How to Buy Property in Spain 2026: 7-Step Guide for Foreigners

Spain remains one of Europe's most attractive real estate markets for foreign buyers. With over 92,000 properties purchased by non-residents in 2025, the Mediterranean lifestyle continues to draw investors, retirees, and remote workers worldwide.

At Casa Rica Estate, we've guided hundreds of international clients through the Spanish property buying process. This comprehensive guide covers everything you need to know about purchasing real estate in Spain in 2026.

Can Foreigners Buy Property in Spain?

Yes, absolutely. Spain places no restrictions on foreign property ownership. Whether you're from the EU, UK, USA, or any other country, you can legally purchase any type of property—from apartments and townhouses to luxury villas and commercial real estate.

You don't need to be a Spanish resident to buy property. However, you will need to complete several administrative steps and understand the associated costs.

Step-by-Step Guide to Buying Property in Spain

Step 1: Obtain Your NIE Number

The NIE (Número de Identificación de Extranjero) is your Spanish tax identification number. It's the first and most essential requirement for any property transaction.

How to get your NIE:

• Apply at a Spanish consulate in your home country
• Apply in person at a police station (Comisaría) in Spain
• Processing time: 2-4 weeks
• Cost: Approximately €12

Pro tip: In popular areas like Costa Blanca, appointments fill up quickly. Apply for your NIE before property hunting. Read our detailed NIE Number Spain 2026 Guide for complete instructions.

Step 2: Open a Spanish Bank Account

A Spanish bank account is required to:

• Pay the deposit and purchase price
• Set up direct debits for utilities and taxes
• Receive rental income (if applicable)

Required documents:

• Valid passport
• NIE number
• Proof of address in your home country
• Proof of income or employment

Spanish banks have strengthened anti-money laundering checks. Non-residents may face higher minimum balance requirements (€3,000-€6,000).

Step 3: Define Your Budget and Requirements

Before searching for properties, establish:

• Maximum purchase price (add 11-15% for taxes and fees)
• Location preferences (Costa Blanca offers diverse options from Altea to Calpe to luxury villas across the region)
• Property type (villa, apartment, townhouse)
• Must-have features (sea views, pool, bedrooms)
• Investment goals (personal use, rental income, or both)

Step 4: Find Your Property

Working with a reputable real estate agency offers significant advantages:

• Access to off-market properties
• Local market knowledge
• Negotiation expertise
• Language support

At Casa Rica Estate, we specialize in properties across Costa Blanca, including Altea, Calpe, Moraira, Jávea, and Benidorm. Browse our listings or contact us for personalized assistance.

Step 5: Hire a Spanish Property Lawyer

While not legally required, hiring an independent lawyer is highly recommended. Your lawyer will:

• Conduct due diligence on the property
• Verify the seller's ownership rights
• Check for debts, charges, or legal issues
• Review all contracts
• Represent you at the notary

Typical legal fees: 1-1.5% of purchase price plus VAT (minimum €1,500-€2,500)

Step 6: Due Diligence

Your lawyer will request a Nota Simple from the Land Registry to verify:

• The property is legally registered
• The seller is the legitimate owner
• No outstanding debts or mortgages
• No legal disputes or embargoes
• Compliance with urban planning laws
• Energy Performance Certificate (EPC) status

This step is crucial—never skip it, even if the property seems perfect.

Step 7: Arrange Financing (If Needed)

Spanish banks offer mortgages to non-residents under these 2026 terms:

• Loan-to-Value: Up to 70% (versus 80% for residents)
• Interest rates: 3.5-4.5% variable, 4-5% fixed (improving from 2025)
• Term: Up to 20-25 years
• Age limit: Usually must be repaid by age 75

Required for mortgage application:

• NIE and passport
• Proof of income (last 2-3 years of tax returns)
• Employment contract or business accounts
• Bank statements (6-12 months)
• Property valuation (€300-€700)

Step 8: Sign the Contracts

Once you've found your property, the process involves:

1. Reservation Contract (Contrato de Reserva)

• Small deposit (€3,000-€10,000) to take property off market
• Allows time for due diligence (typically 2-4 weeks)

2. Private Purchase Contract (Contrato de Arras)

• 10% deposit of purchase price
• Legally binding agreement
• If buyer withdraws: loses deposit
• If seller withdraws: must return double the deposit

Step 9: Complete at the Notary

The final step takes place at a Spanish notary (notaría):

• Both parties sign the Escritura Pública (public deed)
• Balance of purchase price is paid
• Keys are handed over
• You become the legal owner

Your lawyer can represent you with a power of attorney if you cannot attend in person.

