Spain · Buying abroad
How to Buy a House in Spain as an American
Americans buy freely in Spain — and now pay the highest prices of any foreign group. But two things you’ve probably read are wrong: the golden visa was abolished in April 2025, and the notorious “100% tax” on foreign buyers never became law. Here’s what’s actually true.
Last updated July 2026
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Buying a house in Spain as an American, the short version
Spain is one of the most open property markets in the world — and Americans are the fastest-rising, highest-spending group of foreign buyers in it. This is the country guide; for the big picture on buying overseas, see how to buy a house outside the US.
You can buy freely, with no restrictions: full freehold ownership in your own name, no residency required, no cap on properties. The one thing you legally must have is an NIE (foreigner ID number). But two headlines have caused enormous confusion: the golden visa was abolished on 3 April 2025 — so buying no longer gets you residency — and the widely reported “100% tax” on non-EU buyers is a stalled proposal, not law.
What actually costs you money: the regional transfer tax swings from 6% to 13% depending on where you buy, total closing costs run 10–15%, and — the surprise — non-resident owners owe an annual tax even if they never rent the place out. Below: what you can own, how to pay, the process, the tax traps, what’s left of the visas, and where Americans buy.
The big question
Can you actually own property in Spain?
Yes — freely and fully. But buying no longer gives you any right to live there.
Spain places no nationality-based restrictions on buying residential property. Americans own in their own name in full freehold (“pleno dominio”) — the equivalent of US fee simple — with no residency, no visa, no minimum investment, and no limit on how many properties you hold. The mandatory step is getting an NIE (Número de Identidad de Extranjero): you can’t sign a deed, pay taxes, or open a bank account without one, and every co-buyer needs their own. Your lawyer can obtain it for you under a power of attorney.
Two registries, and one rule that catches rural buyers
The Registro de la Propiedad (Land Registry) is the legal record of who owns what and what debts attach. The Catastro (cadastre) is the tax/physical record of boundaries and surface area, and it sets the “valor catastral” that drives your property taxes. They often disagree — reconciling them is part of due diligence. The rule that surprises people: under a 1975 defense law still in force, non-EU citizens (Americans included) need Ministry of Defense authorization to buy rustic (non-urban) land in designated zones — the Balearics, the whole Canary Islands, the Galician coast, the Spanish–Portuguese border strip, the Cádiz/Gibraltar area, Cartagena, and southern Alicante. Urban land and normal apartments are exempt, so most expat purchases are unaffected. Also check the Ley de Costas: the shore is public domain, and coastal homes may sit in a protection easement that restricts building.
Setting the record straight
What about the golden visa and the “100% tax”?
The most misreported topic in Spanish property. One is real and one isn’t.
If you’ve been researching Spain, you’ve almost certainly hit two claims — that you can get residency by buying a €500,000 property, and that Spain is about to tax foreign buyers 100% of the purchase price. The first is no longer true. The second was never law. An enormous amount of online content, much of it published by agencies that sell golden-visa services, has not been updated.
✅ The golden visa is gone. ❌ The 100% tax is not law.
The golden visa was abolished. Organic Law 1/2025 repealed the residency-by-property-investment scheme, and it ended on 3 April 2025. Applications filed before that date are still processed and existing holders can renew — but you can no longer get Spanish residency by buying property. Anyone still selling you the “Spanish golden visa” is selling something that doesn’t exist. The 100% tax was proposed, then stalled. In January 2025 the prime minister announced a plan to tax non-EU non-resident buyers up to 100% of the property’s value. It was registered as a bill in May 2025 — and as of 2026 it has never been debated, never gone to committee, and never been voted on, and it was left out of the government’s January 2026 housing package. Legal analysts consider it vulnerable to EU free-movement-of-capital and Spanish constitutional challenges. As drafted it would have applied to resale property only (new builds pay VAT, not transfer tax). There is no such tax in force. Watch the official gazette, not headlines.
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Paying & financing
How do you pay for it?
