Can Americans buy property in Spain? Everything you need to know

Every year, more Americans dream of sipping sangria under the Spanish sun – and many turn that dream into reality by buying property in Spain. With over 40,000 Spaniards living in the US and an estimated 35,000 Americans officially residing in Spain, transatlantic ties keep growing.

The good news? Yes – Americans can legally buy real estate in Spain without citizenship or residency. Whether you're an expat seeking a seaside home, a retiree planning your Mediterranean chapter, or a digital nomad scouting investment opportunities, this guide walks you through buying a house in Spain as a foreigner.

Properties in Spain: facts buyers don’t expect

Spain’s charm goes far beyond sunshine and sangria. If you’re purchasing property in Spain, a few surprising details might shape your buying journey — and they’re not always what Americans anticipate.

       → Myth: Buying Spanish property means instant residency.
       → Fact: Owning Spanish property no longer grants residency – visa approval is still required.

Buying Spanish property as a US expat

Dreaming of owning a sun-soaked apartment in Valencia or a coastal villa in Malaga? Good news – Americans can legally own real estate in Spain, even as non-EU citizens. While some countries limit foreign ownership, Spain welcomes expats eager to invest in property.

Understanding resident vs. non-resident status

Foreigners can buy property in Spain regardless of residency – but legal status affects your taxes, not your right to purchase. To complete a property deal, you’ll need a NIE number (Foreigner Identification Number).

Non-residents obtain a non-resident NIE, while those planning to live in Spain for over 183 days apply for a resident NIE. Spending more than 183 days in Spain makes you a tax resident, triggering worldwide income taxation.

Non-residents are taxed only on Spanish-sourced income like rental profits or capital gains from property sales.

Legal limits for US citizens buying properties in Spain

For most property types, there are virtually no barriers. While Spain is open to foreign buyers, a few practical rules apply:

1. You must obtain an NIE (Número de Identificación de Extranjero) before closing any property deal.
2. Certain military or protected zones may require extra approval for non-EU citizens – though these are rare.
3. Financing may be slightly more restrictive for non-residents, often requiring a higher down payment.
4. Aside from these, there are no broad restrictions on expats buying real estate in Spain.

Golden visa and residency options

For years, Spain’s Golden Visa was a popular gateway for foreigners to buy property in Spain while securing residency – but major changes have arrived. The program officially closed in April 2025, leaving prospective US citizens who want to buy property in Spain exploring alternative paths.

Still, it’s worth understanding how this program worked, as it shaped the real estate landscape for foreign investors for over a decade.

Residency features:

• Fast processing – typically within 2–3 months.

• Includes spouse and dependent children.
• Freedom to work, live, and travel within the Schengen zone.
• After five years of continuous residency, eligible for permanent residence. Citizenship possible after 10 years (or earlier for certain nationalities).

While the Golden Visa attracted many non-EU citizens – including Americans eager to enjoy Spain’s Mediterranean lifestyle – its closure signals a shift toward alternative visas for US citizens buying property in Spain.

Alternatives to the golden visa

1. Non-lucrative visa (NLV): Designed for retirees or individuals with stable passive income. Applicants must show sufficient funds (around €28,800 annually) and maintain private health insurance – perfect for US citizens seeking a relaxed retirement while enjoying Spanish property ownership.
2. Digital nomad visa (DNV): Targeted at remote workers earning income from abroad. Requires proof of employment with non-Spanish companies and an income of at least €2,200 per month. This option allows foreigners to buy property in Spain while working remotely, though the purchase isn’t tied directly to residency approval.

Your roadmap to buying property in Spain

Owning Spanish property isn’t just a dream – it’s entirely doable. Here’s how buying property in Spain as an American actually happens:

Step 1: Obtain an NIE (foreigner tax ID)

Before you even think about signing contracts, you’ll need a Número de Identificación de Extranjero (NIE). This unique ID is mandatory for any legal or financial transaction in Spain, including real estate purchases.

Step 2: Open a Spanish bank account

A local bank account makes transferring funds smoother and is often required by sellers and notaries. It also helps expedite mortgage approvals if you plan to finance your Spanish property.

Step 3: Work with a local lawyer and real estate agent

Having a trusted real estate agent simplifies the property search, but a specialized property lawyer is essential. They’ll handle due diligence, ensure contracts are airtight, and protect you from common pitfalls foreign buyers can face.

Step 4: Find a property and make an offer

Once you find your dream villa or apartment, your agent will help you submit an offer. If accepted, the property can be reserved while legal checks proceed — typically after paying a small reservation deposit of 1–5%.

Step 5: Sign preliminary contract and pay deposit

Next comes the deposit contract (Contrato de Arras), where you typically pay 10% of the purchase price. This locks in your purchase – but if either side backs out, significant penalties can apply.

