Investing Under the Iberian Sun: Spain’s Property Appeal

How to Purchase, Structure, and Finance Real Estate in Spain as a Foreigner

Spain’s real estate market is a magnet for foreign investors, offering stunning coastal villas, chic city apartments, and countryside estates at competitive prices. With a favorable legal framework, attractive financing options, and residency perks, buying property in Spain can be both a lifestyle upgrade and an interesting investment. Here’s how to do it right.

Buying property in Spain: A straightforward process

Spain welcomes foreign buyers with open arms as they don’t have restrictions on non-residents purchasing real estate. Once you find the perfect property, you’ll sign a reservation agreement and pay a deposit (usually 10%). The next step is the private purchase contract, followed by due diligence from a notary. Finally, the deed (Escritura Pública) is signed, and the property is officially yours!

Structuring your purchase: Personal vs. corporate ownership

How you structure your property ownership affects taxes, inheritance, and privacy. Buying in your personal name is simple, but if you own multiple properties or want asset protection, a Spanish SL (Sociedad Limitada) or foreign company structure might be beneficial. Trusts are less common in Spain, so structuring must be tailored to your needs.

Financing Your Spanish property: Mortgage options for foreigners

While you are free to pay cash, Spain offers mortgages to foreign buyers, often covering up to 60-70% of the property value. Loan terms typically range from 15-25 years, with competitive interest rates. Spanish banks require proof of income, tax returns, and a Non-Resident NIE (Foreigner Identification Number) before approving a mortgage. Using a specialist broker can simplify the process.

Taxes and costs: Plan ahead

Expect to pay 8-12% in transaction costs, including property transfer tax, legal fees, and notary expenses. Annual taxes include property tax (IBI), rental income tax (if you lease it), and wealth tax for high-value assets. However, Spain offers tax-efficient investment structures, and non-EU buyers can explore Golden Visa residency benefits for purchases over €500,000.

Why invest in Spain? Lifestyle and long-Term growth

Spain’s real estate market offers strong rental demand, potential capital appreciation, and one of the best climates in Europe. Whether you’re investing in Barcelona, Madrid, Marbella, or the Balearics, the combination of affordability, lifestyle perks, and residency options make Spanish properties a potential top-tier investment. With the right strategy, your dream home could be a wealth-building asset!

Thinking about investing in Spain? Now’s the time to explore your options!

Alpen Partners a su servicio

Alpen Partners is your trusted partner in establishing a life in Spain. Beyond traditional wealth management services, we understand the growing trend of seeking residences in foreign countries like Spain and work with local professionals when required. Our services often extend to citizenship and residence planning, helping clients gain permanent residency that may lead to citizenship in various preferred destinations throughout Europe. We also provide comprehensive relocation services to help with a smooth transition into your new home and lifestyle.