🇪🇸Spain · Property
Spain — Property
What it really costs to buy a flat in Spain: ITP by region, IVA on new builds, IBI on cadastral value, non-resident mortgages, 2023 Housing Law and short-stay rules. Q2 2026.
A Spanish deal closes cheaper than an Italian one on entry and heavier than a Portuguese one on total closing costs. This chapter prices not the asking price but the full sum with (or IVA on a new build), notary, lawyer and registry, and walks the way anchors the annual bill while breaks Airbnb plans in Barcelona and Madrid.
Two purchase axes: second-hand or new-build, primary or second
The Spanish system is laid out differently from the Italian one: there is no hard primary/secondary binary. The main fork runs along a different line, "second-hand market vs new build", because different taxes apply. A secondary fork, "primary residence vs second home", affects IRPF reliefs (mortgage-interest credit in some regions) and the patrimonio floor (higher for the primary home).
Second-hand (vivienda de segunda mano)
You pay (Impuesto sobre Transmisiones Patrimoniales), the purchase tax, with the rate set by the comunidad autónoma. As of 2026: Madrid 6 %, Andalusia 7 %, Asturias 8 %, Catalonia and Valencia 10 %, the Canaries and the Basque Country running their own scales. Relief tiers exist for buyers under 35, large families and people with disabilities; in some regions the rate falls to 4-5 %.
New build (vivienda de obra nueva)
Direct purchase from a developer runs on a different formula: IVA 10 % on residential (4 % for VPO state-subsidised housing) plus (Actos Jurídicos Documentados, the stamp duty on the notarial deed) at 50 %-1.5 % by region. A €300,000 new build in Madrid or Andalusia thus closes more expensive than a second-hand at the same price (where ITP is 6-7 %), but cheaper than the same purchase in Catalonia or Valencia (where ITP is 10 %).
Primary residence (vivienda habitual)
Brings no purchase relief, but shapes the rest. The primary home is exempt from patrimonio on the first €300,000 of cadastral value (state floor). Capital gains on sale are exempt when the resident reinvests in another primary home in the EU/EEA within 24 months (rollover). Several autonomous communities (Madrid, Catalonia, the Balearics) grant a regional IRPF deduction on mortgage interest, capped at €500-1,000/year.
What closing really costs
The asking price on idealista.com is only the base. The full amount due on escritura day (the notarial deed) covers five lines: state fees, notary, lawyer, agency (formally on the seller) and the bank if a mortgage is involved.
State fees
- Second-hand: on the regional scale 6 %-10 %. Computed on the higher of contract price and . Buyers under 35 in Andalusia and Madrid see rates drop to 3.5-4 %.
- New build: IVA 10 % on residential (4 % for social VPO) + 50 %-1.5 %.
- With a mortgage: registration at the Conservatoría and Registro de la Propiedad, around €500-800. The Supreme Court ruled in 2018 that AJD on the loan amount is paid by the bank, not the buyer.
Notary and lawyer
The notario in Spain is a state-licensed officer on a fixed tariff. Fees usually fall between € 600 and € 1,500 for a standard flat depending on price. Covers the escritura pública, registry checks (a fresh nota simple from the Registro de la Propiedad) and signature authentication.
A lawyer (abogado), formally optional but de-facto mandatory for foreign buyers. Full deal accompaniment from due diligence to escritura runs € 1,500-€ 3,000 flat. The lawyer verifies title is clean, dues are paid, tax authorities have no liens, inheritance is settled and the is current where it is required (Catalonia, Valencia, the Balearics, Asturias, Cantabria). Skipping this step has cost buyers years of HOA arrears or unregistered probate claims.
Agency
Agency commission runs 4 %-6 % + IVA, formally paid by the seller and baked into the asking price. The buyer does not pay the agent directly. That leaves room to negotiate 3-5 % off the asking price, especially on listings sitting longer than six months. Double commissions (charging the buyer as well) were banned by 2023 housing law.
Sums for a €300,000 second-hand in Madrid: ITP 6 % = €18,000, notary €1,000, lawyer €2,000, registry €500. Total around €21,500 on top, or 7 % of the deal. Same flat in Catalonia: ITP 10 % = €30,000, the rest identical, total €33,500 or 11 %. For a new build in Madrid: IVA 10 % + AJD 0.75 % = €32,250 plus ancillaries, around €36,000 or 12 %.
Catastro: the tax anchor
(Dirección General del Catastro) is the Spanish state cadastre tracking every property. Each unit carries a referencia catastral (a 20-digit code) and a valor catastral, the cadastral value. Annual IBI and the imputed-income share of IRPF on a second home (1.1-2 % of cadastral value treated as "fictitious income") are computed from it.