Spanish banks (Santander, BBVA, CaixaBank, Sabadell, Bankinter) do lend to non-residents — expect 60–70% loan-to-value, so a 30–40% down payment, against up to 80% for residents. Rates in 2026 are reasonable: the 12-month Euribor sits near 2.7%, well below its 2023 peak, with typical non-resident fixed rates roughly 3.5–5%. A useful protection: Spain’s 2019 mortgage law requires a mandatory 10-day reflection period and a notary meeting before you sign, and the bank now pays most mortgage setup costs. A US mortgage can’t be used for Spanish property.
Budget 10–15% on top of the price — and mind the euro
Spain uses the euro, so exchange-rate swings can move your effective cost by tens of thousands of dollars. On costs: total closing costs run about 10–15% for a resale and 11–14% for a new build. One piece of good news — unlike Italy, the agent’s commission (3–5%) is normally paid by the seller. The dominant cost is the transfer tax, which varies enormously by region (see below). You’ll also need an NIE and usually a Spanish bank account before a lender will talk to you.
The process & your lawyer
Do you need a lawyer? The buying process
Yes. As Spanish buyers put it: the notary makes the sale legal; your lawyer makes it safe.
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01
NIE, bank account, your own abogado
Get your NIE and open a Spanish bank account. Then hire an independent lawyer — your own, not one recommended by the agent or seller. It costs roughly €1,500–3,000 and is the single most protective step you’ll take.
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02
Reservation & due diligence
A small reservation deposit takes the property off the market. Your lawyer then pulls the nota simple from the Land Registry (ownership, mortgages, liens, embargos), confirms community fees and IBI are paid, verifies licences and the habitation certificate, and hunts for illegal or unregistered extensions — very common.
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03
The contrato de arras — 10% at risk
The private purchase contract, usually with a 10% deposit. Under the standard arras penitenciales: back out and you lose it; if the seller backs out, they pay you double. That’s real money — never sign it without your lawyer’s review. You’ll typically have 30–60 days to complete.
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04
Escritura before the notario, then register
You sign the escritura pública before a notario — a public official who verifies legality and identity but does not do full due diligence or represent you. Then your lawyer registers the deed. Budget 6–12 weeks, and use a power of attorney if you’d rather buy remotely.
The rural trap: illegal builds and the “AFO”
Thousands of homes across Andalucía and elsewhere were built without proper licences on rustic land. Spain’s AFO regime (“asimilado a fuera de ordenación”) lets a town hall certify that such a building can no longer be demolished, so it can get utilities and reach the Land Registry — but AFO expressly does NOT legalize the property. You generally can’t extend it, and financing is much harder. Never buy rural or rustic property without a specialist lawyer verifying its planning status. The same care applies to any property with an extension, enclosed terrace, or pool that never made it onto the plans.
Taxes & fees
What taxes and fees will you pay?
The single biggest variable is where you buy. On a resale you pay ITP (transfer tax), which is set regionally: roughly 6% in Madrid, 7% in Andalucía, 6.5% in the Canaries, 9–10% in Valencia, 10–11% in Catalonia, and 8–13% in the Balearics. On a €500,000 home that’s a swing of €25,000 or more. New builds pay 10% VAT plus stamp duty of ~0.5–1.5%. Annually you’ll pay IBI (municipal property tax, ~0.4–1.1% of the cadastral value), plus community fees. Spain also has a wealth tax (non-residents on Spanish assets; €700,000 exemption, but Madrid and Andalucía rebate it to zero) and a national solidarity tax above ~€3M.
⚠️ Two taxes that blindside American owners
1. You owe tax even if you never rent it out. As a non-resident owner you must file Modelo 210 every year and pay tax on a notional “imputed” rental income — 1.1% or 2% of the cadastral value, taxed at 24% for non-EU citizens like Americans, with no deductions. On a €100,000 cadastral value that’s about €264 a year. It’s small, but it’s the most commonly missed obligation, and each co-owner files separately. 2. If you do rent it out, Americans get the worse deal: 24% on GROSS rental income with no expense deductions — you can’t deduct mortgage interest, IBI, community fees or repairs — while EU/EEA residents pay 19% on net. That materially changes buy-to-let math. When you sell, non-residents pay 19% on the gain, the buyer withholds 3% as an advance, and the seller also owes plusvalía municipal.
