FAQs for Buying Property in Spain

Can citizens of other countries buy a home in Spain? 

Yes! There are no restrictions on buying property in Spain as a foreigner. This goes for residential, commercial, land, and businesses. Spain even has a visa program tailored to encourage foreign investment. If you plan to purchase a home for at least €500,000 then you can apply for the ‘Golden Visa’. 

How long can non-EU citizens stay in Spain?

Many non-EU citizens are allowed to remain in Spain on a tourist visa for 90 days within a 180 day period. If you’d like to stay longer, then you’ll need to apply for a visa. There are quite a few options available depending on your situation (Work, Student, Investment, Retirement, etc.) 

Can I get a mortgage in Spain?

Yes, it is possible to obtain a mortgage to purchase a property in Spain. However, it can be difficult if your income comes from another country outside of the EU. There are a few companies which specialize in non-resident mortgages. Plan to pay higher fees, more interest, and a larger down payment than you would in your home country. 

Does the house come with the land?

Yes, when buying a home in Spain you get the house and the land (in the case of independent houses). 

Why are some houses so cheap in Spain?

There are many reasons but in general it comes down to high supply and low relative demand. 

As far back as the 1960s, people have been moving out of villages all over Spain to find work in the cities. This has left many villages with few residents. Some towns are so desperate for young people that they are paying newcomers an annual sum to move to the village. 

Another big factor is that Spain was hit hard in the 2008 financial crisis. This led to a sharp decline in home prices across the entire country. While Spain has largely recovered, the effects can still be seen in the housing market. 

There are a ton of homes for sale in Spain compared to the amount of eligible buyers. This naturally makes the prices lower than in places with higher demand. 

Is purchasing a home in Spain a good investment?

It certainly can be! While I prefer to look at buying a home in Spain as a lifestyle upgrade (Malibu living for Detroit prices? Yes please), many areas in Spain have done very well over the past decade. Plus, the thriving tourist sector makes renting your home on Airbnb a great option for producing additional income. 

Can I buy a house in Spain and rent it out on Airbnb, VRBO, etc?

Yes! Spain was the 2nd most visited country in the world in 2019. This means tourism is a big deal here! Of course, you’ll want to get an idea of how popular your area is first and ensure the legality of renting out your property. In Barcelona, for example, it has become nearly impossible to rent out on Airbnb due to local restrictions. 

What are the property taxes for a home in Spain?

Property tax in Spain works a bit differently than in a country like the US but do not let taxes scare you! It’s very likely these taxes will be the same or cheaper than what you’re currently paying at home. 

First, be prepared to pay a large up front property transfer tax upon purchasing the property (Known as ITP (Impuesto sobre Transmisiones Patrimoniales). This ranges from 7%-10% of the purchase price depending on the region. 

There is an annual Property Ownership Tax (Impuesto Sobre Bienes Inmuebles – IBI). This is calculated on the basis of the valor catastral (an administrative value that is lower than the market value) set by the town hall, the tax rate goes from 0.4% – 1.1% of the valor catastral depending on the region. This is the closest thing Spain has to a traditional ‘property tax’ like one pays in other countries. However, it is significantly lower than any tax I’ve paid in the US.

If you own property in a development, building, or complex in which common zones are shared with other owners you’ll be required to pay a Community Fee (Comunidad de Propietarios). This is similar to an HOA and varies based on the size and age of the development.