Buying Property in Spain as a Foreigner: Real Costs 2027

Buying Property in Spain as a Foreigner? How Much It Really Costs (2027)

By Arturo García de la Cruz · Immigration Lawyer at MoveWise · Last updated: 10 November 2026

⚠️ Important: This guide explains in general how the taxes and fees of buying a home in Spain work. It is not tax advice or legal advice. MoveWise is an immigration consultancy, not a tax adviser or a property lawyer: before you sign or pay anything, speak to a qualified tax adviser (in Spain an asesor fiscal) and an independent property lawyer (abogado).

💡 The short answer: Foreigners can buy property in Spain on the same terms as Spaniards; you need a NIE. On top of the price, the largest cost is tax: on a resale home, the regional transfer tax (ITP), which in 2026 ranges from 6% in Madrid to progressive scales starting at 10% in Catalonia; on a new build, 10% VAT plus a regional stamp duty. Notary and Land Registry fees follow official scales. The proposed 100% tax on non-EU buyers never became law.

Key facts for 2027 buyers (rates in force at 30 October 2026)

No restriction on foreign buyers: the bill with a 100% tax on non-EU buyers lapsed on 6 October 2026, when Parliament was dissolved (Congreso de los Diputados).
Resale homes: transfer tax (ITP) at the rate of each region, for example 6% in Madrid and 9% in Valencia (Ministerio de Hacienda, Tributación Autonómica 2026).
New builds: IVA at 10% (art. 91 of the VAT Act) plus regional stamp duty (AJD), for example 0.75% in Madrid and 1.5% in Catalonia.
Tax base: the price, but never less than the Catastro reference value (art. 10.2 of the ITP and AJD Act).
Notary and Land Registry: fees set by official scales, Real Decreto 1426/1989 and Real Decreto 1427/1989.
Mortgages: the bank pays the notary and registration of the mortgage deed and the gestoría, you pay the valuation (art. 14.1.e of Ley 5/2019), and the bank pays the mortgage stamp duty (art. 29 of the ITP and AJD Act).
Non-resident seller: you withhold 3% of the price and pay it to the Tax Agency on modelo 211 within one month (Agencia Tributaria).
No residence through property: the investor visa (Golden Visa) closed from 3 April 2025 (La Moncloa).

This guide is for non-EU buyers, and anyone buying from abroad, who want to see every cost line of a Spanish home beyond the price, and the questions to put to their tax adviser and lawyer.

It is the cost companion to our step-by-step guide to buying property in Spain, which covers the process, and to our guide to Spanish mortgages for expats. MoveWise Legal Managers prepared it from the laws and official pages linked in each section.

The main pitfall is budgeting with the wrong tax: a resale and a new build of the same price pay different taxes, at rates that change from region to region.

In this guide:

Can foreigners buy property in Spain?
What changed in 2026
Resale or new build: which tax applies
Transfer tax (ITP) by region
New builds: IVA and stamp duty
Illustrative estimates on a €300,000 home
Notary, Land Registry and mortgage costs
Other costs and non-resident sellers
The yearly costs of owning, and selling later
Costly mistakes, and when you need an adviser
Frequently asked questions

Can foreigners buy property in Spain?

Yes. At 30 October 2026, Spanish law sets no nationality or residence condition for buying a home, and no surcharge for foreign buyers is in force.

✅ You need a NIE. The Número de Identidad de Extranjero identifies you in the deed and in your tax filings. Our guide explains how to get your NIE.
✅ The 100% tax was a proposal, not law. On 13 January 2025 the Government announced a higher tax burden, "up to 100% of the value of the property", on purchases by non-EU non-residents (La Moncloa). The bill that would have created it (BOCG, 30 May 2025) was never debated and lapsed (caducado) on 6 October 2026, when Real Decreto 806/2026 dissolved Parliament and called elections for 29 November 2026. A future Parliament could bring back a similar measure.
❌ Buying does not give you residence. Ley Orgánica 1/2025 removed the investor visa articles from Ley 14/2013, from 3 April 2025. Applications filed before that date follow the old rules, and existing permits keep their validity.

If you want to live in the home you buy, you need a residence route. Retirees and people living on savings or passive income usually look at the Non-Lucrative Visa; remote workers look at the Digital Nomad Visa.

👉 Planning to live in your Spanish home? Book a free consultation with a MoveWise Client Manager — we will tell you honestly whether the Non-Lucrative Visa fits your income and savings.

