Becoming a property owner in Spain, things to know

The right steps to become a homeowner in Spain

As with any investment, the approach must be thought, the market must have been studied and it is rather advised to get help from a professional. In addition, you must also have some prerequisites in order to buy a property in Spain.

To claim the property, you need a tax code (NIE). The Spanish tax code is necessary for most of the administrative practices. You can get it at the local police station, your lawyer or your real estate agent can also make the request on your behalf. It’s also better to open a non-resident bank account in Spain. Thus, obtaining the money for the deposit or the costs associated to the purchase will be faster.

Before signing the sale agreement, make sure that the property is in accordance with what was announced by the seller. Then, ask to see the property registry to verify whether the seller has paid off his debts. Also, check out the actual soil and constructed surface on the real estate registry; make sure that the co-ownership expenses have been paid and that the property tax has been welded. It is recommended to carry out these operations assisted by a lawyer, a real estate agent or a notary.

Once you have chosen the property, you will sign the agreement and finally the deed of sale (escritura) before the notary. You will be officially the owner once the act of transmission will have been registered in the land register (register de propiedad).
 

The costs of owning a home in Spain

Becoming a property owner entails some expenses related to the acquisition process and to the possession of the property.

Notary fees vary around 1-2% of the property price and the agency costs (to be paid by the buyer) generally account for 5-10% of the purchase price. You may also be subject to the transfer tax (6-7% of the property value depending on the region) or value added tax if it is a new construction (7%).

Once the property deed is registered, the property charges will be at your expense. Among those there are the property tax or the local tax, whose rate is set by the municipality, the ongoing expenses and the income tax for non-residents, that is 24,75% calculated on the actual income from the property. In case of resale the capital gain will be taxed at 21%.
 

A Still Attractive Market

Spain continues to attract foreign investors despite a significant recovery in the real estate market after the 2008 crisis. In 2024, property prices recorded an 8.4% increase, reaching an average of €2,389 per square meter nationwide by the end of the year.

Some regions experienced even more significant increases. For example, in 2024, prices rose by 19.8% in the Valencian Community, while cities like Madrid, Valencia, and Malaga saw increases exceeding 20%.

This trend can be explained by several factors, including strong foreign demand, a limited supply of new housing, and the economic dynamism of Spain’s major metropolitan areas.

However, while the Spanish real estate market saw notable price growth in 2024, the French market experienced a slight decline. Despite this, prices in France, particularly in major cities, generally remain higher than in Spain.

In Spain, the Real Estate prices is not the only benefit in preparation of a purchase. The favorable climate and the cost of living, often lower than in Italy, are two reasons to invest in a property in Spain. The Mediterranean coast, very touristic with Costa Brava, Costa Blanca, the surroundings of Valencia, Torrevieja or Barcelona, ​​suggests a good rental investment, especially with regard to seaside real estate.

Translated by Dafne Inzaina - Meretdemeures.com.

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