How to Buy a Property in Spain? 🇪🇸🏡
Is it worth it and how can it be done?
Step-by-Step Guide for Foreign Buyers – Start Your Spanish Dream Today! ☀️🔑
Is it worth buying a property in Spain?
Buying property in Spain has long attracted Poles dreaming of year-round sunshine, a rich culture, and the opportunity to work remotely from the beach. Because both Spain and Poland are members of the European Union, Poles buying a property are subject to the same regulations as Spanish citizens. No additional permits are required: simply follow the standard Spanish procedure – obtain a NIE number (the Spanish equivalent of the national DNI number), present a valid ID, conclude a reservation agreement, and sign a notarial deed. In practice, the only difference may be the financing method, as banks often offer lower interest rates to those without Spanish tax residence. Otherwise, the entire process – from the property registration to the entry into the Land and Mortgage Register – is the same for Poles and Spaniards.
For many people, buying a property is not just whim which breeds within a buyer during holidays, but also a way to invest their savings. Spanish properties in popular resorts still cost less than those on the Baltic Sea, and average property prices are rising slowly and steadily. According to recent reports, average property prices on the popular Costa Blanca or Costa del Sol are still lower than in many seaside resorts in France or Italy. Each case is different, but the goal is often similar: finding the perfect property that will be a place to live, relax, or a safe investment. A well-planned trip and viewing can uncover true diamonds in the rough. However, if you plan your financing carefully and understand local regulations, the ideal property can become not only a second home but also a stable investment generating passive income. More and more Poles are discovering that dream properties under the Spanish sun do not have to remain in the realm of dreams – proper preparation and conscious decisions from the outset of the purchase process are enough.
Spanish real estate market – what you need to know before buying?
Primary market vs. secondary market
The Spanish real estate market is divided into two main segments. The primary market consists of newly-built flats and houses from developers – tempting with modern standards but demanding patience as formalities take longer. The secondary market offers a wider selection, and often better locations in city centers, with keys available immediately.
Translate documents mandatory for the purchase of properties
In practice, it is here that the most real estate offers get, and the sale of real estate itself is faster, because the previous owner already has full documentation. It is worth following ads, because with a lot of demand, the sale of real estate can close in a few weeks.
Prices of flats and houses in 2025
While 2025 have seen a slight increase, property prices in Spain still compare favorably with those in Western Europe. Average property prices are around €2,400/m² on the coast and €3,100/m² in Barcelona and Madrid. Buyers are looking not only at flat prices but also at the total purchase price including taxes and notarial fees. Remember that the final net value of a property depends on maintenance costs, and long-term rising property values help protect capital against inflation.
Real estate purchase procedure step by step
Define the purpose of your purchase
Consider whether you are buying a property for your own use, for rental purposes or as an investment.
Select a location in Spain
Decide whether you are interested in the coast, a big city, or a quiet town inland.
Browse offers and make a preliminary selection
Search for offers on the primary and secondary market, comparing location, square footage and price.
Arrange an on-site inspection
Make an appointment with a real estate agent to visit and assess the physical condition of the property.
Check the legal status of the property
Have records in the real estate register verified and make sure there are no debts or mortgages.
Receive your NIE number
Obtain a Spanish Foreigner Identity Number from a consulate or local office.
Open a bank account in Spanish bank
Open a local bank account to make payments and transfers.
Secure financing for your purchase
Decide whether to pay in cash or take out a loan – prepare the required documents.
Sign the reservation agreement
Reserve your chosen property by paying a small deposit.
Conclude a Purchase Agreement (Contrato de Arras)
Agree on the terms of the purchase, pay a deposit and prepare to sign the notarial deed.
Sign the notarial deed
Finalize the purchase at the notary's office – after payment, you will be entered in the register of owners.
Pick up your keys and arrange your flat
After signing the deed, collect the keys and begin arranging a property.
Pay taxes and additional costs
Include VAT or ITP, AJD, payment for a notary and a translator, and bank commission.
Take care of future maintenance and fees
Provide funds for media, IBI tax, housing association and any insurance.
Consider working with an agency and a translator
Choose a reputable real estate agency and a sworn translator to avoid language and formal problems.
