Spain has long been a top destination for foreign property buyers, offering a strong real estate market, a high quality of life, and attractive residency options. However, recent political discussions—particularly President Pedro Sánchez’s comments about a potential 100% tax for Non-European and British buyers—have led to confusion among investors. Discover what taxes and visas options foreigners have to buy property and live in Spain in 2025.
In January 2025, comments made by Spanish President Pedro Sánchez sparked concern among international buyers about potential increases in property taxes for foreigners. These remarks were widely misinterpreted and do not signal any imminent changes to Spain’s tax laws. For now, property taxes remain unchanged, and several visa options continue to offer accessible pathways to Spanish residency.
With the cancellation of Spain´s Golden Visa program this April, and Spain´s President Pedro Sanchez´s comments on 13 January about the possibility of increasing property taxes for foreigners, there is some confusion about the possibility of buying property in Spain. This blog outlines the situation and the status of internationals interested in purchasing property in Spain in 2025.
The first question when it comes to living or paying taxes in Spain is whether one is classified as a Spanish tax resident. Residency is required where an individual spends more than 183 days in Spain within a given tax year or where their primary economic interests are centred in the country.
Most overseas buyers, however, are categorised as non-residents. For them, taxation applies solely to Spanish-source income – primarily rental revenue and capital gains.
Yes, foreigners, including non-European internationals, can buy property in Spain – all you need is a NIE identity card, a Spanish bank account and a tax representative if you don´t live here. The growing popularity of this charming sunny country, especially in southern parts such as Marbella and Costa del Sol, means that investing in property continues to be a good option for internationals searching for a second home in a beautiful and culturally inspiring location, either as a primary residence, holiday home or rental investment.
In January 2025, Spanish President Pedro Sánchez commented that non-European buyers could face ¨100% property tax¨. While what the President meant was that he was considering the option of non-European buyers paying double the regular property tax, the comment was misinterpreted to mean that some might have to pay 100% of the property price as a tax, thereby doubling the cost of buying property for non-Europeans including UK citizens – understandably causing concern among potential investors from Britain and other parts of the world.
However, the reality is quite different:
Even if a new tax were introduced, it would only apply to new purchases – not to existing property owners or people finalising a property purchase before any future tax changes come into force.
Since many political groups have already opposed the idea, and given that Sánchez’s government does not hold an absolute majority, the likelihood of such a tax being implemented in its extreme form is low.
There will be no immediate impact on foreign property buyers in Spain, and the Spanish property market remains a fully accessible and attractive market for international investors.
At this stage, it is unlikely that an extra tax on British buyers will become law. Here’s why:
Even if tax changes are introduced in the future, they would likely be less extreme than the headlines suggest and only apply to new purchases made after any new law comes into effect.
This serves as a reminder that it´s wise to buy sooner before any potential tax changes occur.
Although the taxes and fees you must pay when purchasing a property in Spain vary depending on the property and region, as a general guide, total costs and fees sum up to around 10-12% of the purchase price. This is true for all property purchases in Spain, irrespective of whether you are buying with a mortgage (hipoteca) or a cash buyer.
If you purchase with a mortgage, you would need to front an additional 30%-40% of the purchase price as a deposit and bank fees – depending on particular bank conditions, noting that most banks charge a fee of around 1% of the mortgage value and prefer a 30% deposit. Most banks will fund up to 80% for the first property, and 70% for subsequent properties, though there are a few that will finance rural or rustic land. You can read more details in our Marbella property buyers’ guide.
While Spain remains open to foreign buyers, it is helpful to understand the breakdown of the property taxes that apply when purchasing and owning Spanish real estate.
To complete the purchase on the day of exchange, you need to go to the Notary. Notary fees can vary between 0.1% and 2% of the purchase price, plus another 400-700 euros to the land registry after the sale, and legal costs are usually around 1%. These costs are all included in the 10-12% guide for the total cost of purchasing a property in Spain mentioned above.
There are specific taxes that occur when selling or inheriting property, including:
If you rent out your property in Spain, you are required to pay taxes on your rental income and pay Non-Resident Income Tax (IRNR).
To buy a property in Spain, foreigners must have a NIE (número de idenitificacíon del extranjero) and a Spanish bank account. The NIE must be obtained in Spain, can take time, and must be issued prior to signing the deed or finalising the purchase, so potential buyers are advised to start organising the process with their lawyers as early as possible. By law, all property owners who are not residents in Spain must also appoint a tax representative.
Yes, European residents from within the Schengen area, including France, Germany and Italy, can live and work in Spain without any problem. They just need to apply for residency to obtain their ´green card´ or ´NIE´ residency.
No. For foriegners buying property in Spain, the issue is not whether they can buy property, rather how much time they can spend in Spain as non-residents – so the real question is what visas they are entitled to apply for.
Non-Europeans need to apply for relevant visas to visit and reside in Spain.
Now that the Spanish Golden Visa has ended, non-EU buyers must consider alternative residency options. You can see a full list of Spanish Visas here, however it is always wise to consult the Spanish embassy in your country or your lawyer for assistance. Once you have lived in Spain legally for five years, you can usually apply for Long-Term Residence Visa. Belowwe provide an overview of some of the visa options available to non-European nationals.
These visas allow non-EU nationals to live and work in Spain under various conditions. The Employee Visa is for those with a formal employment contract with a Spanish company, the Self-Employment Visa is for freelancers or individuals starting their own business in Spain, and the Telework Visa or Digital Nomad Visa is for remote workers employed by foreign companies who want to reside in Spain while working online.
Other work-related visas include the Highly Qualified Worker Visa – for professionals in specialised fields with high-demand skills; Intra-Company Transfer Visa – for employees transferred to a Spanish branch of their employer; Artist/Staff/Reporter Visa – for professionals in cultural, artistic, or media-related fields; and Working Holiday Visa – available for young people from certain countries, allowing limited work during an extended stay.
Residence Visas are for those planning to reside in Spain without engaging in professional work. One of the most popular is the Non-Lucrative Residence Visa, sometimes known as the Retirement Visa, which is suitable for retirees and individuals with sufficient passive income or savings that they do not need to work. Another popular option is the EU Long-Term Residence Recovery Visa, which is for individuals who previously held EU long-term residency status and wish to recover it.
For non-Europeans planning to invest, start a business, or engage in entrepreneurial activity in Spain there are visas such as the Entreprenuer visa.
There are also various visa options for non-EU citizens pursuing academic, research, or training opportunities. These include: the Study Visa – for students enrolled in recognised educational programs; the Auxiliar de Conversación Visa – for language assistants working in Spanish schools; the Researcher Visa – for individuals conducting scientific or academic research; and the Internship Visa – for students or graduates completing internships in Spain.
Family rectification visas are intended for the reunification of family members of residents or EU citizens legally residing in Spain.
Despite the political discourse about tax uncertainty and the ending of the Golden Visa, Spain remains an excellent location for foreign property investment. In particular:
While the ´100% tax proposal´ has made headlines, it is not yet a law, and foreign buyers are very welcome in Spain.
Spain remains a stable and attractive destination for property buyers worldwide, with a full range of visa and residency options available for expats – whether for investment, lifestyle, or retirement.
For those considering buying property in the Marbella area, now is the time to move forward and secure a strong investment in a desirable market.
Melinda Rendina Content Writer & Marketing Creator
Melinda is an experienced writer specialising in real estate, urban planning, lifestyle, architecture and design. A seasoned Marbella resident, she holds an Undergraduate Degree in Social Science with Honours in Politics, and a Masters degree in Urban Planning.
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