What changed in 2026

Valencia: from 1 June 2026 the general ITP rate fell from 10% to 9%, and stamp duty on notarial deeds from 1.5% to 1.4% (Ley 5/2025 of the Generalitat).
Other recent changes: Catalonia's progressive scale (10% to 13%) applies since 27 June 2025; Murcia's rate is 7.75% since 25 July 2025.
Non-EU buyers: the 100% tax bill lapsed on 6 October 2026.
Non-resident owners: imputed income for 2026 is declared on modelo 210 between 1 April and 31 December 2027 (Orden HAC/623/2026, Agencia Tributaria note); income for 2025 is declared during 2026.
Pending: Real Decreto-ley 29/2026 changes the imputed income percentages from 2027 (see below) and the municipal plusvalía coefficients from 1 December 2026. Parliament must still validate it; at 30 October 2026 the BOE had not published a validation.

Resale or new build: which purchase tax applies

The type of sale decides the tax, not your nationality.

New build, first sale by the developer: subject to IVA as a "first delivery" (art. 20.Uno.22 of the VAT Act). A developer's sale after two or more years of continuous use (for example, after renting it out) is generally not a first delivery any more.
Resale (second and later sales): exempt from IVA and subject to ITP, the Impuesto sobre Transmisiones Patrimoniales Onerosas.
On top of IVA: the deed of a new-build sale also pays stamp duty, Actos Jurídicos Documentados (AJD), at the regional rate (art. 31.2 of the ITP and AJD Act).

The tax base is the price, with a floor. According to art. 10.2 of the ITP and AJD Act and the Catastro, the base for a property is its Catastro reference value (valor de referencia), unless the declared price is higher.

💡 Pro tip: before you sign the deposit contract (contrato de arras), look up the property's reference value in the Catastro e-office. If it is above the agreed price, the tax will be charged on the reference value.

Transfer tax (ITP) on resale homes, region by region

The State sets a default rate of 6% (art. 11 of the ITP and AJD Act), but every region with the common tax system has set its own. These are the general rates in force in 2026, according to the Ministerio de Hacienda's official summary of regional measures (Tributación Autonómica, Medidas 2026, Chapter IV):

📍 Madrid: 6%.
📍 Canary Islands: 6.5%.
📍 Andalusia: 7%.
📍 Murcia: 7.75%.
📍 Valencia: 9%; 11% when the value of the property exceeds €1 million.
📍 Balearic Islands: a progressive scale on the value of the property: 8% up to €400,000, then 9% up to €600,000, 10% up to €1 million, 12% up to €2 million and 13% above.
📍 Catalonia: a progressive scale: 10% up to €600,000, then 11% up to €900,000, 12% up to €1.5 million and 13% above.

Every region also has reduced rates under conditions (young buyers, large families, a main home below a value limit), mostly tied to the property becoming your main residence (vivienda habitual). Check every condition before you budget with one.

The Basque Country and Navarre have their own foral tax systems and are not covered above: ask an adviser who works with the relevant foral treasury.

New builds: 10% IVA plus stamp duty (AJD)

On a new build you pay IVA to the developer, who passes it to the Tax Agency.

✅ IVA at 10% for buildings or parts of buildings suitable for use as homes, including up to two parking spaces and annexes sold with them (art. 91.Uno.1.7º of the VAT Act). Protected housing can have a lower rate.
✅ AJD on the deed, at the general regional rate for notarial documents. According to the Ministerio de Hacienda's 2026 summary: Madrid 0.75%, Andalusia 1.2%, Valencia 1.4%, Catalonia 1.5%, Murcia 1.5% and the Balearic Islands 1.5% (2% from €1 million). Where a region has not set a rate, the State default is 0.5%.
✅ Canary Islands: IVA does not apply there; a new build bears the Canary Islands' own indirect tax, the IGIC, and its deed pays AJD at 1%, the Canary rate for deeds of sales subject to IGIC or IVA. See our guide to taxes in the Canary Islands and confirm the rates with your adviser.

Illustrative estimates: purchase costs on a €300,000 home

⚠️ Illustrative estimate, not a tax calculation. These figures are rough estimates to give you an idea of the order of magnitude. They are not a tax calculation and must not be relied on: the real result depends on your whole situation (region, family, deductions, other income, treaties). Always ask a fiscal lawyer or an experienced accountant to run your exact numbers.