What Americans still owe back home
The US–Spain income tax treaty (amended by a protocol in force since 2019) gives Spain primary taxing rights on Spanish property, so the Foreign Tax Credit (Form 1116) usually eliminates double taxation. Report rental income on Schedule E and capital gains on Schedule D; the Section 121 exclusion can apply to a main home. The property itself isn’t an FBAR item, but your Spanish bank account is, once foreign accounts top $10,000. And if you become a Spanish tax resident (183+ days), you’ll owe Spanish tax on worldwide income and must file Modelo 720 declaring foreign assets — a line worth planning around. Use a cross-border tax professional.
Visas & residency
Does buying property get you residency?
No — not since 3 April 2025, when the golden visa was abolished. Americans get 90 days in any 180 in the Schengen area visa-free. To stay longer you now need one of the ordinary visas, and neither of them has anything to do with owning a house. Citizenship takes 10 years of legal residence for Americans, and Spain generally doesn’t allow dual nationality with the US — so many Americans hold permanent residency rather than naturalize.
The two routes left — and a catch on each
Non-Lucrative Visa (NLV) — the classic retiree route. Requires passive income of about €28,800/year for the main applicant (plus ~€7,200 per family member) and full private health insurance. The catch: it prohibits all work, including remote work for a US employer — consulates have tightened enforcement. It also now carries a 183-day minimum stay, which makes you a Spanish tax resident. Digital Nomad Visa (DNV) — for remote workers earning from outside Spain, requiring about €2,849/month (€34,188/year), with no more than 20% of income from Spanish sources. Its big perk: access to the “Beckham Law” flat 24% tax regime. Owning a home helps with neither application beyond proving you have somewhere to live.
The practical questions
What else do you need to know?
Spain’s public healthcare is excellent, but as a non-resident or second-home owner you’ll need private insurance (roughly €50–200/month) — US Medicare doesn’t cover Spain. English is widely spoken on the Costa del Sol and Costa Blanca and in expat hubs, much less so inland. Apartments and urbanizations come with a comunidad de propietarios — mandatory owners’ association fees and rules, and since 2025 these bodies can vote to ban tourist rentals in the building.
Two things to plan for: tourist licences, and who inherits
If you’re buying to let short-term, check the licence first. Tourist licences are frozen or restricted in the Balearics, Málaga, Valencia and San Sebastián — and Barcelona will eliminate all ~10,000 of its tourist-flat licences by November 2028. A national short-term-rental registry launched in July 2025 but was struck down by the Supreme Court in May 2026; the regional licences remain fully required. Verify a licence exists and is transferable before you assume any rental income. On inheritance: Spain has forced heirship — two-thirds of your estate is reserved for your children — which can override a US will. But the EU’s Brussels IV rules let you elect the law of your nationality in a Spanish will. Make one, with that clause. Spanish inheritance tax is regional and heavily rebated (up to 99%) for close family in Madrid, Andalucía and Valencia.
The market
Where do Americans buy, and what does it cost?
Prices are rising fast — and Americans pay more per square meter than any other foreign group.