Valor catastral typically sits at 60 % (50-70 %) of market for flats in large cities, lower for historic units in small towns. It is neither market price, nor asking price, nor contract price.
Practical consequence: annual IBI on a €300,000 Madrid flat may run €400-900 rather than €1,200-1,800 it would land at with an honest market base. This is one reason Spanish property is cheaper to hold long-term than German or French equivalents. But: ITP at purchase is computed on max(contract price, valor catastral). Buying below cadastral value gets you taxed at the cadastral figure.
Cadastral revaluations are a separate story. A state-wide rebase is launched at municipal request roughly every decade; large cities last saw one in 2010-2014, which explains how far the cadastre lags the market. Since 2022, certain tax decisions (inheritance, donations) lean on Catastro's "reference value" (valor de referencia), which sits closer to market. Buyers should check both valor catastral and valor de referencia before signing.
IBI, HOA and the annual bill
A Spanish owner's annual bill is built from four lines: (the municipal tax), tasa de basuras (the refuse fee), (HOA dues) and insurance.
- . Urban property: 40 %-1.1 % of valor catastral. Rate set by the ayuntamiento. Madrid typically 0.5-0.7 %, Barcelona around 0.75 %, smaller towns near the floor. Billed once, usually September-October, with the option to split into three instalments.
- Tasa de basuras / residuos. Municipal refuse fee, €60-200/year for a standard flat. Made mandatory across all municipalities by the 2025 waste law.
- . HOA dues for a multi-unit building: lift, stairs, cleaning, sometimes central heating and concierge. € 30/mo-€ 200/mo/month = €360-2,400/year. Premium Barcelona and Madrid buildings with security and a pool reach €400/month.
- Insurance. A "seguro de hogar" policy (fire, water, third-party liability) is mandatory under a mortgage (€200-400/year); optional otherwise.
- Imputed income. Second homes carry an imputed-income charge of 1.1-2 % of valor catastral into IRPF even when the unit is not let. Primary homes are exempt.
Bottom line: a Madrid primary home runs ~€800-2,500/year on top of the mortgage. A second home the same on IBI plus imputed income (around €400-800/year for an average flat). Owners with portfolios above €700,000 in net worth pick up patrimonio on top. See the Taxes chapter for patrimonio and the Impuesto de Solidaridad.
Mortgages: resident and non-resident
Spanish banks lend to residents and non-residents alike, but terms diverge. For a resident with documented Spanish income, maximum LTV runs 85 % (80-90 %). For a non-resident, 65 % (60-70 %). Tenor up to 30 years for residents, 20-25 for non-residents depending on age (loans must be repaid by age 70-75).
Rates in Q2 2026
A 30-year fixed rate currently sits around 3.7 %-4.5 %. Variable tracks Euribor (3M, 6M or 12M) plus a bank spread of 0.8-1.5 %, which in Q2 2026 lands at roughly the same 3.5-4.5 % effective. Mixed rates (3-10 fixed years then variable) gained popularity after the 2022-2023 rate cycle. A lower headline rate usually comes bundled with a salary account, life insurance and home insurance at the same bank (the "vinculación" package).
What the bank asks for
- and a Spanish bank account with at least 3 months of activity.
- Income evidence for 2-3 years: tax returns, employment contracts, bank statements. Self-employed: company balance sheet and Modelo 130.
- Tasación (bank-approved valuation), €300-500, paid by the buyer.
- Life and home insurance (typically €30-80/month for the two policies).
- Deposit on a notary escrow, usually 10 % of price at the contrato de arras (preliminary agreement).
Main banks for foreigners: BBVA, CaixaBank, Banco Santander, ING España, Banco Sabadell. ING is particularly flexible with DN-visa holders. Bankinter and Openbank work with digital residents but apply extended KYC for Russian passports. A mortgage broker runs €1,500-3,000 and often pays for itself through a 0.2-0.5 % rate negotiation.
Paperwork: nota simple, Catastro, cédula, energy cert
A Spanish purchase is predictable but five documents are mandatory and must be fresh (no older than 3-6 months on escritura day):
- Nota simple from the Registro de la Propiedad. The land-registry extract showing titularidad (ownership) and cargas (encumbrances, mortgages, seizures). Ordered online for €10, valid 3 months.
- Referencia catastral and valor catastral from . Free at sedecatastro.gob.es. Confirms the physical parameters of the unit.
- : the habitability certificate. Mandatory in Catalonia, Valencia, the Balearics, Asturias and Cantabria. Optional elsewhere. Issued by a licensed architect, €100-300, valid 10-15 years.
- Certificado de Eficiencia Energética: the energy certificate, A-G scale. Mandatory across Spain since 2013. €100-200 from an accredited assessor.
