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Buying Property in Spain as a Foreigner: costs & taxes (2026)

Foreigners can buy freely in Spain — but the taxes and fees add around 10–13% on top of the price. Here's the full breakdown, the process, and how to protect yourself.

Last updated: August 2026 · Reading time ~7 min

Quick answer

Anyone can buy property in Spain — you just need a NIE and a Spanish bank account. Budget ~10–13% on top of the price for taxes and fees: ITP (≈6–10%) on resale homes, or 10% IVA + AJD on new builds, plus notary, registry and a lawyer. Buying no longer grants residency (the Golden Visa ended April 2025).

The costs, broken down

CostTypicalNotes
ITP (resale) or IVA+AJD (new)~6–10% resale · 10% + 1–1.5% newThe biggest cost; varies by region
Notary~0.1–0.5%Public deed (escritura)
Land registry~0.1–0.4%Registering the title
Legal / conveyancing~1% or fixed feeIndependent property lawyer
Mortgage costsvariesValuation + your own mortgage set-up

ITP/IVA rates vary by region — always confirm the rate where you're buying.

The buying process, step by step

  1. 1Get your NIE & open a bank accountBoth are needed to pay and complete.
  2. 2Make an offer & sign the reservationA small deposit takes the property off the market.
  3. 3Due diligence & Arras contractYour lawyer checks debts/licences; you sign the deposit contract (usually 10%).
  4. 4Sign at the notary (escritura)Pay the balance and taxes; you get the public deed.
  5. 5Register the titleThe property is registered in your name at the Land Registry.

Financing the purchase? See our non-resident mortgage guide — expect a 30–40% deposit plus the ~10–13% costs above.

Common mistakes

  • ✕Under-budgeting — the ~10–13% of taxes and fees are on top of the price.
  • ✕Skipping an independent lawyer (using only the seller's or agent's).
  • ✕Not checking for outstanding debts, IBI arrears or illegal extensions before signing.
  • ✕Forgetting non-resident income tax and IBI as ongoing yearly costs.

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Tell us about your purchase and we'll match you with an English-speaking property lawyer (and a mortgage broker if you need finance) — free, no obligation.

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Frequently asked questions

Can a foreigner buy property in Spain?▼

Yes. There are no restrictions on foreigners (EU or non-EU) buying property in Spain. You'll need a NIE number and, in practice, a Spanish bank account. Buying property does not by itself grant residency (the Golden Visa ended in April 2025).

How much tax do you pay when buying property in Spain?▼

Budget roughly 10–13% on top of the purchase price. Resale homes pay ITP (transfer tax) of about 6–10% depending on the region; new builds pay 10% IVA plus 1–1.5% AJD (stamp duty). Then add notary, land registry and legal fees.

What is ITP and how much is it?▼

ITP (Impuesto de Transmisiones Patrimoniales) is the transfer tax on resale properties. The rate is set by each region — commonly 6–10% (e.g. around 6% in Madrid, up to 10% in Catalonia and Valencia). New-build purchases pay IVA + AJD instead.

Do I need a NIE to buy a house in Spain?▼

Yes. You need a NIE (foreigner ID number) to complete the purchase, pay taxes and set up utilities. You can get it before or during the process — a lawyer or gestor can obtain it for you.

Do I need a lawyer to buy property in Spain?▼

It's strongly recommended. An independent Spanish property lawyer runs due diligence (debts, licences, land registry), reviews the contract and protects your deposit. Conveyancing typically costs about 1% of the price or a fixed fee.

What are the ongoing costs of owning property in Spain?▼

Annual IBI (council tax), community fees if it's in a building/urbanisation, rubbish tax, home insurance, and — for non-residents — non-resident income tax (even if you don't rent it out).

General information, not legal or tax advice. Rates and rules vary by region and change — confirm with a licensed Spanish property lawyer before committing.