Complete Guide to Buying Property in Spain as a Foreigner (2026)

Everything you need to know about purchasing real estate in Spain — from NIE numbers and legal requirements to mortgages, taxes, and the step-by-step buying process on Costa del Sol.

Complete Guide to Buying Property in Spain as a Foreigner (2026)

Why Buy Property in Spain?

Spain remains one of the most welcoming destinations for international property buyers — whether you hold an EU passport, are a British, American, Canadian or Latin American citizen, or come from anywhere else in the world. There are no restrictions on foreign ownership of Spanish property, and the same purchase rights, taxes and legal protections apply regardless of nationality.

With over 300 days of sunshine, world-class infrastructure, excellent healthcare, and a cost of living significantly lower than Northern Europe, it's no wonder that thousands of foreigners purchase property here every year. The Costa del Sol, stretching from Málaga to Estepona, is particularly popular among Scandinavian, British, German and increasingly North and South American buyers. Areas like Fuengirola, Benalmádena, Mijas, Marbella, Estepona and Benahavís offer everything from approachable apartments to private villas with sea views.

This guide covers the buying process for both EU and non-EU citizens. The few areas where rules differ — primarily around residency and visas — are clearly noted. For a deeper look at the latest tax and tourist-licence rumours affecting non-EU investors, see our 2026 facts vs. myths article.

Step 1: Get Your NIE Number

The NIE (Número de Identificación de Extranjero) is your foreigner identification number, and it is the very first thing every non-Spanish buyer needs — EU and non-EU citizens alike. Without an NIE you cannot buy property, open a bank account, sign a deed at the notary or pay Spanish taxes.

How EU/EEA citizens apply:

  • Apply at a Spanish consulate in your home country, or in person at a designated National Police station in Spain
  • If you plan to stay in Spain longer than 90 days, you also register on the Central Register of Foreign Nationals and receive a green EU registration certificate (which contains your NIE) — this is a residency formality, not a separate ID

 

How non-EU citizens apply:

  • Apply at a Spanish consulate in your home country (recommended — usually faster and easier than booking an appointment in Spain)
  • Or apply in person at a National Police immigration office in Spain on a tourist entry
  • Most international buyers grant Power of Attorney to a Spanish lawyer or gestor, who applies and collects the NIE on their behalf — this is the simplest route if you're abroad

Processing time varies from 1–4 weeks depending on the consulate or office. Start this process early — without an NIE the whole transaction stalls.

Step 2: Open a Spanish Bank Account

You'll need a Spanish bank account to pay taxes, utility bills and complete the property purchase. Major banks like CaixaBank, Santander, BBVA and Sabadell are experienced with non-resident clients from across Europe, the UK, the US and Latin America.

Documents typically required:

  • Valid passport
  • NIE number
  • Proof of income or employment (recent pay slips, tax returns or business statements)
  • Proof of address in your home country (utility bill or bank statement)
  • Non-residents are usually asked for a "certificado de no residente" — your bank arranges this for a small fee

Step 3: Find Your Property

This is the exciting part. Whether you're looking for a holiday home, a permanent residence or an investment property, the Costa del Sol has something for almost every lifestyle and budget.

Key considerations:

  • Location: Beachfront, golf community, town centre or countryside?
  • Property type: Apartment, townhouse, villa or new development?
  • Budget: Include purchase taxes and fees of roughly 10–13% on top of the price
  • Rental potential: If you intend to rent, check whether the building and municipality currently allow tourist licences (VFT)

Working with a trusted local advisor like Nordic Estate Group ensures you see the right properties and avoid the common pitfalls of buying abroad.

Step 4: Make an Offer & Sign the Reservation Contract

Once you've found your property, you'll make a formal offer. If accepted, you sign a reservation contract (contrato de reserva) and pay a deposit — typically €3,000–€10,000 — to take the property off the market.

This deposit is normally deducted from the final purchase price.