Assumptions (both examples):

Price €300,000, at or above the Catastro reference value; one buyer; no garage.
Cash purchase. With a mortgage, Ley 5/2019 puts most mortgage-deed costs on the bank; the valuation you pay is not included.
General regional rates in force in 2026; not bought as your main home (vivienda habitual), so no reduced rate.
Notary: official scale (RD 1426/1989, Annex I, number 2) minus its 5% reduction, about €388. Land Registry: official scale (RD 1427/1989, Annex I, number 2) minus 5%, about €205. Plus IVA, generally charged on these fees at the 21% general rate (art. 90 of the VAT Act): about €720 in total, all assumed paid by you.
Left out: per-page and copy charges, lawyer, gestoría, agent, translations, bank charges and currency exchange.

Example 1: resale flat in Valencia or Madrid

Valencia: ITP 9% × €300,000 = €27,000. Plus notary and registry about €720. Total about €27,700, roughly 9.2% of the price.
Madrid: ITP 6% × €300,000 = €18,000. Plus notary and registry about €720. Total about €18,700, roughly 6.2% of the price.
If the seller is a non-resident: you also withhold €9,000 (3% of the price) and pay it to the Tax Agency. That comes out of the price paid to the seller; it is not an extra cost for you.

Example 2: new-build flat in Valencia or Madrid

Both regions: IVA 10% × €300,000 = €30,000.
Valencia: AJD 1.4% × €300,000 = €4,200. With notary and registry, total about €34,900, roughly 11.6% of the price.
Madrid: AJD 0.75% × €300,000 = €2,250. With notary and registry, total about €33,000, roughly 11.0% of the price.

The two regions only illustrate how the rates work, not where to buy. Your real costs depend on conditions this example ignores; a fiscal lawyer or an experienced accountant can tell you.

Notary, Land Registry and mortgage costs

Notaries and land registrars are public officials, and their fees (aranceles) are set by royal decree, not by the market.

✅ Notary: a fixed amount up to €6,010.12 of value, then decreasing rates per thousand on each band, with a compulsory 5% reduction. The scale also charges per page of the original deed (from the fifth sheet) and of each copy (RD 1426/1989).
✅ Land Registry: a similar decreasing scale for each property registered, with a minimum of €24.04, a maximum of €2,181.67 and a 5% reduction (RD 1427/1989).
✅ The base: the value checked for tax purposes or, failing that, the value stated in the deed.

Who pays? Under art. 1455 of the Civil Code, executing the deed is the seller's cost, and the first copy and later costs, such as registration, are the buyer's, "unless otherwise agreed". Read the cost clause of your arras contract with your lawyer.

Mortgage costs: who pays what

Since 2019, art. 14.1.e of Ley 5/2019 shares the costs of a mortgage on a home:

You (the borrower): the valuation of the property (tasación).
The bank (the lender): the gestoría, the notary fees for the mortgage deed and the Land Registry fees for registering the mortgage.
Copies: whoever requests them.
Stamp duty on the mortgage deed: paid by the lender (art. 29 of the ITP and AJD Act, as amended in 2018).

These rules cover the mortgage deed; the purchase deed and its taxes are still yours. Our Spanish mortgages guide explains the requirements for non-residents.

👉 Moving to Spain to work remotely? Talk to a MoveWise Client Manager about the Digital Nomad Visa — a residence permit often matters to banks and landlords as much as to you.

Other costs: lawyer, gestoría, translations

These costs have no official price, and MoveWise does not quote them: ask each provider for a written fee proposal.

Independent property lawyer: checks title, debts, charges, planning status and the contracts. Ask what is included.
Gestoría: often files the taxes and the registration after completion when there is no mortgage.
NIE: a government fee applies.
Power of attorney: if you will not attend the signing, a power signed abroad usually needs an apostille and a sworn translation; see our guide to the apostille for Spain.
Bank and exchange: banks charge their own fees, and the exchange rate moves your budget; see opening a bank account in Spain.
Estate agent: the commission and who pays it are agreed with the agency.

⚠️ Common mistake: signing a power of attorney that is too broad. Ask your lawyer to limit it to the purchase, the mortgage and the related filings.

Buying from a non-resident seller

When the seller lives abroad, two rules fall on you, the buyer.

The 3% withholding. According to the Agencia Tributaria, the buyer must withhold 3% of the agreed price and pay it as a payment on account of the seller's tax, on modelo 211, within one month of the sale. If it is not paid, the property answers for the smaller of the withholding and the seller's tax (art. 25.2 of the Non-Resident Income Tax Act).
The municipal plusvalía. The seller pays the tax on the increase in value of urban land, but when the seller is a non-resident individual, the buyer becomes the substitute taxpayer (art. 106 of the Local Finances Act). Your lawyer usually agrees how it is covered at completion.

