Can I buy property in Spain?

Yes, you can! Anyone can buy a property in Spain, however there are some variations depending on your current residence and passport.

There are no restrictions on foreigners and non-residents of Spain buying property in Spain. That includes whether you are from European Union (EU) or non-EU countries.

In fact, local governments actively encourage and seek foreign investors and buyers. Some regions, including Andalusia, have ended wealth tax to encourage more overseas buyers and foreign investors.

The only foreigners not allowed to buy property in Spain are those sanctioned by the European Union, for example certain political leaders.

Buying in Spain after Brexit

If you are in possession of a British passport and are worried that buying in Spain after Brexit might limit your rights, you don’t have to abandon your plans. Brexit has changed nothing concerning the purchase or ownership of property in Spain. There are no citizenship or residency requirements to buy in Spain and you do not need a visa to buy a property.

A key change that Brexit has impacted is your right to live in Spain. Holders of a British passport without a visa or residency permit are limited to spending no more than 90 in every 180 days there. That applies not just to Spain but the whole Schengen Area of 26 EU countries. Note that your 90 days includes time in other European countries, so be aware of this when you plan how many days you will be staying in Spain.

The same applies to American, Australian and other so-called “third country nationals”.

Buying in Spain as a foreigner: your NIE

To be able to buy a property in Spain, there is one extra procedure that all foreign buyers must follow – getting your NIE.

NIE stands for Número de identidad de extranjero, or Foreigner Identification Number. It is NOT a visa or residency permit, and your application for NIE can’t be refused – anyone can get an NIE. You do not need to be resident in Spain or have a Spanish address to obtain an NIE.

The property sale cannot proceed without foreign buyers having an NIE in place and typically estate agents and lawyers can assist with an NIE application. You simply go to the local police station with your passport and certain other supporting documents while you are in Spain. Alternatively, your lawyer can do it via Power of Attorney at embassies located in foreign countries. Typically, it takes up to two weeks to receive your NIE.

Legal Entities’ Eligibility to Purchase Property

You can also buy a property in Spain via a company. Some buyers, typically seasoned investors choose this route for tax reasons. For North American buyers this is a common way of buying property overseas.

One of the main advantages of buying property via a company is not needing to pay the property transfer tax (ITP), and potentially reduce the impact of capital gains tax when the property is sold.

Even since Brexit, you can continue to buy property in Spain via a UK limited company directly, but it might be more complicated, and you should always seek the advice of a tax expert. You can also buy a property by opening a Spanish subsidiary, which might require further steps, and you are advised to seek an expert input from a Spanish lawyer or tax advisor.

Can you invest in Spanish property?

Yes, you can and by buying a property in Spain you are already investing. The difference to point out here is when you invest for rental income.

Non-residents can own and rent out their property, however any rental will be subject to local laws, just as it is for Spanish owners. Some areas allow only for long-term rental, for example.

Non-residents who are generating income from their property will need to pay IRNR (Impuesto sobre la Renta de No Residentes), which for non-residents is tax on their gross income with no deductions for expenses allowed.

Can I “work from home” in my Spanish property?

Without a visa you may spend up to half a year in Spain as a non-EU citizen (90 days in 180). If you wish to stay longer there are several visas open to you, including the new digital nomad visa.

If you are spending less than that time in Spain and remaining a tax resident in the UK (or elsewhere) then you are essentially working while on holiday, so there is no restriction.