Step 6: Due diligence and final contract (Escritura)

Your lawyer will verify the property’s legal status by reviewing the Land Registry (Registro de la Propiedad) and securing the nota simple to confirm there are no debts or unresolved issues.

Once cleared, you’ll meet at the notary to sign the final Escritura de Compraventa and complete the full payment.

Step 7: Register ownership and pay taxes

After signing, your ownership is officially registered. You’ll also settle the associated taxes – including property transfer tax or VAT, stamp duty, and registration fees – securing full legal title to your Spanish property.

Costs and taxes: what you need to know before buying

Buying property in Spain can feel like a Mediterranean dream – but before you toast with sangria, let’s break down what it’ll actually cost.

The initial hit: purchase taxes

The first major cost is the property transfer tax (ITP), which applies to resale properties – and yes, this is where most expats start. Depending on the region, you’ll pay 6% to 10% of the property’s value at closing.

If you’re instead buying a brand-new apartment or villa, you’ll face value-added tax (VAT) – known locally as IVA – at 10%, plus around 1–1.5% in stamp duty.

Legal, notary, and registration fees

Every real estate deal in Spain requires a paper trail. Expect to pay:

• Notary fees: ~0.5% to 1% of property price
• Land registry fees: ~0.2% to 0.5%
• Legal fees: Around 1% – though many expats gladly hire local real estate attorneys to navigate Spain’s bureaucracy (and protect their interests).

The ongoing costs: it doesn’t stop at closing

Once you're holding the keys, Spain introduces a few annual costs:

• Property tax (IBI) – typically 0.4% to 1.1% of the property's cadastral value. This supports local services – schools, streets, waste collection.
• Community fees – if you buy inside a shared complex or building, expect monthly charges to cover amenities like pools, gardens, and elevators.
• Wealth tax (IP) – applicable if your net assets in Spain exceed certain thresholds (generally €700,000 or higher for non-residents), with rates from 0.2% to 2.5%.

So, can Americans own property in Spain? Absolutely. But they’re still subject to these ongoing obligations – just like locals.

When it’s time to sell: capital gains tax

Selling your Spanish home down the road? You’ll encounter capital gains tax (CGT) – calculated on the profit you make from the sale. Here’s what applies:

Quick example: If you’re a non-resident American who sells a property with €100,000 profit, you pay 24% on the full €100,000 – no tiered brackets.

• 3% withholding rule

If you're a non-resident, the buyer is required to automatically withhold 3% of your full property sale price at closing and pay it directly to the Spanish tax office.

This is an advance payment toward your final CGT bill. After filing, you may receive a refund if too much was withheld – or owe more if the gain was higher than the 3% covered.

NOTE! Spanish residents aged 65+ selling their primary home after at least 3 years of ownership may avoid CGT altogether.

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US tax implications

Owning real estate in Spain doesn’t exempt Americans from US tax obligations. You’ll still need to report your foreign property, rental income, and capital gains on your US tax return – plus file FBAR if your foreign accounts exceed $10,000, and FATCA Form 8938 for larger foreign assets.

The US-Spain tax treaty, and also Form 1116 foreign tax credit, can help reduce double taxation, but staying compliant requires careful reporting on both sides.

US expats automatically have until June 16, 2025, to file, and our free extension service can help extend the deadline to October 15 or even December 15 – though any taxes owed are still due by April 15.

Financing your Spanish dream for US buyers

For many expats eyeing Spain’s sun-drenched coastlines, financing becomes the first big puzzle. Spanish banks do welcome international buyers – but expect a few extra hoops compared to local residents.

1. Can US citizens get a mortgage in Spain?
You can; with caveats. If you're purchasing property in Spain as a non-resident, lenders will often approve financing, though usually under more conservative terms than for full-time residents.

Some of Spain’s biggest banks – including BBVA, Santander, and CaixaBank – offer mortgage options tailored to foreigners.

Typically, mortgages cover:

• Up to 80% of the property value for primary homes (if you’re a resident)
• 60–70% for second homes or non-residents

For many Americans buying real estate in Spain, that means preparing to fund at least 30–40% upfront between your down payment, closing costs, taxes, and legal fees.

2. What do Spanish lenders require from expats?
Expect a checklist – and be ready to prove your financial stability. Common requirements include:

• NIE (Número de Identificación de Extranjero) – your essential foreign ID number
• Proof of income and tax returns
• Detailed list of current debts and expenses
• Confirmation that mortgage payments won’t exceed 35% of your net monthly income, and many more.

Lenders also scrutinize your age – many require the mortgage to be fully paid by the time you turn 75.

3. Interest rates & terms: what should you expect?
Spanish mortgages generally come with either fixed or variable rates, with variables being more common. As of late 2024, average rates for non-residents hovered around 2.92% – still notably lower than typical US rates.

Mortgage terms range:

• 15–25 years for non-residents
• Up to 40 years for full-time Spanish residents

4. Cash buyers: faster but not fully cash
Some Americans sidestep financing altogether. If you're buying with cash, be aware of Spain’s strict cash payment limits. Non-residents can’t pay more than €15,000 in physical cash per transaction.