Spanish prices rose about 12.9% year-on-year in late 2025, the steepest since 2007, on a structural supply shortage. Foreign buyers make up roughly 14% of purchases. Americans are a small but surging slice — and per Spain’s notaries, US buyers paid an average of €3,501/m² in the second half of 2025, nearly double the Spanish-resident average. Prices are in euros. Rough context:
Where Americans buy (rough prices)
Madrid (~€4,241/m²) and the Balearics (~€4,101/m²) are the priciest regions — and note Madrid also has the lowest transfer tax at 6% and rebates the wealth tax to zero. Americans cluster in Madrid (Salamanca, Chamberí), Barcelona (Eixample, Gràcia), Valencia (Ruzafa), and Marbella / Costa del Sol (Nueva Andalucía) — the last combining premium coastal living with Andalucía’s flat 7% ITP. Costa Blanca (Alicante) and Murcia are markedly cheaper — the Costa Blanca still trades well below its 2007 peak — and inland Spain is very cheap. Gross rental yields average about 5.5–7%, higher in Murcia and parts of Andalucía, lower in Palma and prime Madrid/Barcelona. Forecasters expect growth to continue but moderate; no major house predicts a correction.
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Quick answers
Buying a house in Spain: common questions
Can Americans buy property in Spain?
Yes, freely. Spain places no nationality-based restrictions: you get full freehold ownership in your own name, with no residency or visa required and no limit on the number of properties. The one mandatory requirement is an NIE (foreigner identification number), which your lawyer can obtain for you under a power of attorney.
Can I still get the Spanish golden visa by buying a house?
No. Spain abolished the golden visa with Organic Law 1/2025, and it ended on 3 April 2025. Buying property no longer grants any residency right. Applications filed before that date are still processed and existing holders can renew, but many websites — often run by firms that sold golden-visa services — have simply never updated.
Is Spain really taxing foreign buyers 100%?
No. In January 2025 the prime minister proposed a tax of up to 100% of the property value on non-EU non-resident buyers, and a bill was registered in May 2025. As of 2026 it has never been debated, never gone to committee, and never been voted on, and it was omitted from the government’s January 2026 housing package. Legal analysts also consider it vulnerable to EU and constitutional challenge. It is not in force.
How much are closing costs in Spain?
Roughly 10–15% for a resale, 11–14% for a new build. The biggest component is the regional transfer tax (ITP), which ranges from about 6% in Madrid and 7% in Andalucía to 10–11% in Catalonia and up to 13% in the Balearics. New builds pay 10% VAT plus stamp duty instead. Unlike some countries, the agent’s commission is normally paid by the seller.
Do I pay Spanish tax if I never rent out my property?
Yes — and it surprises almost everyone. As a non-resident owner you must file Modelo 210 annually and pay tax on a notional “imputed” rental income: 1.1% or 2% of the cadastral value, taxed at 24% for non-EU citizens including Americans. It’s usually a few hundred euros a year, but it’s the most commonly missed obligation, and each co-owner files separately.
How is rental income taxed for Americans in Spain?
Worse than for Europeans. Americans, as non-EU non-residents, pay 24% on gross rental income with no expense deductions — you cannot deduct mortgage interest, IBI, community fees or repairs. EU/EEA residents pay 19% on net income after those deductions. Factor this into any buy-to-let calculation, and remember you also report the income to the IRS.
Can I rent my Spanish property on Airbnb?
Only with the right regional tourist licence, and in many places you can’t get one. Licences are frozen or restricted in the Balearics, Málaga, Valencia and San Sebastián, and Barcelona will eliminate all of its roughly 10,000 tourist-flat licences by November 2028. A national registry launched in 2025 but was struck down by the Supreme Court in 2026 — the regional licences still apply. Verify a licence exists and transfers before you buy.
What is the “AFO” problem with rural Spanish houses?
Thousands of homes, especially in Andalucía, were built without proper licences on rustic land. An AFO certificate confirms the building can no longer be demolished and lets it access utilities and the Land Registry — but it does not legalize the property. You usually can’t extend it and financing is harder. Never buy rural property without a specialist lawyer checking its planning status.
Can Spanish law override my American will?
It can. Spain has forced heirship, reserving two-thirds of your estate for your children. But the EU’s Brussels IV regulation lets you elect the law of your nationality in your will, overriding it — so make a Spanish will containing that clause. Spanish inheritance tax itself is regional and heavily rebated for close family in Madrid, Andalucía and Valencia.
Other countries
Buying somewhere else?
The rules change completely at every border. Compare another country, or see the full guide.