How to Buy Property in Spain in 2026: A Step-by-Step Guide
(Updated 20 March 2026)
Estimated reading time: 13 minutes
Buying property in Spain can be a very smooth process when it is approached properly.
The key is not just finding a property you like. It is understanding the legal process, budgeting accurately, arranging the right financing, and making sure the ownership structure works for your wider plans.
This guide explains how to buy property in Spain step by step, including how to find the right property, what foreign buyers need to know about NIE numbers, deposits, mortgages, ownership structure, annual taxes, and completion.
Key Takeaways
- Foreign buyers, including buyers from the UK, EU, USA and the Middle East, can buy property in Spain.
- A NIE number is usually needed early in the process.
- Many buyers budget around 10%–15% on top of the purchase price for taxes and buying costs.
- Spanish mortgages are available to international buyers, subject to profile and lender criteria.
- Spain’s Golden Visa route was abolished from 3 April 2025, so buying property should not be treated as a current golden visa pathway.
Can Foreigners Buy Property in Spain?
Yes. Foreign buyers can buy property in Spain, including buyers from the UK, EU, USA and the Middle East. There are no general nationality-based restrictions on purchasing property, but the process still needs to be handled properly from a legal, financial and practical perspective.
For most international buyers, the experience is much smoother when the property search, financing strategy and legal side are considered together rather than separately.
The Step-By-Step Buying Process in Spain
The best areas to buy property in Menorca depend on whether your priority is harbour access, traditional charm, sea views, privacy or year-round practicality. The island is not a uniform market, and different areas appeal to very different buyers.
Before viewing seriously, work out how you intend to buy: cash, a Spanish mortgage, or a mix of both.
If you need finance, it helps to get an early sense of your borrowing range and the total cash required, including taxes and buying costs. This gives you a more realistic budget from the outset and helps avoid wasting time on properties that do not fit.
Foreign buyers usually need a NIE (Foreigner Identity Number) for tax-relevant transactions in Spain.
This can usually be applied for in Spain or via the Spanish consular office in your country of residence. It is worth doing early, as progress can slow down later if this paperwork is still outstanding.
Choose an independent lawyer early and, where relevant, it is also wise to have a mortgage broker and a foreign exchange specialist in place. Putting the right professionals around you early can help reduce mistakes before you commit funds.
A good FX provider can also help you save thousands over time on transfers and mortgage payments. Where needed, we can introduce you to our trusted FX specialists.
Once you find a property, review not just the asking price but also purchase costs, financing costs, annual running costs, and any renovation or furnishing budget. A property may look attractive at first glance, but it needs to work financially as well as practically.
A reservation agreement may remove the property from the market for a short period, but the terms matter. Make sure your lawyer checks what happens to the reservation amount if legal, valuation or financing issues arise.
In many cases, the reservation fee is taken off the amount due at the preliminary contract stage, forming part of the overall deposit. However, buyers should not assume that all reservation deposits are treated the same way in every transaction.
Your lawyer should verify ownership, charges, planning position, licences and key documents.
If you are financing the purchase, this is usually when the valuation and mortgage approval process move forward.
Where ownership structure is relevant, our advisers, together with trusted legal and tax professionals, can help you think through the most suitable way to hold the property from the outset.
Once due diligence and commercial terms are clear, buyers often sign an preliminary contract called the Contrato de Arras and pay a deposit. The exact amount varies, but around 10% is common on many resale purchases. This is an important stage in the process, as it usually marks the point where both sides become more firmly committed.
Arrange the final balance, confirm mortgage conditions if applicable, set up insurance where required, and organise any bank account or payment mechanics needed for completion and ongoing ownership.
This is also the point to make sure everything is in place for a smooth transfer of funds and a clean completion day. Fire insurance is the key compulsory insurance point where a mortgage is involved, while life insurance may still be requested by some lenders.
The sale is completed by signing the Escritura de Compraventa before a Spanish notary.
At this point, the balance is paid, the deed is signed and the property transfers. The notary plays an important role in the transaction, but is not a substitute for having your own independent lawyer.
The sale is completed by signing the Escritura de Compraventa before a Spanish notary.
At this point, the balance is paid, the deed is signed and the property transfers. The notary plays an important role in the transaction, but is not a substitute for having your own independent lawyer.
