Buying in Madrid as a non-resident

This is the most common confusion among non-European buyers. Spain closed the real estate golden visa in April 2025, so owning a property no longer gives any right to reside on its own. If you also plan to move, the visa is decided separately and before committing capital; we explain it in our guide to moving to Madrid from the United States.

The NIE (foreigner identification number) is essential to sign any deed. It is requested through the Spanish consulate in your country of residence or, in some cases, directly in Madrid via a representative. Apply early: the fee is paid with form 790 code 012 and processing times vary by consulate.

Although it is legally possible to buy by transferring from abroad, in practice a Spanish account speeds up notary payments, taxes and utilities, and lets you direct-debit the IBI property tax and community fees. We recommend a bank used to working with non-residents, and you should have documentation ready showing the source of funds.

Purchase in personal name: the simplest and most common for own-use homes. Purchase through a Spanish company: makes sense with several assets or when optimising rental-income taxation. Purchase through a foreign company: possible, but it adds complexity and its own tax obligations, and if the entity is resident in a non-cooperative jurisdiction an additional annual special levy of 3% of the cadastral value applies. It is rarely the best option. Note that Form 720, sometimes mentioned in this context, is the foreign-assets declaration for Spanish tax residents and does not apply to a non-resident buying here.

Second-hand property in the Community of Madrid pays 6% ITP; new build pays 10% VAT plus 0.75% AJD. Notary, land registry and gestoría fees come on top. In total, buying costs usually run between 6% and 7% of the price, a figure worth adding to the budget before comparing properties.

Being a non-resident does not exempt you from yearly taxes. Besides the IBI charged by the town hall, a property that is not rented is taxed on imputed income under Non-Resident Income Tax: 1.1% or 2% of the cadastral value (depending on when it was last revised), taxed at 19% if you live in the EU or EEA, or 24% elsewhere, filed on form 210. If you rent it out, the income is taxed separately, and a sale triggers tax on the capital gain. If you live abroad, it is worth coordinating all of this with a tax advisor in both countries.

Most of our clients buy in cash. For those who prefer to finance, Spanish banks do lend to non-residents, on different terms than for a resident: typically 60–70% of appraised value and heavier documentation.

You do not need to travel for every stage. Signing before a notary can be done through a power of attorney granted at the Spanish consulate in your country, or in person before a Spanish notary if you travel for that day. Viewings, negotiation and much of the paperwork can be coordinated remotely with a personal shopper acting on your behalf.

The seller's agent never works in the buyer's interest. Without your own representation it is common to overpay and lose access to off-market product that never reaches the portals.