Buying property in Spain as a foreigner

Spain wants your money. The banks want your mortgage. The estate agents want their commission. Everyone smiles. But nobody tells you the process has traps you only discover after you have signed something. Here is what you need to know before putting a single euro on the table, based on real experiences from foreign buyers.

First things first: the NIE

Without a NIE (Numero de Identidad de Extranjero — Foreigner Identity Number), you do not exist in the Spanish system. No bank account, no notary signing, no mortgage application. It is the first step and can take weeks to process. See the dedicated NIE guide for details.

Resident vs non-resident: it matters a lot

The key distinction is not your nationality but whether you are a tax resident (residente fiscal) in Spain:

• Tax resident: You live in Spain more than 183 days per year. Banks treat you like a Spanish citizen. Same mortgages, same conditions.
• Non-tax-resident: You live outside Spain. Banks charge you more, finance you less (60-70%), and many refuse to deal with you at all. See the non-resident mortgage guide.

If you are an EU citizen moving to Spain, once you have your registration certificate and domicile your salary here, you access standard conditions.

The purchase process step by step

1. Get your NIE and open a Spanish bank account.
2. Find a property and negotiate the price.
3. Sign the arras (preliminary contract with a deposit, typically 10% of the price). Warning: if you back out, you lose the deposit. If the seller backs out, they must return double.
4. Shop for a mortgage (if needed). Compare at least 3-4 banks. A broker can help, especially if your situation is non-standard.
5. Property appraisal (tasacion) by an accredited surveyor (tasadora homologada).
6. Sign the FEIN (binding mortgage offer from the bank). You have a mandatory 10-day cooling-off period.
7. Sign before a notary (notario) — both the purchase deed (escritura de compraventa) and the mortgage deed in a single appointment. The notary must confirm you understand what you are signing. If you do not speak Spanish, you will need a sworn interpreter (interprete jurado).
8. Land Registry (Registro de la Propiedad) inscription and tax payment.

Purchase costs

Banks talk about the property price. They talk less about the additional 10-13% in costs:

• Transfer tax / ITP (Impuesto de Transmisiones Patrimoniales): 6-10% depending on the region (for resale properties). For new builds, 10% VAT (IVA) plus stamp duty (AJD).
• Notary fees: 600-1,500 euros depending on the property price.
• Land Registry: 300-700 euros.
• Administrative agent / gestoria: 300-500 euros (optional but recommended).
• Appraisal / tasacion: 250-500 euros.

Financing for foreigners

If you are a tax resident in Spain, conditions are the same as for a Spanish national. If you are a non-resident, banks penalise you:

• Maximum financing of 60-70% (not the standard 80%).
• Interest rates 0.5 to 1 percentage point higher.
• Extra documentation: tax return from your home country, translated payslips, bank statements.

Sabadell, CaixaBank, and Bankinter have non-resident departments. Brokers specialising in foreign buyers can streamline the process. But no bank is going to come looking for you — you have to find them.

Golden Visa (2026 update)

The Golden Visa programme — which granted residency in exchange for property investment of 500,000 euros or more — was discontinued in 2025. If anyone presents it as a current option, they are selling you expired information. Other investment-based residency routes exist, but the conditions have changed. Consult an immigration lawyer (abogado de extranjeria) before making decisions based on visa programmes.

Advice from people who have done it

• Hire an independent lawyer (abogado). Do not use the seller's or the estate agency's lawyer. They are paid by the other side. Your own lawyer verifies outstanding charges on the property, community debts, and urban planning compliance.
• Check the nota simple from the Land Registry before signing the arras. Confirm the seller is the real owner and there are no hidden liens (cargas).
• Have all funds in Spain before you start. International transfers take time, and the notary needs funds available on signing day.
• Do not be rushed. If anyone pressures you to sign without time to verify, something is wrong. Urgency almost always benefits the seller, not the buyer.