Buying property in Spain — 2026 prices
- €2,924/m² national asking avg idealista, August 2026, up 12.5% YoY
- Madrid €5,000-7,400/m² Salamanca, Chamberí, Chamartín premium; outer barrios €3,500
- Barcelona €4,300-5,900/m² Eixample, Gràcia, Born; sea-view Barceloneta breaks €6,500
- 8–13% closing costs ITP 4–13% by region OR 10% VAT on new builds + notary + registry
- Golden Visa ended Apr 2025 Beckham Law remains: 24% flat tax for 6 years on Spanish income
- 60–70% LTV non-resident mortgage rates 2.5–4.5% (2026); 20–25-year maximum term
€2,924
National asking avg/m²
97,300
Foreign buyer transactions (2025)
8–13%
Closing costs
24%
Beckham Law flat tax rate
Spain recorded a new all-time high for foreign property buyers in 2025 — approximately 97,300 transactions by non-Spanish nationals, representing 13.8% of all sales. The market hit 705,000+ total transactions, the highest since 2008. If you’re considering buying property in Spain, you’re joining a massive and growing wave of international buyers.
There are zero restrictions on foreign ownership in Spain. Americans, Brits, Chinese, and citizens of any nationality can buy freehold property — residential, commercial, or land — on the same legal basis as Spanish citizens. No government approval. No investment minimums (the former Golden Visa’s minimum applied only to residency — and that program ended in April 2025 — never to the right to purchase). For the full country profile, see our Spain destination page or use our cost of living calculator to estimate total monthly expenses alongside property costs.
Property Prices by Region (2026)
Quick answer
| City/Region | Avg €/m² | Typical 2-Bed Apt | YoY Change | Foreign Buyer % |
|---|---|---|---|---|
| Madrid | €6,471 asking | €300K–500K | +2.2% | ~12% |
| Barcelona | €5,440 asking | €280K–450K | +6.3% | ~15% |
| Valencia | €3,469 asking | €180K–300K | +6.1% | ~20% |
| Malaga city | €3,938 asking | €200K–350K | +5.1% | ~30% |
| Marbella | €4,500 (avg transaction) | €350K–700K | +12.6% | 63% |
| Mallorca | €5,595 (Baleares avg, asking) | €300K–600K | +5.1% | 33% |
| Alicante province | €2,821 (avg sale, idealista maps) | €130K–220K | — | ~40% |
| Andalusia (avg) | €2,938 asking | €120K–200K | +10.9% | ~15% |
| Seville | €2,931 asking (Jul 2026) | €250K–380K | +10.4% | ~8% |
2026 market read: Supply remains constrained across major markets. The current city asking-price series shows Madrid at €6,547/m² (+3.1% year on year) and Barcelona at €5,449/m² (+6.8%), both for July 2026; the Madrid series changed methodology that month, so compare vintages carefully.
For neighborhood-level analysis with expat fit scores, see our free property intelligence reports for Valencia and Barcelona. For buyer-specific taxes, financing and rental rules, jump to the Madrid section or the Barcelona section.
Marbella: The Expat Capital of Southern Spain
Quick answer
Marbella is Spain’s most international property market — 63% of all property purchases are by foreign buyers, and 36.5% of the city’s 173,420 residents are foreign nationals from 156 countries. The average transaction in Marbella is €711,000 — three times the national average.
Marbella Prices by Neighborhood
| Area | Avg €/m² | Villa Range | Apt Range |
|---|---|---|---|
| Golden Mile / Sierra Blanca | €8,336 asking (Nagüeles-Milla de Oro) | €2M–25M+ | €500K–8M |
| Nueva Andalucia / Puerto Banús | €6,239 / €7,521 asking | €1M–10M | €300K–5M |
| Marbella Town Centre | €5,170 asking (Marbella Pueblo) | €800K–5M | €250K–2M |
| East Marbella (Los Monteros, Elviria) | €3,900–5,400 | €1M–8M | €300K–3M |
| San Pedro de Alcántara | €3,700–4,400 | €600K–3M | €200K–1M |
| Benahavís | €5,553 asking | €800K–6M | €250K–1.5M |
Marbella rental yields average 4.9% gross — with studios at 5.2% and larger villas (4+ bed) reaching 6.2%. Long-term asking rents in Nueva Andalucía average €23.9/m²/month (about €1,900 for an 80 m² apartment; idealista, August 2026), against a national average of €15.1/m². Nueva Andalucía rents rose 6.5% and Puerto Banús 13.3% year on year.
International schools in Marbella: Aloha College (British + IB, 1,000+ students, €5,000–15,000/year), Swans International (British + IB), Laude San Pedro (British + Spanish bilingual, Forbes 2025 recognized), and English International College (British, GCSE + A-Levels). See our school costs comparison.
How Do You Buy a House in Marbella as a Foreigner?
The same way as anywhere in Spain — there are no extra restrictions in Marbella, and no residency requirement. The practical sequence: get your NIE (foreigner tax number), open a Spanish bank account, make an offer and sign the arras (deposit) contract at typically 10%, then complete at the notary 4–8 weeks later. Budget roughly 10–11% on top of the purchase price for a resale home in Marbella: Andalusia’s flat 7% transfer tax (ITP) plus notary, registry, and legal fees. New builds run higher — 10% VAT plus 1.2% stamp duty (AJD) instead of ITP, pushing totals toward 13–14%. Non-residents can finance 60–70% loan-to-value through Spanish banks, so on a €350,000 resale apartment expect €105,000–€140,000 down plus roughly €35,000 in costs — around €140,000–€175,000 in cash. The full step-by-step process, documents, and common mistakes are covered in the buying process section below. For the mainstream-budget alternative along the same coast, see the Málaga / Costa del Sol section.