- HOA clearance certificate: confirmation from the Comunidad de Propietarios that the previous owner has no arrears. Free from the building president.
The state of the buildings themselves is a separate problem. The 19th-century Madrid and Ensanche-era Barcelona stock often has not been renovated in decades: 1940s-60s plumbing, electrics sized for older loads, facades pending an ITE (Inspección Técnica del Edificio, the mandatory technical inspection every 10 years that can trigger costly compulsory repairs). Before signing, walk the flat with an independent architect or inspector (€300-600 per visit).
Off-plan purchases work on a 10-15-15-60 schedule: 10 % at the contrato de reserva, 30-40 % in tranches at key construction milestones, the remaining 60 % at handover via escritura. Nothing is mortgaged until escritura, and the risk of delay or developer insolvency is real. Pick a developer with a track record (Aedas Homes, Neinor, Metrovacesa). Have the lawyer verify the building licence (licencia de obras), the bank guarantee (aval bancario) and the project insurance.
Letting: long-term and short-stay
A Spanish owner faces two markets: long-term lets (alquiler de larga duración under the LAU statute) and tourist lets (alquiler turístico under an Alojamiento de Uso Turístico licence). Since 2023 these markets have diverged hard under .
Long-term lets
The standard contract under LAU runs at least 5 years (7 if the owner is a legal entity) with automatic renewal. Deposit: 1 month (individual owner), 2 months (corporate), plus optional further guarantees (avalista, unpaid-rent insurance). Tax treatment: for residents, rental income enters general IRPF with a 60 % relief if the tenant uses the unit as their primary home. For non-residents from EU/EEA, flat 19 % with cost deduction; outside EU, flat 24 % without deductions.
Ley de Vivienda 2023 introduced "zonas tensionadas" (stressed-market zones), where the comunidad autónoma may cap rent increases. Catalonia declared zones first on 14 March 2024 (covering Barcelona, Girona, Tarragona, Lleida): new contracts cannot exceed the IRAV index or the previous tenant's rate plus 3 %. Other regions (Madrid, Andalusia, Valencia) have not declared zones. For owners in Catalonia, returns and growth are now compressed.
Tourist lets (Alojamiento de Uso Turístico, AUT)
AUT (or VFT in Andalusia, VUT in Catalonia, ETV in the Balearics) is Spain's equivalent of Portugal's Alojamento Local. Through 2023 it was the main yield driver in tourist districts of Barcelona, Madrid, Málaga, Seville, the Balearics and the Canaries. Today:
- Barcelona: new HUT (Habitatge d'Ús Turístic) licences frozen since 2014. All 10,000+ existing licences will be revoked by 2028 (announced by mayor Collboni in 2024). Buying "for Airbnb" in Barcelona is moot.
- Madrid: since 2023, in central districts (Centro, Salamanca, Chamberí), new VUT licences require full-building use and HOA approval. This has effectively closed the market to individual investors.
- Málaga: VFT licensing in the centre paused from 2024.
- Balearics: hard quotas; Mallorca's VT count frozen, Ibiza's reduced.
- Canaries: the 2025 Ley de Sostenibilidad Turística blocks new VV (Vivienda Vacacional) licences in tourist zones; running ones require five-yearly re-certification.
- Where it still works: smaller Andalusian beach towns (Nerja, Mijas), Costa Brava (Roses, Cadaqués), Cantabria, Extremadura, parts of Seville and Granada.
Tax on short-stay. Resident: regular IRPF without the 60 % long-let relief, plus 10 % IVA if "hotel-like services" are offered (cleaning, linens, reception). Non-resident EU: flat 19 %; non-EU 24 %. Net annual yield after taxes, management (20-30 %) and seasonality rarely exceeds 4-6 %, often on par with or below a long-term let in the same area.
Price per square metre by city
Median price per square metre in the centre, idealista.com Q2 2026:
- Barcelona5200 €
- Madrid4800 €
- Málaga3500 €
- Valencia2700 €
- Seville2300 €
- Granada1800 €
- Barcelona, centre: € 5,200/m². Premium (Eixample, Gràcia) up to €8,000/m². Outer (Sant Andreu, Nou Barris), €3,000-3,500/m².
- Madrid, centre: € 4,800/m². Premium Salamanca up to €9,000/m², Chamberí €6,000-7,000/m². Outer (Vallecas, Carabanchel), €2,500-3,000/m².
- Málaga: € 3,500/m². Fast-growing, up roughly 35 % across 2022-2025. Marbella and Costa del Sol €4,500-7,000/m².
- Valencia: € 2,700/m². Ciutat Vella, Russafa, Benimaclet. The remote-worker favourite.
