How to buy a house in Spain as an immigrant

Buying a house in Spain is a dream for many immigrants, whether as a primary residence to settle down or as an investment for the future. Fortunately, it is indeed possible for foreigners to acquire properties in Spain, even without residency, as long as certain requirements are met. International buyers account for nearly 18% of real estate transactions in the country, demonstrating that more and more people are achieving the goal of owning their own home.

Stories like those of Cuban Laurens González or influencer Anita Mateu inspire other migrants. Laurens managed to buy her house just 16 months after arriving in Spain, although she faced difficult months without savings. Meanwhile, Anita purchased a home in Galicia after three years of planning and visiting several banks to secure a mortgage. These experiences confirm that with perseverance and information, buying a house in Spain as an immigrant is an achievable goal.

Can a foreigner buy property in Spain?

Yes. Spanish legislation allows foreigners to purchase real estate, whether they are residents or not. A property can be acquired with a passport, but it is necessary to obtain a Número de Identificación de Extranjero (NIE) and open a bank account in Spain. Without the NIE, the transaction cannot be formalized before a notary or legally registered.

Foreigners pay the same taxes as residents when purchasing a property. Even if you do not plan to reside immediately, you can buy as a non-resident with a temporary NIE. Additionally, those who invest more than 500,000 euros can apply for the Golden Visa, a residence permit for investors.

In the case of those who hold Spanish citizenship —such as many Cuban Americans who obtained it through the Law of Grandchildren— they do not need a NIE, but rather a NIF or DNI. In fact, an increasing number of Cubans with dual citizenship are purchasing homes in regions like Galicia, Asturias, or the Canary Islands to settle down or retire.

Legal and financial requirements

• NIE (Foreigner Identity Number): It is mandatory for any purchase and sale procedure. It can be requested in Spain or at the consulate from abroad. Without it, you cannot sign the deed or register the property.
• Bank account in Spain: Necessary for paying taxes, fees, and transferring the purchase price. Most banks require a passport, NIE, and proof of the source of funds.
• Financial documentation: Banks require proof of income, credit history, and tax returns, especially when applying for a mortgage.
• Source of funds: Transfers must be made through formal and justified banking channels, in compliance with anti-money laundering regulations.

Steps to buy a home in Spain

1. Search and earnest money contract: It is signed to reserve the property, delivering a deposit of approximately 10%. It is important to verify the legal status of the property before signing.
2. Signature before a notary: Both parties sign the public deed. The notary ensures the legality of the process and the identity of those involved.
3. Registration in the Registry: The property is registered in the name of the buyer and the corresponding taxes are settled.

If a mortgage is required, banks typically finance up to 80% of the property's value for residents and less for non-residents, who must contribute between 20% and 30% as a down payment.

Taxes and expenses

• ITP (Property Transfer Tax): For used homes, between 6% and 10% of the price, depending on the autonomous community.
• VAT: For new homes, 10% of the price (4% if it is protected housing).
• AJD (Documented Legal Acts): Between 0.5% and 1.5%, although the bank pays this tax if there is a mortgage.
• Notary and Registration: Between 0.1% and 0.5% of the value, plus registration fees (300 to 700 €).
• Appraisal and management: If there is a mortgage, they usually cost between €300 and €500 each.

After the purchase, owners must pay the IBI (annual municipal tax) and, if they are not tax residents, the IRNR (Income Tax for Non-Residents), with rates of 24% for non-residents outside the EU.

Advice

• Seek advice: A real estate lawyer or manager will help avoid mistakes and expedite processes.
• Choose the right area: Madrid and Barcelona are more expensive, while Galicia or Andalusia offer more affordable prices.
• Plan your budget: Have saved at least 30% of the home's value plus expenses.
• Learn from other immigrants: Stories like those of Laurens González or Anita Mateu demonstrate that persistence and saving make it possible to achieve success.
• Define your objective: Buying to live is not the same as investing. Assess taxes, profitability, and local regulations.

Spain remains an attractive destination for those seeking stability, investment, or a peaceful retirement. With good planning and advice, buying a house in the country is an achievable goal for any immigrant.

Consulted sources

• Stories from CiberCuba
• Fotocasa
• CaixaBank
• Balcells Group
• Western Union Blog
• Immigration Spain
• Euronews
• Idealist