After completion, the deed is registered, taxes are settled, and practical setup begins — utilities, community payments, insurance, banking arrangements and, where relevant, non-resident tax planning.
Completion is not the end of the process. Good post-completion organisation helps ownership feel far smoother from the very beginning.
Finding the Right Property in Spain
One of the biggest challenges for overseas buyers is not just understanding the process, but knowing how to find the right property in the right location.
Spain offers a wide range of opportunities, including:
- coastal apartments
- second homes
- family villas
- new developments
- investment properties
The right choice depends on how you plan to use the property, your budget, your preferred location, and whether lifestyle, rental potential or long-term capital growth is the priority.
We help clients source the right property in Spain as well as arrange the financing around it, making the process feel more joined up from the very beginning.
How Much Does It Cost to Buy Property in Spain?
The purchase price is only part of the overall cost.
In addition to the agreed price, buyers should budget for taxes, legal fees, notary fees, land registry fees, and in some cases mortgage and valuation costs.
As a practical rule of thumb, many buyers choose to budget around 10%–15% on top of the purchase price, although the final figure depends on whether the property is a resale or new build, whether finance is involved, and which region of Spain the property is in.
If You Are Buying a Resale Property
The main tax is usually ITP (Property Transfer Tax), which generally ranges from 6% to 10%, depending on the autonomous community.
On top of this, buyers should also allow for:
- Legal fees
- Notary fees
- Land registry fees
- Mortgage-related valuation or lender costs, if finance is involved
If You Are Buying a New Build Property
Instead of transfer tax, buyers usually pay:
- VAT (IVA): 10% on most new residential property
- Stamp Duty (AJD): typically around 0.5% to 1.5%, depending on the region
You should then also allow for legal fees, notary fees, land registry fees, and any finance-related costs if you are borrowing.
A Simple Planning Rule
As a quick working guide:
- Resale property: often budget around 8%–13%+
- New build property: often budget around 11%–13%+
- Safer overall planning range: 10%–15% above the purchase price
That gives most buyers a more realistic buffer from the outset.
What Are the Annual Property Taxes and Running Costs in Spain?
Buying costs are only part of the picture. Once you own a property in Spain, there may also be annual taxes and ongoing running costs to consider.
IBI (Annual Local Property Tax)
IBI (Impuesto sobre Bienes Inmuebles) is the main annual municipal property tax in Spain, and is broadly the equivalent of council tax in the UK.
The amount varies depending on the municipality and the cadastral value of the property, so it is not a fixed national percentage.
Non-Resident Property Tax
If you own property in Spain as a non-resident, you may also have a tax filing obligation even if the property is only for personal use.
If the property is rented, Spanish-source rental income may also need to be declared.
Other Running Costs
Depending on the property, owners may also need to budget for:
- Community fees
- Utilities
- Insurance
- Maintenance
- Property management
- Letting-related costs where relevant
Thinking about these ongoing costs early helps avoid a situation where a purchase looks comfortable at the buying stage but feels less efficient once ownership begins.
Mortgages in Spain for International Buyers
Many overseas buyers use a Spanish mortgage to help fund their purchase, whether they are buying a second home, an investment property or a family base in Spain.
As a broad guide, we can typically arrange loan-to-value ratios of up to 70% for UK, EU and US residents, subject to status, profile and lender criteria.
For residents of the UAE and the wider Middle East, we can typically arrange up to 75% LTV. We are one of the few able to secure these higher LTVs for suitable clients through our wide banking relationships.
The exact mortgage terms available will depend on factors such as:
- Your income and how steady it is
- Your existing debts
- Your available assets and cash position
- Your nationality and where you live
- The property you are buying
We help clients understand their financing options early, shape a realistic budget, present their application properly, and align the mortgage strategy with the property they are buying.
For a more detailed look at how Spanish mortgages work, including eligibility, deposit requirements and the application process, visit our Spanish Mortgages page.
Can You Buy Property in Spain Through a Company?
In some cases, yes, but this is not automatically the best route for every buyer.
Whether you buy in personal names or through a company can affect:
- Tax
- Succession planning
- Financing
- Administration
- Long-term flexibility
The right route depends on why you are buying, how the property will be used, what your wider asset structure looks like, and which jurisdiction you are based in.
