Residence permit to buy a property in Spain

When it comes to buying a house, many people are as scared by the prospect of the legal and financial paperwork as they are about the logistical implications of the move itself. If you add into the mix that you are a foreigner who may need a residence permit to buy property in Spain, it can seem at first extremely daunting, but it is worth investigating the different ways that you can make this happen.

For example, until 2024 there was a law named ‘Ley de Apoyo a los Emprendedores y su Internacionalización’ which was introduced in Spain in 2013 in order to attract and support the internalisation of investors and entrepreneurs. Like Charlie Bucket and his golden ticket for Willy Wonka´s Chocolate Factory, there was indeed a golden ticket – or golden visa - that was available to foreigners from outside the EU who invested in Spanish real estate.

This golden visa came to an end in December 2024 to mitigate the serious housing problem that Spain has been suffering for some years now. Although this is no longer an option after 2025, if you have applied for this visa before 1 January 2025, don't worry, as such applications will continue as normal.

So what happens if you didn't apply for the visa? How can you buy real estate property in Spain as a foreigner? It is still possible to do so, you just have to take into account a series of requirements that we detail below.

Buying a house in Spain

There are essentially two options: acquiring a property while residing in Spain or buying it while residing abroad.

In the first case, you may already have legal residence in Spain because you are working here, or because you have a student visa, for example. If you are already a resident in Spain,in order to buy a house:

• You will need to have a NIE, as the Foreigners' Identification Number is usually called. It is a document issued by the Spanish Ministry of the Interior. To apply for the NIE you have the option of doing so in person, or through the consular offices if you are abroad.
• It is recommended to have a bank account in Spain in order to pay taxes and expenses directly related to the property (such as water, electricity, etc.). More importantly, you will need it to access a mortgage with a Spanish bank should you need one. It seems obvious, but it is important to remember this question.
• If you decide to take out a mortgage in Spain, you should be aware that the maximum mortgage payment should not exceed 40% of your income.
  
  

If, on the other hand, you are not yet a resident in Spain and you want to buy from abroad, apart from applying to a NIE (which will be required for any transaction with fiscal consequences in Spain) ,you can either buy by paying the full amount of the property directly, or you could take out a mortgage for non-residents. In the latter case, you will find it easier if you apply for the mortgage from a country with a strong and stable economy, such as any EU country, the United States, Canada or the United Kingdom, to give just a few examples.

Thanks to the wonders of the internet, you can do a lot of online research into the property market in advance and when you find suitable properties you can visit Spain on a tourist visa to check out your shortlist of places and start negotiations to formalise the deal on your chosen place. You can even arrange to buy a property in Spain via power of attorney using a lawyer/notary if you are not in a position to visit in person.

I therefore want to point out that although you can also obviously come to visit Spain on a 90-day tourist visa in order to look around and find suitable property and negotiate the deal in person, you must remember that you cannot exceed the 90-day limit, or you will be in breach of the tourist visa. If you are a non-EU citizen you are only able to visit Spain (and other Schengen countries) for a total of 90 days as a tourist, and then you have to leave for a period of 90 days before you can return on another tourist visa. 

New house, new insurance.

Once you have your new property in Spain we recommend that you take out a new home insurance policy. Having your new home covered against future unforeseen events will give you the security you need during a time of so much change.

If you still do not have any insurance in Spain, I recommend that you take a look at Caser home insurance, as you have different options that will adapt to your needs at all times. From Hogar Esencial to Hogar Prestigio, you will find coverage for emergency repairs, theft, fire, civil liability, etc. All you have to do is check what you need and choose the best option for you. In addition, on the Caser website you will also find a price calculator so you can calculate the approximate cost of the insurance. It's all very easy!

As a final recommendation, I would strongly recommend that you seek out professional advice from a lawyer and/or Spanish notary to assist you throughout this whole process, from buying a property in Spain to making the application for a residence permit. If you do not yet speak Spanish, you will be pleased to hear that there are numerous bilingual lawyers and notaries who specialise in this process, who are able to communicate with you in English, thus reducing the language barrier and worries about things being lost in translation.

Although it is not compulsory to have a residence permit to buy a property in Spain, even you are holder of a such a permit, it is much better to have someone who has experience of the official procedures to ensure that it all goes smoothly and that you don’t face any extra hidden costs or complications along the way. Hiring their services to buy a property in Spain and apply for the residence permit will help make sure that each step of the way goes through without a hitch – and you can sleep soundly, knowing that your new life in Spain is a dream that will become reality!