Can a Foreigner Buy a House in Málaga and on the Costa del Sol?
[Data] Málaga district, tax, mortgage and letting sources cited in this section · verified
Málaga's district table includes asking-price bands below the Marbella neighbourhood table, so a mainstream budget can compare like-for-like €/m² before choosing a search area rather than treating the coast as one market.
How Much Does Property Cost in Málaga by District?
The verified district sample runs from €2,875/m² in Puerto de la Torre to €4,981/m² in Este. It uses one asking-price series for a like-for-like comparison (idealista, July 2026).
Asking price €/m² · YoY
- Centro
- Asking price €/m²: €4,543YoY: +6.4%
- Este (Malagueta–Pedregalejo–El Palo)
- Asking price €/m²: €4,981YoY: +8.8%
- Teatinos–Universidad
- Asking price €/m²: €4,082YoY: +11.8%
- Carretera de Cádiz
- Asking price €/m²: €4,134YoY: +6.7%
- Churriana
- Asking price €/m²: €2,976YoY: +3.5%
- Puerto de la Torre
- Asking price €/m²: €2,875YoY: +9.0%
[Data] idealista price index · Málaga capital by district · July 2026 · verified
Which Costa del Sol Town Fits Your Budget?
The verified town sample runs from €3,484/m² in Manilva to €5,950/m² in Marbella. Check the index named in each row because the table preserves the source series (El Español reporting idealista, 20 August 2026; Fotocasa, August 2026).
Asking price €/m² · YoY · Index
- Torremolinos
- Asking price €/m²: €4,218YoY: +11.1%Index: idealista, Jul 2026
- Benalmádena
- Asking price €/m²: €4,175YoY: +7.5%Index: idealista, Jul 2026
- Fuengirola
- Asking price €/m²: €4,451YoY: +3.8%Index: idealista, Jul 2026
- Mijas
- Asking price €/m²: €4,130YoY: +9.9%Index: Fotocasa, Aug 2026
- Marbella
- Asking price €/m²: €5,950YoY: +4.6%Index: idealista, Jul 2026
- Estepona
- Asking price €/m²: €4,902YoY: +17.0%Index: idealista, Jul 2026
- Manilva
- Asking price €/m²: €3,484YoY: +15.6%Index: Fotocasa, Aug 2026
- Nerja
- Asking price €/m²: €3,944YoY: +5.3%Index: idealista, Jul 2026
- Rincón de la Victoria
- Asking price €/m²: €3,523YoY: +14.5%Index: idealista, Jul 2026
[Data] El Español reporting idealista · July 2026; Fotocasa · August 2026 · verified
What Does Buying in Málaga Cost on Top of the Price?
The range combines the stated tax, professional and legal costs (BOE, 31 December 2025; Francisco Orozco & Asociados, 17 April 2026; MT Legal Abogados Marbella, 2026).
This €250,000 resale example assumes that €250,000 is also the tax base; ITP uses the higher of the Catastro reference value, declared value, or price (BOE, 21 March 2026).
Resale home · €250,000
- Purchase price
- €250,000
- ITP on a resale: 7% × €250,000 = €17,500 (BOE, 31 December 2025)
- €17,500
- Notary, registry and gestoría: combined (Francisco Orozco & Asociados, 17 April 2026)
- €1,200–
€2,600 - Independent lawyer: (MT Legal Abogados Marbella, 2026)
- €3,0251% + 21% IVA = €3,025
- Resale cash on top of the price: €17,500 + €1,200–€2,600 + €3,025 =
- €21,725–
€23,125
First new dwelling · €250,000€32,225–
- Purchase price
- €250,000
- First new dwelling tax: (BOE, 28 February 2026; BOE, 31 December 2025)
- €28,00010% IVA + 1.2% AJD = €25,000 + €3,000 = €28,000
- Notary, registry and gestoría
- €1,200–
€2,600combined - Independent lawyer
- €3,0251% + 21% IVA = €3,025
- New-build cash on top with the same professional costs: €28,000 + €1,200–€2,600 + €3,025 =
- €32,225–
€33,625
How Much Can a Non-Resident Borrow for a Málaga Purchase?
Plan on the page's existing 60–70% non-resident LTV band, subject to the bank's valuation and underwriting. The comparator source says the upper end can be 70% of the lower of price and valuation, with some lenders at 60% (HelpMyCash, 31 March 2026).
CaixaBank · 70%
purchase price
€175,000
Bankinter · 60%
base not published
€150,000
The terracotta segment is the extra cash the lower base costs you.
€250,000 Málaga Resale Financing Example — HelpMyCash, 31 March 2026; BOE, 31 December 2025, and practitioner inputs as cited above
Can I Rent Out a Málaga Apartment to Tourists?
No new tourist-rental registration can currently be started in Málaga municipality. The city suspended new VUT licences and declarations across the whole municipality from 23 August 2025 until 22 August 2028 at the latest, or earlier approval of the planning modification; existing registered VUT can continue (Ayuntamiento de Málaga, 14 August 2025). The earlier district system barred new VUT in 43 barrios above the cap and capped a further 32 (Ayuntamiento de Málaga, 13 January 2025). Andalucía otherwise requires an electronic declaration before advertising or operating and registration in its tourism register (BOJA, 2 February 2024). See the Short-Term Rental Restrictions section for the national status.
