Buying property in Spain as a foreigner: 2025 guide

The Spanish real estate market in 2025 is expected to exhibit the following trends:

• Moderate price increases: Property prices are projected to rise between 2.8% and 4%, with higher growth in major cities and coastal areas due to sustained demand and limited supply.
• Supply-demand imbalance: A shortage of new housing construction, constrained by bureaucratic delays and limited available land, will continue to drive up prices and challenge affordability.
• Rising rental costs: Rental prices are anticipated to increase, particularly in urban centers, as demand outpaces supply, exacerbating housing affordability issues.
• Foreign investment growth: International investors are likely to remain active in the Spanish real estate market, attracted by favorable economic conditions and potential returns, especially in high-demand regions.

Average cost of buying property in Spain

As of 2025, the property market in Spain shows a diverse range of prices across its most coveted areas and cities, reflecting the varied appeal of each location to both domestic and international buyers.

While these figures provide a snapshot of the current market, property prices in Spain can vary significantly based on the exact location, property type, and market conditions.

You can easily track the latest trends and price evolutions on our dedicated page:

Spain's rich geographical diversity and cultural heritage mean you can choose from a wide array of regions and areas, each offering its own unique appeal and lifestyle.

Popular regions for investment and living

• Costa del Sol: Known for its beautiful beaches, golf courses, and luxurious lifestyle, the Costa del Sol is particularly popular among expats and retirees. Property types range from beachfront apartments to luxury villas.
• Costa Blanca: Famous for its white sandy beaches and mild climate, the Costa Blanca attracts many Northern European residents. Options include everything from quaint townhouses in traditional villages to modern villas with sea views.
• Barcelona: As one of Spain's most cosmopolitan cities, Barcelona offers a vibrant urban lifestyle with its rich culture, architecture, and dining scene. Property types vary from historic apartments in the Gothic Quarter to modern homes in newer developments.
• Madrid: The capital city provides a dynamic living environment with its mix of cultural offerings, extensive parklands, and business opportunities. Housing options include city-center apartments, suburban family homes, and luxurious estates.
• The Balearic Islands: Including Mallorca, Menorca, Ibiza, and Formentera, these islands are renowned for their stunning landscapes, clear waters, and vibrant nightlife. Properties range from traditional fincas (a rural estate/ farmhouse) to exclusive waterfront villas.
• The Canary Islands: Offering a unique blend of European and African cultures with a fantastic climate year-round, the Canary Islands are perfect for those looking to enjoy outdoor lifestyles. Available properties include beachfront condos, hillside villas, and rural homes.

Yes, Americans can easily purchase property in Spain.

The Spanish property market is open to investors from all over the world. There are no legal restrictions specific to non-EU citizens regarding property ownership in Spain.

However, the process involves several steps, including obtaining a foreigner identification number (NIE), opening a Spanish bank account, and navigating the Spanish legal system.

It's advisable to work with a reputable real estate agent and a lawyer who specializes in Spanish property law to ensure a smooth transaction.

The Golden Visa

The Golden Visa is a residency program aimed at non-EU investors, offering them and their families the right to live in Spain. To qualify, individuals must make an investment in Spain, such as purchasing real estate worth at least €500,000 ($544,000).

The Golden Visa offers several benefits:

• Residency: It grants the investor, their spouse, and dependent children the right to live in Spain.
• Travel: It allows for visa-free travel within the Schengen Zone.
• Path to permanent residency and citizenship: After five years, investors can apply for permanent residency, and after ten years, they may apply for Spanish citizenship, subject to meeting certain conditions.

You can learn more about the Golden Visa on the official Spanish government's website.

1. Obtain an NIE (Número de Identificación de Extranjero)

NIE (Número de Identificación de Extranjero) is an identification number for foreigners. It is essential for any significant financial transaction in Spain, including buying property, setting up utility services, and filing taxes.

You can apply for an NIE at the Spanish consulate in your home country or directly in Spain at a local police station. The application requires:

• a valid passport;
• a completed application form (Ex-15);
• a reason for requesting the NIE (such as property purchase).

The process can take from a few days to several weeks.

2. Open a Spanish bank account

A local bank account is necessary for managing payments related to the property purchase, including the deposit, purchase price, taxes, and ongoing utility payments.

Most banks will require:

• your NIE;
• passport;
• proof of employment or income;
• possibly a proof of address.

3. Start searching for properties

Explore online listings on Properstar to find properties for sale in your area of interest. You can leverage our advanced filters and even draw your preferred area on the map.

Consider hiring a real estate agent to gain better insights into the market and assistance in finding properties that meet your criteria and budget.

4. Find the right real estate agent

The right real estate agent can provide insights into the local market, assist in finding properties that meet your criteria, and navigate the negotiation process.

