Buying Property in Spain for Americans: Complete 2026 Guide

The American Rush to Spanish Real Estate

Something remarkable is happening in Spain's property market. According to Inmodiario, American property purchases in Spain have surged 255% since 2020—and Costa Blanca is emerging as one of the top destinations for US buyers seeking Mediterranean lifestyle at a fraction of California or Florida prices.

Why the sudden interest? A combination of factors has aligned: remote work flexibility allowing location independence, favorable USD to EUR exchange rates, Spain's exceptional quality of life, and property prices that seem almost impossibly affordable compared to major US markets. A luxury villa with pool and sea views in Costa Blanca costs what you'd pay for a modest condo in San Diego.

At Casa Rica Estate, we've witnessed this transformation firsthand. Our offices in Altea and Calpe welcome more American clients than ever before—from Silicon Valley executives seeking Mediterranean retreats to Florida retirees escaping hurricanes for Spain's reliable 300+ days of sunshine.

This comprehensive guide covers everything American buyers need to know about purchasing property in Spain in 2026, with specific focus on Costa Blanca and the unique considerations for US citizens.

Can Americans Buy Property in Spain?

Yes, absolutely—with exactly the same rights as Spanish citizens. Spain places no restrictions on foreign property ownership, including Americans. You can purchase:

• Residential property (apartments, villas, townhouses)
• Commercial real estate
• Agricultural land
• Multiple properties without limits

You don't need Spanish residency to purchase property. However, there's a crucial distinction many Americans miss: buying property does NOT automatically grant you residency or the right to stay in Spain long-term. More on visa options later in this guide.

The Spanish legal system strongly protects property rights, and foreign owners have identical protections as Spanish nationals. Your investment is secure under EU property laws.

What You Need Before Buying

1. NIE Number (Número de Identificación de Extranjero)

This is Spain's tax identification number for foreigners—essentially your Spanish fiscal identity. You cannot complete any property transaction without it. The NIE is required for:

• Signing the purchase deed
• Opening a Spanish bank account
• Paying taxes
• Setting up utilities

How to get your NIE as an American:

Option 1: Spanish Consulate in the US
Apply at consulates in Los Angeles, Miami, New York, Chicago, Houston, San Francisco, Washington DC, or Boston. Processing takes 2-4 weeks. Cost: approximately $12.

Option 2: In-person in Spain
Apply at a police station (Comisaría de Policía) with the Foreigner's Office. Same day to 2 weeks processing. Cost: approximately €12.

Option 3: Through your Spanish lawyer
Your lawyer can obtain it on your behalf with a Power of Attorney. Takes 1-2 weeks. Cost: $150-300 including lawyer fees.

Pro tip: Start your NIE application early. Popular consulates like Miami and Los Angeles book appointments weeks in advance, especially during peak buying seasons.

2. Spanish Bank Account

While not strictly required, a Spanish bank account makes everything significantly easier:

• Pay the deposit and purchase price
• Set up utility direct debits (electricity, water, internet)
• Pay annual property taxes (IBI)
• Receive rental income if you rent your property
• Manage community fees

Required documents for opening an account:

• Valid US passport
• NIE number
• Proof of US address (utility bill, bank statement)
• Proof of income (tax return, pay stubs, employment letter)

Banking tip for Americans: Due to FATCA (Foreign Account Tax Compliance Act) regulations, some smaller Spanish banks are reluctant to open accounts for US citizens because of reporting requirements. Larger banks like Santander, BBVA, CaixaBank, and Sabadell have dedicated international departments and are generally more accommodating to American clients.

Step-by-Step Buying Process

Step 1: Define Your Budget (Think in Euros AND Dollars)

When budgeting for Spanish property, remember to add 11-15% for taxes and fees on top of the purchase price. This is higher than typical US closing costs.

