Can foreigners buy property in Spain?

Yes, foreigners can buy property in Spain with no restrictions. The process is open to both EU and non-EU citizens, and the rights of foreign buyers are almost identical to those of Spanish nationals.

Do I need an NIE number to buy property in Spain?

Yes, an NIE (Número de Identificación de Extranjero) is required for property transactions, tax payments, and signing official documents. It is essential for all foreign buyers.

How much are the additional costs when buying property in Spain?

Expect to pay an extra 10-15% on top of the purchase price, covering Property Transfer Tax (6-10%), VAT (10% for new builds), notary fees, legal costs, and registration fees.

Can I get a mortgage as a foreigner in Spain?

Yes, Spanish banks offer mortgages to foreign buyers. Non-residents can typically get loans covering up to 60-70% of the property value, while residents may qualify for up to 80%.

What are the best regions to buy property in Spain?

Popular areas include Costa del Sol (Marbella, Malaga, Estepona) for luxury and holiday homes, Madrid & Barcelona for investment and rental income, Valencia & Alicante (Costa Blanca) for affordable coastal properties, and Balearic & Canary Islands for strong tourist demand.

Is hiring a lawyer necessary when buying property in Spain?

While not legally required, hiring a lawyer is highly recommended. They handle due diligence, check legal status, and ensure the property is free of debts or planning issues.

What is the status of the Golden Visa program?

Spain’s Golden Visa, which granted residency for a €500,000+ property investment, is being phased out. Existing holders can renew, but new applications are no longer accepted.

What are the best residency options for non-EU property buyers?

Non-EU nationals can apply for alternative visas such as the Non-Lucrative Visa (for retirees or those with passive income), Entrepreneur Visa (for business owners), or Work Visa (for those with a job offer in Spain).

Are there any restrictions on short-term rentals?

Yes, some cities require a tourist rental license for short-term Airbnb-style rentals. Barcelona, Madrid, and Palma de Mallorca have stricter rules, while tourist areas like Costa del Sol remain more flexible.

How long does it take to buy a property in Spain?

The entire process usually takes 6-10 weeks, from signing the reservation contract to completing the sale at the notary. Mortgage approvals and legal checks may extend the timeline.

Buying a House in Spain in 2025: A Guide for Foreign Buyers

Guide, Invest

Last update: February 26, 2025

Reading time: 7.9 min

No Time to Read It All? Here’s the Quick Summary:
Buying a house in Spain in 2025 remains a great opportunity for foreigners, with rising property prices driven by high demand and limited supply. Key regions like Costa del Sol, Madrid, and Valencia attract buyers for investment and lifestyle purposes. Foreigners need an NIE number and should budget for extra costs (10-15% of the purchase price). Mortgages are available, with non-residents typically securing 60-70% financing. The Golden Visa is being phased out, but other residency options exist. The buying process involves a 10% deposit, legal checks, and finalizing the purchase at a notary. Hiring a lawyer is crucial to avoid risks. Despite changes, Spain continues to offer strong investment potential and excellent quality of life.

Why Buying a House in Spain in 2025 is a Smart Move

Are you dreaming of buying a house in Spain in 2025? You’re not alone. Spain continues to be a top destination for international homebuyers, retirees, and property investors. With its sunny climate, rich culture, and relatively affordable real estate prices compared to other European markets, Spain offers excellent opportunities for those looking to purchase property, whether for personal use or investment.

However, buying property in a foreign country comes with challenges, from navigating legal requirements to understanding local market trends. In this comprehensive guide, we will cover everything you need to know about purchasing a house in Spain as a foreign buyer, including:

Spain’s real estate market trends in 2025
Investment vs. personal use: key considerations
Legal and financial requirements for foreign buyers
Step-by-step guide to buying a house in Spain
Best regions to buy property
Common pitfalls and how to avoid them

Let’s dive in!

Spain’s Real Estate Market Trends in 2025

How is the Spanish Property Market Performing?

