Buying property in Spain: Frequently asked questions and answers
Are you planning to buy a property in Spain? Find out about costs, taxes, mortgage conditions and the best locations. Everything you need to know, in one place!
Can a foreigner buy property in Spain?
Yes, Spain allows citizens of any country to buy property. You will need a NIE (Número de Identificación de Extranjero) tax identification number, which you can obtain from the police or through a notary.
What are the main costs when buying a property?
In addition to the price of the property itself, additional costs need to be taken into account:
10–15% of the property price for taxes and fees:
- VAT (IVA) – 10% (for new buildings) or Transfer Tax (ITP) – 6–10% (for second-hand properties)
- Notary fees
- Land registry fees
- Legal services (recommended but not required)
Is it necessary to have an account at a local bank?
Yes, it is recommended to open an account in a Spanish bank for paying taxes, utilities and other expenses. This will make it easier to manage your finances and pay your mortgage (if you need one).
How does a mortgage work for foreigners?
Spanish banks also provide mortgages to foreigners, but they usually finance a maximum of 60-70% of the property value. To obtain a mortgage, you will need:
- NIE number
- Bank account in Spain
- Income documents
- Credit register extract
What are the most popular areas for buying property ?
- Costa Blanca – beautiful beaches, more affordable prices
- Barcelona and Madrid – great investment opportunities
- Costa del Sol – luxury living by the sea
- Valencia, Malaga, Alicante – popular among expats
What are the regular expenses for the property?
- Annual property tax (IBI) – 0.4-1.3% of the property value
- Community service fees – approx. €50–200 per month (if the property is in a residential complex)
- Water and electricity consumption – approx. €100–150 per month
Can the property be rented?
Yes! If you plan to rent out for a short term (e.g. Airbnb), a license is required in some regions. Long term rentals are unlimited.
How long does the entire purchasing process take?
It takes 4-8 weeks from signing the reservation contract to the transfer of the property. If you are applying for a mortgage, it may take a little longer.
Are you planning to buy a property in Spain? We have a wide range of houses and apartments in the best locations for you! Contact us and we will help you with the whole process.
Write us a message or schedule a consultation!