Invest in Spain real estate: how to buy as a foreigner, what it costs in taxes and fees, how tourist licences work, and what has changed since the Golden Visa was abolished.

Spain allows full freehold ownership for any foreign national with no zone restrictions. The process: obtain a NIE (Spanish tax ID for foreigners) and open a Spanish bank account; engage an independent Spanish abogado (lawyer) for due diligence including Nota Simple review, debt clearance, and planning checks; sign a contrato de arras (preliminary contract) paying a 10% deposit; complete the purchase at a Spanish Notary signing the escritura pública (public title deed) and paying the balance; register the escritura at the Land Registry. If purchasing with a mortgage, the bank's mandatory 10-day cooling-off period must be factored into the timeline. Allow 6–12 weeks from offer accepted to completion for a straightforward transaction.

The main tax depends on whether the property is new build (from a developer) or resale: for new build, IVA (VAT) at 10% of the purchase price plus AJD (stamp duty) at approximately 1–1.5% depending on the autonomous region; for resale, ITP (Impuesto de Transmisiones Patrimoniales) — a transfer tax that varies by region: Andalusia 7%, Madrid 6%, Catalonia 10%, Valencia 10%, Balearics 8–11% (graduated on higher values). Both routes additionally incur notary fees (~0.5%), Land Registry fees (~0.3%), and legal fees (~1%). Total buyer-side costs are approximately 10–14% on resale and 12–14% on new build. The agency fee in Spain is traditionally paid by the seller, not the buyer. Full regional tax table on the Spain understanding page.

The NIE (Número de Identificación de Extranjero) is a Spanish tax identification number required for all property transactions, tax payments, and financial activity in Spain. It is also needed to open a Spanish bank account, which is required to pay purchase taxes and ongoing costs such as IBI (annual land tax) and community charges. The NIE can be obtained at a Spanish consulate in your country of residence — typically the fastest route for non-residents who have not yet visited Spain; bring your passport, the application form (EX-15), and proof of purpose. In Spain, NIEs are issued at National Police stations (Brigada Provincial de Extranjería) by prior appointment. Processing at a consulate takes 1–4 weeks. Start this process before identifying a specific property — it cannot be rushed once you need it.

Yes. Spain's property-based Golden Visa — which offered residency to non-EU buyers investing €500,000+ in Spanish real estate — was abolished with effect from April 3, 2025. No new applications have been accepted since that date. Existing Golden Visa holders are unaffected by the abolition. For international buyers purchasing Spanish property after April 2025 who also want Spanish residency, the main current routes are: the Non-Lucrative Visa (NLV) for those with sufficient passive income or savings to support themselves without working in Spain; the Digital Nomad Visa for remote workers employed by non-Spanish companies; the EU long-stay (D) visa; and standard family reunification routes. None of these are directly linked to property investment value. Full current residency options on the Spain understanding page.

Tourist rental licences (VUT — Vivienda de Uso Turístico, or equivalent regional names) are required to legally operate short-term holiday rentals in Spain. Regulation is devolved to the autonomous communities and, increasingly, to individual municipalities. The situation varies significantly by location: Barcelona has had a moratorium on new tourist licence issuance since 2012 and is actively reducing the total number; Madrid has restrictions based on building type and floor; the Balearic Islands (Mallorca, Ibiza, Menorca) have zone-based licence availability with some areas completely closed to new licences; Andalusia (Costa del Sol, Seville, Granada) has a relatively accessible registration process but municipalities are adding restrictions. Confirm tourist licence availability — or whether an existing licence transfers with the property — before signing the arras. Operating without a licence is illegal, carries significant fines, and the licence cannot be assumed to be obtainable just because neighbours have one.

Properties with a valid tourist licence in strong coastal locations (Costa del Sol, Costa Blanca, licensed Mallorca zones) generate gross yields of 4–6% in good occupancy years. Net yields after property management fees (15–25% of gross revenue), IBI annual land tax (~0.5% of cadastral value), community charges, maintenance, and vacancy run approximately 3–5%. Long-term residential let yields (contrato de arrendamiento) are more predictable — gross 3–5% in coastal areas, net 2.5–4%. Mallorca and Ibiza ultra-prime yields are lower (2–4% gross) but reflect higher capital appreciation potential and stronger liquidity. Urban markets (Madrid, Barcelona) are subject to rental price caps and are less straightforward for non-resident investor yield strategies. Verify actuals from the specific management operator's data on comparable operating properties.

