Buying a Home in Spain as a Non-Resident: A Step-by-Step Guide

Spain is one of the few countries in Europe where anyone can buy a home, wherever they come from. You don't need residency, a local partner or a special permit. A buyer from New York, Dubai, São Paulo, Singapore or Johannesburg goes through the same steps as a buyer from Madrid. What changes is the paperwork around you: a foreigner tax number, money arriving from abroad, a contract in Spanish and taxes that differ from one region to the next.
This guide follows the process in the order it actually happens, from the first document to the keys. It also covers the costs you need to budget for and the mistakes we see most often. If you have not yet decided whether Spain is the right move, start with our guide to moving to Spain in 2026. If you already know you want Spain but not which city, read Madrid, Barcelona or Valencia.
What Has Changed for Foreign Buyers
Two headlines have confused many international buyers, so it is worth clearing them up first.
Buying a home no longer gives you residency
Spain's golden visa, which offered residence in exchange for a property investment of at least €500,000, ended on 3 April 2025, as confirmed by the Spanish Government. You can still buy freely, but the purchase on its own is not a route to living in Spain. Non-EU buyers who want to stay longer than the Schengen limit of 90 days in any 180 need a separate visa, such as the digital nomad or non-lucrative visa.
The "100% tax" on non-EU buyers is not law
In 2025 the government proposed a tax of up to 100% on homes bought by non-EU buyers who do not live in Spain. Reuters reported in March 2026 that the bill had stalled without ever being debated. According to Olga Caballero & Co., it lapsed when Parliament was dissolved on 6 October 2026. Today non-residents pay the same purchase taxes as Spanish buyers. A future government could bring the idea back, so check its status before you sign.
Step 1: Get Your NIE
The NIE (Número de Identidad de Extranjero) is your foreigner identification number. You need it to sign at the notary, pay taxes, open a bank account and set up utilities. You can apply in Spain or at a Spanish consulate in your country of residence, either in person or through a representative with a power of attorney. The Spanish Consulate in London asks for:
- form EX-15;
- your passport;
- proof of why you need the number, such as a reservation contract;
- payment of fee 790 code 012.
Processing times depend on the consulate. Los Angeles quotes about two weeks and Oslo up to five. Apply as soon as you start looking seriously.
One detail matters a lot: a NIE issued through a consulate does not give you the right to live in Spain. It is only an identification number.
Step 2: Open a Spanish Bank Account and Prove Your Funds
Almost every buyer needs a Spanish account. You will use it to pay the deposit and the balance, and later to pay utilities, community fees and local taxes by direct debit. Spanish anti-money-laundering rules require the notary and the bank to trace where your money comes from. Prepare these documents early:
- bank statements;
- a sale contract if you sold another property;
- proof of savings or inheritance.
Money arriving from outside the EU, in dollars, dirhams, reais or other currencies, can take longer to clear. Plan for that delay.
If you need a mortgage, expect stricter terms than residents get. Spanish law sets no cap on how much a bank can lend. In practice, non-residents are usually offered 60% to 70% of the property value, while residents can get up to 80%, according to Advisors in Spain. Banks calculate that percentage on the lower of the price and their own valuation. That means you should plan for a deposit of 30% to 40%, plus purchase costs on top.
Step 3: Due Diligence Before You Commit
This is the step that protects your money. Ask an independent lawyer, one who does not work for the agent or the seller, to check:
- the Land Registry extract (nota simple), to confirm who owns the property and whether there are mortgages or seizures on it;
- that the property matches the cadastral description;
- unpaid IBI property tax and community fees, which can pass to the new owner;
- building licences, the habitation certificate and the energy certificate;
- any planning issues, especially for rural or coastal homes.
For a resale home, do these checks before you sign the arras contract, not after.
Step 4: Reservation and Arras Contract
Many sales begin with a small reservation deposit that takes the property off the market. The commitment that actually matters is the arras contract (contrato de arras), and buyers usually pay about 10% of the price when they sign it, according to Hometailor. The most common version is arras penitenciales:
- if you walk away, you lose the deposit;
- if the seller walks away, they must pay it back twice over.
Read the contract carefully. Check the completion date and what happens if the mortgage is refused. Check what is included in the sale, such as furniture or parking. Have a translation made if you don't read Spanish.