Example budget calculation for a €500,000 villa:

• Property price: €500,000 (~$540,000 USD)
• Transfer Tax (ITP) 10%: €50,000 (~$54,000)
• Notary fees: €1,200 (~$1,300)
• Land Registry fees: €600 (~$650)
• Legal fees (1%): €5,000 (~$5,400)
• Total to budget: €556,800 (~$601,350)

Exchange rate used: 1 EUR = 1.08 USD. Always check current rates before planning.

Step 2: Find Your Property

Costa Blanca offers exceptional variety for American buyers, from beachfront apartments to hillside villas with panoramic Mediterranean views:

Altea - The artistic heart of Costa Blanca. Whitewashed old town, cultural events, upscale dining. Average villa: €600,000-€2,500,000. Best for culture lovers, artists, those seeking authentic Spanish character.

Calpe - Iconic Peñón de Ifach rock, beautiful beaches, excellent infrastructure. Average villa: €400,000-€1,500,000. Best for beach lovers, active lifestyle, families.

Moraira - Quiet luxury, exclusive villas, pristine coves. Average villa: €500,000-€3,000,000. Best for privacy seekers, retirees, those wanting tranquility.

Javea - Large established expat community, three distinct areas (port, old town, Arenal beach). Average villa: €450,000-€2,000,000. Best for families, social lifestyle, those wanting English-speaking community.

Benidorm - Urban amenities, high-rise living, vibrant nightlife. Average apartment: €200,000-€800,000. Best for budget buyers, rental investors, those wanting city conveniences.

At Casa Rica Estate, we specialize in luxury properties across these Costa Blanca towns. View our current listings.

Step 3: Hire a Spanish Lawyer

This is not optional for Americans. While you can technically buy property in Spain without a lawyer, doing so is extremely risky. A qualified Spanish property lawyer (abogado) will:

• Conduct thorough title searches and due diligence
• Verify there are no hidden debts attached to the property
• Check building permits and urban planning compliance
• Review all contracts in your interest
• Represent you at the notary if you can't attend
• Coordinate with your US tax advisor on FATCA implications

Typical cost: 1-1.5% of purchase price, with a minimum of €1,500. This is money extremely well spent.

Step 4: Make an Offer and Sign Reservation Contract

Once you find your property:

1. Make a formal offer through your real estate agent
2. Negotiate terms (price, included items, timeline)
3. Sign a reservation contract (Contrato de Arras) and pay a 10% deposit

This contract takes the property off the market while due diligence proceeds.

Important for Americans: Spanish reservation contracts have teeth. If you back out without valid legal cause, you lose your 10% deposit. If the seller backs out, they must pay you double the deposit. This is standard practice in Spain and provides security for both parties.

Step 5: Due Diligence Period

Your lawyer will thoroughly verify:

• Nota Simple from the Land Registry—confirms legal ownership
• Property is free of encumbrances (mortgages, liens, debts)
• No outstanding community fees
• Urban planning compliance (no illegal constructions)
• Valid energy certificate (Certificado Energético)
• Correct cadastral reference and boundaries

This step protects you from expensive surprises. In Spain, certain debts can transfer with the property—your lawyer ensures this doesn't happen to you.

Step 6: Signing at the Notary (Escritura)

The final step happens at a Spanish notary public (notario):

• Both parties (or their legal representatives) sign the public deed (Escritura de Compraventa)
• You pay the remaining balance (usually via banker's check)
• Keys are handed over
• You're officially a property owner in Spain

If you can't be there in person, your lawyer can sign on your behalf with a Power of Attorney (Poder Notarial) that you execute beforehand at a Spanish consulate in the US or at a notary in Spain.

Complete Costs Breakdown for Americans

Purchase Costs (11-15% of property price)

• Transfer Tax (ITP): 10% in Valencia region (where Costa Blanca is located). This applies to resale properties.
• VAT (IVA): 10% + 1.5% stamp duty for new-build properties from developers
• Notary fees: €600-€1,500 based on property value
• Land Registry fees: €400-€800 based on property value
• Legal fees: 1-1.5% of purchase price (minimum €1,500)
• Agent fees: €0—in Spain, the seller pays all real estate agent commissions

Annual Ownership Costs

• IBI (Property Tax): €300-€2,000 annually depending on property value and location
• Community fees: €50-€500 monthly if your property is in a community with shared facilities
• Non-resident income tax: 0.5-2% of cadastral value annually (see tax section below)
• Home insurance: €300-€1,000 annually
• Utilities: Variable—electricity, water, gas, internet

Tax Implications for Americans

This section is critical. As a US citizen, you have tax obligations to both Spain and the IRS—and the interaction between them requires careful planning.

