Yes: any foreigner can buy a house in Spain, resident or not, whether from the EU, the UK or outside Europe. You need an NIE, a Spanish bank account and, in Andalusia, a budget of 7% transfer tax (ITP) on a resale home or 11.2% VAT plus stamp duty on a new build, plus notary and land registry fees. This guide, checked against official sources on 30 October 2026, walks you through the process step by step; it does not replace advice from a lawyer or tax adviser.
The buying process, step by step
1. Finding the right property
Work out your total budget: price plus taxes and fees. The taxes depend on the type of property: resale (ITP), new build sold by a developer (VAT and AJD) or off-plan.
Every sale listing must show the property's energy efficiency label (Royal Decree 390/2021, art. 15). If it is missing, ask for it.
2. Reservation and the deposit contract (contrato de arras)
After the reservation you sign a deposit contract (contrato de arras). With 'arras penitenciales' (art. 1454 of the Civil Code), a buyer who walks away loses the deposit, and a seller who withdraws must pay it back twice over. Have a lawyer check the type of arras, the deadlines and who pays which costs.
3. NIE (foreigner identification number)
According to Spain's National Police, foreigners with economic, professional or social ties to Spain can apply for an NIE. You can apply:
- In Spain, at an immigration office (Oficina de Extranjería) or a police station.
- From abroad, through a Spanish consulate.
Documents: form EX-15 and proof of payment of fee form 790, code 012. The maximum processing time is five days from when the application is registered.
4. A Spanish bank account
A Spanish account makes it easier to pay the price, the taxes and the direct debits (IBI property tax, community fees, utilities). Ask the bank which documents it requires from non-residents.
5. Due diligence: what to check before you sign
- Land Registry extract (nota simple): confirms the owner and any mortgages, seizures or other charges. You can request it at the Registry or online through the Colegio de Registradores; it is for information only.
- Planning status and licences: the home must be legal and have the relevant occupancy licence or declaration.
- Owners' community (comunidad de propietarios): in the deed the seller must declare that community fees are paid up and provide a debt certificate from the secretary, approved by the president (Horizontal Property Act, art. 9.1.e). Read the bylaws too: they can ban or limit holiday letting.
- IBI: ask for the latest receipt; it shows the cadastral value and confirms there are no arrears.
- Energy performance certificate: compulsory when selling an existing home, valid for up to ten years (five if the rating is G).
- Non-resident seller: the buyer must withhold 3% of the price and pay it to the Spanish Tax Agency with form 211 within one month of the purchase.
6. Mortgages for non-residents
There is no official figure, but according to mortgage comparison sites banks usually lend non-residents around 60-70% of the lower of price and valuation; you cover the rest, plus taxes and fees.
Spain's Mortgage Credit Act (Law 5/2019) protects you: the bank must give you the FEIN and FiAE documents at least ten calendar days before signing, and the notary checks this and advises you free of charge before the deed. According to the Bank of Spain, the customer pays the valuation and the bank pays the notary, registry, agency fees and taxes on the mortgage.
7. Signing the deed before a notary
The sale is completed in a public deed (escritura) signed before a notary. Notary fees follow an official scale (Royal Decree 1426/1989), the same for every notary.
8. Taxes and Land Registry
After signing, the relevant tax (ITP or AJD) is paid with form 600; in Andalusia the deadline is two months from the day after signing. The deed is then recorded at the Land Registry, whose fees also follow an official scale.
9. Utilities and direct debits
Transfer water, electricity, gas and internet into your name and set up direct debits for IBI, rubbish collection and community fees. If you will not live in Spain, a tax adviser for the annual returns is a good idea.
How much does it cost to buy a house in Andalusia?
Resale homes: ITP transfer tax
In Andalusia buying a resale home is subject to transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP) at 7% (general rate, Law 5/2021). The tax base is the higher of the price in the deed and the Cadastre's reference value.
Reduced rates apply to a main home: 6% if the value is no more than €150,000, and 3.5% for certain groups, such as buyers under 35 up to €150,000. A second home bought by a non-resident pays the general rate.
Change announced for 2027: the Andalusian government's 2027 budget bill, approved by its cabinet on 30 October 2026, cuts the general rate to 6.75% and raises the reduced-rate threshold to €200,000 from 1 January 2027, if the Andalusian Parliament passes it. Until then the rate is 7%.
