Buying a House in Spain as a Foreigner or Non-Resident: What to Check Before Signing

You have found a property you like. The price fits your budget, and you are asked to pay a deposit to reserve it. Before transferring any money, consider three questions: who is entitled to sell it, what obligations will you accept by signing, and how much will the purchase actually cost?

As a general rule, you can buy a house in Spain as a foreigner or non-resident. You will need to prepare your documents and review the property’s legal, planning and tax position. Certain purchases may require special authorisation, including properties in some areas subject to defence-related restrictions.

At Delgado Garrucho Abogados, we help you understand the conditions of your purchase before you commit your money.

Do you need a residence permit to buy a house in Spain?

As a general rule, you do not need a residence permit to purchase a property. A foreign national can buy a home in Spain while living in another country.

It is important to distinguish between:

• Property ownership: holding legal title to the property.

• A right of residence: being entitled to live in Spain under the applicable immigration rules.

• Tax residence: meeting the relevant tax criteria, which do not depend solely on owning a home.

  
  

Buying a property does not automatically grant a residence permit or Spanish nationality.

The residence route for new investments commonly known as the “golden visa” ceased to be available from 3 April 2025, subject to the transitional rules applicable to earlier cases.

What documents will you need?

You will generally need to prepare:

• A valid passport or identity document.

• An NIE for identification in the transaction and related tax obligations.

• Documents showing the source of your funds and the payment arrangements.

• Information about your marital status and matrimonial property regime.

• A sufficient power of attorney if someone else will act on your behalf.

  
  

The NIE is an identification number, not a residence permit. Depending on your circumstances, you can apply through the authorised channels in Spain or through the relevant Spanish consulate.

If you are buying with another person, agree from the outset on the share each buyer will acquire and ensure that these shares are correctly recorded in the purchase deed.

What should you check before paying a deposit?

A property may look attractive in photographs while having issues that only become apparent when its documents are reviewed.

Before signing a reservation agreement or an arras agreement, check the following:

Ownership and authority to sell

Establish who owns the property and who must participate in the transaction. This is especially relevant where there are several owners, an inheritance or someone acting under a power of attorney.

Mortgages, attachments and other registered charges

Identify any registered charges and establish how they will be discharged, where appropriate. Usufruct rights and other restrictions should also be reviewed.

Occupancy

Confirm whether the property will be delivered with vacant possession or whether there are tenants or other rights affecting its use.

Owners’ association

Check outstanding community fees, approved special assessments and relevant community documents.

IBI and other expenses

Review property tax bills and agree how expenses will be allocated between buyer and seller.

Planning and building compliance

Check permits, extensions, authorised use and any potential municipal issues.

Land Registry, Cadastre and physical condition

Compare the documentary description with the property you are actually purchasing.

A Land Registry extract, known as a “nota simple”, is essential, but it does not provide a complete picture of planning compliance, occupancy or all outstanding debts.

The arras agreement: pay attention before the notary appointment

An arras agreement can create binding obligations before you sign the public purchase deed. It should clearly regulate the price, deposit, completion deadline, handover conditions, allocation of expenses and consequences of a breach.

Not every arras agreement allows you to withdraw simply by forfeiting the deposit.

The arrangement under which the buyer may withdraw by losing the deposit, or the seller by returning twice that amount, applies to arras penitenciales when properly agreed.

If you need a mortgage, expressly address what will happen if financing is refused. A rejected mortgage application does not, by itself, guarantee that your deposit will be refunded.

What happens if the seller is a non-resident for tax purposes?

If the seller is a non-resident for tax purposes, the buyer must generally withhold and pay 3% of the corresponding agreed consideration to the Spanish tax authorities using Form 211, as a payment on account of the seller’s tax.

This amount is deducted from the money paid to the seller. It is not an additional tax imposed because the buyer is foreign.

Before completion, the seller’s tax residence should therefore be checked and the payments arranged correctly.

Can you buy from abroad?

A purchase can be organised using a sufficient notarial power of attorney, allowing you to avoid travelling for every stage.

The power must authorise the necessary actions and can limit the property, price and powers granted.

If it is executed outside Spain, the applicable validity, apostille or legalisation and translation requirements must be checked.

After buying: obligations to plan for

After signing, further steps include settling the taxes, registering the purchase and arranging the relevant changes of ownership.

If you are a non-resident for tax purposes, you should also review your ongoing obligations. In addition to IBI property tax and community fees, an urban property kept for personal use or left vacant may give rise to imputed rental income taxation under Non-Resident Income Tax, or IRNR.

If you rent it out, you will need to review the taxation of rental income and the requirements applicable to the intended use.

Legal advice for your property purchase

At Delgado Garrucho Abogados, we advise on property purchases, including document checks, reservation and arrasagreements, preparation of the purchase deed, coordination with the notary and tax and registration formalities within the agreed scope of our services.

We provide assistance in Spanish, English, Russian and Ukrainian.

Have you found a house in Spain? Contact us on WhatsApp at +34 656 688 967 before signing a reservation agreement or paying a deposit.