Every year, thousands of European and non-European citizens decide to buy a property on the Costa Blanca. For many of them, the process is full of unknowns: Do I need an NIE before signing? What taxes will I pay? Can a Spanish bank grant me a mortgage? What was the Golden Visa, and why did it disappear? This guide answers all these questions clearly and practically, with references to current official regulations.
The NIE: the first step for any foreign buyer in Spain
The Foreigner Identification Number (NIE) is the tax identification document that any non-Spanish citizen needs to carry out operations with economic significance in Spain. Without an NIE, it isn’t possible to sign a property deed, open a bank account, apply for a mortgage, or settle taxes.
The NIE is processed through the National Police at the Immigration Office, or at the Spanish Consulate in the applicant’s country of residence. For those unable to travel to Spain, it’s possible to grant a power of attorney to a representative to handle the process on their behalf. The Ministry of the Interior publishes up-to-date forms and procedures.
Taxation for non-resident buyers: what you’ll pay, and when
At the time of purchase
The purchase is taxed the same way as for a resident: VAT (10% for new-build, 21% for commercial premises) plus AJD in the Valencian Community (1.5%) for new-build; Transfer Tax (ITP) at 10% in the Valencian Community for resale. There is no surcharge for being a non-resident foreigner at the time of purchase.
During ownership: IRNR
The Non-Resident Income Tax (IRNR) is the tax that applies to non-resident foreign owners during the time they hold the property. If the home isn’t rented out, the owner is taxed annually on imputed income of 1.1% of the property’s cadastral value (if the cadastral value has been reviewed within the last 10 years) or 2% otherwise. The tax rate is 19% for residents of the EU, EEA or Switzerland and 24% for everyone else. The Tax Agency publishes all the information on form 210 (the IRNR return).
On sale: taxation of the capital gain
When selling the property, the non-resident is taxed on the capital gain obtained (the difference between the sale price and the purchase price plus expenses). The rate is 19% for EU/EEA residents and 24% for everyone else. There is also a 3% withholding on the sale price, which the buyer is required to pay to the Tax Agency on behalf of the non-resident seller as an advance payment against the tax.
Can a foreigner get a mortgage in Spain?
Yes. Spanish banks grant mortgages to non-residents, though on different terms than for residents. The main differences are: the loan-to-value ratio is typically 60-70% (compared with 80% for residents), more documentary evidence is required (income tax returns from the home country, bank statements, employment contract or proof of income), and the process can take longer.
For EU citizens, the process is simpler than for non-EU nationals. It’s advisable to contact several financial institutions before signing the private sale contract, in order to secure mortgage pre-approval. The Bank of Spain publishes a mortgage comparison tool and simulators that are useful for buyers.
The Golden Visa: what it was, why it disappeared, and what remains in 2026
Spain’s property-based Golden Visa allowed non-EU citizens to obtain a residence permit by investing at least €500,000 in real estate in Spain. It was abolished by Royal Decree published in the BOE in early 2025, as part of the government’s measures to ease pressure on the housing market in the most strained areas.
In 2026, the property-based Golden Visa no longer exists as a route to residency. However, other residency options remain for high-net-worth non-EU investors: non-lucrative residency (for those who can prove sufficient income without needing to work in Spain), the investor residence permit for investment in business activities or the acquisition of securities, and ordinary residency through settled status or family reunification. Always consult a lawyer specialising in immigration law before planning your purchase around a specific residency route.
The Ministry of the Interior’s immigration portal sets out the current regulations on residency for foreigners.
The tax representative: mandatory in certain cases
Non-residents in Spain who own property and are taxed under IRNR are required, in certain cases, to appoint a tax representative domiciled in Spain. This person acts as the point of contact with the Tax Agency and makes it easier to meet tax obligations from the owner’s country of residence. It’s especially recommended for any non-resident buyer without tax advice in Spain.
The Spanish bank account: necessary and convenient
Although it isn’t a legal requirement to have a Spanish bank account to buy a property, in practice it’s essential. Tax payments (IRNR, IBI, community fees, utilities) are set up as direct debits from a Spanish account. So is the mortgage, if there is one. Opening an account at a Spanish bank is a simple procedure that can be done in person during a visit or, at some banks, remotely following identity verification.
At GG Real Estate Costa Blanca we work with international buyers on a regular basis, coordinating the entire purchase process — from the property search to signing the deed — alongside trusted lawyers and tax advisors specialising in non-resident buyers. Talk to our team and we’ll explain the full process with no obligation.