The Spanish real estate market remains strong in 2025, with property prices continuing their upward trend. In 2024, home prices increased by an average of 9.6% nationwide, with some regions experiencing even higher growth:

Valencia: +19.8%
Balearic Islands: +19.5%
Madrid: +13.6%
Alicante (Costa Blanca): +21.3%

One major driver of this price surge is foreign demand. Over 87,000 properties were purchased by foreign buyers in 2024, accounting for 15.2% of all transactions. The largest buyer groups include:

British
French
Germans
Italians
Dutch
Belgians
Americans (U.S. buyer purchases increased by 12% in 2024)

Despite rising mortgage rates in Europe, Spain remains one of the most attractive real estate markets for international investors, particularly in the luxury and rental property segments.

Rising Rental Demand

Spain’s rental market has tightened, with rental prices increasing by 11.5% in 2024. This is partly due to a 50% drop in long-term rental availability, following new housing regulations. For investors, this means strong rental yields, particularly in high-demand areas like:

Madrid
Barcelona
Costa del Sol
Valencia

Given the ongoing housing supply shortage (only 273,000 new homes built vs. 770,000 new households formed between 2021-2023), property prices are expected to keep rising into 2025, making it a favorable time to buy.

Investment vs. Personal Use: What to Consider

Before buying property in Spain, ask yourself:

👉 Are you buying for investment, personal use, or both?

Buying as an Investment

If your goal is rental income or long-term appreciation, focus on locations with:

✅ High rental demand – Madrid, Barcelona, Costa del Sol, and Alicante have strong year-round rental markets.

✅ Good rental yields – Spanish rental yields average 4–6%, reaching 7% in tourist hotspots.

✅ Growth potential – Properties in up-and-coming areas may appreciate faster.

For short-term rentals (Airbnb-style), be aware of local regulations. Some cities, like Barcelona, have strict licensing rules for holiday rentals.

Buying for Personal Use

If purchasing a retirement home, vacation house, or permanent residence, consider:

🏡 Proximity to amenities (shops, healthcare, transport).

🌅 Climate preferences (coastal vs. inland, mild winters vs. mountain coolness).

🚗 Transport connections (airports, train stations).

🌍 Expat communities (English-speaking services, social life).

If you want both investment and personal use, look for properties in tourist-friendly areas that allow short-term rentals while still suiting your lifestyle.

Legal and Financial Requirements for Foreign Buyers

1. NIE (Foreigner Identification Number)

📌 Mandatory for all property buyers in Spain. You need this tax identification number for legal transactions, taxes, and utilities. Apply at a Spanish consulate or in Spain.

2. Spanish Bank Account

💰 While not legally required, having a Spanish bank account is highly recommended to facilitate payments, mortgages, and utility bills.

3. Mortgages for Foreign Buyers

🏦 Spanish banks offer mortgages to foreigners, with typical terms:

Non-residents: Up to 60-70% loan-to-value (LTV).
Residents: Up to 80% LTV.
Interest rates: Generally higher for non-residents.

4. Purchase Costs and Taxes

💸 Budget 10-15% extra for taxes and fees:

Sources : Idealista, Indomio.es (2025)
Expense	Cost Estimate
Property Transfer Tax (ITP) – for resales	6-10% (varies by region)
VAT (IVA) – for new builds	10% + 1.5% stamp duty
Notary & Land Registry Fees	1-2%
Legal Fees	~1% of purchase price
Annual Property Tax (IBI)	Varies based on property value
Non-Resident Income Tax	19-24% (on rental income or imputed tax)

Expense: Property Transfer Tax (ITP) – for resales
Cost Estimate: 6-10% (varies by region)

Expense: VAT (IVA) – for new builds
Cost Estimate: 10% + 1.5% stamp duty

Expense: Notary & Land Registry Fees
Cost Estimate: 1-2%

Expense: Legal Fees
Cost Estimate: ~1% of purchase price

Expense: Annual Property Tax (IBI)
Cost Estimate: Varies based on property value

Expense: Non-Resident Income Tax
Cost Estimate: 19-24% (on rental income or imputed tax)

Sources : Idealista, Notaires de France, Indomio.es (2025)

5. Residency and Visas

Owning property does not automatically grant residency. Non-EU buyers can apply for:

Golden Visa (€500,000+ property investment – currently under review in 2025).
Non-Lucrative Visa (for retirees).

Step-by-Step Guide to Buying a House in Spain

1️⃣ Determine your budget & financing (get mortgage pre-approval if needed).