Spanish Taxes

If you DON'T rent your property (personal use only):
You pay "imputed income tax" (Impuesto sobre la Renta de No Residentes) at 24% on 1.1-2% of the property's cadastral value. Example: €500,000 property with €100,000 cadastral value = €264-€528 per year.

If you DO rent your property:
You pay 24% tax on gross rental income. Important: as a non-EU resident, you cannot deduct expenses like maintenance, insurance, or community fees. EU residents pay only 19% on net income after deductions—this is a significant disadvantage for Americans.

Capital Gains Tax on Sale:
19-26% depending on gain amount, with rates increasing progressively. Non-residents also face a 3% retention at sale that's withheld by the buyer and paid to Spanish tax authorities—this is refundable against your final tax liability.

US Tax Obligations (FATCA and IRS Reporting)

As an American, you must report your Spanish property to the IRS:

• FBAR (FinCEN 114): Required if your foreign financial accounts exceed $10,000 at any point during the year
• FATCA Form 8938: Required if foreign assets exceed $50,000 (single) or $100,000 (married filing jointly) on the last day of the year
• Rental Income: Report on Schedule E, even if taxed in Spain
• Capital Gains: Report on Schedule D when you sell

Good news: The US-Spain Tax Treaty prevents double taxation. You can typically claim a Foreign Tax Credit for Spanish taxes paid, reducing your US tax liability dollar-for-dollar.

Critical advice: Hire a US tax professional who understands international real estate and FATCA compliance. The penalties for FBAR/FATCA non-compliance are severe—up to $10,000 per violation for non-willful failures, and much more for willful violations.

Residency Options After Golden Visa

Important update for 2026: Spain officially discontinued its Golden Visa program in April 2025. Property investment no longer provides automatic residency rights.

However, Americans have several visa options to legally reside in Spain:

Non-Lucrative Visa (Retirement Visa)
Best for retirees and financially independent individuals. Requires proving €2,400/month passive income (€28,800/year) plus comprehensive health insurance. Work is NOT permitted. Leads to permanent residency after 5 years of continuous residence.

Digital Nomad Visa
Best for remote workers employed by non-Spanish companies. Requires employment contract with foreign company and minimum €2,646/month income. Remote work is permitted. Initially granted for 1 year, renewable to 3 years.

Entrepreneur Visa
Best for those starting a business in Spain. Requires viable business plan and sufficient funds. Allows self-employment in your own business.

Tourist Stays (No Visa Required)
Americans can stay in Spain for 90 days within any 180-day period without any visa. Perfect for vacation homeowners who visit seasonally—spend summer in Costa Blanca, winter in the US.

Why Costa Blanca for Americans?

Climate: Over 300 sunny days per year—more reliable sunshine than anywhere in the continental US. Mild winters averaging 16°C (61°F) in January. Hot but bearable summers thanks to Mediterranean sea breezes.

Cost of Living: 40-60% lower than major US cities. Quality healthcare at a fraction of American costs. Excellent dining at European prices—a three-course meal with wine for €25-40.

Accessibility: Direct flights from multiple US cities to Alicante (ALC) airport, just 45 minutes from most Costa Blanca towns. Flight time: 6-8 hours from the East Coast. Numerous low-cost European connections for weekend getaways.

Expat Community: Large, established English-speaking community. International schools for families. American clubs and social organizations. You'll never feel isolated.

Property Value: €500,000 buys a genuine luxury villa with private pool and sea views. The same money gets you a modest condo in coastal California or a hurricane-zone property in Florida.

