Buying property in Spain: what every non-resident needs to know (2026)

Buying a property in Spain from abroad is a well-ordered legal process, but it involves specific steps, tax obligations and risks that are worth understanding before you commit. This guide covers the most important aspects for international buyers.

Step one: the NIE

The NIE (número de identidad de extranjero) is the tax identification number required for any legal transaction in Spain: signing a deposit contract, opening a bank account, completing a notarial deed or paying taxes. Without one, none of these steps can be completed. You can apply at the Spanish Consulate in your country of residence — the most practical option when the purchase is not imminent — or at an Immigration Office in Spain. A notarised power of attorney allows a local representative to manage this on your behalf.

The Spanish bank account and proof of funds

Spanish banks are required by anti-money laundering law (Ley 10/2010) to verify the legitimate origin of the funds used in the transaction. Payments linked to the purchase — the deposit, the balance of the purchase price, taxes — are made from a Spanish account, so opening one before the process begins is essential. The process is straightforward but requires some documentation preparation in advance.

The deposit contract: what you sign before the notarial deed

It is standard practice in Spain to sign a deposit contract (contrato de arras) before completing the purchase at the notary. The most common form is the penitential deposit (Article 1454 of the Civil Code), which allows either party to withdraw: the buyer forfeits the deposit; the seller returns double the amount. The legal classification of the contract — confirmatory, penalty or penitential — has very different consequences; it is important to specify this clearly in writing and to have it reviewed before signing.

The taxes you will pay on purchase

The tax burden depends on whether the property is new or second-hand:

• Second-hand property: Transfer Tax (ITP), at the rate set by the autonomous community. In the Región de Murcia the general rate is 8 % on the market value of the property.
• New-build property: VAT at 10 % plus Stamp Duty (AJD), which varies by region (1.5 % in Murcia as a general rule).

On top of these taxes, you must budget for notary fees, land registry fees and legal advice. In total, buyers should plan for between 10 % and 14 % of the purchase price in additional costs. Knowing this figure in advance avoids cash flow difficulties when it comes to completing.

Your annual tax obligations as a non-resident owner

The purchase does not exhaust your tax obligations. Once you own the property, as a non-resident you will owe two annual taxes:

• Non-Resident Income Tax (IRNR): if the property is not rented out, the Spanish tax authority imputes a notional income from the mere fact of ownership. The tax base is 1.1 % of the rateable value (if updated within the last ten years) or 2 % otherwise. The applicable rate is 19 % for residents of the EU/EEA and 24 % for others. The return is filed on Form 210 for each calendar year.
• IBI (local property tax): a municipal tax based on the property's rateable value, payable each year regardless of residency.

A critical point: the 3% retention if the seller is non-resident

When the person selling the property is not resident in Spain, the buyer is legally required to withhold 3 % of the purchase price and pay it to the tax authority within one month using Form 211 (Article 25.2 of the Non-Resident Income Tax Act, Royal Legislative Decree 5/2004). This is not optional: if the buyer fails to make the withholding, they become jointly liable for the tax the non-resident seller failed to pay. This is one of the costliest mistakes in transactions between international parties, and it must be addressed in the price negotiation and in the contract.

Legal due diligence: what we check before you commit

Before any payment is made, we carry out a review that covers at a minimum:

• Land Registry search (nota simple): confirms ownership, encumbrances (mortgages, charges, easements) and the legal description of the property. This is the starting point of every property due diligence.
• Community of owners debts: the buyer is liable for the seller's debts to the homeowners' association for the current year and the three preceding years (Article 9 of the Horizontal Property Act). Unpaid service charges transfer to the new owner.
• Outstanding IBI: property tax debt attaches to the property. We request the current IBI receipt and the last three years.
• Planning and land use status: zoning classification, building permits, any pending planning enforcement proceedings.
• Energy performance certificate: mandatory for the sale (Royal Decree 235/2013); its absence may give rise to penalties for the seller and affects market value.

This review is not a formality: it identifies problems that, if not caught before completion, become the buyer's responsibility.

Mortgages for non-residents

Spanish banks do offer mortgages to non-resident buyers, though on more restricted terms than for residents: maximum lending is typically 60–70 % of the appraised or purchase value, compared to 80 % for residents. Spain's Mortgage Credit Act (Ley 5/2019) requires the lender to provide the FEIN (European Standardised Information Sheet) and FIAE (Standardised Warning Sheet) at least ten days before signing, plus a transparency meeting with the notary. If part of the price is mortgage-financed, careful coordination between the mortgage signing and the purchase deed is essential.

End of the Golden Visa

A significant change for international buyers: the residence permit by real estate investment — the Golden Visa, previously available to buyers who spent €500,000 or more on Spanish property — was abolished by Organic Law 1/2025, of 2 January, with effect from 3 April 2025. Buying property in Spain no longer generates, in itself, any right of residence. Buyers who need to regularise or plan their residency alongside a purchase must explore alternative routes — non-profit residency, digital nomad visa, family reunification — before committing.

How we help at RCM Legal

We accompany international buyers through the entire process, in English and Spanish: NIE, bank account, property due diligence, deposit contract review and negotiation, notarial completion, tax filing and Land Registry coordination. If you are considering a purchase on the Costa Cálida or in the Región de Murcia, tell us about your transaction and we will set out the steps and costs with precision.