Complete guide for foreigners buying property in Spain

Can a foreigner buy in Spain?

Yes, with no restrictions. Spain places no limits on property purchases by foreigners (EU or non-EU). The process is the same as for Spaniards, with a few extra steps: getting a NIE, opening a bank account and, if relevant, arranging residency.

Property rights are full: you can sell, rent, inherit and transfer the home under the same conditions as a national.

Step 1 — Get your NIE

The NIE (Foreigner Identification Number) is essential for any transaction: buying, renting, opening an account, connecting utilities or paying taxes.

• Where: Spanish consulate in your country, or Comisaría de Policía Nacional in Spain.
• Documents: EX-15 form, passport (+ copy), proof of reason (reservation contract), form 790-012 fee (~€12).
• Timeline: 1-6 weeks. Recommended to apply 2-3 months before the purchase.
• Your lawyer can apply on your behalf with power of attorney — no need to travel.

Step 2 — Spanish bank account

Required to direct-debit IBI, community fees, utilities and the mortgage. Common banks for non-residents are Sabadell, CaixaBank, Santander, BBVA, many with English/French/German/Dutch-speaking staff.

Documents: passport, NIE, certificate of non-residence (the bank itself issues it), proof of income and proof of address in your country.

Step 3 — Mortgage for non-residents

Spanish banks lend to non-residents up to 60-70% of the lower of deeded price or appraisal. For Spanish tax residents: up to 80%.

• Average 2026 rate: 3.2%-4.5% variable (Euribor + 1-2%), 3.8%-5% fixed.
• Typical maximum term: 25-30 years (depends on borrower's age).
• Documents: last 3 payslips or tax return, proof of wealth, active debts, passport and NIE.
• Advice: an independent mortgage broker can negotiate better terms.

Purchase taxes

In the Valencia region (where Altea is):

Regional reductions exist for primary residence, young buyers, large families or people with disabilities.

Annual taxes if you are NOT a resident

• IBI: annual municipal property tax (~0.4-1.1% of cadastral value).
• Municipal fees: rubbish, sewerage, parking access.
• IRNR (Non-Resident Income Tax): 19% (EU/EEA) or 24% (rest) on an imputed income of 1.1% or 2% of the cadastral value, even if you don't rent.
• If you rent it out: 19% on net profit (EU/EEA) or 24% on gross income (rest of world).
• Wealth Tax: if assets in Spain exceed €700,000 (regional minimum exemption applies).

Residency — usual routes

• EU/EEA/Switzerland: right to live and work without a visa, just register in the Central Foreigners Registry.
• Non-lucrative residence visa (rest of world): show passive income of ~€28,800/year (1 person) + €7,200/year per family member + full private health insurance.
• Golden Visa: investment ≥ €500,000 in property (unleveraged). Under review in 2026 — possible changes.
• Digital nomad visa (Law 28/2022): for remote workers with foreign contract, minimum 200% of Spanish minimum wage.

Most common mistakes

• Buying without an independent lawyer — the seller's or bank's lawyer does not protect your interests.
• Not checking charges and prior mortgages in the Property Registry (nota simple).
• Not checking the certificate of occupancy and building permits (especially in old villas).
• Paying cash over €1,000 — banned in Spain (Law 7/2012).
• Not filing IRNR — the Tax Office automatically detects the property and may issue penalties.