How to Buy Property in Spain as a Foreigner in 2026: Step-by-Step Legal Guide

Why Buying Property in Spain as a Foreigner Requires Legal Planning

Buying property in Spain as a foreigner is defined as the acquisition of Spanish real estate by a person who is not a Spanish national, whether or not they reside in Spain. Vicox Legal, an international law firm advising on cross-border real estate and crypto-funded acquisitions in Spain and Portugal, manages these transactions for buyers from Europe, the Americas, the Gulf and Asia.

Demand remains strong. According to the Registradores de la Propiedad, foreigners bought close to 97,300 homes in Spain in 2025, 13.8% of all residential transactions. The highest concentrations of foreign buyers are in the provinces of Alicante, the Balearic Islands and Málaga, and British buyers remain the largest single foreign group.

The legal context, however, has changed. Spain abolished its real estate Golden Visa on 3 April 2025, so buying property no longer leads to a residence permit. The government has also proposed a 100% tax on non-EU, non-resident buyers, which is not law but has created uncertainty. At the same time, EU rules on anti-money laundering and crypto-asset reporting have made the origin of funds more visible than ever.

This guide explains the full legal process for buying property in Spain as a foreigner in 2026: the documents you need before making an offer, the seven stages of the transaction, the taxes and costs you will pay, how non-resident mortgages work, and how to fund a purchase with digital assets in a way that a Spanish notary and bank will accept.

Legal Framework for Foreign Property Buyers in Spain

Under Spanish law, foreigners can acquire real estate on the same terms as Spanish nationals. There is no general restriction based on nationality or residence, apart from specific military authorisations for property in areas declared of interest to national defence under Ley 8/1975. The main rules that govern a purchase are:

• Código Civil: regulates the sale contract, including the arras deposit (Article 1454) and the transfer of ownership.
• Ley Hipotecaria and the Land Registry: registration of the title in the Registro de la Propiedad protects the buyer against third parties.
• Notarial legislation: the public deed (escritura pública) is signed before a Spanish notary, who controls legality, identity and the means of payment.
• Ley 10/2010 on the prevention of money laundering: notaries, registrars, banks, agents and lawyers are obliged entities that must identify the buyer and verify the origin of funds. SEPBLAC is the supervisory authority.
• Real Decreto Legislativo 1/1993: the framework for the transfer tax (ITP) and stamp duty (AJD), with rates set by each autonomous community.
• Real Decreto Legislativo 5/2004: the non-resident income tax (IRNR) rules that apply to foreign owners who are not tax resident in Spain.
• Real Decreto 664/1999 on foreign investment: real estate investments by non-residents must be declared to the Investment Register in certain cases, notably when the investment exceeds €3,005,060.52 or the funds come from a jurisdiction classified as a tax haven.
• Ley 5/2019 on real estate credit: transparency rules for mortgages, including the mandatory reflection period and the free notarial transparency act before signing.

Before You Buy: NIE, Spanish Bank Account and Power of Attorney

The preparation stage of buying property in Spain as a foreigner consists of obtaining the identification and financial tools that every Spanish transaction requires. Completing it before you make an offer avoids most delays later.

NIE (Número de Identidad de Extranjero)

The NIE is the tax identification number that every foreign buyer needs to sign the deed, pay taxes and register the property. It can be requested at a Spanish consulate in the buyer’s country, at a police station in Spain, or through a representative holding a power of attorney. The application uses form EX-15 and the fee is paid through form 790 código 012, which in 2026 is €9.84. Each buyer, including each spouse in a joint purchase, needs their own NIE.

Spanish bank account

A Spanish bank account is not legally mandatory, but in practice it is the simplest way to pay the price, taxes and recurring charges. Spanish banks apply their own KYC checks under Ley 10/2010 and will ask for the same source-of-funds documentation as the notary.

Power of attorney

Foreign buyers who cannot be present at every stage can grant a notarial power of attorney (poder notarial) to their lawyer. If it is signed abroad, it must be legalised with the Hague Apostille, or through the Spanish consulate, and translated where necessary. A well-drafted power of attorney allows counsel to obtain the NIE, open accounts, sign the arras contract and execute the deed on the buyer’s behalf.

Ownership Structures: Personal, Joint or Corporate

The ownership structure is the legal form in which the buyer holds the property, and it determines the tax treatment during ownership, on sale and on death. The choice should be made before the arras contract, because the buyer named in the contract is normally the buyer in the deed.

For family offices and HNWIs holding assets in several countries, a holding layer can be justified, but it should be chosen for its commercial, succession and tax merits. Our guide to Luxembourg wealth structuring with SOPARFI and SPF vehicles explains when this is appropriate.