Step 5: Due Diligence & Legal Checks

This is where having a good independent lawyer is essential. They will verify:

  • The property is free of debts, mortgages and liens
  • Building permits and licences are in order
  • The property matches the land registry and cadastral records
  • Community fees and IBI (local property tax) are up to date
  • There are no pending legal or planning issues

Never skip due diligence. It protects your investment and gives you peace of mind.

Step 6: Sign the Private Purchase Contract

After due diligence, you sign the contrato de arras (private purchase contract) and pay 10% of the purchase price as a deposit. This contract is legally binding:

  • If the buyer withdraws, they lose the deposit
  • If the seller withdraws, they must return double the deposit

Step 7: Complete at the Notary

The final step takes place at a Spanish notary. Both parties sign the escritura pública (public deed), the remaining balance is paid, and you receive the keys to your new property.

The notary ensures the transaction is legally valid and submits the deed to the Land Registry (Registro de la Propiedad).

Taxes & Costs When Buying Property in Spain

Budget approximately 10–13% on top of the purchase price for taxes and costs. The same rates apply to EU and non-EU buyers — Spain does not charge a higher purchase tax based on nationality.

  • Transfer Tax (ITP): 7% for resale properties in Andalusia
  • VAT (IVA): 10% for new-build properties + 1.2% stamp duty (AJD) in Andalusia
  • Notary fees: €600–€1,500
  • Land Registry: €400–€1,000
  • Legal fees: Typically 1–1.5% of purchase price

Can Foreigners Get a Mortgage in Spain?

Yes — and the rules are essentially the same for EU and non-EU buyers. Spanish banks classify mortgages by residency status, not nationality:

  • Non-residents (whether EU or non-EU): typically 60–70% financing of the lower of purchase price or bank valuation
  • Residents in Spain: typically up to 80%

Typical requirements:

  • Proof of income (last 2–3 years of tax returns)
  • Employment contract or evidence of business income
  • Statement of existing debts and financial commitments
  • Bank valuation of the property

Several Costa del Sol banks have dedicated international desks experienced with North American, British and Scandinavian applicants.

Annual Costs of Owning Property in Spain

Once you own your property, expect these ongoing costs:

  • IBI (local property tax): €300–€2,000/year depending on value and municipality
  • Community fees: €50–€300/month for apartments with shared amenities
  • Home insurance: €200–€600/year
  • Non-resident income tax: An imputed income tax applies even if the property is not rented out
  • Utility bills: Electricity, water, internet

Residency & Visas: What Has Changed

This is the area where rules differ most clearly between EU and non-EU citizens.

EU/EEA/Swiss citizens have the right to live in Spain freely. If you stay more than 90 days you simply register on the foreign nationals register and obtain the green EU certificate.

Non-EU citizens can buy property without any visa or residency, but staying long-term requires a separate residency permit. The most relevant routes in 2026 are:

  • Non-Lucrative Visa (NLV): For buyers with sufficient passive income who do not intend to work in Spain — popular with retirees
  • Digital Nomad Visa: For remote workers and freelancers earning income from outside Spain
  • Entrepreneur Visa: For those launching an innovative business in Spain

Important update — Golden Visa is gone. Spain's investor "Golden Visa" residency programme, which previously granted residency in exchange for a €500,000 property investment, was officially abolished on 3 April 2025. No new applications are accepted. Existing Golden Visas remain valid and can be renewed under the previous rules, but the route is closed for new buyers. We cover this in detail in our dedicated Golden Visa article.

The good news: none of this affects your ability to buy and own property in Spain. The purchase process, taxes and ownership rights remain identical regardless of whether you also pursue residency.

How Nordic Estate Group Can Help

Buying property abroad can feel overwhelming — but it doesn't have to be. At Nordic Estate Group, we guide buyers from across Europe, the UK, North America and Latin America through every step:

  • Finding the right property for your needs and budget
  • Connecting you with trusted lawyers, banks and tax advisors who work with international clients
  • Negotiating on your behalf
  • Managing the entire process from offer to key handover
  • Post-purchase property management and rental services

Ready to start your property journey on the Costa del Sol? Contact us today for a relaxed, no-obligation conversation.

Back to blog