Your Questions Answered
Everything you need to know about purchasing property on the Costa del Sol — from taxes and legal requirements to mortgages and residency.
Purchasing Process
Can foreigners buy property in Spain?
Yes, absolutely. Spain places no restrictions on foreign nationals purchasing property. Buyers from any country — whether EU citizens or non-EU residents — can buy residential or commercial real estate. The only prerequisite is obtaining a NIE (Número de Identificación de Extranjero), a tax identification number for foreigners. Thousands of British, Scandinavian, German and international buyers purchase property on the Costa del Sol every year.
What is a NIE number and how do I get one?
A NIE is a unique identification number assigned to foreigners for any financial or legal transaction in Spain — including buying property, opening a bank account, or setting up utilities. You can apply at a Spanish consulate in your home country or at a local police station in Spain. The process typically takes 1–3 weeks. You'll need your passport, a completed EX-15 form and proof of why you need the NIE. Many lawyers can handle this on your behalf with a power of attorney.
What are the total purchase costs when buying property in Spain?
As a rule of thumb, budget approximately 10–13% on top of the purchase price for total acquisition costs. This covers taxes (ITP or IVA + Stamp Duty), notary fees (€600–€1,200), land registry fees (€400–€700) and legal fees (typically 1–1.5% of the purchase price plus VAT). If you're taking out a mortgage, add valuation and arrangement fees.
What taxes do I pay when buying a resale property?
For resale (second-hand) properties, the main tax is ITP (Transfer Tax). In Andalucía the rate is 7% of the declared purchase price. On a €1,000,000 property you'd pay €70,000 in transfer tax. The Andalucían government reduced the previously tiered rate to a flat 7% in 2021.
What taxes apply to buying a new-build property?
New-build properties are subject to IVA (VAT) at 10% of the purchase price, plus AJD (Stamp Duty) at 1.2% in Andalucía. A €800,000 new-build apartment would incur €80,000 in VAT plus €9,600 in Stamp Duty. There's no Transfer Tax on new-builds; IVA replaces it.
Do I need a lawyer to buy property in Spain?
While not legally mandatory, it is strongly recommended — and considered essential — to appoint an independent lawyer who specialises in Spanish property conveyancing. Your lawyer will conduct due diligence, review and negotiate the purchase contract, and represent you at the notary signing. Legal fees are typically 1–1.5% of the purchase price plus 21% VAT. Never use a lawyer recommended solely by the seller or estate agent.
Can I get a mortgage as a non-resident in Spain?
Yes. Spanish banks routinely offer mortgages to non-residents, typically lending up to 60–70% of the valuation (compared to 80% for residents). Rates are competitive, with variable rates tied to Euribor plus a margin. You'll need proof of income, bank statements, tax returns and a credit report. Mortgage terms of up to 20–25 years are common for non-residents.
How long does the buying process take from offer to completion?
A typical resale purchase takes 6–12 weeks from accepted offer to completion at the notary. Offer accepted → reservation deposit paid (€6,000–€10,000) → private purchase contract signed within 2–4 weeks (with 10% deposit) → completion at the notary 4–8 weeks later. New-build purchases can take longer if the property is still under construction.
What is a Nota Simple and why is it important?
A Nota Simple is an extract from the Spanish Land Registry that provides critical information about a property — legal owner, exact description and boundaries, any mortgages or charges, encumbrances and embargoes. Your lawyer should always obtain an up-to-date Nota Simple before you sign any contract.
Property Taxes & Costs
What are community fees and what do they cover?
If you buy an apartment, townhouse or property within a gated community, you'll pay monthly or quarterly community fees. These cover shared expenses including maintenance of communal areas, pools, gardens, lifts, security, building insurance and a reserve fund. Fees range from €50/month for a basic apartment block to €500+/month for a luxury gated community with 24-hour security.
What is IBI (property tax) and how much is it?
IBI is the annual local property tax, equivalent to council tax. It's based on the catastral value, which is usually significantly lower than market value. Rates typically range from 0.4% to 1.1% of the catastral value. For a €2,000,000 villa in Marbella, the catastral value might be €400,000–€600,000, resulting in annual IBI of €1,600–€4,000.
Can I rent out my property in Spain?
Yes, but holiday letting is regulated. In Andalucía any property let for tourist purposes (stays under 2 months) must be registered with the Junta de Andalucía's Tourism Register and obtain a VFT licence. Requirements include a minimum standard of furnishing, air conditioning and complaint forms. The licence number must be displayed on all advertising. Long-term rentals (over 2 months) don't require a tourist licence.
Is the Golden Visa programme still available?
No. As of April 2025, new applications for property-based Golden Visas are no longer accepted. Existing Golden Visa holders can still renew. Alternative residency routes include the non-lucrative visa, the digital nomad visa and the entrepreneur visa.
What ongoing annual taxes do property owners pay in Spain?
Owners face IBI (€1,000–€5,000 for typical Costa del Sol properties), basura (rubbish tax, €100–€300/year) and income tax. Non-residents who don't rent must still file an annual imputed income tax return based on 1.1–2% of the catastral value, taxed at 19% (EU) or 24% (non-EU). Rental income is taxed at 19% (EU, with deductions) or 24% (non-EU, flat).
Do I need a Spanish bank account to buy property?
Practically, yes. You'll need it to pay community fees, IBI, utility bills and mortgage repayments by direct debit. The notary will typically require completion funds to be transferred from a Spanish account. Opening one is straightforward — passport, NIE and proof of address.
What is the role of the notary?
The notary is a public official who oversees formal completion of the sale — verifying identities, ensuring documents are in order, reading and explaining the deed, witnessing signatures and submitting the deed for registration. The notary is impartial and does NOT conduct due diligence — that is your lawyer's job. Notary fees typically range from €600 to €1,200.
What due diligence checks should I do before buying?
Your lawyer should obtain a current Nota Simple, confirm the property matches its catastral and registry descriptions, check for outstanding debts, verify the Licencia de Primera Ocupación, review planning regulations for enforcement actions, obtain an Energy Performance Certificate, and review the community's statutes and accounts. For rural or older properties, additional checks on water rights, access and land classification are essential.
What are the capital gains tax implications if I sell?
For non-residents, CGT is a flat 19% on the gain. The buyer is legally required to retain 3% of the sale price and pay it directly to the Spanish tax authority as a withholding. Residents pay on a sliding scale from 19% to 28% depending on gain size. Residents over 65 selling their primary home are exempt.
Can I buy property through a company in Spain?
Yes, via a Spanish SL (Sociedad Limitada). This can help when multiple investors are involved, for commercial property or for inheritance planning. For most individual residential purchases, buying in personal names is simpler and more tax-efficient. Companies face 25% corporate tax and additional reporting. Take specialist advice before choosing a corporate structure.
What should I know about buying off-plan?
Spanish law requires developers to provide a bank guarantee or insurance policy covering all stage payments — meaning your money is protected if the developer fails to complete. Always verify this guarantee exists before paying anything beyond the initial reservation. Payment schedules typically involve 20–30% during construction and the balance on completion. Your lawyer should verify all building licences and land classification. Build in a buffer for delays.