The Process of Buying Property in Spain as a Foreigner, Step by Step

The process of buying property in Spain as a foreigner involves seven legal stages. For a cash purchase, it usually takes six to twelve weeks from the accepted offer to the deed. A mortgage adds the bank’s approval period and the 10-day reflection period required by Ley 5/2019.

1. Wallet and source-of-funds verification — Before any offer, counsel reviews the origin of the purchase money and prepares the evidence: bank statements, tax returns, sale deeds or, for crypto holders, exchange records and wallet history. This is the file the bank and the notary will examine under Ley 10/2010.
2. AML/KYC validation of the investor — The buyer obtains the NIE and provides identity, address and beneficial ownership documentation. Politically exposed persons and corporate buyers are subject to enhanced due diligence.
3. Preparation of legal documentation — Counsel obtains the nota simple from the Land Registry and checks ownership, charges, mortgages, urban planning status, cadastral consistency, licences and community debts. The arras contract is then negotiated, normally with a deposit of around 10% of the price. Under Article 1454 of the Código Civil, if the buyer withdraws, they lose the deposit; if the seller withdraws, they must return it doubled.
4. Funding and conversion through regulated channels — The buyer transfers the funds to a Spanish or EU bank account. Where the money comes from digital assets, they are converted into euros through a regulated crypto-asset service provider, with a full documentary trail, so the deed records a traceable fiat payment.
5. Notarial execution (escritura pública) — Buyer and seller sign the deed before a Spanish notary, who verifies identities, capacity, the beneficial owner and the means of payment, and records them in the deed. Keys are normally handed over on signing.
6. Tax settlement (ITP or VAT + AJD) — The buyer files and pays ITP, or AJD for a new build, normally within 30 working days of the deed. If the seller is non-resident, the buyer must withhold 3% of the price and pay it to the tax authority through Modelo 211 within one month.
7. Land Registry inscription — The deed is presented to the Registro de la Propiedad. Once registered under the Ley Hipotecaria, the buyer’s title is protected against third parties. Utilities and the IBI are then transferred to the new owner’s name.

AML/KYC and Source of Funds for Foreign Buyers

AML compliance in a Spanish property purchase is the set of identification and verification duties imposed on obliged entities by Ley 10/2010. For a foreign buyer, it is the stage most likely to delay a transaction, because funds often come from several countries and sources.

KYC and AML are distinct. KYC is the identification of the buyer and the ultimate beneficial owner. AML is the assessment of whether the funds and the transaction are consistent with the buyer’s profile. A buyer can pass KYC with a passport and NIE and still be unable to complete if the origin of the money is not documented.

Acceptable evidence includes:

• Bank statements showing how the funds were accumulated
• Employment contracts, payslips, tax returns or dividend statements
• Deeds or contracts for the sale of property, shares or a business
• Inheritance or gift documentation
• For digital assets: exchange statements, transaction histories, wallet attribution evidence and tax returns declaring the gains

Problematic sources include unexplained third-party transfers, funds routed through unregulated platforms, mixers or privacy protocols, and cash. Where the notary cannot verify the means of payment or detects risk indicators, they must refrain from authorising the deed and report the operation to SEPBLAC. Movements of cash or bearer instruments of €10,000 or more into or out of Spain must be declared on form S-1. The General Council of Notaries’ centralised prevention body (OCP) supports notaries in identifying beneficial owners and risk patterns across all Spanish notarial offices.

Taxes and Costs When Buying Property in Spain as a Foreigner

The taxes on buying property in Spain as a foreigner are the same as for Spanish buyers at the time of purchase. The differences arise during ownership, when non-residents are taxed under the IRNR. As a rule, total acquisition costs range from about 10% to 14% of the price, depending on the region and the type of property.

On acquisition

• Resale property, ITP: set by each autonomous community. General 2026 rates include 6% in Madrid, 6.5% in the Canary Islands, 7% in Andalucía, 8% in Murcia, 10% in Catalonia and the Valencian Community, and a progressive scale from 8% to 13% in the Balearic Islands.
• New build, VAT + AJD: 10% VAT on residential property bought from a developer (IGIC applies instead in the Canary Islands), plus AJD on the deed, generally between 0.5% and 1.5% depending on the region; Madrid applies 0.75%.
• Notary, Land Registry and administration: regulated fees that together usually represent around 1% to 2% of the price.
• Legal fees: for advice, due diligence, AML preparation and completion.

During ownership

• IBI: the annual municipal property tax.
• IRNR: if the property is not rented, non-residents declare imputed income of 2% of the cadastral value (1.1% where values have been revised), taxed at 19% for EU/EEA residents and 24% for others, through Modelo 210. Rental income is also declared through Modelo 210.
• Wealth tax and Temporary Solidarity Tax on Large Fortunes: non-residents are taxed on their Spanish assets above the applicable thresholds.

