Buying property in Spain as a foreigner: the complete step-by-step guide (2026)

Foreigners can buy property in Spain on the same terms as Spaniards. There is no permit to apply for and no restriction on foreign ownership. What you do need is an NIE number, a Spanish bank account, an independent lawyer and a budget of 10 to 14 percent on top of the purchase price for taxes and fees. From reservation to receiving the keys typically takes two to four months.

The Spanish buying process differs from what you may be used to at home on a few important points. In this guide we walk you through the entire process, from the first preparations to the handover at the notary, including the current tax rates per region.

Updated 13 October 2026, including the new tax rates in the Valencian Community as of 1 June 2026.

What do you need to buy a house in Spain as a foreigner?

Before you commit to a property, you want three things in place. If you only arrange them after the reservation, you risk the process stalling while the deadlines in your contract keep running.

Applying for an NIE number

The NIE (Número de Identidad de Extranjero) is your tax identification number in Spain. Without it you cannot open a bank account, sign a deed of sale or pay taxes, so it is quite literally the first step. You can apply through the Spanish consulate in your home country or by appointment with the Policía Nacional in Spain. Allow two to six weeks, so start early.

Opening a Spanish bank account

With your passport and NIE number, opening an account at most Spanish banks is straightforward. You need it for the payments around the purchase, but above all for afterwards: gas, water, electricity, the municipal property tax (IBI) and the contribution to the owners' association (comunidad) are almost always collected by direct debit from a Spanish bank.

A power of attorney, if you cannot sign in person

If you cannot be in Spain for the signing, you give your lawyer a power of attorney (poder notarial). Your lawyer then signs on your behalf, including the final deed at the notary. A power of attorney can be drawn up by a Spanish notary or by a notary in your home country with an apostille.

At Palmhouses, we arrange these three things as standard as part of our full guidance throughout your purchase, so you do not have to chase them from abroad.

How does the buying process work, step by step?

Buying property in Spain involves six steps. Most of the time sits between the reservation and the handover at the notary: two to four months on average.

1. Orientation and selection. You decide on region, property type and budget. The difference between the Costa Blanca and the Costa Cálida is not just price, but also the level of amenities outside the high season and the tax rates.
2. Viewing trip. Over a few days, you view a preselected number of properties, with guidance on the ground.
3. Reservation contract. You secure the property with a deposit of typically 3,000 to 6,000 euros. The property is taken off the market and the amount is later deducted from the purchase price.
4. Legal due diligence. Your lawyer requests the nota simple, the extract from the Land Registry, and checks ownership, debts, permits and easements.
5. Private purchase contract (contrato de arras). You usually pay 10 percent of the purchase price, minus the reservation deposit. If you withdraw after this point, you lose this amount. If the seller withdraws, they must pay you back double.
6. Completion at the notary. You pay the balance, sign the deed of sale (escritura pública de compraventa) and receive the keys. The property is then registered in your name at the Registro de la Propiedad.

What does buying a house in Spain cost on top of the asking price?

Count on 10 to 14 percent extra. The exact figure depends mainly on the purchase tax, which is determined by two things: are you buying a resale property or a new build, and in which autonomous region is it located?

For a resale property, you pay transfer tax (ITP). It is calculated on either the purchase price or the official reference value set by the land registry (valor de referencia), whichever is higher. For a new build bought directly from a developer, you pay 10 percent VAT (IVA) plus stamp duty (AJD) instead. In return, you benefit from the statutory 1, 3 and 10 year guarantees.

On top of that come the notary and Land Registry fees, together roughly 1 to 2 percent, and your lawyer. Legal fees are usually 1 percent of the purchase price, plus 21 percent Spanish VAT.

Tax rates by region (2026)

As of 1 June 2026, the Valencian Community lowered its general ITP rate from 10 to 9 percent, and its AJD rate from 1.5 to 1.4 percent. Other regions, such as the Balearic Islands, apply their own rates. The reduced rates for young buyers and large families that you may come across online only apply to a main residence. For a second home, you pay the general rate.

Worked example: a 300,000 euro property on the Costa Blanca

If you finance with a Spanish mortgage, valuation and arrangement fees come on top.

What are the running costs after the purchase?

