Real estate in Spain

Buyer's guide

• Who can buy a property in Spain?

  

  Foreigners can freely buy, rent out, and sell both residential and commercial real estate in Spain.

• Property prices by region of Spain

  

  Prices for residential real estate in Spain have steadily increased: since 2016 through April 2024, property values have risen by an average of 40%.

  The average price per square metre for residential property in Spain is €1,900.

  The most expensive properties are on the Balearic Islands, where the average cost per square metre is €3,800. In the capital city of Madrid, prices are lower: about €3,500 per square metre.

  The least expensive properties can be found in:

  • Murcia — €1,220 per square metre;

  • Castilla-La Mancha — €1,130 per square metre;

  • Extremadura — €1,060 per square metre.

• Property purchase procedure in Spain

  

  The process of buying property takes about two months. After selecting a property, the procedure follows several stages:

  1. Obtain a Spanish taxpayer identification number.

  2. Open a bank account in Spain.

  3. Sign a preliminary contract and pay a deposit of 10% of the property’s cost.

  4. Verify the legal integrity of the property.

  5. Sign the main real estate purchase agreement.

  6. Register the new owner and obtain the certificate of ownership.

  Read the article

• Property purchase taxes

  

  In Spain, the taxes on purchasing new and resale real estate differ.

  For new developments, VAT is set at 10% and stamp duty at 1.5%.

  Buyers of resale residential properties pay a transfer tax, which varies from 6 to 10% depending on the region.

  The purchase of commercial real estate entails a tax of 25%.

• Residence permit in Spain by the purchase of a real estate

  

  Purchasing real estate in Spain entitles one to apply for a residency permit.

  Investors get residency permits valid for 3 years by purchasing one or more properties with a total value of at least €500,000. Both residential and commercial properties, whether new or resale, are eligible. To maintain and renew the residency permit, one must remain the investment property owner.

  The residency permit application can include a spouse, children, and parents.

  Digital nomads can also obtain a Spanish residency permit. An essential requirement is owning or renting residential property in Spain. In this case, there are no minimum cost or rental value limits.