Step 10: Register Your Property

After completion, your lawyer will:

• Register the property in your name at the Land Registry
• Pay applicable taxes on your behalf
• Set up utility accounts (water, electricity, gas)
• Arrange property insurance
• Register with local council for IBI tax

Costs of Buying Property in Spain (2026)

Budget 11-15% on top of the purchase price for taxes and fees:

Taxes

New Build Properties:

• VAT (IVA): 10%
• Stamp Duty (AJD): 1.5% (Valencia region)

Resale Properties:

• Transfer Tax (ITP): 10% (Valencia/Costa Blanca)

Fees

• Notary fees: €400-€1,500 (approximately 0.5% of price)
• Land Registry: €400-€700
• Legal fees: 1-1.5% + VAT
• Gestoría (admin): €350-€700
• Bank account setup: €0-€200

Example Calculations

For a €500,000 resale villa in Costa Blanca:

• Transfer Tax (10%): €50,000
• Notary: €900
• Land Registry: €550
• Legal fees: €6,050 (1% + 21% VAT)
• Gestoría: €450
• Total: ~€57,950 (11.6%)

For a €300,000 apartment (new build):

• VAT (10%): €30,000
• Stamp Duty (1.5%): €4,500
• Notary: €600
• Land Registry: €450
• Legal fees: €3,630
• Gestoría: €400
• Total: ~€39,580 (13.2%)

Buyer's Checklist: Before You Purchase

Use this checklist to ensure a smooth buying process:

Documentation:

• ☐ NIE number obtained
• ☐ Spanish bank account opened
• ☐ Independent lawyer engaged
• ☐ Passport copies ready
• ☐ Proof of funds available

Property Verification:

• ☐ Nota Simple reviewed (no debts/charges)
• ☐ Building license verified
• ☐ Certificate of occupancy confirmed
• ☐ Community fees checked
• ☐ IBI tax payments up to date
• ☐ Energy certificate obtained

If Renting Out:

• ☐ Tourist license status verified
• ☐ Community rules allow rentals
• ☐ Local regulations understood

Important 2026 Updates for Foreign Buyers

Golden Visa Program Ended

As of April 2025, Spain discontinued the Golden Visa program. However, other residency options remain:

• Non-Lucrative Visa (passive income €2,400+/month)
• Digital Nomad Visa (remote workers earning €3,000+/month)
• Entrepreneur Visa (business owners)

Short-Term Rental Regulations

Tourist rental regulations continue tightening:

• Valencia region: Stricter community approval (4/5 majority)
• New builds: Often have rental restrictions in community statutes
• Existing licenses: Generally protected but verify transferability

If rental income is part of your strategy, verify license status before purchasing.

Why Buy Property in Costa Blanca?

Costa Blanca offers exceptional value compared to other Spanish coastal regions:

• 320+ days of sunshine per year
• 30-40% lower prices than Costa del Sol or Balearic Islands
• Excellent healthcare with English-speaking staff
• International airports in Alicante (65km) and Valencia (120km)
• Established expat communities (50,000+ British residents)
• Diverse property options from €150,000 to €10M+

Popular areas include:

• Altea & Altea Hills – Artistic charm, luxury villas
• Calpe – Iconic Peñón de Ifach, great beaches
• Benidorm – Vibrant lifestyle, excellent amenities
• Jávea – Natural beauty, UNESCO climate
• Moraira – Exclusive, peaceful setting

Common Mistakes to Avoid

• Skipping legal representation – Always hire an independent lawyer
• Ignoring additional costs – Budget 11-15% beyond purchase price
• Not verifying rental potential – Check license requirements before buying
• Rushing due diligence – Take time to verify property status
• Underestimating timelines – NIE and mortgage approval take 2-6 weeks
• Forgetting ongoing costs – Factor in IBI tax (€400-€2,000/year), community fees (€600-€3,600/year), maintenance
• Not planning currency exchange – Use specialist FX services, not banks

FAQ

Can foreigners buy property in Spain?

Yes, Spain has no restrictions on foreign property ownership. Both EU and non-EU citizens can purchase any type of property.

Do I need a NIE to buy property in Spain?

Yes, a NIE (Número de Identificación de Extranjero) is required for all property transactions, bank accounts, and tax payments in Spain.

How much are property taxes in Spain for foreigners?

Expect to pay 11-15% on top of the purchase price, including Transfer Tax (10% in Valencia), notary fees, legal fees, and registration costs.

Can I get a mortgage in Spain as a foreigner?

Yes, Spanish banks offer mortgages to non-residents, typically up to 70% of the property value with terms up to 20-25 years. Rates in 2026 are 3.5-5%.

Do I need to be resident in Spain to buy property?

No, you don't need to be a resident. However, you will need a NIE number and a Spanish bank account.

What is the buying process timeline?

From finding a property to completion typically takes 4-8 weeks, depending on mortgage requirements and due diligence complexity.

What ongoing costs should I expect?

Budget for IBI property tax (€400-€2,000/year), community fees (€600-€3,600/year), home insurance (€300-€800/year), and utilities (€100-€200/month).

Can I rent out my Spanish property?

Yes, but tourist rentals require a license in most areas. Long-term rentals (11+ months) don't require a license. Always verify local regulations.

What happens if I find problems during due diligence?

You can renegotiate the price, ask the seller to resolve issues, or withdraw from the purchase (usually with deposit refund if issues are material).

Should I use a Spanish or international lawyer?

Use a Spanish lawyer who is independent of the seller's agent. Many bilingual lawyers specialize in helping foreign buyers and understand both legal systems.

Ready to Find Your Spanish Property?

At Casa Rica Estate, we specialize in helping international buyers find their perfect property on Costa Blanca. Our bilingual team offers:

• Personalized property search
• Viewing arrangements
• Negotiation support
• Trusted lawyer and mortgage broker referrals
• After-sale support

Contact us today to start your Spanish property journey, or browse our current listings.

This guide is for informational purposes only and does not constitute legal or financial advice. Tax rates and regulations may change. Always consult qualified professionals for your specific situation.