2️⃣ Obtain an NIE number.

3️⃣ Hire a local real estate agent and lawyer.

4️⃣ Search for properties & conduct viewings.

5️⃣ Make an offer & negotiate.

6️⃣ Sign a preliminary contract (Contrato de Arras) and pay a 10% deposit.

7️⃣ Finalize mortgage arrangements.

8️⃣ Complete the sale at the notary (Escritura de Compraventa) – pay the final balance.

9️⃣ Register the property & change utilities to your name.

🔟 (If applicable) Apply for rental licenses or residency permits.

Best Regions to Buy Property in Spain

🏖️ Costa del Sol (Malaga, Marbella, Estepona): Ideal for retirees, luxury buyers, and investors.

🏙️ Madrid & Barcelona: Strong rental market and long-term appreciation.

🌅 Valencia & Costa Blanca: Affordable prices and excellent quality of life.

🏝️ Balearic & Canary Islands: High demand for holiday homes, but stricter rental laws.

🌿 Murcia & Costa Cálida: Budget-friendly coastal properties.

Common Pitfalls to Avoid

🚫 Not budgeting for hidden costs.

🚫 Skipping legal checks – always verify ownership, debts, and permits.

🚫 Buying without a rental license in restricted areas.

🚫 Falling for too-good-to-be-true deals – beware of scams.

🚫 Ignoring currency exchange fluctuations when transferring large sums.

Making Your Spanish Property Dream a Reality in 2025

Buying a house in Spain in 2025 can be a fantastic investment and lifestyle choice. With a booming real estate market, strong rental demand, and a variety of property options, Spain remains a top destination for foreign buyers.

By following this guide, staying informed on regulations, and seeking professional assistance, you can confidently find your dream home under the Spanish sun.

🌞 ¡Buena suerte! Happy house hunting! 🏡✨

FAQ

Can foreigners buy property in Spain?
Yes, foreigners can buy property in Spain with no restrictions. The process is open to both EU and non-EU citizens, and the rights of foreign buyers are almost identical to those of Spanish nationals.
Do I need an NIE number to buy property in Spain?
Yes, an NIE (Número de Identificación de Extranjero) is required for property transactions, tax payments, and signing official documents. It is essential for all foreign buyers.
How much are the additional costs when buying property in Spain?
Expect to pay an extra 10-15% on top of the purchase price, covering Property Transfer Tax (6-10%), VAT (10% for new builds), notary fees, legal costs, and registration fees.
Can I get a mortgage as a foreigner in Spain?
Yes, Spanish banks offer mortgages to foreign buyers. Non-residents can typically get loans covering up to 60-70% of the property value, while residents may qualify for up to 80%.
What are the best regions to buy property in Spain?
Popular areas include:
– Costa del Sol (Marbella, Malaga, Estepona) – Ideal for luxury and holiday homes.
– Madrid & Barcelona – Best for investment and rental income.
– Valencia & Alicante (Costa Blanca) – Affordable coastal properties.
– Balearic & Canary Islands – Strong tourist demand, but strict rental laws.
Is hiring a lawyer necessary when buying property in Spain?
While not legally required, hiring a lawyer is highly recommended. They handle due diligence, check legal status, and ensure the property is free of debts or planning issues.
What is the status of the Golden Visa program?
Spain’s Golden Visa, which granted residency for a €500,000+ property investment, is being phased out. Existing holders can renew, but new applications are no longer accepted. Learn more here: Spain Ends Golden Visa.
What are the best residency options for non-EU property buyers?
Non-EU nationals can apply for alternative visas such as:
– Non-Lucrative Visa (for retirees or those with passive income).
– Entrepreneur Visa (for business owners).
– Work Visa (for those with a job offer in Spain).
Are there any restrictions on short-term rentals?
Yes, some cities require a tourist rental license for short-term Airbnb-style rentals. Barcelona, Madrid, and Palma de Mallorca have stricter rules, while tourist areas like Costa del Sol remain more flexible.
How long does it take to buy a property in Spain?
The entire process usually takes 6-10 weeks, from signing the reservation contract to completing the sale at the notary. Mortgage approvals and legal checks may extend the timeline.