How Do You Buy a House in Málaga as an Expat?
Get an NIE, open a Spanish bank account, sign an arras contract at typically 10%, then complete before a notary. On the €250,000 resale above, cash is €121,725–€123,125 at 60% LTV or €96,725–€98,125 at 70% LTV, including the stated purchase costs. Follow the step-by-step buying process for the document checks and 4–8-week arras-to-deed timeline.
Can a Foreigner Buy an Apartment in Madrid?
[Data] Madrid district, tax, mortgage and letting sources cited in this section · verified
Madrid's housing-specific relief is narrow: the 10% ITP-quota rebate requires a habitual home worth no more than €250,000, while the 4% rate requires a qualifying large-family habitual home (BOE consolidated Madrid tax law, current in 2026). The 100% under-35 relief is limited to qualifying habitual homes up to €250,000 in municipalities below 2,500 inhabitants, so it does not apply in Madrid city or the four commuter towns below. A separate 100% replacement-home relief is confined to owners affected by Metro Línea 7B works.
How Much Does Property Cost in Madrid by District?
The verified district sample runs from €3,266/m² in Villaverde to €10,890/m² in Salamanca. These are asking prices, not completed-sale prices, from one comparable series (idealista, July 2026); idealista changed its methodology that month.
Asking price €/m² · YoY
- Salamanca
- Asking price €/m²: €10,890YoY: −1.5%
- Chamberí
- Asking price €/m²: €9,245YoY: +4.0%
- Chamartín
- Asking price €/m²: €8,262YoY: +8.0%
- Retiro
- Asking price €/m²: €8,467YoY: +0.3%
- Centro
- Asking price €/m²: €7,745YoY: +3.2%
- Moncloa-Aravaca
- Asking price €/m²: €6,331YoY: +5.7%
- Tetuán
- Asking price €/m²: €6,228YoY: +9.4%
- Arganzuela
- Asking price €/m²: €6,336YoY: +9.4%
- Hortaleza
- Asking price €/m²: €5,529YoY: +8.4%
- Ciudad Lineal
- Asking price €/m²: €5,234YoY: +9.0%
- Fuencarral-El Pardo
- Asking price €/m²: €5,645YoY: +9.7%
- Latina
- Asking price €/m²: €4,009YoY: +7.8%
- Carabanchel
- Asking price €/m²: €3,813YoY: +10.8%
- Usera
- Asking price €/m²: €3,585YoY: +16.2%
- Puente de Vallecas
- Asking price €/m²: €3,399YoY: +16.3%
- Villaverde
- Asking price €/m²: €3,266YoY: +24.3%
[Data] idealista · Madrid district asking prices · July 2026 · verified
Is It Cheaper to Buy Outside the City?
All four western commuter towns sit below Madrid city's €6,547/m² asking average, but none is a low-cost market. The same portal series puts Las Rozas at €4,093/m² and Pozuelo at €5,057/m² (idealista, July 2026).
Asking price €/m² · YoY
- Pozuelo de Alarcón
- Asking price €/m²: €5,057YoY: +4.2%
- Las Rozas de Madrid
- Asking price €/m²: €4,093YoY: +12.9%
- Majadahonda
- Asking price €/m²: €4,957YoY: +23.4%
- Boadilla del Monte
- Asking price €/m²: €4,316YoY: +20.0%
[Data] idealista · Madrid commuter-town asking prices · July 2026 · verified
What Does Buying in Madrid Cost on Top of the Price?
The tax base is assumed to be €400,000; ITP uses the higher of the price and the Catastro reference value (Comunidad de Madrid, updated 23 April 2026). The professional-cost allowances below use the fixture's tariff-derived notary and registry ranges, €300–€500 gestoría range and optional 1% lawyer allowance.
Resale apartment · €400,000
- Purchase price
- €400,000
- ITP on a resale: 6% × €400,000 = €24,000 (BOE consolidated Madrid tax law)
- €24,000
- Notary: €600–€900; registry: €350–€500; gestoría: €300–€500
- €1,250–
€1,900 - Independent lawyer
- €4,000about 1% = €4,000
- Resale cash on top of the price: €24,000 + €1,250–€1,900 + €4,000 =
- €29,250–
€29,900
New build · €400,000€48,250–
- Purchase price
- €400,000
- New-build taxes
- €43,00010% IVA + 0.75% AJD = €40,000 + €3,000 = €43,000
- Notary: €600–€900; registry: €350–€500; gestoría: €300–€500
- €1,250–
€1,900 - Independent lawyer
- €4,000about 1% = €4,000
- New-build cash on top with the same professional costs: €43,000 + €1,250–€1,900 + €4,000 =
- €48,250–
€48,900
- Qualifying habitual-home rebate: not available on this €400,000 example because the value cap is €250,000; when available, 10% off the tax quota turns 6% into an effective 5.4%
- AJD habitual-home relief: 10% off the AJD cuota gradual for a natural person acquiring a habitual home worth no more than €250,000, including annexes and garages (BOE consolidated Madrid tax law, current in 2026)
- AJD large-family relief: 95% off the AJD cuota gradual for a qualifying familia numerosa acquiring its habitual home, under the same conditions as the 4% ITP rate (BOE consolidated Madrid tax law, current in 2026)
- AJD mortgage-change relief: 100% off the AJD cuota gradual on deeds that modify financial conditions or subrogate a mortgage loan or credit for the habitual home, excluding capital increases or decreases; this applies after purchase (BOE consolidated Madrid tax law, current in 2026)
How Much Can a Non-Resident Borrow in Madrid?
