Buying property in Spain as a foreigner

Buying property in Spain as a foreigner typically costs about 8–13% on top of the price for a resale home, and around 13–14% for a new build. The biggest cost is tax: transfer tax (ITP) on resale homes, set by each region, or 10% VAT plus stamp duty (AJD) on new builds. Foreigners pay the same purchase taxes as Spaniards, but you'll need an NIE number first.

Key points

• Resale homes pay ITP, from 6% in Madrid up to 13% on the top slice in Catalonia and the Balearics.
• New builds bought from a developer pay 10% VAT (IVA) plus regional AJD instead of ITP.
• Notary, land registry and a lawyer typically add about 2% of the price.
• You need an NIE number to buy. Brits, Americans and other non-EU buyers can buy freely.
• The golden visa by property ended on 3 April 2025. A tax of up to 100% for non-EU buyers has been proposed but is not law.

What buying property in Spain costs

Every purchase has three groups of costs:

1. Tax – ITP for resale homes, or IVA plus AJD for new builds. This is usually 80% or more of your buying costs.
2. Notary and land registry – the notary checks and records the deed (escritura) and the land registry (Registro de la Propiedad) records you as owner. Fees follow official scales, and together they typically come to about 1% of the price.
3. Your lawyer – not compulsory, but strongly advised when you buy from abroad. Typical fees are about 1% plus 21% VAT.

The buyer also usually pays bank and mortgage costs if you borrow. Spanish estate agents are usually paid by the seller, but check the listing.

ITP: Spain's transfer tax by region

ITP (Impuesto sobre Transmisiones Patrimoniales) applies when you buy a resale home. Each region (comunidad autónoma) sets its own rate. The tax is worked out on the higher of the price in the deed and the Catastro's reference value (valor de referencia) for the property, so a low declared price won't cut your tax.

A few things to know:

• Catalonia moved to banded rates for deeds from 27 June 2025: 10% on the first €600,000, 11% from €600,000 to €900,000, 12% to €1.5m and 13% above. Large property holders and buyers of whole buildings can pay 20%.
• Valencia cut its general rate from 10% to 9% for purchases from 1 June 2026. Homes worth over €1m pay 11%.
• The Balearics tax each slice at its own rate: 8% to €400,000, 9% to €600,000, 10% to €1m, 12% to €2m and 13% above.
• Most regions have lower rates for some local buyers, such as young first-time buyers or large families. These usually need you to make the home your main residence, so they rarely help a buyer from abroad.

ITP and AJD in every region

The table shows the general rates for every autonomous community on a €300,000 home, and what a new build at the same price pays in VAT (or IGIC in the Canary Islands, IPSI in Ceuta and Melilla) plus AJD. Many regions have lower rates for young buyers, large families or a first main home, so check whether you qualify. Pick your region for the full breakdown.

New builds: IVA and AJD

If you buy a new home from a developer, you pay 10% IVA (VAT) instead of ITP. In the Canary Islands a local tax called IGIC applies instead of IVA. Stage payments on an off-plan home each carry IVA as you pay them.

On top of IVA you pay AJD (Actos Jurídicos Documentados), a stamp duty on the deed set by the region. Examples: 1.2% in Andalucía, 0.75% in Madrid and, from 1 June 2026, 1.4% in Valencia. Our calculator uses a typical 1.2%.

Worked examples

A €250,000 resale flat on the Costa del Sol (Andalucía)

A €700,000 resale home in Barcelona (Catalonia)

The first €600,000 is taxed at 10% and the last €100,000 at 11%, so ITP is €71,000. With notary, registry and lawyer, total buying costs come to about €86,470.

A €400,000 new build in Andalucía

Your NIE number and a Spanish bank account

The NIE (Número de Identidad de Extranjero) is a personal number for foreigners with economic or other interests in Spain. You need it to sign the deed, pay ITP or AJD and register the home.

• In Spain: apply at a foreigners' office (Oficina de Extranjería) or a police station, in person or through a representative with a power of attorney.
• From abroad: apply through the Spanish consulate in the country where you live.
• What you need: form EX-15, the fee paid on form 790 code 012, your passport and copy, and a short statement of why you need it (buying a home is a valid reason).

In practice you'll also need a Spanish bank account to pay the taxes, utilities and local charges by direct debit. Banks will ask for your NIE and proof of where your money comes from.

Can Brits buy property in Spain?

Yes. There are no restrictions on British, Irish, American or other foreign people owning homes in Spain, apart from some military or border zones where permission may be needed. Since Brexit, Brits are non-EU citizens. That doesn't change the purchase taxes, but it affects how long you can stay (generally 90 days in any 180 without a visa) and the non-resident tax rate you pay after you buy.

The golden visa has ended. Spain abolished the investor residence visa, including the property route, from 3 April 2025. Buying a home no longer gives you a right to live in Spain.

The 100% tax is proposed, not law. In 2025 the government put forward a bill for a new tax of up to 100% of the value on homes bought by non-EU buyers who don't live in the EU. At our last check it had stalled in Congress. Check the current position before you commit, but don't budget for it as if it applies today.

Taxes after you buy (non-residents)

Owning a home in Spain brings yearly costs, even if you never rent it out:

• IBI – the local council property tax, billed each year.
• Non-resident income tax – if the home isn't rented out, Spain taxes a notional income of 1.1% or 2% of the cadastral value, at 19% for EU/EEA residents and 24% for everyone else, including Brits and Americans. If you rent it out, you pay tax on the rent instead.
• Community fees for flats and urbanisations, and possibly wealth tax on high-value holdings.

A Spanish tax adviser (gestor) can file these for you.

Common mistakes

• Using the wrong region's rate. ITP depends on where the home is, not where you live.
• Forgetting the reference value. If the Catastro value is higher than your price, ITP is charged on that value.
• Paying a deposit before checks are done. Your lawyer should check the land registry, debts on the home and planning status before you sign a private contract (contrato de arras).
• Not budgeting for yearly costs. IBI, non-resident tax and community fees continue every year.

Tax back home

Buying abroad can create tax to pay and forms to file where you live, not just where you buy.

• UK residents are generally taxed on their worldwide income and gains. Rent from a home abroad goes on your Self Assessment return, and when you sell you may owe UK Capital Gains Tax. You can usually claim Foreign Tax Credit Relief for tax already paid in the other country, so the same income isn't fully taxed twice.
• US citizens and green-card holders are taxed on worldwide income wherever they live. Report foreign rental income on your US return. If your foreign bank accounts together go over $10,000 at any time in the year, file an FBAR (FinCEN Form 114), and you may also need Form 8938 (FATCA) if your foreign financial assets pass its thresholds. A home you own directly isn't reported on Form 8938, but the foreign account you pay through may be.
• Everyone else: check how your country taxes foreign rent and gains, and whether it has a tax treaty with the country you're buying in.

Plan this before you buy, ideally with a tax adviser who knows both countries.

Work out your own figures

Pick the region, choose resale or new build and enter the price. The calculator adds up ITP or IVA and AJD, notary, registry and lawyer so you can see the full amount you'll need on top of the price.