4%); new builds pay 10% VAT + 0.5-1.5% AJD instead |
| Notary | 0.2-0.5% | Regulated notary tariff, typically EUR 600-1,200+ (about 0.2-0.5% at typical prices) |
| Registration | 0.1-0.25% | Land Registry (Registradores) fees, typically EUR 400-1,000+ (about 0.1-0.25%) |
| Legal | 1-1.5% | Typical independent lawyer fee for foreign buyers (commonly 1% + VAT, up to ~1.5%) |
Taxes for non-residents
| Annual property tax | IBI: 0.4-1.1% of the cadastral value per year for urban property; each municipality sets its rate within this statutory band | Ley Reguladora de las Haciendas Locales (RDL 2/2004, art. 72) |
| Wealth tax | Yes: on Spanish net assets above EUR 700,000 (non-residents get no primary-residence allowance); regional rules vary (Madrid and Andalusia largely relieve it), but the state solidarity tax of 1.7-3.5% still applies on Spanish assets above EUR 3 million | Costaluz Lawyers, Spanish wealth tax for non-residents 2026 |
| Rental income tax | 19% | IRNR: 19% on net rental income for EU/EEA residents (expenses deductible); 24% on gross rent for non-EU/EEA residents |
| Capital gains | 19% | IRNR flat 19% on real-estate capital gains for all non-residents; the buyer must withhold 3% of the price on account (Modelo 211) |
| Inheritance | Due on Spanish property regardless of the heir's residence; since Supreme Court rulings of 2018, both EU and non-EU non-residents may apply the often far lower regional allowances and rates (e.g. near-zero for close family in Madrid or Andalusia) | Spanish Supreme Court 19 Feb 2018 (Osborne Clarke analysis) |
The buying process
| Can foreigners buy? | Yes, no restrictions | No nationality restrictions on buying property; an NIE (foreigner identification number) is required to sign the deed |
| Mortgage as non-resident | Yes | Major Spanish banks (Sabadell, Bankinter, CaixaBank, BBVA, UCI) actively lend to non-residents |
| Typical duration | 6-12 weeks | Resale purchases typically complete in 6-8 weeks from accepted offer (3-4 weeks for simple cash deals, up to 12 with mortgage or paperwork issues); new builds take far longer |
Residency & golden visa
Golden visa: Spain ended its golden visa on 3 April 2025: Ley Organica 1/2025 (published 3 January 2025) repealed the investor-residency articles of Ley 14/2013, closing all routes including the EUR 500,000 real-estate option. Applications filed before the deadline keep their rights and renewals.
The buying process step by step
- 1
Apply for an NIE number
The NIE (Numero de Identidad de Extranjero) is your Spanish foreigner identification number, and you cannot sign the purchase deed without it. You can apply at a national police station in Spain or through a Spanish consulate in your home country. Arrange it early, because appointment waiting times vary widely.
- 2
Open a Spanish bank account
A Spanish bank account makes the purchase far smoother: the purchase price is normally paid via banker's draft or transfer from a Spanish account, and utilities and local taxes are collected by direct debit. Major Spanish banks are used to non-resident customers. If you need financing, this is also the moment to start mortgage conversations.
- 3
Make an offer and reserve the property
Once your offer is accepted, it is common to sign a reservation agreement and pay a small holding deposit so the property is taken off the market. Do not sign anything binding before your own lawyer has reviewed it. The reservation stage fixes the price and gives your lawyer time to run checks.
- 4
Due diligence by an independent lawyer
Hire a lawyer who works for you alone, not one recommended by the seller or the agent. They check the Land Registry entry, debts attached to the property, building licences and planning status. A typical fee for foreign buyers is 1 to 1.5 percent of the purchase price, and it is the best-spent money in the whole process.
- 5
Sign the arras contract
The contrato de arras is the private purchase contract that binds both sides, and you pay a deposit when signing it. Under the usual penitential arras terms, if you withdraw you lose the deposit, and if the seller withdraws they must repay it doubled. Your lawyer should draft or review it before you sign.
- 6
Complete at the notary and register the deed
You sign the escritura, the public deed, before a notary, pay the balance and receive the keys. Notary fees are regulated, typically EUR 600 to 1,200 and up, and Land Registry fees typically EUR 400 to 1,000 and up. A resale purchase usually completes in 6 to 8 weeks from the accepted offer, or up to 12 weeks with a mortgage.
Frequently asked questions
Can foreigners buy property in Spain?
Yes, foreigners can buy property in Spain without restrictions, whether they are EU citizens or not. The only formal requirement is an NIE, the Spanish foreigner identification number, which you need to sign the deed. A proposed tax of up to 100 percent on purchases by non-EU non-residents, announced in January 2025, stalled in Congress, was never voted on, and is not law as of July 2026.
What are the total costs of buying a home in Spain?
Expect total purchase costs of 8 to 13 percent on top of the price, so roughly EUR 20,000 to 32,500 on a EUR 250,000 home. The biggest item is the transfer tax on resale homes, set per region at 6 to 10 percent (6 percent in Madrid, 7 percent in Andalusia, up to 10 percent in Cantabria and Galicia, with Catalonia progressive to 11 percent and a 13 percent top bracket in the Balearics). New builds carry 10 percent VAT plus 0.5 to 1.5 percent stamp duty instead. Add notary fees of about 0.2 to 0.5 percent, registry fees of 0.1 to 0.25 percent and lawyer fees of 1 to 1.5 percent.
What taxes do I pay each year as an owner in Spain?
Every owner pays IBI, the municipal property tax, of 0.4 to 1.1 percent of the cadastral value per year for urban property, with each municipality setting its rate within that band. Non-residents may also owe Spanish wealth tax on Spanish net assets above EUR 700,000, although regional rules vary and Madrid and Andalusia largely relieve it; above EUR 3 million the state solidarity tax of 1.7 to 3.5 percent applies regardless. If you sell later, non-residents pay a flat 19 percent on the capital gain and the buyer withholds 3 percent of the price on account.
Can I get a Spanish mortgage as a non-resident?
Yes, major Spanish banks such as Sabadell, Bankinter, CaixaBank and BBVA actively lend to non-residents. Loan-to-value for non-residents is typically 60 to 70 percent, with 70 percent reserved for strong income and credit profiles, so plan for a deposit of at least 30 percent plus purchase costs. Residents can usually borrow 70 to 80 percent.
How long does buying a house in Spain take?
A resale purchase typically completes in 6 to 8 weeks from the accepted offer. Simple cash deals can be done in 3 to 4 weeks, while a mortgage or paperwork issues can stretch the process to around 12 weeks. New builds take far longer, since you usually buy off-plan and wait for construction and licences.
Does Spain still have a golden visa?
No, Spain ended its golden visa on 3 April 2025. Ley Organica 1/2025 repealed the investor-residency articles of the 2013 law, closing all routes including the EUR 500,000 real-estate option; applications filed before the deadline keep their rights and renewals. Buying property therefore no longer grants residency, and non-EU citizens are limited to 90 visa-free days per 180-day period unless they obtain another permit.
Can I rent out my Spanish property to tourists?
Only with the right paperwork: tourist rentals need a regional licence and, since 1 July 2025, a national registration number (NRA) obtained via the Single Digital Rental Window. Platforms such as booking sites may only list registered properties, several regions and cities restrict or freeze new licences, and Barcelona plans to phase out all tourist flats by the end of 2028. Rental income is taxed at 19 percent on net income for EU and EEA residents, while non-EU residents pay 24 percent on gross rent without deductions.