Published non-resident products support a practical 60–70% LTV planning band, but their bases differ. CaixaBank HolaBank publishes up to 70% based on purchase price, while Bankinter publishes up to 60% of an undefined property value; underwriting and valuation still apply (CaixaBank HolaBank, live 2 September 2026; Bankinter, live 2 September 2026).
CaixaBank HolaBank · 70%
purchase price
€280,000
Bankinter · 60%
base not published
€240,000
The terracotta segment is the extra cash the lower base costs you.
€400,000 Madrid Resale Financing Example — CaixaBank HolaBank and Bankinter, live 2 September 2026; Madrid taxes and purchase costs as cited above
Can I Rent Out a Madrid Apartment to Tourists?
A normal apartment in Madrid's historic centre cannot be newly licensed as a tourist flat. Plan RESIDE's rules were published on 22 September 2025: within the APE 00.01 historic-centre perimeter—which cuts across Centro, Chamberí, Salamanca, Retiro, Arganzuela, Moncloa-Aravaca, Tetuán and Chamartín—new tourist accommodation is barred on every floor of an existing residential building. Elsewhere in the city, a VUT inside a residential building must have an independent entrance (BOCM, 22 September 2025). The earlier licensing suspension gave way to this plan. Since 26 April 2026, the regional layer also requires an operator declaration, community approval, a technician-issued CIVUT and liability insurance (BOCM, 6 April 2026). No municipality in the Comunidad de Madrid was a declared rent-control zone as of 29 July 2026 (MIVAU official register).
How Do You Buy an Apartment in Madrid as a Foreigner?
Get an NIE, open a Spanish bank account, check the Catastro reference value and community rules, sign an arras contract, then complete before a notary. On the €400,000 resale above, cash is €189,250–€189,900 at 60% LTV or €149,250–€149,900 at 70% LTV, including the stated purchase costs. Follow the step-by-step buying process for the document checks and 4–8-week arras-to-deed timeline.
Can a Foreigner Buy Property in Barcelona?
[Data] Barcelona district, tax, mortgage and letting sources cited in this section · verified
How Much Does Property Cost in Barcelona by District?
The verified asking-price sample runs from €3,295/m² in Nou Barris to €7,155/m² in Sarrià-Sant Gervasi. The table uses one comparable portal series (idealista/data, July 2026); these are seller asking prices, not registered transaction prices.
Asking price €/m² · YoY
- Sarrià-Sant Gervasi
- Asking price €/m²: €7,155YoY: +8.6%
- Eixample
- Asking price €/m²: €6,630YoY: +4.4%
- Les Corts
- Asking price €/m²: €6,743YoY: +9.4%
- Gràcia
- Asking price €/m²: €5,675YoY: +8.6%
- Sant Martí
- Asking price €/m²: €5,369YoY: +7.6%
- Ciutat Vella
- Asking price €/m²: €4,825YoY: +2.1%
- Sants-Montjuïc
- Asking price €/m²: €4,602YoY: +6.8%
- Horta-Guinardó
- Asking price €/m²: €4,194YoY: +10.1%
- Nou Barris
- Asking price €/m²: €3,295YoY: +15.9%
- Sant Andreu
- Asking price €/m²: €4,041YoY: +12.8%
[Data] idealista/data · Barcelona district asking prices · July 2026 · verified
What Are the Coastal Alternatives?
Badalona is the lowest-priced verified coastal alternative at €2,649/m², while Sitges is close to Barcelona's city average at €5,321/m². The figures use the same asking-price index and month (idealista/data, July 2026).
Asking price €/m² · YoY
- Sitges
- Asking price €/m²: €5,321YoY: +11.8%
- Castelldefels
- Asking price €/m²: €4,388YoY: +4.2%
- Badalona
- Asking price €/m²: €2,649YoY: +4.7%
[Data] idealista/data · Barcelona coastal alternatives · July 2026 · verified
What Does Buying in Barcelona Cost on Top of the Price?
Catalonia applies its reformed marginal scale to the property's total value, and the tax base cannot be below the Catastro reference value (Agencia Tributaria de Catalunya, current scale from 27 June 2025). The non-tax allowance uses the fixture's 1–2% aggregate for notary, registry, gestoría, valuation and lawyer.
