Buying property in Spain as a foreigner: the 2026 legal guide

Who can buy property in Spain

Spanish law allows foreign individuals and companies to buy residential property anywhere in the country. The main exception affects non-EU buyers in certain areas classified as relevant for national defence, which in the Balearic Islands include parts of the islands and require a military authorisation. Since Brexit, British buyers are non-EU buyers. See UK buyers after Brexit and American buyers.

Step 1: NIE, bank account and power of attorney

The NIE (número de identidad de extranjero) is a tax identification number required to sign the deed, pay taxes and connect utilities. It can be obtained in Spain or at a Spanish consulate, or by your lawyer with a power of attorney. A Spanish bank account is not always mandatory but makes paying taxes and bills much easier. See NIE and power of attorney.

Step 2: choose a lawyer before you reserve

In Spain the estate agent usually works for the seller and the notary is neutral. A lawyer is not mandatory, but it is the only professional who checks the property for you. Instruct one before paying a reservation fee. See do I need a lawyer to buy property in Spain?

Step 3: due diligence

Your lawyer checks the Land Registry for ownership and charges, compares it with the Cadastre, reviews licences and planning, and looks for debts and rental restrictions. In the Balearics, rustic land, coastal law and tourist licences make this step especially important. See legal due diligence.

Step 4: the contracts

The reservation takes the property off the market; the arras contract binds both parties, with a deposit of around 10%. Your lawyer negotiates conditions, the completion date and retentions. See arras contracts and private contract vs public deed.

Step 5: notary, taxes and registration

The sale is completed by signing the public deed before a notary and paying the price. The buyer then pays the transfer tax on resale property, or VAT and stamp duty on new builds, and registers the deed at the Land Registry. If the seller is non-resident, the buyer must withhold 3% of the price for the tax office. See purchase costs and taxes and the conveyancing timeline.

After buying: taxes for foreign owners

Tax	Who pays	When
IBI (municipal property tax)	All owners	Every year
Non-resident income tax on imputed income	Non-residents not renting	Every year
Non-resident income tax on rentals	Non-residents who rent	Quarterly
Wealth tax	Owners above the thresholds	Every year

See non-resident property tax and rental income tax.

Residence and stays

Buying property does not give the right to live in Spain. The golden visa for property investors has ended; see what buyers must know. EU citizens can register as residents; non-EU citizens without a visa are limited to 90 days in any 180-day period.

Specific points for the Balearic Islands

The islands add strict planning on rustic land, protection of the coast and limits on holiday rentals that vary between Mallorca, Menorca, Ibiza and Formentera. Read our island guides for Mallorca, Menorca, Ibiza and Formentera. This guide is published by Castell.law, property lawyers in Palma.