Update 2026-10-08: Royal Decree-law 29/2026 of 6 October (BOE-A-2026-20823), in force since 8 October, provides from 1 December 2026 the 4% VAT rate also for protected housing under permanent or indefinite classification when the developer sells (art. 7), and creates the TU CASA loan line for a first main home (art. 19), whose requirements a Council of Ministers agreement will set; a home bought with that loan keeps a maximum sale price permanently and, if let, the rent is capped (art. 19.13). Congress must validate or repeal it within 30 days of its promulgation on 6.10.2026 (art. 86.2 of the Spanish Constitution), as it did with RDL 26/2026 and 27/2026 on 2 October. The rates in this guide are those in force today; the extended 4% would apply only from 1.12.2026; if you plan to buy relying on them, check with a professional.
In short: any foreigner can buy property in Spain without prior residency, but a NIE (foreign ID number) is mandatory before signing at the notary; buying property does not automatically grant any residence permit, and the Golden Visa (formerly residence for a €500,000 property investment) was abolished on 3 April 2025, with a transitional regime for earlier cases.
In person or by representative? Mixed. The notarial deed of sale requires personal appearance or a duly authorised representative (notarised power of attorney). Registration at the Land Registry is usually handled by the notary or a gestoría (administrative agent).
NIE — mandatory requirement
A NIE (Número de Identidad de Extranjero) is compulsory for any notarial property transaction in Spain. The NIE is an identification number that also serves as the tax ID (NIF, art. 20.1 RD 1065/2007); it does not confer residency or right of stay. How to apply: procedimientos/nie-como-solicitar.
Key purchase steps
- Get the NIE before any signing (see NIE to buy property in Spain and procedimientos/nie-como-solicitar).
- Notary deed: a public deed (escritura pública) is required before a Spanish notary; mandatory for Land Registry registration.
- Pay taxes (see below).
- Land Registry inscription (registradores.org): provides legal protection against third parties and is essential for future mortgaging or selling. The notary usually submits this electronically.
Purchase taxes
| Situation | Tax | Indicative rate |
|---|---|---|
| New-build (first sale from developer) | VAT (IVA) | 10% of price (4% for special-regime VPO, art. 91.Dos.1.6º LIVA) |
| New-build | Stamp Duty (AJD) | set by each region; in the Comunitat Valenciana, 0.1% for a main home and 1.4% in all other cases |
| Second-hand property | Transfer Tax (ITP) | set by each region; in the Comunitat Valenciana, 9% (11% if the property is worth more than €1,000,000) |
| Sale of the home | Municipal capital gains (plusvalía) | paid by the seller; if the seller is a non-resident individual, the buyer pays it as substitute taxpayer (art. 106 TRLRHL) |
| Seller not a tax resident | 3% withholding (Modelo 211) | withheld and paid by the buyer within 1 month (art. 25.2 TRLIRNR) |
Each autonomous community (CCAA) sets its own ITP and AJD rates. Check the regional tax authority portal for the property's location.
Details with the Comunitat Valenciana rates, the Catastro reference value and the 3% withholding when the seller is not a tax resident: taxes when buying a home.
Annual taxes after purchase
- IBI: local property tax, set by the municipality based on cadastral value.
- IRNR (Non-Resident Income Tax): if you are not a Spanish tax resident, you must declare imputed rental income each year, even if the property is not rented out (art. 24.5 RDLeg 5/2004). Rates:
- 19% for EU/EEA residents (art. 25 RDLeg 5/2004)
- 24% for non-EU/EEA residents
- Declaration form: Modelo 210 (filed from 1 April to 31 December of the year after the tax year, art. 5.b of Orden EHA/3316/2010). Portal: sede.agenciatributaria.gob.es
Mortgage for non-residents
Spanish banks do lend to non-residents, typically on more restrictive terms. As a market indication (not a legal limit), lenders commonly offer up to 60–70% loan-to-value for non-residents (vs. 80% for residents). Actual terms vary by institution; check directly with banks.
⚠️ The 60–70% LTV figure is market practice, not a legally regulated cap. Verify current conditions with each lender.
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Golden Visa — ABOLISHED
The investor residence visa and permit of Law 14/2013 was abolished in full, not only the property route (formerly €500,000 in real estate): public debt, shares, deposits and the business project of general interest went too. More details and alternatives: Golden Visa abolished.
Norm: Ley Orgánica 1/2025, de 2 de enero (BOE-A-2025-76), in its final provision twenty-first, section One, left arts. 63 to 67 of Law 14/2013 without content with effect from 3 April 2025. Verified in the BOE text and the amendment graph: Law 14/2013 — analysis.
Transitional regime: under transitional provisions one and two of Law 14/2013, applications filed before that date are decided under the rules in force on the filing date; visas and permits valid on that date keep their validity for the time they were issued for, and their renewals are processed under the rules in force when the initial permit was granted.
What IS certain: since 3 April 2025, buying property at any price opens no investor residence route, except that transitional regime. For residency options, see legalizacion/.
See also: if you would rather rent and you are young, the youth rent bonus (bono alquiler joven).
Informational only; check the official source and a professional for your specific case.
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