Resale property · €400,000
- Purchase price
- €400,000
- ITP bracket arithmetic
- €40,00010% × the first €400,000 = €40,000; €0 enters the 11%, 12% or 13% tranches
- Notary, registry, gestoría, valuation and lawyer
- €4,000–
€8,0001–2% × €400,000 = €4,000–€8,000 - Resale cash on top of the price: €40,000 + €4,000–€8,000 =
- €44,000–
€48,000
New build · €400,000€50,000–
- Purchase price
- €400,000
- New-build taxes
- €46,00010% IVA + 1.5% AJD = €40,000 + €6,000 = €46,000
- Notary, registry, gestoría, valuation and lawyer
- €4,000–
€8,0001–2% × €400,000 = €4,000–€8,000 - New-build cash on top with the same professional costs: €46,000 + €4,000–€8,000 =
- €50,000–
€54,000
- Qualifying age-based reduction: 5% = €20,000 only when the buyer is 35 or under, the last Spanish IRPF base after the stated allowance is no more than €36,000, and the home is occupied within 12 months and kept as the habitual residence for 3 years; a continuing non-resident will not meet that test in practice
- Qualifying family reductions: 5% for members of a large or single-parent family buying their habitual home; the last IRPF base must be no more than €36,000, raised by €14,000 per child beyond the legal minimum, with the same 12-month occupancy and 3-year residence conditions (ATC tariff schedule, live 2 September 2026)
- Other qualifying reductions: 5% for qualifying disability, gender-violence-victim or protected-housing purchases under the applicable ATC tariff code; the gender-violence tariff has a €36,000 income cap (ATC tariff schedule, live 2 September 2026)
- Rural reductions: 4% for a rural habitual home or a rural home to rehabilitate, and 3% for the corresponding rural special-attention tariffs; Barcelona is not a rural municipality (ATC tariff schedule, live 2 September 2026)
A buyer who is already a Catalan gran tenidor pays 20% ITP on a dwelling from 27 June 2025; the test includes owning more than 10 Catalan urban homes, more than 1,500 m² of Catalan residential property, or at least 5 urban homes across declared Catalan rent-control municipalities under the rule current from 14 July 2026 (ATC).
How Much Can a Non-Resident Borrow in Barcelona?
Use 60–70% LTV as a planning band, not a universal lending rule. CaixaBank HolaBank publishes up to 70% based on purchase price, while Bankinter publishes up to 60% of an undefined property value; each lender applies its own valuation and underwriting (CaixaBank HolaBank, live 2 September 2026; Bankinter, live 2 September 2026).
CaixaBank HolaBank · 70%
purchase price
€280,000
Bankinter · 60%
base not published
€240,000
The terracotta segment is the extra cash the lower base costs you.
€400,000 Barcelona Resale Financing Example — CaixaBank HolaBank and Bankinter, live 2 September 2026; Catalonia taxes and purchase costs as cited above
Can I Rent Out a Barcelona Apartment to Tourists?
Do not buy a Barcelona apartment on the assumption that a tourist licence can be obtained or retained. No new HUT licence is available, and the city says approximately 10,000 existing licences will not be renewed, with residential tourist-flat use ending by November 2028 under the five-year transition that began on 9 November 2023 (Ajuntament de Barcelona, 21 June 2024; BOE, decree dated 7 November 2023). The policy remains active in 2026, although APARTUR disputes that a formal extinction act exists. Barcelona is also a declared rent-control zone from 16 March 2024 through 15 March 2027; the July 2026 extension process was not yet definitive (BOE, 15 March 2024).
How Do You Buy Property in Barcelona as a Foreigner?
Get an NIE, open a Spanish bank account, check the Catastro reference value, prior lease and tourist-use status, sign an arras contract, then complete before a notary. On the €400,000 resale above, cash is €204,000–€208,000 at 60% LTV or €164,000–€168,000 at 70% LTV, including the stated purchase costs. Follow the step-by-step buying process for the document checks and 4–8-week arras-to-deed timeline.
Mallorca: Mediterranean Island Premium
The Balearic Islands have Spain’s highest foreign buyer share at 33% of all transactions. Mallorca’s island-wide average is €4,600/m², up 9.8% YoY, as shown in the regional price table above.
Mallorca Prices by Area
| Area | Apartments €/m² | Houses €/m² | Character |
|---|---|---|---|
| Palma | €4,800–7,500 | Similar | City life, strong year-round rental demand |
| Southwest (Andratx, Portals) | €7,400–10,000 | €8,900+ | Ultra-luxury, celebrity haven, exclusive marina |
| Sóller / Port de Sóller | €5,900 | €5,600 | Mountain charm + beach, UNESCO Tramuntana |
| Calviá | €6,500 | €7,400 | Upscale resort area, golf |
| North (Pollença, Alcúdia) | €4,200–6,000 | €5,000+ | Family-friendly, seasonal holiday homes |
| Southeast (Santanyí) | €4,300 | €5,300 | Beautiful coves, growing market |
| Deià | Premium | Premium | Artistic village, ultra-exclusive, tiny market |
Rental regulations warning: Mallorca’s short-term rental market is heavily regulated. Decret llei 4/2025 (April 2025) bans new tourist places in multi-family buildings across the Balearics; places now move only one-for-one through a temporary places bank, and Palma remains restrictive. National law requires community of owners approval before operating any tourist rental; the national NRUA registry number was annulled by the Supreme Court in May 2026, but the regional tourist-rental registration still applies. Verify license availability before purchasing for rental investment.
Mallorca rental yields: Long-term in Palma: 3.5–4.5%. Short-term (Palma/coastal): 5.2–7.8% at €169/night average. Premium villa short-term: 6.5–9.5% at €450–850/night in high season. Income is highly seasonal (May–October).
