Villa Luma

Yes, foreigners can freely purchase property in Spain, whether for personal use, investment, or retirement. There are no restrictions based on nationality. However, non-EU buyers should be aware of potential regulatory changes, such as proposed taxes targeting non-EU property purchases.

The NIE (Número de Identificación de Extranjero) is a tax identification number required for all legal and financial transactions in Spain, including property purchases. You must obtain it before signing the deed. It can be acquired through Spanish consulates abroad or directly in Spain 

Buyers should budget for:

• Transfer Tax (ITP): 6–10% for resale properties.

   

• VAT (IVA): 10% for new properties, plus 1.5% for stamp duty.

   

Notary, registration, and legal fees: Approximately 2–3% of the purchase price.

Yes, non-residents can obtain mortgages from Spanish banks. Typically, banks offer up to 70% financing for non-residents, requiring a 30% down payment plus additional funds for taxes and fees.

The general steps include:

1. Obtain an NIE.

    

2. Open a Spanish bank account.

    

3. Find a property and make an offer.

    

4. Sign a reservation agreement and pay a deposit.
5. Conduct due diligence (legal and structural checks).

    

6. Sign the purchase deed before a notary.

    

7. Register the property and pay associated taxes

While not mandatory, hiring an independent lawyer is highly recommended. A lawyer will ensure the property is free of debts, verify legal documentation, and protect your interests throughout the transaction

This is the certificate of occupancy, confirming that a property meets habitability standards. It’s essential for utility registration and, in some regions, for property rentals

Rental regulations vary by region. Some areas require a tourist license for short-term rentals, and there may be restrictions in place to control housing availability for locals

Owners must pay:

• IBI (Impuesto sobre Bienes Inmuebles): Annual property tax.

   

• Non-Resident Income Tax: If you don’t live in Spain full-time.

   

Wealth Tax: Applicable for high-value properties, depending on regional laws

The Golden Visa program granted residency to non-EU citizens investing €500,000 or more in Spanish real estate. However, as of April 2025, the program has been discontinued

Typically, the process takes 1–3 months, depending on factors like obtaining an NIE, mortgage approval, and due diligence.

Essential documents include:

• Valid passport.

   

• NIE.

   

• Proof of funds or mortgage pre-approval.

   

• Spanish bank account details.

   

Signed reservation and purchase agreements.

Ensure:

• The property is free of debts or encumbrances.

   

• All licenses and permits are in order.

   

• There are no legal disputes involving the property.

   

• The property’s physical condition is sound.

Yes, including:

• Not understanding all taxes involved.

   

• Skipping due diligence.

   

• Not verifying the property’s legal status.

   

• Failing to account for additional costs.

Yes, with a power of attorney, a representative can handle the purchase on your behalf. This is common for international buyers.

Average prices per square meter:

• Madrid: €3,682

   

• Barcelona: €4,009

   

• Valencia: €1,824

   

• Malaga: €2,091

   

Palma de Mallorca: €2,897

Consider factors like proximity to amenities, climate, transportation links, and whether the area suits your lifestyle or investment goals. Popular regions include Costa del Sol, Balearic Islands, and major cities like Madrid and Barcelona.

The notary ensures the legality of the transaction, verifies the identities of parties involved, and records the sale in the public registry.

Owning property does not automatically grant residency. If you plan to stay long-term, you must apply for the appropriate visa or residency permit.

Spain has considered implementing a 100% tax on properties bought by non-EU citizens to address housing affordability issues. While not yet enacted, it’s essential to stay informed about such policy changes