Entry-level apartments in established coastal markets: Costa Blanca (Alicante region) from ~€150,000–200,000 for resale studios; Costa del Sol from ~€200,000–250,000 for one-bedroom apartments in Fuengirola, Torremolinos, or Estepona; Mallorca from ~€250,000+ for apartments in non-ultra-prime areas. Central Madrid one-bedrooms start from approximately €250,000 in outer districts, €400,000+ centrally. Barcelona from ~€300,000 for one-bedroom apartments. Quality, tourist licence status, and proximity to the sea move prices significantly even within these ranges. Budget an additional 10–14% for purchase taxes and fees on top of the property price.

Yes. Spanish banks offer mortgages to non-resident foreign buyers. Standard terms for non-residents: up to 70% LTV (some banks 60% for non-EU nationals); interest rates variable (Euribor + spread, typically Euribor + 0.7–1.5%) or fixed; terms up to 30 years; maximum age at maturity typically 75. Since 2018, the bank pays AJD (stamp duty on the mortgage deed) — previously a buyer cost. The buyer pays the mortgage arrangement fee (typically 0–1%), property valuation fee, and the mortgage notary and Land Registry costs. Spanish mortgage offers require a 10-day mandatory reflection period before signing — build this into your completion timeline. Pre-approval before signing arras is strongly recommended.

Annual costs for a typical Spanish residential property: IBI (Impuesto sobre Bienes Inmuebles) — an annual municipal land tax based on the cadastral value, typically 0.4–1.1% of cadastral value (usually much lower than market value); community charges (gastos de comunidad) for building maintenance, pool, gardens — typically €600–3,000/year depending on development; non-resident income tax (IRNR) — even if the property is not rented, Spanish non-residents pay a notional rental income tax of 1.1–2% of the cadastral value; if the property is rented, rental income is taxed at 19% for EU residents (24% for non-EU residents) after allowable expenses. Wealth tax applies in some regions for high-value holdings. An annual property management and maintenance budget of 1–2% of property value is prudent for upkeep.

No single region is universally superior — the best yield depends on the buyer's strategy. For short-term rental yield with a tourist licence: Costa del Sol (Málaga region) currently offers the best combination of licence accessibility, international demand depth, and management ecosystem — gross yields of 4–6% are realistic. Costa Blanca is more accessible entry-point with slightly lower yields. Mallorca and Ibiza have higher capital values and licence restrictions but produce strong yields where licences exist. For long-term residential yield with lower management intensity: smaller coastal cities and provincial capitals outside tourist zones offer more stable occupancy. For capital growth with lower yield: Mallorca ultra-prime, Barcelona (despite rental restrictions), and Madrid prime neighbourhoods have demonstrated the strongest medium-term capital performance. Tourist licence status, not just location, is the most important yield variable in Spanish coastal markets.

Yes — remote purchase through a Power of Attorney (POA) is standard practice in Spain for international buyers. The POA authorises a Spanish lawyer or trusted representative to sign the escritura and handle all formalities on the buyer's behalf. The POA must be notarised and, for non-EU countries, apostilled (under the Hague Apostille Convention) or consular legalised. Many buyers complete the NIE application, legal due diligence, and arras process remotely and visit only once to complete — or execute entirely via POA. We coordinate with experienced Spanish legal teams who handle remote purchases regularly for international buyers.

We advise international buyers on Spanish property purchases — region and property selection, NIE process guidance, legal due diligence coordination (Nota Simple, debt clearance, tourist licence status), independent abogado introduction, arras and escritura review, and tax structure introduction. We work selectively across coastal and urban developments we have assessed and are not tied to any single developer or agency. Our advisors hold NAR REALTOR® membership and the Certified International Property Specialist (CIPS) designation. Bilingual in English and French. Remote advisory available. Contact us on WhatsApp at +230 5256 5725 — no obligation, we typically respond within business hours.