Can we buy a home in Spain?

Yes. Spain has no ban on foreigners buying homes, and you don’t need residence to buy. What you pay in tax depends on the region and on whether the home is new or second-hand, and the buying process works differently from the UK.

Who can buy

British citizens can buy in Spain whether or not they live there. You need an NIE, and in practice a Spanish bank account to pay taxes and bills. Buying a home no longer gives you residence: the golden visa ended on 3 April 2025 (see Which Spanish visa do I need? and NIE, TIE and padrón).

How buying works

1. Get your NIE and a Spanish bank account
2. Hire an independent lawyer. Ask them to check the property before you pay anything
3. Check the land registry extract (nota simple). It shows who owns the home and whether there are mortgages, seizures or other charges on it
4. Sign a deposit contract (contrato de arras) and pay a deposit. It is often around 10% of the price. Under the Civil Code, if the buyer pulls out they lose the deposit, and if the seller pulls out they repay double
5. Sign the deed (escritura) before a notary and pay the rest. The seller must give a certificate that community fees are paid, and should show the latest IBI receipt and the energy certificate
6. Pay the purchase tax and register the deed at the Property Registry. Transfer tax is usually due within 30 working days of signing

Unless the contract says otherwise, the Civil Code puts the notary’s cost of the original deed on the seller and the cost of the first copy on the buyer. In practice buyers usually pay the registry fees, and contracts often move other costs to the buyer, so check what you agree to. A buyer can be liable for a seller’s unpaid community fees for the current year and the 3 years before, which is why the certificate matters.

Purchase tax: second-hand or new

A second-hand home bought from a private seller carries transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP). A new home bought from a developer carries VAT (IVA) at 10% instead, plus stamp duty (Actos Jurídicos Documentados, AJD) on the deed. You don’t pay both. Tax is worked out on the price or the official reference value, whichever is higher.

All regions offer lower rates for some first homes, for example for buyers under 35 or large families, usually with price and income limits and often a residence condition. Other regions set their own rates: check the regional tax agency before you budget.

Mortgages

• No law sets how much a bank lends. Banks that publish limits for non-residents offer up to 60% to 70% of the price or valuation, whichever is lower, and some lend less if you are paid in pounds
• Residents usually get more. Banks don’t normally lend more than 80%, and look for repayments of no more than 30% to 35% of net income
• By law the bank pays the notary, registry and agency costs of the mortgage deed; you pay the valuation
• You must get the binding offer at least 10 calendar days before signing, and visit a notary of your choice, free of charge, who checks you understand the loan
• See Credit history in Spain and Opening a bank account

Costs once you own it

Letting it to tourists

Short-term lets need a regional tourist licence and, since 1 July 2025, a national registration number for each property to advertise it on platforms. Since 3 April 2025, a new tourist flat in a block needs the express approval of three fifths of the owners. Several of our cities restrict new licences: Barcelona plans not to renew its 10,000-plus tourist licences when they expire in 2028, Málaga has stopped new tourist flats on residential land for 3 years from July 2026, and Palma announced a ban on new tourist rentals in October 2025. Never buy assuming you can let to tourists: ask your lawyer to check first. For long lets, the tenancy law (LAU) protects tenants. Under Real Decreto-ley 29/2026, in force since 8 October 2026 but still needing approval by Congress, rent updates due before the end of 2027 are capped at 2% unless both sides agree otherwise, and on new contracts you can’t pass taxes on the home such as IBI to the tenant. See Renting a home in Spain.

The proposed 100% tax

In January 2025 the Prime Minister announced plans to limit home buying by non-EU non-residents. The proposal, in a Socialist bill, was a tax of up to 100% of the value on second-hand homes bought by people who are not resident in the EU, on top of ITP. In March 2026 it had not been debated, a government source said it lacked support, and it was left out of a later housing bill. It has not been formally withdrawn. As drafted, it would not apply to Britons resident in Spain. Check the current position with your lawyer before you commit.