Our advisers, together with trusted legal and tax professionals, can help you optimise your ownership strategy in a measured and practical way.
Spanish Wealth Tax: What Property Buyers Need to Know
Spanish Wealth Tax can be relevant for some buyers, particularly where overall asset levels are higher.
Here’s a a simple snapshot for non-residents:
- A declaration is generally required if the total gross value of your assets exceeds €2 million, not just your real estate
- Non-residents outside the EU/EEA are generally entitled to a €700,000 personal allowance per person
- Any mortgage or debt balances tied to those taxable assets can usually be deducted
- The tax is calculated on a progressive scale, typically ranging from 0.2% to 3.5% depending on the value of taxable assets
Whether it applies in practice will depend on your residency status, how the property is owned, the value of your Spanish assets, and the regional rules that apply.
It is usually best to consider this early, particularly if your asset base is higher, so that the ownership structure can be set up in a more efficient way from the outset.
If needed, we can introduce you to our panel of trusted legal and tax professionals to help you think through the most suitable approach.
For a more detailed explanation, read our Spanish Wealth Tax Guide.
New Build vs Resale: What Changes?
The buying process is broadly similar, but the key difference is what you are actually assessing and where the risks sit.
Resale Property
With a resale property, you are buying something that already exists — so the focus is on verifying what is there today.
This typically means:
- Confirming legal ownership and title are correct
- Checking for any debts, charges or liabilities attached to the property
- Reviewing community rules, fees and any ongoing issues
- Assessing the physical condition of the property
- Making sure what is registered legally matches what is being sold
New Build Property
With a new build, you are often buying something that is being built or recently completed — so the focus shifts to delivery and the developer.
This typically means:
- Assessing the developer’s track record and financial strength
- Confirming licences and planning permissions are in place
- Understanding the stage payment structure
- Reviewing specifications, finishes and what is included
- Checking expected completion timelines
- Inspecting the property on delivery (snagging)
- Understanding the contract and what protections are in place if delays occur
Neither option is automatically better. A resale may offer more certainty on what you are buying today, while a new build may offer modern specifications and potential for capital growth — it ultimately depends on your priorities and how you plan to use the property.
Common Pitfalls When Buying Property in Spain
The biggest mistakes are often not dramatic. They are usually small decisions made too early, too quickly, or without the right advice.
Overcommitting Before Proper Checks
This often happens when a buyer becomes emotionally committed to a property before the reservation terms or legal position have been reviewed properly.
Underestimating the True Budget
Focusing too heavily on the asking price can lead buyers to underestimate the full capital required, especially once taxes, fees and setup costs are included.
Assuming Finance Will Be Straightforward
Mortgage availability should be checked early rather than assumed. This is particularly important where income structures are more complex or funds are held across different jurisdictions.
Overlooking Ownership Structure
The right ownership route can affect tax, succession planning, financing and long-term flexibility, so it is better considered before committing than after completion.
Failing to Plan for Currency Movements
If your wealth or income is held outside euros, foreign exchange strategy can matter more than many buyers expect.
Treating the Notary as a Substitute for Independent Advice
A notary plays an important role in the transaction, but is not a substitute for having your own independent lawyer review the purchase properly.
Explore Property for Sale in Spain
If you are still at the stage of exploring the market, viewing a curated selection of properties for sale in Spain can be a useful next step.
This can help you get a clearer feel for pricing, property types, locations and what may be achievable within your budget, whether you are searching for a second home, a relocation property or an investment opportunity.
Browse our latest properties for sale in Spain to start building a clearer picture of what is available and where the strongest opportunities may be.
How We Help
Whether you are still exploring your options or ready to move forward, having the right guidance can make the process feel more straightforward and efficient.
With more than 25 years of experience helping international clients buy property overseas, we support you throughout the process — from start to completion and beyond.
We can help you to:
- Source the right property through our network of local agents and developers
- Understand which areas best match your goals and lifestyle
- Secure suitable financing based on your profile
- Structure your purchase with guidance from trusted lawyers & accountants
- Navigate the buying process from start to finish through one point of contact
If you would like tailored advice, get in touch and speak with one of our experienced Property Advisors or Mortgage Brokers.