The yearly costs of owning, and selling later

Once you own the home, these costs come back every year:

IBI (Impuesto sobre Bienes Inmuebles): the municipal property tax, based on the cadastral value at a rate set by each town hall. It falls due on 1 January.
Community fees, municipal charges such as waste collection, insurance, utilities and maintenance.
Wealth tax and the solidarity tax on large fortunes: they exist and depend on your region, residence and total assets; see our guide to taxes in Spain for expats.

Non-resident owners: imputed income

If you are not tax resident in Spain and keep the home for your own use or empty, Spain taxes an imputed income on it under the Non-Resident Income Tax (IRNR), according to the Agencia Tributaria:

✅ The base: 1.1% of the cadastral value shown on the IBI bill where the town's values were revised in a general collective valuation within the period the law sets; 2% otherwise. No expenses are deducted.
✅ The rate: 19% for residents of the EU, Iceland, Norway and Liechtenstein; 24% for everyone else.
✅ Part of the year: the amount is reduced by the days you did not own the property or it was rented out.
✅ The form: modelo 210, filed the following year.
✅ From 2027 (pending): Real Decreto-ley 29/2026 replaces the two percentages with a scale on the total cadastral value of your properties: 1.1% up to €100,000, 1.5% up to €500,000, 2% up to €1 million and 3% above (art. 85 of the Income Tax Act, from 1 January 2027 if validated). The non-resident tax uses this rule (art. 24.5 of the Non-Resident Income Tax Act): ask your adviser how it affects you.

Assumptions: one owner, tax resident outside Spain; one flat owned all year and never rented; an assumed cadastral value of €120,000 (yours is on the IBI bill and usually differs from the price); tax year 2026 rules, plus the 2027 scale as published. Left out: treaty relief, home-country tax and IBI.

At 1.1%: imputed income €1,320. Tax at 24% about €317; at 19% about €251.
At 2%: imputed income €2,400. Tax at 24% €576; at 19% €456.
2027 scale, if validated: 1.1% of €100,000 plus 1.5% of €20,000 = €1,400. Tax at 24% €336; at 19% €266.

Whether these rules apply to you depends on conditions this example ignores; a fiscal lawyer or an experienced accountant can tell you.

If you rent the home out, different rules apply, and if you become tax resident in Spain, the income tax (IRPF) rules replace these. Our guide to tax residency in Spain explains when that happens.

Selling later

Selling brings the municipal plusvalía and tax on the capital gain (IRPF if you are tax resident, IRNR if not; as a non-resident seller, your buyer withholds 3%). Keep every invoice and the purchase deed: your adviser will need them to work out the gain.

Costly mistakes, and when you need an adviser

Budgeting with the wrong tax. Fix: confirm whether the sale is a first delivery (IVA) or a resale (ITP) before you sign the arras.
Assuming a reduced rate. Fix: check every condition with your adviser.
Missing filing deadlines after completion. Fix: agree in writing who files the ITP or AJD and the registration, and by when; each region sets its own deadline.
Forgetting the yearly modelo 210 as a non-resident owner. Fix: diarise it and keep the IBI bill.

Get qualified advice from a tax adviser and a property lawyer before you act if:

you will buy through a company, with other people, or under a foreign marriage regime;
you may become tax resident in Spain in the year of the purchase or soon after;
you plan to rent the property out, including holiday lets;
you are a US citizen, or keep tax ties to another country;
the property is in the Basque Country, Navarre or the Canary Islands, or is off-plan or rural;
the funds come from several countries, or include a gift or inheritance.

Our article on renting vs buying in Spain covers the decision that comes before all of this.

Frequently asked questions

Can foreigners buy property in Spain?

Yes. At 30 October 2026 there is no nationality or residence restriction on buying a home in Spain. You need a foreigner identification number (NIE) to sign the deed and pay the taxes. A proposed 100% tax on non-EU buyers lapsed in October 2026 without being debated.

How much does it cost to buy a house in Spain on top of the price?

The main item is tax: the regional transfer tax on a resale home (from 6% in Madrid in 2026) or 10% VAT plus regional stamp duty on a new build. Notary and Land Registry fees follow official scales, and professional fees come on top. Ask a tax adviser for your own figure.

What is the property transfer tax (ITP) in Spain by region?

Each region sets it. According to the Ministry of Finance, the 2026 general rates include 6% in Madrid, 6.5% in the Canary Islands, 7% in Andalusia, 7.75% in Murcia, 9% in Valencia, and progressive scales starting at 8% in the Balearics and 10% in Catalonia. Reduced rates exist under conditions.

