Spain has no shortage of allure—sunshine, culture, Mediterranean charm. That’s made it a top choice for Americans seeking a home abroad for years.
That international interest keeps Spain’s real estate market interesting. And some measures have been put in place to protect the ability for the average Spanish person to buy a home for themselves.
In short, buying property in Spain is rewarding but not always simple for Americans. This guide walks you through current market trends, legal essentials, financing, the buying process, taxes, and practical tips.
Getting into the Spanish Real Estate Market
Spain’s property market has shown steady growth, with prices up roughly 5% year-on-year in early 2024. The national average reached around €2,000 per square meter—though exact prices vary greatly by region.
International buyers make up about 20% of property sales. And among them, Americans have become a rising cohort, thanks in part to a favorable dollar-euro exchange rate and Spain’s comparatively lower living costs.
So, the question becomes, why is Spain such a popular real estate market.
In short: warm climate, relaxed pace of life, and reputable healthcare system. You can find more affordable prices than in major U.S. cities, and strong rental demand exists in popular tourist areas and urban centers. What’s not to love?
Legal Basics for American Buyers
Americans can buy Spanish real estate with few restrictions. You don’t need residency or a special permit. Even tourists have the right to purchase. Bear in mind that owning property doesn’t grant you the automatic right to live in Spain full-time—visa rules for stays beyond 90 days in a 180-day period still apply unless you secure residency.
All foreign property buyers must obtain an NIE (Número de Identificación de Extranjero). Similar to a U.S. Social Security number, the NIE is used for legal and tax purposes. Apply at a Spanish consulate in the U.S. or at a police station/immigration office in Spain. You’ll need it to sign contracts, pay taxes, and open a local bank account.
And while it’s not mandatory, we highly encourage you to hire an independent lawyer who speaks English. They’ll conduct due diligence, check for liens, and review contracts. This independent counsel helps avoid misunderstandings, especially if you’re not fluent in Spanish.
Can I Still Buy Into Spain’s Golden Visa Program?
Not for long.
Spain’s Golden Visa historically offered fast-track residency to non-EU citizens who invested at least €500,000 in Spanish real estate.
But Spain is terminating its Golden Visa for real estate investors in 2025. New applications won’t be accepted after April 3, 2025, in response to housing affordability concerns. If you want to pursue the Golden Visa before it ends, act quickly and consult a lawyer. Otherwise, property ownership alone won’t provide residency—you’ll need to explore other visas (such as the Non-Lucrative or Digital Nomad Visa) to live in Spain.
Financing Options for Americans
Many Spanish banks—Santander, BBVA, CaixaBank—offer mortgages to non-residents, including Americans. Expect to put down 30–40% of the property’s value. Non-residents usually get a lower loan-to-value ratio than Spanish residents. Mortgage terms range from 15 to 25 years (sometimes 30), with both fixed and variable interest rates pegged to the Euribor.Banks typically require:
- proof of income (pay stubs or tax returns)
- bank statements
- credit profile (your U.S. credit scores doesn’t directly apply)
Documents might need translation and an apostille. Also, because of FATCA compliance, you’ll likely fill out extra U.S. tax forms (e.g., a W-9).
Some Americans refinance a property in the U.S. to raise cash, or use an international bank with cross-border mortgage services. Compare rates, fees, and the ease of dealing in euros vs. dollars. Factoring in currency exchange risk is crucial if your income is in USD but your loan in EUR.
Buying Spanish Property Step-by-Step
- Set Your Budget
Include an extra 10–15% for taxes and fees. If you need a mortgage, get pre-approval. Factor in currency rates if converting from USD to EUR. - Obtain NIE & Open Bank Account
You can’t legally complete a purchase without an NIE. Open a Spanish bank account for deposits, mortgage payments, and utility bills—banks will ask about the source of your funds for anti–money-laundering checks. - Property Search & Agent
Browse portals like Idealista or Fotocasa, or hire a real estate agent (the seller typically pays their commission). Verify the agent’s reputation; there’s no unified MLS in Spain, so multiple agents might list the same property. - Make an Offer & Reservation
Submit a written offer. If accepted, you usually pay a small reservation deposit (around 5% of the price) to take the property off the market. Have your lawyer review any documents before signing. - ‘Contrato de Arras’
This private contract formalizes the sale with a 10% deposit. If you back out, you lose your deposit; if the seller backs out, they owe double your deposit. Your lawyer conducts due diligence (checking for liens, unpaid taxes, building permits) before you sign. - Mortgage Finalization
If financing, ensure the bank completes its appraisal and issues a final loan offer before the completion date. Missing the contract’s deadline can forfeit your deposit. - Closing at the Notary
Both parties (or their legal representatives) sign the public deed (Escritura) before a notary. You pay the remaining balance—often via bank drafts—and become the official owner. The deed is then registered with the Land Registry. - Post-Purchase Tasks
Pay the transfer taxes, register the property, transfer utilities into your name, and consider home insurance. Non-resident owners may also need to file annual tax declarations.
Taxes and Additional Costs
Purchase Taxes
- Resale Properties: ITP (transfer tax) of ~6–10%, varying by region.
- New Builds: 10% VAT (IVA) plus ~1% stamp duty (AJD).
Notary & Registry Fees
Usually around 1% of the purchase price combined. Lawyers may charge ~1% as well.
Mortgage Costs
Include appraisal fees, possible opening fees (~1% of the loan), and required home insurance. Banks now pay the stamp duty for the mortgage deed, not the borrower.
Ongoing Costs
- IBI (Property Tax):4–1.1% of the cadastral value annually, set by local municipalities.
- Non-Resident Income Tax: 24% on a “deemed rental income” if you don’t rent out your property, or 24% on actual rental income without deductions.
- Wealth Tax: Rarely applies unless your property is valued above your region’s threshold (often €700k+).
- Capital Gains Tax: 19% for non-residents when you sell at a profit, with 3% withheld at closing as a prepayment.
Welcome to Spanish Property Ownership
It’s an exciting prospect—owning property in this beautiful country.
That can make for an unbelievable vacation home or investment, but it can also be the start of a journey to dual citizenship.
Learn more about how to get American-Spanish dual citizenship here.
