€2,354
National 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 transactionsby 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 Golden Visa minimum was only for residency, not for 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 (2025–2026)
| City/Region | Avg €/m² | Typical 2-Bed Apt | YoY Change | Foreign Buyer % |
|---|---|---|---|---|
| Madrid | €5,000–7,400 | €300K–500K | +21.8% | ~12% |
| Barcelona | €4,300–5,900 | €280K–450K | +8.3% | ~15% |
| Valencia | €2,600–4,300 | €180K–300K | +17.5% | ~20% |
| Malaga city | €2,800–4,400 | €200K–350K | +11.3% | ~30% |
| Marbella | €4,500 (avg transaction) | €350K–700K | +12.6% | 63% |
| Mallorca | €4,600 (island avg) | €300K–600K | +9.8% | 33% |
| Alicante province | €1,860 | €130K–220K | +17.0% | ~40% |
| Andalusia (avg) | €1,780 | €120K–200K | +9.6% | ~15% |
| Seville | €3,980 | €250K–380K | +10% | ~8% |
2026 forecast: Prices expected to continue rising at 5–7% nationally. Supply remains constrained across all major markets. Valencia shows the strongest 5-year returns (10.9% CAGR). Madrid has the highest absolute growth (+21.8% in 2025), driven by domestic demand and returning expats.
For neighborhood-level analysis with expat fit scores, see our free property intelligence reports for Valencia and Barcelona.
Marbella: The Expat Capital of Southern Spain
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 | €5,750–6,400 | €2M–25M+ | €500K–8M |
| Nueva Andalucia / Puerto Banús | €4,200–5,600 | €1M–10M | €300K–5M |
| Marbella Town Centre | €4,000–4,500 | €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 | €3,900 | €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 rents have surged 89% since 2019, averaging €1,600/month for an 80m² apartment in 2026. The Golden Mile and Nueva Andalucia see 10–11% annual rent increases.
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.
Mallorca: Mediterranean Island Premium
The Balearic Islands have Spain’s highest foreign buyer share at 32.8%of all transactions. Mallorca’s island-wide average is €4,630/m² (January 2026, +14.1% YoY) — premium positioning commands dramatically more.
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. New temporary tourist rental licenses became available from June 2025 after the previous moratorium was lifted, but Palma remains restrictive. National law now requires community of owners approval and registration in the unified NRUA registry before operating any tourist rental. 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
Data last verified: April 2026 by WhereNext Research Team from Spanish property law and registrar sources.
| 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). Use Wise, OFX, or Currencies Direct for mid-market rates (0.3–1% fee). 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% | Consistently low |
| 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 | 10% (→ 9% from Jun 2026) | Rate reduction scheduled |
| Catalonia (Barcelona) | 10–13% | Progressive: 10% to €600K, then 11/12/13% |
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 ~€3,024/month gross. 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
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: All 10,101 tourist apartment licenses will NOT be renewed when they expire by November 2028 (Constitutional Court upheld March 2025)
- Malaga: 3-year city-wide moratorium on new tourist rental licenses (Decree-Law 1/2025)
- Mallorca: New temporary licenses available from June 2025 (moratorium lifted), but Palma remains restrictive
- National: All short-term rentals must register in the unified NRUA registry from 2026. 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.
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): ~€220/year (19% EU rate on 1.1% of cadastral)
- If rented at €1,600/month: €19,200/year gross, after expenses + 19% EU tax = ~5% net yield
- Beckham Law benefit: If employed in Spain, 24% flat tax on salary vs. up to 47% standard
Related Property Buying Guides
- Can Foreigners Buy Property? 40+ Countries Compared
- Buying Property in Portugal 2026 — the most common comparison with Spain
- Buying Property in France 2026
- Buying Property in Italy 2026
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. Malaga has a 3-year moratorium on new licenses. 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.
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.
Ready to take the next step?
Start a free relocation case