Costs and taxes when buying a property in Spain
VAT, ITP, AJD – the most important taxes in Spain
Three main levies appear on Spanish property deeds, considered the most important taxes in Spain when purchasing a house or flat:
- Value Added Tax (VAT) – applies only to new properties from developers. It amounts to 10% of the price.
- Property Transfer Tax (ITP) – this tax is paid on the secondary market instead of VAT. The rate varies by region and typically ranges from 6% to 10%.
- Legal Documentation (AJD) – a small stamp duty (0.5% to 1.5%) for registering the deed in the property register.
These three positions are the foundation of Spanish property taxes. It is worth including them in your calculations before submitting an offer, as together they can increase the final purchase cost by approximately 10–13%.
Additional transaction and maintenance costs
In addition to the property price and the main taxes, you will need to take into consideration other additional costs. These include the notarial fees, the registry entry fee, the payment for a sworn translator, and the bank commission if you are financing your property with a loan. This typically adds up to another 2-3% of the purchase price. After handing over the keys, there are also property maintenance costs: the annual IBI council tax, media bills, community fees, and mandatory property insurance (if you have a loan). Add these to your budget to avoid surprises.
Financing the purchase of real estate – loan or cash?
The decision to finance a property purchase with cash or a loan depends primarily on your financial liquidity and investment plans. Paying cash allows you to close the transaction faster and sometimes obtain a better purchase price, but it also freezes a significant portion of your capital. A bank mortgage, on the other hand, allows you to maintain a reserve of funds for renovations or further investments, although it increases the overall purchase cost by adding interest and commissions.
Mortgage in Spain for non-residents
Banks readily grant mortgages to foreigners in Spain, but they typically finance 60-70% of the property value. This means that a Spanish bank will lend you a maximum of 60-70% of the property value, with the remaining part of property value paid from your own funds.
To apply for such a loan, you will need:
- NIE number,
- a Spanish bank account,
- and translated proof of income.
The process is similar to the Polish one: a property valuation, a loan approval, signing a loan agreement, and a notarial purchase of a property. However, keep in mind that the bank will add fees for the valuation, life insurance, and property insurance, which increases the initial costs.
Mortgage costs and interest rates
In 2025, the average interest rate for foreigners ranges from 3.5% to 4.2% of the variable EURIBOR (Euro Interbank Offered Rate). The EURIBOR is the average interest rate at which major European banks lend euros to each other for a specified period.
Initially, you will pay:
- a commission (0.5-1% of the amount),
- notarial and registry fees,
- the AJD on the registration in the Land and Mortgage Register (some of the additional costs).
The role of real estate agencies in Spain – is it worth using?
Agency services and real estate agent fees
For many property buyers, their first contact with the market is with local real estate agencies or international online agencies. Their main services include finding suitable property listings (including those not listed on popular portals), organizing viewings and video presentations, negotiating the price with the owner, compiling documents before signing the contract, and assisting with opening a bank account and translating documents at the notary’s office.
This service is paid for by the seller or buyer, depending on the region and the agency’s practices. Typical real estate agent fees on the Spanish coast range from 3% to 5% of the transaction price.
It is worth agreeing this in writing in advance; you will avoid surprises and you will know exactly how much a real estate agent’s help will cost.
How to choose a real estate agency in Spain
With so many offers available, choosing a reliable partner is crucial. Look for companies that:
Operate legally – check the license number and membership in a local association.
Have a Polish- or English-speaking advisor – language barriers are a stressful.
Transparently disclose commission – a good real estate agency in Spain lists the rate in the official offer.
Work with a lawyer – the lawyer oversees the contract, while the agent focuses on negotiations.
Provide references – ask for contact information from previous clients.
This steps increase the likelihood that a real estate agent’s assistance will truly facilitate the purchase, rather than adding unnecessary costs. With a reliable agent, it is easier to find diamons in the rough, avoid pitfalls, and close the transaction in a friendly atmosphere.
Golden Visa and other residence paths for investors
Until recently, a Golden Visa was the easiest way to legally reside in Spain – purchasing a property in Spain for at least €500,000 was enough to enjoy a five-year residence permit without having to live there permanently. Since April 2025, the government has closed this program, so any new property purchase no longer automatically grants residence.