Step-by-Step Buying Process
| Step | Action | Timeline | Documents | Common Mistake |
|---|---|---|---|---|
| 1 | Get NIE (foreigner ID number) | 1–8 weeks | EX-15 form, passport, fee receipt (€9.84) | Madrid/Barcelona appointments take 4-8 weeks. Start BEFORE property hunting |
| 2 | Open Spanish bank account | 1–2 weeks | NIE, passport, proof of income/address | Not having a Spanish account ready. The notary needs a Spanish banker's draft |
| 3 | Hire independent lawyer (abogado) | 1 week | — | Using the seller's lawyer or the agent's 'recommended' lawyer. Always independent |
| 4 | Reserve property + sign arras | 1–2 weeks | Reservation (€3K–10K), then arras with 10% deposit | Not understanding arras types. Arras penitenciales = lose deposit if you pull out. Seller pulls out = double refund |
| 5 | Due diligence | 2–4 weeks | Nota simple (registry), cadastral ref, community debts, building license, energy cert | Not checking community of owners debts — the buyer inherits unpaid community fees |
| 6 | Arrange mortgage (if needed) | 4–8 weeks | Income proof, bank statements, employment contract, property valuation | Not getting pre-approval. Spanish banks can be slow (4-8 weeks) and may reject at the last minute |
| 7 | Sign escritura pública at notary | 1 day | NIE, passport, ITP/VAT receipts, banker's draft, arras contract | Not transferring funds to Spain in advance. Bank drafts must be from a Spanish bank |
| 8 | Register + pay ITP/AJD | 1–4 weeks | Signed escritura, tax payment receipts | Missing the 30-day ITP payment deadline — penalties apply |
Total timeline: 2–4 months from first viewing to keys. Cash purchases can close in 4–6 weeks. The NIE bottleneck is the most common delay — plan ahead.
Documents Checklist
- Valid passport + NIE
- Spanish bank account with sufficient funds
- Proof of income (3–6 months payslips, tax returns for mortgage)
- Bank statements (3–6 months for mortgage)
- Power of attorney (if buying remotely — must be notarized, apostilled, translated)
- All foreign documents translated into Spanish by a sworn translator
Currency Exchange & International Transfers
Transferring €300K+ at your bank’s default rate can cost €6,000–12,000 in hidden fees (2-4% markup). Compare a low-fee transfer specialist, OFX, or Currencies Direct for large transfers. Lock your rate before transfer — EUR/USD or EUR/GBP fluctuations of 5% mean €15,000 on a €300K purchase. See our expat banking guide. Spanish notaries require a banker’s draft (cheque bancario) from a Spanish bank account — you cannot pay by foreign bank transfer at the notary.
The final deed is signed at a Spanish notary. Remaining funds are paid (typically by banker’s draft). The notary verifies identity, confirms tax payments, and registers the deed with the Land Registry. You can attend or grant power of attorney. The process is usually completed in 4–8 weeks from arras to deed.
Closing Costs by Region
Closing costs in Spain vary significantly by autonomous community because the property transfer tax (ITP) is set regionally:
| Autonomous Community | ITP Rate | Notes |
|---|---|---|
| Basque Country | 4% | Lowest in Spain |
| Madrid | 6% | 10% quota rebate for a qualifying habitual home ≤€250K; 4% for a qualifying large-family habitual home |
| Canary Islands | 6.5% | |
| Andalusia (Marbella, Malaga) | 7% | Flat rate |
| Murcia | 7.75% | Reduced from 8% in 2025 |
| Balearic Islands (Mallorca) | 8–11% | Progressive on expensive properties |
| Valencia | 9% (11% above €1M) | Reduced from 10% on 1 June 2026 (Generalitat Valenciana) |
| Catalonia (Barcelona) | 10–13% | Since 27 Jun 2025: 10% first €600K, 11% next €300K, 12% next €600K, 13% above €1.5M |
New builds pay 10% VAT (IVA) instead of ITP, plus AJD stamp duty of 0.75–1.5% by region. Total closing costs including notary, registry, and legal fees: 8–13% of purchase price.
Golden Visa — Ended April 2025
Spain’s Golden Visa for property investment (€500K minimum) ended on April 3, 2025 (Organic Law 1/2025). No new applications are accepted. Existing holders can still renew. Foreigners can still freely buy property — only the residency-for-investment link was removed.
Alternatives for Residency
- Non-Lucrative Visa (Visa No Lucrativa): For retirees/passive income earners. Requires ~€2,400/month (€28,800/year, based on 400% IPREM). Cannot work in Spain. Duration: 1 year initial, renewable 2+2.
- Digital Nomad Visa: For remote workers employed by non-Spanish companies. Requires €2,442/month (€29,304/year). Eligible for Beckham Law tax treatment. Duration: up to 3 years, renewable to 5.
- Entrepreneur Visa: For innovative businesses of economic interest to Spain. Requires favorable ENISA report.
Beckham Law — Still Available
The Beckham Law offers a flat 24% tax on Spanish-sourced income up to €600,000 (vs. progressive rates up to 47%) for 6 years. Available to employees relocated to Spain, digital nomad visa holders, entrepreneurs, and company directors. Key requirements: not resident in Spain for the previous 5 years, apply within 6 months of registration with Spanish Social Security. Your spouse and children under 25 can also qualify. Bonus: no Wealth Tax on assets outside Spain and no Form 720 obligation.
Proposed 100% Tax on Non-EU Buyers — NOT Law
Quick answer
In January 2025, PM Sánchez proposed a 100% tax on property purchases by non-EU, non-resident buyers. A draft bill was submitted in May 2025. However, as of April 2026, this proposal has stalled in Parliament. Spain’s minority coalition government lacks the votes to pass it. An outright ban on non-EU buyer purchases was also floated but has no legislative text. These are proposals only — not law. Multiple media outlets have reported them inaccurately as enacted measures.