Frequently Asked Questions

Can I get a mortgage in Spain as an American?

Yes. Spanish banks offer mortgages to non-residents, typically up to 70% loan-to-value (compared to 80% for residents). Current interest rates run around 4-5%. Maximum term is usually 20-25 years, and the loan must be repaid by age 75. You'll need proof of US income, two years of tax returns, and evidence of good credit history.

Do I need to speak Spanish to buy property?

Not necessarily in Costa Blanca, where most real estate professionals speak English. However, all official documents are in Spanish—your lawyer will translate everything important. Learning basic Spanish enhances your experience but isn't required for the purchase process.

How long does the buying process take?

Typically 2-4 months from accepted offer to completion. NIE application: 2-4 weeks. Property search: variable. Due diligence: 2-3 weeks. Notary appointment: 1-2 weeks. Cash buyers can move faster than those requiring mortgages.

Can I buy property remotely without visiting Spain?

Yes, using a Power of Attorney (POA) granted to your Spanish lawyer. However, we strongly recommend visiting at least once to view the property in person and explore the neighborhood. Virtual tours supplement but cannot replace the experience of standing on that terrace watching the Mediterranean sunset.

What happens to my Spanish property if I die?

Spanish succession law applies to property located in Spain, which can conflict with US estate planning. Key considerations: Spain has "forced heirship" rules that may require leaving portions to children regardless of your will. Spanish inheritance tax rates vary by region and relationship to heirs. Solution: work with an international estate planning attorney to structure ownership appropriately, potentially through a Spanish will specifically for your Spanish assets.

Is rental income worth the hassle?

Costa Blanca has strong vacation rental demand. Peak season (July-August): €2,000-€5,000 per week for quality villas. Shoulder seasons: €1,000-€2,500 per week. Annual gross yields typically range 4-8% depending on property and management. Remember the 24% flat tax on gross income for US owners—factor this into your calculations. Many owners find the rental income covers carrying costs while building equity.

What's the best time to buy?

Winter (January-March): Fewer buyers, more negotiating power, motivated sellers. Spring (April-May): Properties look their best with gardens blooming. Fall (September-November): Post-summer season, sellers ready to close. Avoid August entirely—Spain essentially shuts down for vacation, making transactions nearly impossible.

How do I transfer money from the US to Spain?

For large property purchases, use specialized currency transfer services like Wise (formerly TransferWise), OFX, or CurrencyFair—they offer significantly better exchange rates than banks. For amounts over $100,000, consider locking in exchange rates in advance to protect against currency fluctuations. Your Spanish bank can also facilitate international wire transfers, though fees and rates are typically less favorable.

Our Featured Properties for American Buyers

At Casa Rica Estate, we specialize in luxury properties that appeal to discerning American buyers:

Villa Calpe 2501 - €950,000 (~$1,025,000 USD)
Modern design with clean lines, stunning sea views, private infinity pool. Perfect for those seeking contemporary Mediterranean living.

Villa Altea AH130 - €2,450,000 (~$2,645,000 USD)
Panoramic Mediterranean views, luxury finishes throughout, expansive terraces. The ultimate Costa Blanca retreat.

Frontline Apartment Calpe - €320,000 (~$345,000 USD)
Beachfront location, turnkey condition, excellent rental potential. Ideal vacation home or investment property.

View all our properties →

Next Steps

Ready to explore buying property in Costa Blanca? Here's how to begin your journey:

1. Get your NIE - Apply at your nearest Spanish consulate to start the process
2. Consult a US tax advisor - Understand your FATCA and reporting obligations before purchasing
3. Contact Casa Rica Estate - We'll discuss your requirements, budget, and preferred locations, then arrange viewings of suitable properties

Our team speaks fluent English, understands American expectations and concerns, and can guide you through every step of purchasing your Costa Blanca property. We've helped numerous American clients find their perfect Spanish home.

Contact us today →

Last updated: January 2026. Exchange rates and tax information subject to change. Always consult qualified professionals for financial and legal advice specific to your situation.