Living in Spain

To find property for sale in Spain, you can use a placeinthesun.com to find properties and local estate agents, or visit property exhibitions like A Place in the Sun Live. Focus your search by region - such as Costa del Sol, Alicante, or the Balearic Islands - depending on your lifestyle, climate, access and budget preferences.

Yes, foreigners can legally buy property in Spain without restrictions. Both EU and non-EU citizens can purchase homes - with the exception of those without reciprocity agreements like Australia and Canada - and many opt to do so for relocation, investment, or retirement purposes.

In addition to the purchase price, buyers should budget for taxes. It's typically 11 to 14% for the purchase or closing costs, depending on the region of Spain, and the type of property. If you have a Spanish mortgage you need to add an additional cost of 2 to 4%. There will also be costs for obtaining an NIE number and connecting utilities.

But the ballpark above includes Transfer tax (ITP), equivalent to stamp duty, calculated on the property purchase price and between 6.5 and 10%, depending on the region.

It also includes the Notario’s fee of around 0.5% of the purchase price, and tends to range from €300 and €1200. Land Registry fees in Spain tend to be between €400 and €600 – or 0.4% of the purchase price.

Legal fees are usually a percentage of the purchase price – generally 1% plus VAT– but with a minimum fee. Typically this might be €1,000 to €2,000. VAT on new-build properties in Spain is 10% and stamp duty on new-build is 1.5% of the purchase price.

Property in Spain remains a popular investment due to the country's robust tourism, rental demand, and favorable climate. Coastal properties and city apartments often offer strong rental yields and long-term appreciation potential. But beware that many areas in Spain are restricting short-term rentals. Check local rules. 

The most affordable areas often include regions like Murcia, Almeria, and inland parts of Valencia and Andalusia. These offer lower property prices while still providing authentic Spanish living and good amenities.

The typical process includes: finding a property, making an offer, hiring a local solicitor, paying a reservation deposit, signing the private purchase contract, completing the sale at the notary’s office. Due diligence and legal checks are essential.

As the owner of a property in Spain but as a non-resident of Spain, you will be liable to pay non-resident’s income tax. Even if you do not rent it out you will be required to submit an annual return. You can expect to pay an annual tax that is calculated on the basis of the rateable value (valor catastral) of the property.

The tax payable will usually be very low, based on a taxable amount of 1.1% of the rateable value, taxed at the rate of 19%. If you do rent out the property then you will be required to submit quarterly returns declaring the income received and the expenses you have incurred in each quarter.

You can expect to pay quarterly tax upon the net income earned at a rate of 19%, taking into consideration deductible expenses.