On sale

• Capital gains: taxed at 19% for non-residents, with a 3% withholding retained by the buyer.
• Plusvalía municipal (IIVTNU): normally paid by the seller. If the seller is non-resident, the buyer is liable as the taxpayer’s substitute, so the amount is usually retained from the price at completion.

Mortgages for Non-Resident Buyers

A non-resident mortgage is a loan granted by a Spanish bank to a buyer who is not tax resident in Spain, secured on the property. In 2026, banks typically lend 60% to 70% of the price or valuation, whichever is lower, so the buyer must contribute 30% to 40% of the price plus acquisition costs. The process usually takes eight to twelve weeks.

Ley 5/2019 protects the borrower. The bank must deliver the European Standardised Information Sheet (FEIN) and a warnings sheet (FiAE), and the borrower has a mandatory reflection period of at least 10 calendar days before signing. During that period, the borrower attends a free appointment with the chosen notary, who verifies that they have understood the loan terms and records it in a notarial transparency act. Arras contracts for mortgage-financed purchases should include a financing condition so the buyer can recover the deposit if the bank does not approve the loan.

Funding the Purchase with Digital Assets

A crypto-funded property purchase in Spain is an acquisition in which the buyer’s wealth is held in digital assets and converted into euros before the price is paid. Spanish notaries record fiat payments, so the conversion is part of the transaction and must be documented as carefully as any other source of funds. Vicox Legal structures these transactions end to end for international investors who want to buy real estate with crypto in Spain.

Two regulatory developments matter in 2026. Since 1 January 2026, Directive (EU) 2023/2226 (DAC8) requires crypto-asset service providers to report their users’ transactions to tax authorities, with exchanges between EU authorities and, through the OECD Crypto-Asset Reporting Framework, with many third countries. The MiCA Regulation (EU) 2023/1114 also requires crypto-asset service providers operating in the EU to be authorised. The practical consequence is that the conversion will be visible to tax authorities and should be converted through a regulated provider.

The conversion of crypto into euros is normally a taxable event in the investor’s country of tax residence. Non-resident buyers should declare the gain there and review the double taxation treaty between that country and Spain. Founders and family offices reinvesting after a liquidity event will find our guide to post-crypto exit real estate and wealth structuring in Spain relevant.

Risk Mitigation and Due Diligence for Foreign Buyers

Risk mitigation in a foreign acquisition is the identification and contractual allocation of the risks that could delay, increase the cost of or block the purchase. The most relevant are:

• Title and charges: the nota simple must confirm that the seller is the registered owner and show any mortgages, liens or easements, which should be cancelled at completion.
• Urban planning and licences: illegal extensions, rustic land restrictions and missing occupancy certificates (cédula de habitabilidad or equivalent) can prevent registration, utilities or resale. Tourist rental licences should be checked if rental is planned.
• Building condition: the building inspection report (ITE/IEE), the energy certificate and any pending works approved by the owners’ community.
• Debts attached to the property: unpaid IBI and community charges follow the property, so certificates of payment should be obtained before signing.
• Exchange rate and volatility: buyers funding in a non-euro currency or in digital assets should convert or hedge before the arras deposit fixes the euro price.
• Notarial refusal: the deed can be refused if the means of payment or the beneficial owner cannot be verified, which is avoided by preparing the source-of-funds file in advance.
• Legislative change: given the debate on taxing non-resident foreign buyers, arras contracts should address the consequences of a new tax entering into force before completion.

Independent legal advice from the outset is the most effective way to manage these risks. In Spain the notary controls legality, but does not act for the buyer or review the commercial terms of the deal.

Pre-Purchase Checklist for Foreign Property Buyers in Spain

• Obtain an NIE for every buyer before signing any reservation or arras contract.
• Open a Spanish or EU bank account and complete the bank’s KYC in advance.
• Prepare a source-of-funds file covering every tranche of the price.
• For digital assets, export full exchange histories and wallet evidence and confirm the provider is authorised.
• Decide the ownership structure (personal, joint or corporate) before the arras contract.
• Grant an apostilled notarial power of attorney if you will not attend every stage.
• Obtain a recent nota simple and check ownership, charges and the registered description.
• Verify planning status, occupancy certificate, ITE/IEE, energy certificate and licences.
• Request certificates showing IBI and community charges are paid.
• Include financing, legislative-change and payment-method clauses in the arras contract.
• Budget 10%–14% on top of the price for taxes, notary, registry and legal fees.
• If the seller is non-resident, plan the 3% withholding (Modelo 211) and the plusvalía retention.

Frequently Asked Questions

For a personalised review of your purchase, our real estate practice advises foreign buyers on structuring, due diligence and completion, and you can book a consultation with the team. Buyers comparing jurisdictions can also read our guide to moving to Portugal in 2026 and the IFICI regime.