Do non-residents pay more tax when buying property in Spain?

No surcharge was in force at 30 October 2026: non-residents pay the same purchase taxes as residents. Some regional reduced rates are linked to buying your main home, and owning the property as a non-resident brings its own yearly obligations. Check your case with a tax adviser.

Who pays the notary and Land Registry fees in Spain?

Under article 1455 of the Civil Code, the seller pays for executing the deed and the buyer pays for the first copy and later costs, such as registration, unless the contract says otherwise. With a mortgage, the bank pays the notary and registry costs of the mortgage deed.

Does buying a property in Spain give me residency?

No. The investor visa that allowed residence through a property purchase of at least €500,000 was abolished from 3 April 2025. To live in Spain you need a residence route such as the Non-Lucrative Visa or the Digital Nomad Visa.

What is the 3% withholding when buying from a non-resident?

If the seller is not tax resident in Spain, the buyer must withhold 3% of the agreed price and pay it to the Tax Agency on modelo 211 within one month of the sale. It is a payment on account of the seller's tax, not an extra cost, but the property answers for it if it is not paid.

What taxes do non-resident owners pay every year in Spain?

The municipal property tax (IBI) and, for a home kept for own use, non-resident income tax on an imputed income of 1.1% or 2% of the cadastral value in 2026, at 19% for EU and EEA residents and 24% for others, according to the Tax Agency. A scale from 1.1% to 3% is due from 2027 if Parliament validates Real Decreto-ley 29/2026. Wealth tax may also apply.

How MoveWise can help

MoveWise handles the immigration side of your move to Spain. If you want to live in the home you buy, we start with an eligibility assessment (Module 1). A Legal Manager then prepares and submits your Non-Lucrative Visa or Digital Nomad Visa application and answers any request for documents (Module 2). After approval we help with residency registrations such as the TIE residence card and the padrón.

We do not act in property transactions, give tax advice or file tax returns. For the purchase itself, we can put you in touch with independent lawyers and qualified tax advisers we work with.

Our visa service includes a full refund of our fee if your application is refused, under the conditions of our service agreement, and our clients have left more than 500 client reviews on Trustpilot.

👉 Book a free consultation with a MoveWise Client Manager — tell us where you plan to buy and how you will live in Spain, and we will explain the residence route that fits. The consultation covers the visa, not your taxes or the purchase.

Sources and legal references

Ministerio de Hacienda, Tributación Autonómica. Medidas 2026, Chapter IV (regional ITP and AJD rates)
Ministerio de Hacienda, Tributación Autonómica 2026 (index page)
Real Decreto Legislativo 1/1993, ITP and AJD Act (arts. 10, 11, 29, 31), BOE
Ley 37/1992, VAT Act (arts. 20, 90, 91), BOE
Real Decreto 1426/1989, notaries' fee scale, BOE
Real Decreto 1427/1989, land registrars' fee scale, BOE
Ley 5/2019, real estate credit contracts (art. 14), BOE
Civil Code (art. 1455), BOE
Real Decreto Legislativo 5/2004, Non-Resident Income Tax Act (art. 25), BOE
Real Decreto Legislativo 2/2004, Local Finances Act (art. 106), BOE
Ley 35/2006, Income Tax Act (art. 85, imputed income; wording from 1 January 2027), BOE
Real Decreto-ley 29/2026 (housing measures; pending validation), BOE
Agencia Tributaria, withholding by the purchaser of a property
Agencia Tributaria, modelo 211 instructions
Agencia Tributaria, imputed income from urban property for own use
Agencia Tributaria, modelo 210 filing periods changed by Orden HAC/623/2026
Dirección General del Catastro, tax uses of the reference value
Sede Electrónica del Catastro
Ley Orgánica 1/2025 (final provision 21: investor visas), BOE
La Moncloa, end of the Golden Visa from 3 April 2025
La Moncloa, 12 housing measures announced on 13 January 2025
Congreso de los Diputados, bill 122/000196 (status: lapsed)
BOCG, Congreso, Series B no. 229-1, 30 May 2025 (text of the bill)
Real Decreto 806/2026, dissolution of Parliament, BOE

This article is general information about Spanish tax rules and property purchase costs, verified on 10 November 2026. It is not tax, legal or financial advice and does not take your personal situation into account. Tax law and its interpretation change often. Always confirm your position with a qualified tax adviser before acting.

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