The costs do not stop at the handover. As an owner, you pay the annual municipal property tax (IBI), based on the cadastral value, and a small waste collection charge (basura). If the property is part of an apartment complex or resort, you also contribute to the comunidad for the upkeep of gardens, pool and communal areas. Buyers often underestimate this item, so always ask for the current amounts before you reserve.

Even if you only use the property yourself, you pay non-resident income tax (IRNR) in Spain every year. Spain assumes a notional income of 1.1 or 2 percent of the cadastral value, taxed at 19 percent for EU and EEA residents and 24 percent for residents of other countries. If you rent the property out, you pay tax on the actual rental income instead.

Your home country may also tax the property or the income from it, usually with relief to avoid double taxation under a tax treaty. How this works differs per country and per situation, so have it checked by a tax adviser who knows both systems.

How do you finance a house in Spain?

Most international buyers choose one of three routes. Which one works out best depends on your income, the equity in your current home and interest rates at the time.

With your own funds

Buying entirely with your own money makes the process fastest: there is no mortgage application and no valuation that can hold things up. Keep in mind that you also need to pay the 10 to 14 percent in additional costs from your own funds.

By releasing equity in your current home

Many of our buyers increase the mortgage on their home abroad and use that money for the purchase in Spain. This is often faster and cheaper than a Spanish mortgage, and you deal with a bank and terms you already know. Not every lender allows this for a property abroad, so check in advance.

With a Spanish mortgage

A Spanish mortgage is also an option, but as a non-resident you can typically finance 60 to 70 percent of the valuation. That means you contribute at least 30 percent yourself, plus the additional costs. Spanish banks also ask for an extensive financial file, including payslips and tax returns.

Not sure which route suits you? We are happy to think it through with you.

What should you watch out for?

The biggest misconception among foreign buyers: the notary in Spain does not check what you think they check. The notary records the transaction and verifies that it meets the legal requirements, but does not investigate whether there is an illegal extension on the plot or whether there are debts on the property. That is your own lawyer's job. So always hire a lawyer who is independent of the seller.

To begin with, your lawyer checks whether the seller is actually registered as the owner and whether there are any mortgages or charges on the property. They also verify that what is physically there, including extensions and the pool, matches what is registered with the land registry and the town hall. Outstanding bills deserve attention too: unpaid IBI or comunidad fees can pass to the new owner. Finally, the property should come with an energy performance certificate (certificado de eficiencia energética) and a certificate of occupancy.

If you are buying off-plan, pay extra attention to your stage payments. Every payment to the developer during construction must be covered by a bank guarantee or insurance policy. If the project is not completed, you get your money back.

Lastly, check whether your estate agent is officially registered. In the Valencian Community, this is the RAICV register. Palmhouses is registered and works with a dedicated legal partner. In a separate article, we explain how to recognise a good estate agent in Spain.

Frequently asked questions about buying a house in Spain

How long does it take to buy a house in Spain?

From reservation to completion at the notary takes two to four months on average. For off-plan new builds, the handover depends on the construction schedule and can take up to one and a half to two years.

Can you buy a house in Spain without travelling there?

Yes. With a power of attorney (poder notarial), your lawyer can sign all documents on your behalf, including the deed of sale at the notary. Most buyers do visit the property at least once before they reserve.

Does the proposed 100% tax on foreign buyers apply to me?

Only if you are neither an EU citizen nor resident in the EU. The Spanish government has proposed an additional tax for that group of buyers; EU citizens are not affected. As of October 2026, the proposal has not come into force.

Do you need a residence permit to buy a house in Spain?

No. Buying property only requires an NIE number. Living there is a separate matter: EU citizens who stay longer than three months register with the Central Register of Foreign Nationals, while non-EU citizens who want to stay more than 90 days in any 180-day period need a visa or residence permit. Owning property in Spain does not by itself give you the right to reside there.

Do you pay tax in your home country on a house in Spain?

That depends on your country of residence. Many countries tax foreign property or the income from it, usually with relief to avoid double taxation. In Spain, you pay IBI and non-resident income tax (IRNR) every year.

Ready to get started?

Browse our current selection of houses for sale on the Costa Blanca or our new build developments.

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