What do foreign buyers most need to know about Spanish property?
Four things: purchase costs add 10–14% to the price; non-residents usually borrow 60–70% of value with approval taking 5–10 weeks; renting the property out needs a regional tourist licence and quarterly Modelo 210 tax filings at 19% or 24%; and inheritance is taxed regionally, with the return due within six months of death. Every one of those varies by region, so the answer for Andalusia is rarely the answer for the Balearics.
- Costs, mortgage LTVs and timelines are national; tax rates and licences are regional.
- Non-residents get the same regional inheritance reliefs as Spanish residents.
- A NIE number is required before you can sign, borrow or file tax in Spain.
Key takeaways
- Budget 10–14% of the purchase price in costs on top of the price itself.
- Non-residents typically borrow 60–70% LTV; mortgage approval takes 5–10 weeks.
- Tourist licences are regional — Barcelona, the Balearics and Andalusia all differ.
- Rental profit is taxed via Modelo 210 at 19% (EU/EEA) or 24% (UK and other non-EU).
- Inheritance tax is regional; state rates run 7.65–34% and the return is due within six months.
- Non-residents are entitled to the same regional inheritance reliefs as residents.
Buying a property in Spain
Purchase questions cluster around three things: how much cash you need, how much a Spanish bank will lend a non-resident, and how long the whole process takes. Full detail sits in the step-by-step buying process guide, the cost of buying guide and the purchase timeline hub.
Before anything else you need a NIE number, and if you are financing, a view on how much deposit the lender will expect.
Renting your Spanish property out
Short-term letting is the fastest-moving area of Spanish property law. Licences, community consent rules and regional caps changed materially through 2025 and 2026, and they differ sharply between Barcelona, the Balearics, Andalusia and Valencia.
The full regional position is in the licence and rental tax guide, and you can model the numbers with the holiday-let calculator.
Inheritance and succession
Spanish inheritance tax is paid by the beneficiary, not the estate, and the effective bill depends almost entirely on which region the property sits in. Several regions apply reliefs of 99% for close family; others do not.
Regional allowances, the six-month deadline, wills and EU choice of law are covered in the inheritance and succession guide. Where a tax bill has to be funded before the property can be sold, bridging finance or equity release are the usual routes.
Taxes for non-resident owners
Owning Spanish property as a non-resident means IBI (local rates), an annual IRNR return even if the property is never let, possible wealth tax, and capital gains tax on sale.
Rates, thresholds and worked examples for all four taxes are in the Spain tax hub. See also the non-resident tax guide, the Modelo 210 filing guide, the regional transfer tax tables and — if you are considering moving — the residency and tax residency guide.
Frequently asked
Questions from readers
How much does it cost to buy a property in Spain?
Budget 10–14% of the purchase price in addition to the price. On a resale that is mainly transfer tax (ITP) of 6–10% depending on the region, plus notary, Land Registry, legal fees and, if you borrow, mortgage costs. On a new build you pay 10% IVA (7% IGIC in the Canaries) plus AJD stamp duty of roughly 0.5–1.5%.
How much deposit do non-residents need for a Spanish mortgage?
Spanish banks typically lend non-residents 60–70% of the lower of purchase price and valuation, so you need 30–40% as a deposit plus the 10–14% purchase costs in cash. Residents and some strong EU-income profiles can reach 80%.
How long does it take to buy a property in Spain?
A cash purchase completes in about 6–10 weeks. A financed purchase usually takes 3–5 months: NIE 2–8 weeks, mortgage approval 5–10 weeks from a complete file, arras to notary 4–8 weeks including the mandatory 10-day FEIN cooling-off period, and Land Registry inscription 2–6 weeks after signing.
Do I need a NIE number to buy property in Spain?
Yes. The NIE (Número de Identificación de Extranjero) is required to sign at the notary, to take a Spanish mortgage and to file Spanish tax. It takes 2–8 weeks depending on whether you apply through a consulate, in person in Spain, or through a lawyer holding power of attorney.
