Buying in Madrid as a non-resident

Buying a property in Madrid as a non-resident is not complicated, but it requires order. The first step is obtaining the NIE (foreigner identification number), essential to sign any deed. It is processed through the Spanish consulate in your country of residence or, in some cases, directly in Madrid via a representative.

The second point is opening a Spanish bank account. Although it is legally possible to buy by transferring from abroad, in practice a Spanish bank will facilitate the transaction, notary payments and taxes. We recommend opening an account with an institution used to working with non-residents: the process is much smoother.

On acquisition structure, there are three options. Purchase in personal name: the simplest and most common for own-use homes. Purchase through a Spanish company: makes sense when there are several assets or when optimising rental income taxation. Purchase through a foreign company: possible, but penalised through Form 720 and other obligations; rarely the best option.

Transaction taxes mainly include ITP (Transfer Tax) at 6% on second-hand property in the Community of Madrid, or VAT at 10% plus AJD at 0.75% on new build. To this add notary, registry and the fees of the personal shopper and legal advisor. Working with a clear tax map before signing avoids surprises and allows the deal to be structured in the most efficient way for each client's profile.