Whether you’re renting your first flat or buying property in Spain, the process rewards those who understand it before they start. Spanish real estate is relatively affordable by Western European standards, but the taxes, fees and paperwork differ from what most newcomers are used to. This 2026 guide covers both renting and buying, step by step.
This is the cornerstone real estate guide. For the wider relocation picture, start with our complete guide to moving to Spain, then use this page for the property detail.
Can foreigners buy property in Spain?
Yes — Spain places no restrictions on foreign buyers, whether you’re an EU citizen or not, resident or not. There’s no minimum stay, no special permit, and no limit on what you can own. Buying property does not, however, grant residency: since the Golden Visa ended in April 2025, purchasing a home is no longer a route to a visa, so keep your property and immigration plans separate (see our Spanish visas guide).
Renting first: the sensible start
Most newcomers rent before they buy — it lets you test a city and neighbourhood before committing. Expect to provide your NIE, proof of income (often three months’ payslips or equivalent), and an upfront sum of the first month plus a deposit of one to two months; some landlords ask for additional guarantees. Contracts are usually long-term (the standard offers strong tenant protections), and good flats in popular areas go within days. Our step-by-step guide to renting an apartment in Spain covers contracts, costs and how to actually find a place.
Buying property in Spain: the process
The typical purchase runs like this:
- Get your NIE and open a Spanish bank account — both are essential to buy.
- Reserve the property with a small holding deposit to take it off the market.
- Sign the contrato de arras — a private deposit contract (usually 10%); if you pull out you lose it, if the seller pulls out they pay double.
- Complete at the notary by signing the escritura (title deed), paying the balance, and registering the property.
Strongly consider an independent property lawyer (abogado) to run checks on debts, planning and ownership before you sign — it’s standard practice and protects you.
New-build or resale?
The choice affects both your costs and your risks. Resale homes (the bulk of the market) carry transfer tax and let you see exactly what you’re buying. New-builds carry VAT plus stamp duty and are often sold off-plan — cheaper and modern, but you’re buying on trust before completion, so check the developer’s track record and that deposits are bank-guaranteed. In either case, never rely on the estate agent (who works for the seller) for legal checks.
The real cost: taxes and fees
Budget roughly 10–14% on top of the purchase price for transaction costs:
- Transfer tax (ITP) on resale homes — typically 6–10% depending on the region — or VAT (IVA) at 10% plus stamp duty on new-builds.
- Notary, land registry and legal fees — generally 1–3% combined.
- Mortgage costs, if you borrow (valuation and arrangement).
Mortgages for foreigners
Spanish banks lend to non-residents, usually up to around 60–70% of the valuation (residents can often borrow more), at competitive European rates. You’ll need proof of income, existing debts and tax returns. Getting an agreement in principle before you house-hunt strengthens your position.
Costs and markets vary by city
Prices swing widely — central Madrid and Barcelona are the priciest, while Valencia, Seville and Bilbao offer better value. See our cornerstone city guides for local markets: Madrid, Barcelona, Valencia, Seville and Bilbao. For a concrete worked example, our breakdown of buying property in Seville and its true costs shows where the money goes.
Don’t forget the running costs
Owners pay annual property tax (IBI), community fees if it’s a flat, utilities, and — for non-residents — annual non-resident tax (see our Taxes in Spain guide). Sorting home insurance in Spain is also wise, and required by lenders if you have a mortgage.
Getting help
Buying across a language barrier and an unfamiliar legal system is where good professionals earn their fee. Find vetted, English-speaking lawyers, agents and mortgage advisers in our Insider Directory. This guide is general information, not legal or financial advice.
Planning the bigger move? Return to our moving to Spain guide, explore Expert Advice, or — if you work in Spanish property — become an Insider.