In short: a foreigner can buy a home in Spain without being resident. The essential document is the NIE; then come the deposit contract (arras), the deed signed before a notary and registration at the Property Registry. New builds pay 10% VAT plus stamp duty (AJD), and resale homes pay transfer tax (ITP), which ranges from 8% to 13% in the Balearic Islands. Since 3 April 2025, buying a home no longer qualifies you for a golden visa.
With its privileged climate, rich culture, and enviable quality of life, Spain has become an attractive destination for investors and individuals looking to purchase a home. If you are thinking about buying a home in Spain as a foreigner, it is essential to be aware of the requirements, processes, and recent legislative changes that could affect your investment.
What Does a Foreigner Need to Buy a Home in Spain?
Spanish law allows foreigners, both residents and non-residents, to acquire properties within its territory. However, there are certain requirements and documents you should consider:
Foreigner Identification Number (NIE)
The NIE is a unique number that identifies foreigners in Spain and is essential for any economic transaction, including buying a home. You can apply for it at a police station in Spain or through the Spanish embassy or consulate in your home country.
Bank Account in Spain
While not mandatory, having a bank account in Spain facilitates the management of payments related to the purchase, such as taxes, services, and other associated expenses. It also simplifies transactions and avoids potential fees for international transfers.
Proof of Funds Origin
It is crucial to demonstrate that the funds used for the purchase come from lawful sources. This is part of the anti-money laundering and terrorism financing prevention measures in place in Spain.
What Is the Buying Process, Step by Step?
The property acquisition process in Spain involves several stages that are important to understand to avoid inconveniences:
1. Property Search and Selection
Identify the property that fits your needs and budget. It is advisable to visit several options and, if possible, seek the guidance of a local real estate agency to guide you through the process.
2. Signing the Deposit Agreement
Once the property is selected, a deposit agreement is usually signed, which is a preliminary agreement between buyer and seller. In this contract, the buyer pays a deposit as a commitment to purchase. The amount is freely agreed; around 10% of the price is common, but always check which type of arras contract you are signing. This document establishes the conditions of the transaction and the deadlines for signing the public deed.
3. Public Deed and Property Registration
The sale is formalized before a notary by signing the public deed. Subsequently, this deed must be registered at the Property Registry to make the transfer enforceable against third parties and ensure the legal security of the investment.
What Taxes and Costs Does a Foreign Buyer Pay?
Does Buying a Home Give You Residency in Spain?
Previously, Spain offered the Golden Visa, a residency visa for non-EU foreigners who invested in real estate valued at or above 500,000 euros. That visa no longer exists: Organic Law 1/2025 abolished it and the change took effect on 3 April 2025, according to the Spanish Government (in Spanish). Today, buying a home in Spain does not by itself give you the right to live here.
If you want to live in Spain as well as buy here and you are not an EU citizen, you will need another residence route (for example, through work or international remote work). Discuss your case with an immigration lawyer before buying.
Additional Considerations
Conclusion
Buying a home in Spain as a foreigner is an accessible process, but it requires attention to various legal and fiscal aspects. It is essential to stay informed about current regulations and have professional advice to ensure a safe and satisfactory investment. At Sunset Group, we are committed to helping you find the ideal property in Mallorca and accompany you through each step of the purchase process. Do not hesitate to contact us for personalized advice and to make your dream of owning a home in Spain a reality.
Checklist: documents and steps for foreign buyers
| Step | What you need | Where |
|---|---|---|
| 1. NIE | Passport or ID document and the application form | Immigration office or police station in Spain, or the Spanish consulate in your country |
| 2. Bank account | NIE and the bank’s paperwork (recommended, not compulsory) | Bank in Spain |
| 3. Deposit contract (arras) | Agreed deposit and purchase conditions in writing | Between buyer and seller |
| 4. Public deed | NIE, payment of the price and proof of the origin of funds | Notary |
| 5. Taxes | VAT and AJD (new build) or ITP (resale) | Spanish Tax Agency / Balearic Tax Agency |
| 6. Registration | Deed with taxes paid | Property Registry |
To see which documents you will need at each stage, read our guide to essential documentation for buying property in Spain and, if you will not live here, our tax guide for non-resident buyers.
Frequently asked questions about buying a home in Spain as a foreigner
Can a foreigner buy a house in Spain without being resident?
Yes. The law allows residents and non-residents, from the EU or elsewhere, to buy. What you must have is an NIE and the ability to prove the origin of the funds to the notary.
How long does it take to get an NIE?
It depends on the office or consulate and how busy it is. Apply early, before signing the deposit contract, because you cannot sign the deed without an NIE.
What taxes do you pay when buying a home in Mallorca?
For a new build, 10% VAT plus AJD stamp duty, generally 1.5% in the Balearic Islands. For a resale home, transfer tax of 8% to 13% in the Balearics depending on the value. Notary, registry and, if you use one, a gestoría come on top.
Does the golden visa for buying property still exist?
No. Organic Law 1/2025 abolished residence visas for investors, and the change took effect on 3 April 2025.
Do I need a lawyer to buy a home in Spain?
It is not compulsory, but it is highly advisable if you do not know the Spanish system: have the land registry extract, any charges, the deposit contract and the deed checked before signing.
Information updated October 2026.