Real estate Travel

Buying Property in Spain as a Foreigner (2025 Complete Guide)

14th December 2025 by Nabiil

Spain continues to be one of the most attractive destinations in the world for international property buyers. From Mediterranean beach villas and golf-front homes to vibrant city apartments and countryside retreats, Spain offers lifestyle, security, and long-term investment potential. This 2025 complete guide explains everything foreigners need to know before buying property in Spain, legally, financially, and strategically.

Can Foreigners Buy Property in Spain?

Yes. Spain places no restrictions on foreign property ownership. Non-residents, EU citizens, and non-EU buyers can all legally purchase property in Spain with the same ownership rights as Spanish nationals.

Foreign buyers may purchase:

Residential homes (primary or second homes)
Investment properties
Off-plan developments
Commercial real estate

The process is transparent, well-regulated, and protected by Spanish property law.

Step-by-Step Process to Buy Property in Spain

1. Obtain an NIE Number

An NIE (Número de Identidad de Extranjero) is mandatory for all property purchases. It is required to:

Sign contracts
Pay taxes
Open a Spanish bank account

You can apply through a Spanish consulate or in Spain with legal representation.

2. Open a Spanish Bank Account

A local bank account is required to pay:

Property purchase costs
Taxes and notary fees
Utility bills and community fees

3. Choose the Right Property

Foreign buyers often choose locations such as:

Costa del Sol (Marbella, Benahavís, Estepona)
Barcelona and Madrid
Valencia and Alicante
Mallorca and Ibiza

Working with a reputable real estate agency is essential to accessing verified listings and off-market opportunities.

4. Legal Due Diligence

Always hire an independent lawyer to conduct due diligence, including:

Ownership verification
Debt and mortgage checks
Planning and building licenses
Compliance with zoning laws

5. Reservation Contract

A reservation agreement secures the property while legal checks are completed. A deposit (usually €6,000–€10,000) is paid.

6. Private Purchase Contract

The Contrato Privado de Compraventa requires a 10% deposit and legally binds both parties.

7. Completion at the Notary

The final deed (Escritura Pública) is signed before a notary, and the remaining balance is paid. Ownership is then registered with the Land Registry.

Property Taxes and Buying Costs in Spain (2025)

Foreign buyers should budget 10%–15% on top of the purchase price.

Purchase Taxes

Resale properties: Transfer Tax (ITP) – typically 7% to 10% depending on region
New-build properties:
- VAT (IVA) – 10%
- Stamp Duty (AJD) – 1% to 1.5%

Additional Costs

Notary fees: ~0.5%–1%
Land registry fees: ~0.5%
Legal fees: ~1%
Bank fees (if financing applies)

Financing Options for Foreign Buyers

Spanish banks offer mortgages to non-residents, typically:

Up to 60–70% loan-to-value
Terms up to 25 years
Fixed and variable interest options

Buyers may also purchase with:

Cash
International financing
Crypto (via regulated conversion and compliance)

Residency Options Through Property Ownership

Does Buying Property Give Residency?

Property ownership alone does not automatically grant residency, but it can support visa applications.

Popular Options in 2025

Non-Lucrative Visa – for retirees or passive income earners
Digital Nomad Visa – for remote workers
Entrepreneur & Business Visas

The Golden Visa program has been phased out for property-based investment, but alternative residency routes remain available.

Best Areas to Buy Property in Spain as a Foreigner

Costa del Sol

Ideal for luxury villas, golf properties, and strong rental demand.

Barcelona & Madrid

Best for city living, long-term rentals, and capital appreciation.

Balearic Islands

Premium lifestyle destinations with limited supply and strong demand.

Valencia & Alicante

Excellent value-for-money with growing international appeal.

Common Mistakes Foreign Buyers Should Avoid

Buying without legal representation
Underestimating total purchase costs
Not checking planning permissions
Choosing location before lifestyle goals
Ignoring tax residency implications

Is Buying Property in Spain a Good Investment in 2025?

Yes. Spain continues to offer:

Stable property market
Strong international demand
Lifestyle-driven appreciation
High rental yields in prime areas
Excellent long-term value for luxury assets

Especially in regions like Marbella, Benahavís, and coastal Spain, demand remains strong among international buyers.

Buying property in Spain as a foreigner in 2025 is a secure and rewarding process when handled correctly. With the right legal advice, local expertise, and strategic planning, international buyers can enjoy both lifestyle benefits and solid investment returns.

If you are considering buying property in Spain, professional guidance is essential to ensure a smooth, compliant, and successful purchase.

Looking to buy property in Spain? Contact our expert team for verified listings, off-market opportunities, and full buyer representation.