Here's how to ensure you pick the best professional for your needs:

• Local expertise: Look for agents with a deep understanding of the area you're interested in. They should be knowledgeable about local property trends, prices, and the unique aspects of the community.
• Language skills: If you're not fluent in Spanish, finding an agent who can communicate effectively in your language is essential. They'll act as your liaison with sellers, lawyers, and other parties involved in the process.
• Experience and credentials: Check the agent's experience and qualifications. They should have a solid track record of assisting foreign buyers and be registered with a recognized real estate association in Spain.

You can utilize Properstar's agent search feature to find reputable local real estate agents. Our platform offers access to a wide network of professionals vetted for their expertise and reliability, making finding someone who meets your specific needs easier.

5. Conduct property viewings

Visit potential properties to assess their condition, location, and suitability.

6. Legal checks and due diligence

The Land Registry (Registro de la Propiedad) is crucial to verify the property's legal status, ensuring it's free of debts, charges, or embargoes and that the seller holds the legal right to sell. This can be done by requesting a nota simple from the Land Registry.

Ensure the property complies with local zoning and urban planning laws. This is particularly important for new builds or rural properties, where there might be restrictions.

Although not a legal requirement, it's highly recommended to conduct a property survey to check the physical condition of the property. This can uncover potential issues with the building's structure, utilities, or land.

7. Make an offer

With the help of your real estate agent, make an offer on the property. If accepted, you'll proceed to the contract stage.

8. Sign the preliminary contract (Contrato de arras)

This preliminary agreement between buyer and seller (contrato de arras) secures the purchase and typically involves a deposit from the buyer (usually 10% of the purchase price). It specifies the sale's terms and conditions and commits both parties to the transaction.

If the buyer pulls out, they lose the deposit. If the seller pulls out, they must pay back double the deposit amount.

9. Finalize mortgage arrangements (if applicable)

Finalize the terms with your bank if you're financing the purchase through a mortgage.

10. Sign the deed of sale (Escritura de compraventa)

The final step is signing the deed of sale (escritura de compraventa) before a notary, transferring ownership. The buyer must pay the remaining purchase price and all associated taxes and fees at this time.

Both parties must present their identification, the NIE, proof of deposit payment, and any mortgage details, if applicable.

11. Register the property

After the deed is signed, the new owner must register the property at the local Land Registry. This step is essential for legal protection.

12. Pay associated taxes and fees

Buyers are responsible for paying property transfer tax (ITP) for resale properties or VAT (IVA) for new properties, plus stamp duty, notary fees, and registry fees. Depending on the region, the total cost can range from 8% to 12% of the purchase price.

Taxes for new properties

Taxes for resale properties

Additional costs

Given the complexity of the process, it's advisable to hire a lawyer specialized in Spanish property law. They can handle legal checks, negotiations, and paperwork, ensuring your rights are protected throughout the purchase.

Some valuable resources for official information include:

• Spanish Ministry of Foreign Affairs: For information on NIE application procedures for foreigners.
• Registro de la Propiedad (Land Registry): For checks on property legal status.
• Agencia Tributaria (Spanish Tax Agency): For details on taxes related to property transactions.
• Colegio de Registradores de España: Offers insights into the property registration process.

13. Transfer utilities

Transfer utilities to your name and set up local services.

Many Spanish banks like Santander, BBVA and CaixaBank offer mortgages to foreigners, although the terms and conditions may vary compared to those for residents.

Interest rates for mortgages in Spain vary, with some banks offering competitive rates for non-residents. For example, CaixaBank has rates around 3.70%, while Sabadell has been noted for offering an effective rate of 2.75% for its customers. These rates can fluctuate and may depend on various factors including the bank's terms and your financial profile.

How to obtain a mortgage

Generally, you'll need a valid passport or NIE, proof of income, recent bank statements, a credit report from your home country, proof of your main residence, and proof of deposit. Most Spanish banks will accept documents in English without requiring translation.

After preparing your documents, the next step is to approach banks for mortgage pre-offers, which give you an idea of the loan amounts and interest rates you might expect.

Ensure all necessary documentation for the property is accurate and up-to-date, including property deeds and energy certificates.

Once the mortgage is approved, the bank will handle most of the legal and administrative tasks.

Special considerations for non-residents

Non-residents can generally obtain mortgages covering up to 70% of the property's sale price or appraised value, requiring at least a 30% down payment plus taxes and fees.

The process for non-residents involves more documentation and a slightly different approach compared to residents. It's also worth noting that non-resident mortgages often have higher interest rates than those for residents, reflecting the greater difficulty in managing international defaults.

One key challenge is managing the complexities of Spanish bureaucracy, which can differ significantly from what you may be accustomed to in your home country.

For example, ensuring you have the necessary registrations, such as the NIE (foreigner identification number) and a Spanish bank account, in place before beginning the property buying process is crucial to avoid delays.

To avoid financial surprises, make sure you understand the real costs of buying property, including taxes, fees, and potential renovation expenses.

Don't underestimate the importance of comprehensive property research, including legal checks and understanding local market conditions.

Engaging with reputable local real estate agents who can provide guidance tailored to the unique aspects of the Spanish market is highly recommended.