- Seville: € 2,300/m². Triana, Macarena, Nervión. Warm market.
- Granada: € 1,800/m². Student city, thin market, units sit for months.
Summary: with a €300,000-500,000 budget, in Madrid or Barcelona you land 60-90 m² in the centre or 90-130 m² on the periphery; in Málaga the same money buys 35-40 % more space; in Valencia, more still; in Seville and Granada a whole house or a large flat with a terrace.
Tax on sale and Plusvalía Municipal
Two taxes hit at sale. First, the state capital-gain tax (ganancia patrimonial), folded into IRPF on the "savings-income" scale: 19 % up to €6,000 of gain, 21 % to €50,000, 23 % to €200,000, 27 % to €300,000, 28 % above. Gain = sale price minus documented purchase price and capital improvements. For non-residents, flat 19 % (EU/EEA) or 24 % (rest of the world).
The main relief is reinversión en vivienda habitual (rollover). A resident selling a primary home (vivienda habitual) and buying another primary home in Spain, the EU or the EEA within 24 months sees the gain exempted (fully or partly, in proportion to the reinvested amount). Works for purchases up to 24 months before the sale as well. Second homes get no rollover. Pensioners aged 65+ are fully exempt on the sale of their primary home with no reinvestment requirement.
The second tax is the seller-paid (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana, IIVTNU). A municipal tax on the increase in the cadastral land value since the previous sale. Since 2021, after a Constitutional Court ruling, the taxpayer may choose between the "objective" method (valor catastral × time coefficient) and the "real" method (based on actual price difference). For short holdings (1-3 years) the first is often lower; for long holdings (10+ years) the second usually wins. Bill: €500-5,000 for a standard flat depending on region and holding period.
Interaction with Beckham. Impatriates on the Beckham regime keep paying ITP at purchase, IBI annually and IRPF on capital gains at sale (capped at €600,000/year of income). The regime's value is exemption from patrimonio on foreign assets and from Modelo 720. See the Taxes chapter for the full picture.
Frequently asked
What does closing really cost in Spain?
For a Madrid second-hand (ITP 6 %) or Andalusian (7 %): around 10-12 % on top of price after notary, lawyer and registry. In Catalonia or Valencia (ITP 10 %), 13-14 %. For a new build anywhere: IVA 10 % + AJD 50 %-1.5 % + the rest = 12-14 %. On a €300,000 flat that is €30,000-45,000 of closing costs depending on region and property type.
Can a foreigner buy property in Spain?
Yes, no restrictions on nationality or residency. You need only (obtained through a consulate or Comisaría on a 1-3 month wait) and a Spanish bank account. For a mortgage LTV is lower (65 % vs 85 % for residents) and KYC is deeper: source-of-funds proof, 2-3 years of tax returns, occasional in-person banker meeting. Russian passports face extended KYC at all major banks.
What is Catastro and why it matters?
is the Spanish state cadastre (Dirección General del Catastro). It holds the referencia catastral, surface area and valor catastral of every property. Cadastral value typically sits at 60 % (50-70 %) of market. IBI and the imputed-income portion of IRPF on second homes are computed from valor catastral. ITP at purchase is computed on max(contract price, valor catastral).
Can I buy a flat for Airbnb?
In Barcelona, new HUT licences have been frozen since 2014; all existing licences are slated for revocation by 2028. In central Madrid, since 2023 new VUT licences require full-building use and HOA approval. In Málaga, the Balearics and the Canaries, hard quotas and licence pauses apply in tourist zones. Where it still works: smaller Andalusian beach towns, Costa Brava, parts of Seville and Granada. Net annual yield rarely beats 4-6 % after taxes, management and seasonality.
What mortgages can a foreigner get?
Resident with Spanish income: LTV up to 85 %, tenor up to 30 years, Q2 2026 fixed rates around 3.7 %-4.5 %. Non-resident: LTV up to 65 %, tenor 20-25 years, same rate or 0.2-0.4 % higher. Main banks: BBVA, CaixaBank, Santander, ING España, Sabadell. ING is particularly flexible with DN-visa holders. A broker runs €1,500-3,000 and usually pays for itself through a 0.2-0.5 % rate negotiation.
What is the tax on sale?
Capital gain on the savings-income scale: 19-28 % for residents (19 % up to €6,000, 28 % above €300,000). Non-residents: flat 19 % (EU/EEA) or 24 % (rest of the world). Main relief: rollover for the primary home when another primary home is acquired in the EU/EEA within 24 months. Pensioners 65+ are fully exempt on primary-home sales. On top of CGT the seller also pays (€500-5,000 for a standard flat).
Verified · 2026-04-15