So what is the alternative? When purchasing Spanish property, it is worth considering three alternatives:
Non-Lucrative Visa – it is enough to prove stable passive income or savings (approximately €30,000 per year for a single person).
Digital Nomad Visa – popular with freelancers; requires documented remote work contract and an income of approximately €2,200 per month.
Ordinary residence through business activity – if you plan to start a business or work full-time in Spain, the procedure is longer but is also open to EU citizens.
Each option has its advantages and formalities, but the most important is to make sure that the chosen residence title really fits your life plans and budget before finally purchasing a property in Spain.
Types of property in Spain – from flats to villas
Once you know where you want to buy, it is time to decide exactly what to buy. Property types in Spain are diverse: compact studio apartments ideal for short-term rentals, spacious bungalows with private gardens, traditional townhouses in historic centers, and detached villas with pools. There are also rustic fincas in the countryside for nature lovers. Defining your priorities will help you narrow down your property choices to a few specific locations. For some, buying their dream property means a small flat with a balcony just minutes from the beach, for others, it is a modern villa with panoramic sea views—the choice is yours.
Choice of location and types of property in Spain
A good property location is key to comfort and steady value growth. The Costa Blanca is being browsed frequently – search for “Costa Blanca real estate” and you will find thousands of listings, from small studios to luxurious villas overlooking the Mediterranean Sea. On the southern coast, the sunny Costa del Sol reigns, with beaches and golf courses driving demand as well as long-term property values. If you are looking for an authentic southern weather, explore the vast Spanish region of Andalusia – land prices are still affordable, and the white mountain towns are enchanting with their tranquility. In each of these areas, you will find offers tailored to various budgets; the key is to define what the ideal property means to you – proximity to the beach, international schools, or perhaps a quiet setting surrounded by olive groves.
City life – for those who dream of having coffee on a terrace overlooking the city rooftops
For those who dream of enjoying their daily coffee on the terrace, strolling through atmospheric streets, and enjoying a dose of culture, Spanish real estate in Barcelona or Madrid can be a great alternative. Both cities offer a diverse selection of neighborhoods, from quiet, family-friendly neighborhoods to vibrant centers with lofts and modernist flats. Importantly, you can still find affordable locations that offer a high standard of living and good connections to the rest of the country and Europe.
Barcelona – districts worth considering when buying a property
- Poble-sec – close to the city center, well-connected, and attracting growing interest from young people.
- Sants-Montjuïc – a large district with mixed-use development, excellent infrastructure, and easy access to the metro and airport.
- Sant Andreu – a charming, quiet district with a more local character and attractive prices.
- Horta-Guinardó – a green area with a good price-to-quality ratio; ideal for families.
- Nou Barris – the cheapest district in Barcelona, good for a starter home or long-term rental.
Madrid – affordable and well-developed districts
- Carabanchel – a rapidly developing district with a large number of flats at attractive prices.
- Usera – good transport links to the city center, with growing demand from young residents and immigrants.
- Puente de Vallecas – a diverse, vibrant district where you can still find flats at reasonable prices.
- Tetuán – a fashionable district with investment potential, especially around Cuatro Caminos.
- Villaverde – one of the cheapest areas in Madrid, attracting investors seeking flats at reasonable prices.
Other affordable locations outside major cities
- Torrevieja (Costa Blanca) – cheap properties, large foreign population, good for rentals.
- Denia and Jávea – smaller, quieter towns with beautiful beaches and a pleasant atmosphere for everyday life.
- Murcia – an inland region with very favourable prices and modern infrastructure.
- Castellón de la Plana – an underrated city with access to the sea, dynamically developing.
- Almería (Andalusia) – warmer and cheaper than Málaga, with great future potential.
- Alicante – a compromise between price and quality of life; popular with Poles.
The path to buying your dream property in Spain
Buying a flat or house in Spain is a dream for many – and as practice shows, it is so difficult to achieve. Whether you are looking for a vacation spot, an investment, or a permanent move, the key to success is good preparation. Familiarity with local regulations, a thoughtful choice of location, and the support of an experienced lawyer or agent will significantly simplify the entire buying process.
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