Step 5: Completion at the Notary
You complete the purchase by signing the public deed (escritura pública) before a Spanish notary and paying the balance, and you receive the keys that day. The notary checks identities, charges and payments. However, the notary does not represent you and does not review the property for you. That is your lawyer's job. If you can't travel, you can sign through a power of attorney granted in Spain or abroad. When signed abroad, it usually needs an apostille.
After signing, your lawyer or gestoría pays the purchase taxes and registers the deed in the Land Registry. According to Vicox Legal, the taxes are normally due within 30 working days. Registration is what protects you against third parties. Don't skip it.
What It Really Costs
The biggest item is the purchase tax. Which tax applies depends on whether you buy a resale home or a new build, and the rate depends on the region. Non-residents pay the same rates as Spanish buyers. However, they often don't qualify for regional reductions reserved for residents, as Wise notes.
| Cost | Resale home | New build from a developer |
|---|---|---|
| Main purchase tax | Transfer tax (ITP): 6% Madrid, 7% Andalusia, 9% Valencia region (from June 2026), 10–13% Catalonia | VAT (IVA) 10%; 7% IGIC in the Canary Islands |
| Stamp duty (AJD) | Not charged | Usually 0.5–1.5%, set by region |
| Notary, registry, admin | About 1–2% | About 1–2% |
| Independent lawyer | Often around 1% + VAT | Often around 1% + VAT |
| Typical total on top of price | About 10–14% | About 12–14% |
The regional rates come from Right Now and Vicox Legal. The VAT and AJD figures come from Iberian Tax. Rates change often, so confirm the rate in force on the day you sign.
Here is a worked example. On a €300,000 resale apartment in Málaga, Andalusia's 7% ITP is €21,000. Add roughly €3,000 to €6,000 for notary, registry and administration, plus legal fees. Your total budget should therefore be about €330,000 before furniture or renovation.
If the seller is not resident in Spain
When you buy from a non-resident seller, you must hold back 3% of the price and pay it to the Spanish Tax Agency on Form 211 within one month, as explained by Vicox Legal. If you forget, you can end up liable for the seller's tax.
The Yearly Costs of Owning as a Non-Resident
Owning a home in Spain has recurring costs too. You will pay:
- IBI, the local property tax;
- community fees, if the building has shared areas;
- a tax that surprises many buyers: non-resident income tax on imputed income.
Even if you never rent the home out, the Spanish Tax Agency treats it as if it earned income. That deemed income is 1.1% or 2% of the cadastral value. It is taxed at 19% for residents of the EU, Iceland, Norway and Liechtenstein, and at 24% for everyone else. That includes buyers from the UK, the US, the Gulf, Latin America and Asia. You declare it each year on Form 210. If you rent the home out, the rules change, and you should get advice before you list it.
Mistakes to Avoid
- Signing the arras before the legal checks. Once you sign, getting out costs you the deposit.
- Using the agent's lawyer. You need someone who works only for you.
- Budgeting only the asking price. Add 10–14% for costs. On a mortgage, plan for 30–40% in cash.
- Assuming the property gives you residency. It doesn't. Your visa plan has to stand on its own.
- Ignoring the tax in your home country. Your country may also tax Spanish property or rental income. Check the double tax treaty between Spain and your country.
- Buying a holiday-let investment without checking the licence. Many Spanish cities and regions now restrict tourist rentals. Confirm that the licence exists and can be transferred to you.
Is Spain the Right Place to Buy?
Spain is open, transparent and well regulated, but it is not the only option. Buyers from around the world also compare it with Portugal, Greece, Cyprus and Montenegro, and with markets further afield such as Dubai or Panama. Each has different taxes, financing and visa rules. The right choice depends on where you will live, how you earn and what you want the property to do for you. Before you buy, think about your tax position when moving abroad. If you are moving for the first time, consider renting first. Our guide on renting a home abroad without costly mistakes can help.
Plan Your Purchase with Hexedes
Hexedes Group has 15 years of experience and more than 1,500 relocation projects behind it. We work with local lawyers and advisors to guide international buyers from the first search to the keys. We coordinate the NIE, banking, legal checks and the notary, so nothing is left to chance. Book a free introductory call and tell us what you are looking for.
This article is general information, not legal or tax advice. Tax rates and rules change. Always confirm your own case with a qualified professional before signing.
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