New builds: VAT and stamp duty (AJD)
On a developer's first sale you pay 10% VAT (IVA) on the home, including up to two parking spaces and annexes sold together (4% for certain social housing), plus 1.2% stamp duty (Actos Jurídicos Documentados, AJD) in Andalusia.
| Item | Resale | New build | Note |
|---|---|---|---|
| ITP | 7% (6.75% planned for 2027) | Not applicable | On the higher of price and reference value |
| VAT (IVA) | Not applicable | 10% | On the price |
| Stamp duty (AJD) | Not applicable | 1.2% | On the price |
| Notary | Official scale | Official scale | Tiered by value; ask for a quote |
| Land Registry | Official scale | Official scale | Tiered by value |
| Agency (gestoría) | Fees vary | Fees vary | Optional |
| Valuation if mortgaged | Paid by the buyer | Paid by the buyer | The bank pays the other mortgage costs |
| 3% withholding (form 211) | If the seller is non-resident | Not applicable | Not a cost: deducted from the price |
| Approximate total | 7% plus fees | 11.2% plus fees | Ask for notary and registry quotes |
Unless the contract says otherwise, the seller pays the municipal capital gains tax (plusvalía) and the buyer pays the purchase taxes, registration and copies of the deed.
What taxes does an owner pay every year?
- IBI: a municipal tax on the cadastral value; each town hall sets the rate.
- Community fees: set by the bylaws and the community's budget.
- Rubbish collection: a municipal charge that varies by town (Waste Law 7/2022).
- Non-resident income tax (IRNR): even if you don't let the property, the Tax Agency assumes an annual income of 1.1% or 2% of the cadastral value, taxed at 19% if you live in the EU, Iceland or Norway, or 24% otherwise, filed with form 210. If you let it, you pay tax on the rental income.
- Wealth tax in Andalusia: a €700,000 allowance and a 100% regional relief. Non-residents are taxed only on their Spanish assets; which rules apply to them should be confirmed with an adviser.
Special situations
Is buying off-plan safe?
If you pay a developer before the building is finished, the Building Act (Law 38/1999) requires them to guarantee the refund, with legal interest, through a surety insurance or bank guarantee if the works don't start or finish on time, and to receive the money in a separate special account. Ask for the individual policy or guarantee in your name before each payment.
Can I let my home to tourists in Andalusia?
It depends on three levels. The Andalusian government requires a declaration to the Andalusian Tourism Register and technical requirements (Decree 28/2016, amended by Decree 31/2024), plus a municipal licence where applicable. The town hall can limit or suspend new holiday lets. And since 3 April 2025 (Organic Law 1/2025) you need express approval from three-fifths of the owners' community to start holiday letting in a building.
In May 2026 the Supreme Court struck down Spain's single national rental register (NRUA), while keeping the digital one-stop shop used by platforms; the Andalusian register remains compulsory. Royal Decree-law 29/2026, in force since 8 October 2026, introduces 10% VAT on furnished lets of up to 30 nights from 1 December and a possible IBI surcharge in stressed areas; it was still awaiting approval by Congress when this guide was written.
Does Spain's Golden Visa still exist?
No. The residence visa for property investment (€500,000) was abolished by Organic Law 1/2025, with effect from 3 April 2025. Buying a home no longer gives you the right to live in Spain on its own.
British buyers after Brexit
- 90/180 rule: up to 90 days in any 180-day period in the Schengen area without a visa; owning a home does not extend this. Since 10 April 2026 the EU Entry/Exit System (EES) counts the days automatically.
- Longer stays: you need a visa; people who won't work usually choose the non-lucrative residence visa, which requires income of 400% of IPREM (plus 100% per dependant) and health insurance.
- Tax: as non-EU non-residents they pay IRNR at 24%.
Frequently asked questions
Can a foreigner buy a house in Spain?
Yes, whether or not you live in Spain. You will need an NIE and, in practice, a Spanish bank account.
How much tax do you pay when buying a house in Spain?
In Andalusia, 7% ITP on a resale home (6.75% planned for 2027 if the budget passes) or 10% VAT plus 1.2% AJD on a new build, plus notary and registry fees on the official scale.
How much will a bank lend a non-resident?
There is no official limit. According to mortgage comparison sites, 60-70% of the lower of price and valuation is typical.
Does buying a house in Spain give you residency?
No. The property Golden Visa was abolished with effect from 3 April 2025.
How many days can I spend in my Spanish home as a British citizen?
Up to 90 days in any 180-day period in the Schengen area, unless you get a visa or residence permit.
What taxes does a non-resident owner pay each year?
IBI, rubbish collection and IRNR: 19% (EU/EEA) or 24% (others) on an assumed income of 1.1% or 2% of the cadastral value, or on the rent if you let the property.
Buying with EVS Property on the Costa del Sol
EVS Property Group works from its office in Benalmádena with buyers from many countries, in several languages. We help you find a home in Málaga, Marbella, Fuengirola or Estepona, arrange the viewings and support you with the notary, the bank and the advisers you choose. Get in touch and tell us what you are looking for.
