Global Mobility Capital

Real Estate Investment in

Spain

Investing in real estate in Spain provides stability, strong economic growth, and steady property value appreciation. With a clear legal framework, appealing financing options, and high rental demand in cities like Madrid, Barcelona, and Valencia, Spain offers profitable opportunities for investors. The country’s prime European location and diverse real estate options ensure long-term growth and attractive returns. Foreign investors can choose from a range of properties, from coastal homes to city apartments, making Spain a top investment destination, especially with the Spain Golden Visa program, which grants residency through property purchases.

Real Estate Investment & Costs

Investmet

+$250.000

Property Transfer Tax (Impuesto de Transmisiones Patrimoniales - ITP)

6%-10%

VAT (For new properties)

10%

Stamp Duty & Notary Fees

  • Stamp Duty: 1,5%
  • Notary Fees: 1%-1,5%

Orhun Doğanay

International Property Investment Expert

House Price Index in Spain

Spain

Orhun Doğanay

Orhun Doğanay

International Property Investment Expert

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    Frequently Asked Questions

    Can foreigners buy property in Spain?

    Yes, there are no restrictions on foreign nationals buying property in Spain. Whether you are an EU or non-EU citizen, the process is the same for all buyers, and the Spanish property market welcomes international investment.

    Do I need a visa or residency to buy property in Spain?

    No, you don’t need a visa or residency to buy property in Spain. However, non-EU citizens can benefit from the Golden Visa program by purchasing real estate worth at least €500,000, which grants residency for you and your family.

    What are the taxes involved when buying property in Spain?

    Property purchase taxes vary depending on whether the property is new or resale. For resale properties, you’ll pay a transfer tax (ITP) of 6% to 10% of the purchase price, depending on the region. For new properties, VAT (IVA) is 10%, plus a stamp duty of 1.5%.

    Can foreigners get a mortgage in Spain?

    Yes, foreigners can get a mortgage from Spanish banks, but typically with a maximum loan-to-value of 60-70% for non-residents. Spanish banks require financial documentation and a local NIE number (foreigner’s identification number) to apply for a mortgage.

    What is an NIE, and why is it important?

    An NIE (Número de Identificación de Extranjero) is essential for buying property in Spain. It’s used for tax purposes and required to open a Spanish bank account, sign contracts, and conduct financial transactions.

    What are the main additional costs when buying property in Spain?

    In addition to the property price, expect to pay 8% to 12% in taxes and fees, including notary fees, land registry fees, and legal costs. Spain’s relatively low property tax rates compared to other European countries make ownership more affordable over time.

    Are there advantages to renting out property in Spain?

    Yes, Spain is a leading tourist destination, and short-term vacation rentals can provide attractive rental yields, especially in coastal regions and major cities like Madrid and Barcelona, where demand for tourist accommodations is high.

    What are some popular areas for foreigners to buy property in Spain?

    Popular regions include Costa del Sol and Alicante for their sunny climates and expat communities, Madrid and Barcelona for vibrant city life, and Valencia for its mix of culture, affordability, and Mediterranean coast.

    How long does the buying process take?

    The property buying process in Spain typically takes 2-3 months, but it can vary depending on factors like securing financing or completing legal checks. Spain’s well-structured property market helps ensure a relatively straightforward process.

    Does buying property in Spain lead to citizenship?

    No, buying property does not directly lead to citizenship. However, through the Golden Visa program, you can obtain residency by purchasing a property for at least €500.000 until the end of 2024, which after several years of living in Spain, may open a pathway to citizenship.