The rest must flow through traceable international bank transfers – which often incur hefty currency exchange fees.

 

5. Currency transfers: hidden costs that add up
With property prices easily reaching €300,000+ in hotspots like Valencia, Málaga, or Mallorca, exchanging US dollars into euros can eat into your budget fast.

International transfer platforms like Wise, OFX, or Revolut often provide better exchange rates and lower fees than traditional banks – potentially saving you thousands when purchasing property in Spain.

Where to buy – top Spanish regions for American property buyers

Here’s a sharp, engaging snapshot of standout destinations where US expats are choosing to buy:

Costa del Sol

With around 1.6 million residents in Málaga province, this sunny coast offers a quality of life that draws retirees and digital nomads alike.

Costa Del Sol, Spain. PHOTO CREDIT: PIXABAY

Expect a monthly cost of living between $1,500–$2,800, depending on housing – while crime is moderate, it drops substantially once you move inland. Known for its vibrant expat hubs, it’s a favourite "best place to buy" thanks to strong realtor support for American buyers.

Valencia

Home to roughly 800,000 people, Valencia combines Mediterranean beaches with rich history. A single person’s living costs hover near $800/month (excluding rent), and the city enjoys a low crime index of ~35.

Valencia, Spain. PHOTO CREDIT: PIXABAY

Its affordable market and friendly policies make it increasingly recognized as the best place to invest for US expats.

Madrid

Spain’s bustling capital hosts 3.3 million residents (6.7 million metro), offering world-class culture and infrastructure.

Madrid, Spain. PHOTO CREDIT: PIXABAY

Living expenses are slightly higher than Valencia’s, but safety remains solid with an index around 71. Its urban dynamism and legal clarity for foreign buyers make it a top urban investment destination.

Barcelona

With around 1.6 million locals in the city limits, Barcelona blends art, architecture, and vibrant street life. Expect living costs to be higher than in Valencia or Madrid, and a moderate safety index (~52).

Barcelona, Spain. PHOTO CREDIT: PIXABAY

It’s a magnet for style-conscious expats thanks to a large international community and a strong property resale market.

Balearic Islands (Mallorca, Ibiza)

Mallorca’s ~900,000 residents enjoy island luxury, with Ibiza offering smaller, boutique communities. Monthly costs run higher, typically over $2,000, but safety is excellent in monitored tourist zones.

Spain, Balearic islands, Mediterranean. PHOTO CREDIT: PIXABAY

Known for high-end villa markets and non-resident-friendly property laws, this area draws luxury-minded US buyers.

Canary Islands

The Canary archipelago holds about 2.2 million inhabitants and boasts year-round mild weather. Living costs are moderate, similar to mainland coastal towns, and overall crime rates are low.

Canary Islands, Spain. PHOTO CREDIT: PIXABAY

Its relaxed lifestyle, lower-entry property market, and warm welcome make it a top pick for retirees from the US.

(Cost of living sourced from Numbeo.)

Pros and cons of buying property in Spain

Pros

Spain offers plenty of attractive perks that make purchasing property here especially appealing for Americans.

• Foreigners can fully own property– Spain has no restrictions on foreign ownership, making it easy for Americans to own real estate outright.
• Lower prices vs major US markets– Even prime locations often cost significantly less than cities like New York or San Francisco.
• Top-tier lifestyle: beaches, food, culture– Mediterranean living offers year-round sunshine, vibrant culture, and world-class cuisine.
• High rental demand in expat hotspots– Popular regions like Costa del Sol or Valencia see strong short- and long-term rental demand.

Cons

Bureaucracy and paperwork delays can frustrate buyers unfamiliar with Spain’s administrative system. Market swings in tourist zones can cause property values to fluctuate more than in stable residential areas.

Climate risks like heatwaves or coastal flooding are increasing concerns in certain regions. Scams occasionally target foreign buyers who don’t conduct thorough due diligence.

Common pitfalls USA buyers face (and how to dodge them)

1. Skipping legal help– Always hire an independent, bilingual property lawyer.
2. Trusting sketchy deals– Verify ownership via Nota Simple before signing anything.
3. Overlooking translations– Only certified Spanish contracts hold up in court.
4. Forgetting IRS rules– Property abroad means FBAR, FATCA, and US tax filings still apply.

Own property in Spain – without the tax headaches

Purchasing property in Spain can open the door to a vibrant expat lifestyle but navigating both Spanish and US tax rules can feel overwhelming. From property taxes to complex cross-border reporting, expert support makes all the difference.

Our specialists at Taxes for Expats will help you stay fully compliant, minimize your IRS tax exposure, and enjoy your Spanish real estate investment with total peace of mind.

Before buying Spanish property.

Let us balance your US taxes.