Buying property in Spain as an American

Americans can buy and own property in Spain without restrictions on the type of title, and without being residents. The process is safe when it is done properly. The risks are in the checks that fall to the buyer, the taxes, which are higher than in the US, and buying in a place you haven’t lived in yet.

Can Americans own property in Spain?

Yes. You hold full title in your own name, registered at the Land Registry. You need:

• An NIE number. See how to get an NIE. Non-residents can get one at a consulate or through a lawyer.
• A Spanish bank account, in practice, to pay the price, taxes and running costs.

In some areas near military installations, including parts of the islands and certain coastal and border zones, buyers from outside the EU need a permit from the Ministry of Defence. It mostly affects rural land. Your lawyer checks this.

Owning property doesn’t give you the right to live in Spain. The golden visa has ended, so you still need a visa for stays beyond 90 days in any 180.

The steps in a purchase

1. Hire your own lawyer before you pay anything. They should be independent of the seller, the developer and the agent.
2. Reservation. A small payment takes the property off the market for a short period while checks are done.
3. Due diligence. Your lawyer checks the Land Registry extract for ownership, mortgages and charges, the cadastral record, planning status, building licences, and unpaid property tax and community fees.
4. Deposit contract (contrato de arras). You usually pay 10 percent. Under the common form, a buyer who pulls out loses the deposit and a seller who pulls out returns double.
5. Completion before a notary. Both parties sign the deed, the balance is paid and you receive the keys. The notary confirms identities and that the deed is lawful. The notary is neutral and doesn’t do the buyer’s checks.
6. Taxes and registration. The purchase taxes are paid and the deed is entered in the Land Registry.

A purchase typically takes one to three months. You can give your lawyer a power of attorney to sign for you if you can’t be there.

Costs to expect

Cost	Resale home	New home from a developer
Main tax	Transfer tax, set by the region, commonly 6 to 10 percent	VAT at 10 percent, plus stamp duty, commonly 0.5 to 1.5 percent
Notary and Land Registry	Roughly 1 percent or less	Roughly 1 percent or less
Lawyer	Often about 1 percent, plus VAT	Often about 1 percent, plus VAT
Mortgage costs	Valuation, and sometimes an arrangement fee	Same

Rates differ by region, and the Canary Islands have their own sales tax in place of VAT. As a planning figure, add 10 to 15 percent to the price. Ask your lawyer for a written estimate before you sign the deposit contract.

Running costs each year include the municipal property tax (IBI), rubbish collection, building community fees and insurance. Owners who aren’t Spanish residents also file a yearly non-resident tax return on the property, even if it is never rented out.

Mortgages

Spanish banks lend to foreign buyers. As a rough guide, non-residents can borrow up to 60 or 70 percent of the valuation or the price, whichever is lower, and residents up to about 80 percent. Banks look at your total debts against income and will want US tax returns and bank statements. Fixed and variable rates are both common. A mortgage in euros against dollar income carries exchange rate risk.

What to check before you buy

• Rural and coastal properties. Homes built or extended without the right licences are a known problem in parts of the country, especially on rural land. Coastal law can also restrict property close to the shoreline.
• Debts follow the property. Unpaid property tax and community fees can pass to the new owner.
• Tourist rental rules. Many cities and regions restrict or have stopped issuing licences for short-term rentals, and building communities can vote to ban them. Don’t rely on holiday rental income without checking.
• New builds. Deposits paid before completion should be covered by a bank guarantee or insurance. Ask for it in writing.
• Agents. Agents are lightly regulated in much of Spain, and the same property is often listed by several. See real estate agents in Spain.
• Proposed changes. Higher taxes on purchases by non-residents from outside the EU have been proposed in the Spanish parliament. Ask your lawyer what the position is now.

Tax when you own and sell

• A Spanish home counts toward Spain’s wealth tax for residents and non-residents alike, above the allowance.
• Rental income is taxed in Spain, and non-residents from outside the EU are generally taxed on the gross amount.
• When you sell, the gain is taxed in Spain, and a local tax on the rise in land value is also due. If the seller is a non-resident, the buyer withholds part of the price and pays it to the tax office on account.
• US citizens report the sale and any rental income on their US return as well.

See taxes in Spain.

Rent first

Purchase taxes mean you lose roughly a tenth of the price if you buy and sell again quickly. Most people who settle well rent for six months to a year first, which tells you whether the town, the neighbourhood and the building suit you in every season. See the best places to live in Spain for how the main areas compare.

Common questions

Can Americans buy property in Spain?

Yes. Foreigners can buy and own property in Spain in their own name, with the same title as a Spanish citizen. You need an NIE number, and in practice a Spanish bank account. A few areas near military sites require an extra permit for buyers from outside the EU.

Does buying property in Spain give you residency?

No. The golden visa, which gave residency for a purchase of €500,000 or more, ended in April 2025. Owners without a residence visa can stay up to 90 days in any 180.

How much are closing costs when buying property in Spain?

Budget roughly 10 to 15 percent of the price on top. Most of it is tax: a regional transfer tax on resale homes, commonly between 6 and 10 percent, or 10 percent VAT plus stamp duty on new homes. Notary, land registry and legal fees make up the rest.

Can an American get a mortgage in Spain?

Yes. Spanish banks lend to non-residents, typically up to about 60 to 70 percent of the property's value, and more for residents. Expect to show tax returns, income and existing debts, and allow extra time.