Property Purchase Counsel
Yes, Americans can buy property in Spain without residency and without restrictions. Purchase no longer grants residency since the abolition of the Golden Visa (April 3, 2025, Organic Law 1/2025). Whether you are buying a second home or your primary residence, Spain Law NYC handles the legal due diligence, contract review, and closing coordination — so you do not discover a hidden debt or an unregistered extension after you sign.
Razvan Gospodin, Spain-licensed attorney — ICATF Colegiado No. 5961
Property Transfer Tax (ITP) by region — 2026
The ITP (Impuesto sobre Transmisiones Patrimoniales) is the main tax on resale property purchases. Rates vary significantly by autonomous community. For new builds, VAT (IVA) at 10% applies instead of ITP.
| Autonomous Community | ITP Rate | Notes |
|---|---|---|
| Madrid | 6% | Standard rate for resale properties |
| Andalusia | 7% | Up to €400,000; reduced for primary residence |
| Valencia | 9% | General rate; reduced for primary residence under €200,000 |
| Catalonia | 10–11% | 10% standard; 11% for properties over €1,000,000 |
| Balearic Islands | 8–13% | Progressive rate based on property value |
Source: Regional tax authorities. Verify current rates before purchase as they may change. Figures as of 2026.
The 9-step property purchase process
- 1
Obtain a Spanish NIE (Número de Identificación de Extranjero) — required for all property transactions.
- 2
Open a Spanish bank account — needed for the purchase and for ongoing utility payments.
- 3
Property search and shortlist — with or without a real estate agent.
- 4
Legal due diligence — we verify the property at the Land Registry (Registro de la Propiedad) and check for debts, liens, and urban planning compliance.
- 5
Arras deposit contract — typically 10% of the purchase price. We review and negotiate the terms before you sign.
- 6
Final notary deed (escritura) — signed before a Spanish notary. We attend or arrange power of attorney if you cannot be present.
- 7
Property registration — the deed is filed at the Land Registry to transfer title officially.
- 8
Utility and municipal registration — water, electricity, gas, and empadronamiento (municipal registration).
- 9
Post-closing tax compliance — we advise on Modelo 720 reporting if applicable, and wealth tax implications.
Real risks — and how we prevent them
Property scams and fraudulent listings
We verify the property's legal status at the Land Registry (Registro de la Propiedad) before any deposit is paid. We also cross-check the seller's identity and ownership against the Catastral registry (sedecatastro.gob.es) to confirm the property exists, is correctly classified, and matches the listing description.
Hidden community debts
Unpaid community fees (gastos de comunidad) can become the buyer's liability after purchase. We request a certificate of up-to-date payments from the community of owners and verify there are no outstanding liens or special assessments before the notary deed is signed.
Unregistered renovations or extensions
A swimming pool, an extra bedroom, or a terrace enclosure built without a license can invalidate your property insurance, trigger fines, and complicate resale. We check the Catastral registry and municipal urban planning records to confirm all structures are legal and registered.
Renting before you buy?
Many clients rent for 6–12 months before committing to a purchase. Our LAU Lease Review service ($950, flat fee) reviews your Spanish rental contract for hidden clauses, deposit terms, and early-termination penalties before you sign. It is a small investment that prevents much larger headaches later.
View all à la carte servicesFrequently Asked Questions
Do I need a NIE to buy property in Spain?
Can Americans get a mortgage in Spain?
Should I rent or buy first in Spain?
Buying property in Spain? Start with due diligence.
Book a free 15-minute Spain Strategy Call. We'll discuss your property goals, your target region, and how Spain Law NYC can protect your purchase.
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