Non-Resident Taxes on Spanish Property
| Tax | EU/EEA Owners | Non-EU Owners (US, UK) |
|---|---|---|
| IBI (annual municipal tax) | 0.4–1.1% of cadastral value | Same |
| Imputed income (if NOT rented) | 19% on 1.1–2% of cadastral value | 24% on 1.1–2% of cadastral value |
| Rental income | 19% on NET income (expenses deductible) | 24% on GROSS income (limited deductions) |
| Capital gains on sale | 19–30% progressive | 19–30% progressive (same rates) |
| Wealth Tax | Varies by region (0% in Madrid/Andalusia for residents) | National rates apply: 0.2–3.5% above €700K |
Critical difference for US/UK buyers: Non-EU residents pay 24% tax on gross rental income with very limited deductions, while EU residents pay 19% on net income after expenses. This is a significant disadvantage. Also note: when you sell, the buyer must withhold 3% of the sale price as advance CGT — reclaimable via Modelo 210/211.
Wealth Tax exception: Madrid and Andalusia offer 100% wealth tax exemptions — but only for tax residents of those regions. Non-residents (regardless of where the property is) are subject to national rates. A Solidarity Tax on net worth above €3M applies as a national floor.
For Americans, the US–Spain tax treaty allows Foreign Tax Credits for Spanish taxes paid. FBAR and FATCA reporting apply for Spanish bank accounts. For a personalized analysis, see our Tax & Relocation Report ($79).
Compare tax brackets side by side
Model your tax position for property and employment income
Compare Spain tax ratesMortgages for Foreign Buyers
| Metric | Spanish Resident | Non-Resident (EU) | Non-Resident (US/UK) |
|---|---|---|---|
| Max LTV | 80% | 70% | 60–70% |
| Minimum deposit | 20% | 30% | 30–40% |
| Max term | 30–35 years | 20–25 years | 20–25 years |
| Fixed rate | 2.0–3.0% | 2.5–3.5% | 3.0–4.5% |
| Variable rate | Euribor + 0.7–1.2% | Euribor + 1.0–2.0% | Higher end |
| Total cash needed | ~30% of value | ~40% of value | ~45–60% of value |
Major banks for foreign buyers: CaixaBank (HolaBank) has a dedicated non-resident channel. Santander (Hipoteca Mundo) and BBVA offer up to 70% LTV. UCI specializes in foreign buyers with offices in major cities. The debt-to-income limit is strict: maximum 35% of gross monthly income for total debt service.
Short-Term Rental Restrictions (2025–2026)
Key changes affecting rental investors:
- Barcelona: The city says approximately 10,000 tourist-flat licences will not be renewed and residential tourist-flat use will cease by November 2028; the policy is active, although APARTUR disputes that a formal extinction act exists
- Malaga: All new VUT licences and declarations are suspended citywide from 23 August 2025 until 22 August 2028 at the latest, or until the planning modification is approved; existing registered VUT can continue
- Mallorca: New temporary licenses available from June 2025 (moratorium lifted), but Palma remains restrictive
- National: The Tribunal Supremo annulled in part the unified registration procedure of RD 1312/2024 on 19 May 2026 (BOE, 8 June 2026); Andalucía's own tourism-register requirement remains. Community of owners approval now required nationally
Before buying for rental income in any Spanish city, verify license availability. The regulatory trend is toward restriction, not liberalization.
Choosing between Spain and other destinations? Our Decision Brief compares your top 2-3 countries across cost, tax, visa, and quality of life — personalized to your exact income and nationality.
This article covers the basics — a Decision Brief covers your situation
Tax brackets for your income, visa pathways for your nationality, real city prices for your shortlist, and a risk assessment. Personalized in 8 minutes.
This plan is not currently for sale while its figures are being re-verified against their sources.
Read the sample first →Worked Example: Buying a €350K Apartment in Marbella
James, a British remote worker earning €80K/year, buys a 2-bedroom apartment in Nueva Andalucía for €350,000:
- Purchase price: €350,000
- ITP (Andalusia 7%): €24,500
- Notary + registry (~1.5%): ~€5,250
- Legal fees (1.5%): ~€5,250
- Total acquisition cost: ~€385,000 (10% above purchase price)
- Annual IBI: ~€700/year (0.67% of ~€105K cadastral value)
- Annual imputed income tax (if not rented): 24% × 1.1% × ~€105K cadastral value = ~€277/year
- If rented at €1,600/month: €19,200/year gross; 24% × €19,200 = €4,608 tax before other property expenses, so a net yield cannot be stated without those costs
- Beckham Law benefit: If employed in Spain, 24% flat tax on salary vs. up to 47% standard
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Frequently Asked Questions
Can Americans buy property in Spain?▾
Yes — Spain has no restrictions on foreign property ownership. Any nationality can buy freehold property on the same terms as Spanish citizens. You need a NIE (tax ID number, €9.84, processing 1-8 weeks), an independent lawyer, and a Spanish bank account for the transaction.
How much are closing costs when buying in Spain?▾
Total closing costs are 8-13% of purchase price. The biggest variable is ITP (property transfer tax) which ranges from 4% (Basque Country) to 13% (Catalonia) depending on the autonomous community. New builds pay 10% VAT instead of ITP. Add 2-3% for notary, registry, and legal fees.
Is the 100% tax on foreign buyers real?▾
No — as of April 2026, it's a proposal that has stalled in Parliament. Spain's minority government lacks votes to pass it. An outright ban was also floated but has no legislative text. These are proposals only, not law. Foreigners can still buy property freely in Spain.
