Buying property in Spain as a non-resident

First, the NIE

You cannot complete without one. The NIE is required for any transaction with tax consequences, and a purchase is the clearest possible example — the notary will need it at signing. Start it early; it is the step most likely to delay a completion date, and it has nothing to do with residency. See our guide to the NIE.

New build or resale — different taxes entirely

This is the fork that determines most of your costs.

• New build (first transfer from the developer): you pay IVA — 10% on residential property, 21% on other types — plus AJD, the stamp duty on the documented legal act, which is set regionally and generally falls somewhere around 0.5% to 1.5%.
• Resale: you pay ITP, transfer tax, at the rate set by the comunidad autónoma where the property sits. No IVA.

Both ITP and AJD are declared on Modelo 600, and the deadline is 30 business days from the act. That is a short window measured in working days, and it is the buyer's responsibility.

Why nobody can quote you a single rate

ITP and AJD are regional taxes. Seventeen comunidades autónomas set their own rates, bands and reliefs, and they change with regional budgets. A guide that quotes "the Spanish transfer tax rate" as one number is wrong somewhere in Spain.

We are deliberately not printing a rate table. If you are budgeting, get the current rate for the specific comunidad — the regional tax authority publishes it, and any local gestor or lawyer will know it without looking. Reduced rates often exist for under-35 buyers, large families or primary residences, which is another reason a generic figure misleads.

If the seller is non-resident, 3% is on you

When you buy from a non-resident seller without a permanent establishment in Spain, the law requires you, the buyer, to withhold 3% of the agreed price and pay it to the Agencia Tributaria on Modelo 211, within one month of the sale. It is a payment on account of the seller's tax on their gain.

Buyers are regularly unaware this is their obligation rather than the seller's. Hand the full price over and you can find yourself liable for the 3% you failed to retain, with a seller who has left the country. Your lawyer should handle it at completion — confirm that they are.

Also budget for

• Notary and Land Registry (Registro de la Propiedad) fees.
• Your lawyer — independent of the agent and of the developer. On a resale, a search at the Registro for charges and debts attached to the property is the single most valuable thing they do.
• Plusvalía municipal, the local tax on the increase in land value, which falls on the seller — but check who your contract says pays it.
• Ongoing: IBI, community fees, and non-resident income tax on imputed or rental income.

Sources

• AEAT — ITP y AJD for non-residents, Modelo 600
• AEAT — Modelo 600 instructions (PDF)
• AEAT Sede Electrónica — Modelo 211 for the 3% retention, and non-resident income tax

Who can do this for you

Use a lawyer who is independent of the estate agent and the developer. It is the one cost on a purchase that reliably pays for itself.

• Lawyers — conveyancing, registry searches, the 3% retention
• Estate agents
• Accountants — the ongoing non-resident tax position

This page is general information, not legal or tax advice. It was checked against the sources above on the date shown. Rates and reliefs vary by region and change; your own position depends on the property, the region and the contract. Do not budget a purchase from a web page.