Can UK residents still get a mortgage in Spain after Brexit?
Yes. UK residents are treated as non-EU non-residents, which mainly affects maximum LTV (typically 60–70%) and the tax rate on rental income (24% rather than 19%). Sterling income is accepted by most Spanish lenders, usually with a haircut of 10–20% applied to it.
Is the Spanish Golden Visa still available through property?
No. The property investment route to the Spain Golden Visa was abolished in April 2025. Other residence routes — including the digital nomad visa and the non-lucrative visa — remain open, but buying property no longer confers residence rights.
Does buying a property in Spain give me residency, and what changes if I become resident?
Buying property gives no residence rights — non-EU owners without a visa are limited to 90 days in any 180. If you later become tax resident (broadly 183+ days a year in Spain), your property tax regime changes: imputed income and the 24% non-EU rate fall away, rental profit moves to resident scale rates with expense deductions and a 60% long-term-let reduction, and worldwide assets enter wealth tax. The full comparison is in our Spain residency guide in the resources section.
Do I need a licence to rent out my Spanish property to tourists?
For short-term tourist lets, yes, and the licence is issued regionally. Barcelona is phasing out tourist flat licences by 2028, the Balearics operate strict caps and moratoria, and Andalusia and Valencia both require registration with the regional tourism register. Long-term residential lets do not need a tourist licence.
How is rental income from a Spanish property taxed for non-residents?
Through the Modelo 210 return. EU and EEA residents pay 19% on net profit and can deduct expenses such as mortgage interest, repairs, IBI and management fees. UK and other non-EU residents pay 24% on gross rent with no deductions. Rental returns are filed quarterly.
Do I have to file a Spanish tax return if I never rent the property out?
Yes. Non-resident owners pay imputed income tax on unlet property, calculated at 1.1% or 2% of the cadastral value depending on when that value was last revised, and taxed at 19% or 24%. The Modelo 210 for imputed income is filed annually, by 31 December of the following year.
What taxes do non-resident owners pay in Spain each year?
IBI, the local property tax set by the town hall; IRNR via Modelo 210 on rental or imputed income; a rubbish and services charge in most municipalities; community fees where applicable; and wealth tax where net Spanish assets exceed the regional threshold, commonly €700,000 per person.
How much is capital gains tax when a non-resident sells Spanish property?
19% on the gain for both EU and non-EU non-residents. The buyer must retain 3% of the price and pay it to the tax authority as an advance (Modelo 211); if the actual liability is lower you reclaim the difference through Modelo 210 within four months of the sale.
How does Spanish inheritance tax work for non-residents?
Inheritance tax (Impuesto sobre Sucesiones y Donaciones) is paid by each beneficiary on what they inherit, not by the estate. State rates run from 7.65% to 34% before regional multipliers and reliefs. Non-residents inheriting Spanish property are entitled to the same regional reliefs as residents.
How long do you have to pay Spanish inheritance tax?
Six months from the date of death. A one-off extension of a further six months can be requested within the first five months. Late filing attracts surcharges and interest, and the property cannot normally be registered or sold until the tax is settled.
Does a UK will cover Spanish property?
It can, but a separate Spanish will dealing only with Spanish assets is usually faster and cheaper to administer. Under EU Regulation 650/2012 you may elect the law of your nationality to govern succession, which allows a British national to avoid Spain's forced heirship (legítima) rules — that election should be recorded expressly.
Can you inherit a Spanish property that still has a mortgage on it?
Yes. The debt passes with the property and the lender will reassess the heirs. If the heirs cannot service or refinance the loan, options are a new Spanish mortgage in their names, equity release against the property, or bridging finance to fund the inheritance tax and settle within the six-month window.
Is buying in Spain through a company better than personal ownership?
Rarely for a single home. A Spanish SL adds formation, accounting and corporate tax obligations that usually outweigh the benefits at residential scale, and lending terms are often less favourable. Company ownership is more commonly justified for development schemes, multi-asset portfolios or specific succession planning.