01
What taxes does a non-resident pay when buying property in Spain?
Non-residents typically pay Transfer Tax (ITP) of 8–10% on resale properties, or VAT (10%) plus Stamp Duty (AJD) on new builds. Add notary fees, the Land Registry filing and legal advisory. The full acquisition cost usually sits between 10% and 14% above the purchase price, depending on the autonomous community. Once acquired, the property triggers annual Non-Resident Income Tax (Modelo 210) and local property tax (IBI), which must be filed regardless of whether the property is rented out.02
What does a property due diligence cover and why does it matter?
A property due diligence verifies, before signing, that the property is free of encumbrances and undisclosed risks: registered title, mortgages or seizures, planning compliance, occupancy and building licences, community debts and pending taxes (IBI, plusvalía). It also reviews the contract and the seller's capacity to dispose of the property. A proper due diligence is what prevents the most common disputes after closing — and is far cheaper than the litigation it avoids.03
Is it safe to buy off-plan in Spain?
Yes, provided the operation is structured correctly. Spanish law requires the developer to secure all amounts paid in advance through a bank guarantee or insurance policy that covers refund if the property is not delivered on time. The contract must specify delivery date, technical specifications, penalty clauses and a clear procedure for snagging. Independent legal review of the developer, the licences and the contract is essential — that is what turns a high-yield purchase into a safe one.