Spain continues to be one of the most attractive destinations in Europe for international real estate investment, offering a unique combination of lifestyle, climate, culture, and property variety. However, for non-EU citizens, the process of buying property in Spain in 2025 involves unique legal, financial, and tax considerations—especially in light of new legislative developments.

 

 

1. Legal Requirements and the Buying Process

 

Before entering into any agreement, buyers from outside the EU must be familiar with the Spanish property purchase process:

  • NIE Number: A foreign identification number (NIE) is mandatory for all real estate transactions.

  • Legal Assistance: Engaging an independent property lawyer is crucial to verify property ownership, debts, licenses, and land registry information.

  • Notary and Registration: Transactions are formalised by a notary and recorded in the Spanish Land Registry to establish full legal ownership.

  • Additional Costs: Buyers should budget approximately 10–13% of the purchase price for taxes, notary fees, legal services, and registration.

 

2. Critical 2025 Update: Proposed 100% Transfer Tax for Non-EU Citizens

 

In early 2025, the Spanish government proposed a controversial law that could introduce a 100% transfer tax on real estate purchases by non-EU citizens. The measure is aimed at curbing foreign demand in over-saturated markets and prioritising local housing needs.

As of May 2025, this law is not yet in effect, but it remains under active discussion. It may affect high-demand regions such as the Costa del Sol, Balearic Islands, and major cities. Non-EU buyers are advised to act promptly and consult legal professionals to avoid potential cost surges.

 

3. Financing and Residency Options

 

  • Mortgages: Spanish banks offer financing to non-residents, typically up to 60–70% of the property value. Buyers must present financial documentation and open a Spanish bank account.

  • Golden Visa Restrictions: The Golden Visa programme was heavily restricted in 2024. In 2025, it is only available for limited rural investments or projects with notable economic impact.

  • Residency Permits: Buying property does not automatically grant residency. Those seeking long-term stays must apply separately through immigration channels.

 

4. Ongoing Ownership Considerations

 

  • Legal Due Diligence: Especially in rural areas, property legality must be confirmed, including amnesty or legalization status.

  • Annual Costs: Owners are responsible for property tax (IBI), waste collection, utilities, and community fees.

  • Rental Restrictions: Short-term rentals are increasingly regulated. Some areas require tourist licenses, which may be restricted or unavailable.

 

Conclusion

 

Owning property in Spain remains an attractive opportunity, but non-EU citizens in 2025 must plan with extra caution. With proposed tax increases and stricter immigration and investment rules, informed decisions and professional support are essential.

Personalised, confidential assistance is available for those seeking real estate across Andalusia and other regions. Early action may be key to avoiding potential legislative barriers.