What is the Beckham Law?▾
The Beckham Law offers a flat 24% tax on Spanish income (up to €600,000) for 6 years — versus progressive rates up to 47%. Available to employees relocated to Spain, digital nomad visa holders, entrepreneurs, and company directors. Must not have been Spanish tax resident in the prior 5 years. Apply within 6 months of Social Security registration.
Where are the best areas to buy in Marbella?▾
The Golden Mile/Sierra Blanca for ultra-luxury (€5,750-6,400/m², villas €2M-25M+). Nueva Andalucia/Puerto Banús for mid-luxury (€4,200-5,600/m²). San Pedro for better value (€3,700-4,400/m²). Marbella East (Elviria, Los Monteros) for family properties. Average transaction in Marbella: €711,000. Rental yields average 4.9%.
How long does it take to buy property in Spain?▾
Typically 2-4 months from first viewing to receiving keys. The biggest bottleneck is the NIE (foreigner ID) which takes 1-8 weeks to obtain. Cash purchases can close in 4-6 weeks. Mortgage-backed purchases take 3-6 months due to bank processing times.
Can I buy property in Spain remotely?▾
Yes — you can grant a power of attorney (poder notarial) to your Spanish lawyer. It must be notarized in your home country, apostilled, and translated into Spanish by a sworn translator (traductor jurado). Many foreign buyers visit once for viewings and complete the legal process remotely.
Can I rent my Spanish property on Airbnb?▾
Regulations vary dramatically by region. Barcelona is phasing out all 10,101 tourist apartment licenses by November 2028. Málaga has suspended all new VUT licences and declarations citywide from 23 August 2025 until 22 August 2028 at the latest, or earlier planning approval; existing registered VUT can continue. Mallorca has limited licenses with community of owners approval required nationally. Always verify license availability in your specific area BEFORE purchasing for rental income.
What happens if I sell my Spanish property as a non-resident?▾
The buyer must withhold 3% of the sale price as advance payment on your capital gains tax (retained via Modelo 210/211). Capital gains are taxed progressively: 19% on the first €6,000, rising to 30% above €300,000. The 3% retention is reclaimable if your actual CGT is lower than the amount withheld.
Can non-residents buy property in Málaga?▾
Yes — non-residents can buy in Málaga on the same ownership basis as Spanish buyers. For a resale, Andalusia's general ITP rate is 7%; non-resident lending on this page is 60–70% LTV, subject to valuation and underwriting. You still need an NIE, bank account and independent legal checks.
What is the property transfer tax in Málaga?▾
Andalusia's general resale ITP rate is 7% of the tax base. For a €250,000 resale where the price is the tax base, that is €17,500. First new dwellings instead pay 10% IVA plus 1.2% AJD, before professional purchase costs.
Is Málaga cheaper than Marbella?▾
The Málaga district table runs from €2,875/m² in Puerto de la Torre to €4,981/m² in Este, while the Marbella neighbourhood table runs from €3,700–€4,400/m² in San Pedro to €5,750–€6,400/m² in Golden Mile / Sierra Blanca. Compare the specific area and price series before deciding.
Can non-residents buy property in Madrid?▾
Yes — Madrid imposes no nationality restriction on property ownership. A typical non-resident buying a resale pays Madrid's 6% ITP and can plan around a 60–70% published non-resident LTV band, subject to each lender's valuation, loan base and underwriting. You still need an NIE and independent legal checks.
What is the property transfer tax in Madrid?▾
Madrid's general ITP rate on a resale is 6% of the tax base. A €400,000 resale therefore produces €24,000 of ITP. A qualifying habitual home worth no more than €250,000 gets 10% off the ITP quota, and a qualifying large-family habitual home pays 4%; those reliefs generally do not fit a continuing non-resident buyer.
Which Madrid districts are cheapest?▾
In the idealista July 2026 asking-price table, the three lowest-priced verified districts are Villaverde at €3,266/m², Puente de Vallecas at €3,399/m² and Usera at €3,585/m². These are portal asking prices rather than completed-sale prices, and Villaverde also had the fastest year-on-year rise in the table.
What is the property transfer tax in Barcelona in 2026?▾
Catalonia's current resale ITP scale, effective since 27 June 2025, is 10% on the first €600,000, 11% on the next €300,000, 12% on the next €600,000 and 13% above €1.5 million. A typical €400,000 Barcelona resale therefore pays €40,000 of ITP before other purchase costs.
Can I still get a tourist licence in Barcelona?▾
No new HUT tourist-flat licence is available in Barcelona. The city says approximately 10,000 existing licences will not be renewed and residential tourist-flat use will end by November 2028. That phase-out policy is active, although APARTUR disputes that a formal extinction act exists, so do not price a purchase on continued tourist use.
Is Barcelona more expensive than Madrid?▾
Not across the whole market. In the comparable idealista July 2026 district tables, Barcelona runs from €3,295/m² in Nou Barris to €7,155/m² in Sarrià-Sant Gervasi, while Madrid runs from €3,266/m² in Villaverde to €10,890/m² in Salamanca. Madrid has the higher prime ceiling and a slightly lower cheapest district.
Buying in Spain? Get a personalized property analysis covering total acquisition cost, ITP by region, mortgage terms for your nationality, and neighborhood fit for your budget.
Generic guides cover the rules — this covers your situation
Total acquisition cost for your budget, mortgage options for your nationality, neighborhood recommendations matched to your priorities, net rental yield after local tax, and a structured risk assessment with mitigation steps.
This plan is not currently for sale while its figures are being re-verified against their sources.
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