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Real estate guide to España: buying, selling and investing

Real estate guide to España

Buying, selling or investing starts with identifying which rules apply to each case.

In España, a real estate transaction may involve national regulations, regional or provincial tax rules, municipal obligations and property-specific checks. This guide provides the general framework for organising the process and knowing what must be checked before making a decision.

Last reviewed: 8 August 2026 Jurisdiction: España General overview · does not replace individual advice
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How to use this guide

A map to help you find your way before getting into the details

This page is a general guide. Rates, reductions, deadlines, licences and requirements that depend on an autonomous community, provincial territory or municipality must be checked against the relevant official source and the topic-specific guide.

01

Buying

Process, identification, source of funds, reservation, contract, due diligence, notary, Land Registry and acquisition taxes.

02

Selling

Documentation, encumbrances, completion, capital gains taxation, the seller’s status and municipal obligations.

03

Financing

Mortgage, valuation, pre-contractual information, bank assessment and coordination with the purchase.

04

Investing and renting

Returns, recurring costs, rental regulations, tourist use, homeowners' association and operational risks.

Jurisdiction principle

A national rule may define the general framework without determining the applicable regional tax rate or municipal bylaw. Therefore, a tax figure should only be used after identifying the correct jurisdiction.

Avoid automatic conclusions

The Land Registry, Catastro and planning legality are not the same thing. A positive check in one does not replace the relevant checks in the others.

Buying a home in España

The purchase process should progress in parallel with verification of the property

Buying is not simply a matter of agreeing on a price. The buyer must arrange their identification and financing, review the legal and physical status of the property, understand the contract they are signing and check the applicable taxes before completion.

Step 1Define the transaction

Use, budget, location, new build or resale, and financing needs.

Step 2Identification and funds

NIE where applicable, identity, purchase structure and evidence of the source of funds.

Step 3Offer or reservation

Review what is being paid, to whom, under what conditions and what happens if the transaction does not proceed.

Step 4Due diligence

Land Registry, Catastro, charges, community, occupancy, contracts and planning matters, depending on the property.

Step 5Contract and financing

Understand arras or other agreements, conditions, timetable and mortgage documentation if there is a loan.

Step 6Notary and post-completion

Public deed where applicable, payment, taxes, Land Registry filing and post-completion formalities.

NIE

Foreign buyer

A foreign buyer’s documentation should be organised in advance. The NIE is a key identifier for multiple tax and administrative procedures related to the transaction.

Buying a property does not amount to obtaining immigration residency.

AML

Source of funds

Anti-money laundering checks may require identification and evidence of the source of funds, depending on the obliged entity, the transaction and the risk profile.

There is no single document checklist that applies to all banks, notaries and professionals.

CT

Reservation and earnest money deposit

Not all deposits have the same consequences. The effect of a reservation or deposit agreement depends on the contract wording and the applicable civil law.

Do not automatically assume that every deposit constitutes “arras penitenciales”.

A Land Registry review is essential, but it does not by itself prove the property’s planning legality. Land Registry, cadastral and planning status must be analysed as separate layers of due diligence.
View the buying and selling process Review risks before buying

Taxes and costs

The right question is not “how much is paid in España?”, but “which tax applies to this property and this jurisdiction?”

Property taxation varies depending on the type of transfer, the autonomous community or foral territory, the municipality, the tax residence of the parties and, in some cases, the use or characteristics of the property.

Situation Framework to check Who determines the details What should not be assumed
Second-hand property Property Transfer Tax, where applicable. The applicable autonomous community or foral regulations determine the rates, reductions and conditions. That a rate in one autonomous community is valid in another.
New build VAT in the common territory when the transaction is subject to this tax, and AJD where applicable. VAT is governed by the national framework; AJD and territorial regimes require specific verification. Automatically apply the common regime to Canarias, Ceuta or Melilla.
Annual ownership costs IBI, community fees, insurance and potential tax obligations depending on residency and use. IBI and its details depend on the municipality; other taxes may be national, regional or foral. That the annual cost is a universal fixed percentage.
Sale Capital gain or loss, non-resident status where applicable, and municipal capital gains tax within the relevant framework. AEAT for national taxes and the local council for the municipal obligation. Use the same answer for a resident seller, non-resident seller or company.

The Catastro reference value may be relevant for the taxable base

The Dirección General del Catastro maintains the reference value and explains its relationship with certain property taxes. It must be distinguished from the cadastral value, the purchase price and information from the Property Registry.

  • Check the reference value for the relevant tax year where applicable.
  • First identify the tax and jurisdiction.
  • Do not confuse the reference value with the cadastral value.
  • Do not use this general guide to calculate a specific tax assessment.

See the official Catastro information on the reference value.

Selling a property

The sale begins before the property is listed

Preparing the documentation, identifying encumbrances, checking the Land Registry and Catastro status, reviewing occupancy and anticipating tax implications reduces the risk of delays when reaching the contract or notary stage.

D1

Documentation

The required documentation may vary depending on the property, autonomous community and municipality. Mandatory, conditional and commercial documents should be distinguished.

D2

Legal status

Ownership, encumbrances and registered rights are checked against the Land Registry; other matters may require consultation of the Catastro, owners' association and planning sources.

D3

Seller taxation

The tax treatment depends, among other factors, on who is selling, their tax residence and the municipality. Capital gains tax and municipal capital gains tax are separate matters.

Non-resident seller

Where the buyer's withholding regime applies to the purchase from a non-resident seller, the AEAT establishes an advance withholding tax and its specific procedure through Form 211. The withholding tax should not be confused with the final calculation of capital gains tax. See the AEAT official guide to buyer's withholding tax.

Mortgages in España

Financing the purchase is a separate process that must be coordinated with the transaction timeline

The bank assesses the borrower and the property. Financing may include a valuation, financial documentation, pre-contractual information and a notarial transparency stage within the applicable legal framework.

  • Do not confuse the purchase price with the mortgage valuation.
  • Financing policies and LTV depend on the lender and the borrower profile; they are not a universal legal maximum.
  • A bank's internal underwriting documents should not be presented as general legal requirements.
  • The buyer should know which costs relate to the purchase and which relate to the mortgage.

For the process and pre-contractual information, consult the Banco de España Banking Customer Portal.

FE

Pre-contractual information

Law 5/2019 establishes a framework for protection and transparency for transactions within its scope. Documentation should be reviewed on a case-by-case basis.

VA

Valuation

A mortgage valuation serves a financing purpose and is governed by specific regulations; it is not equivalent to an estate agent's market valuation.

NR

Non-residents

Non-resident status may affect bank policy and the documentation requested, but should not be confused with a single legal financing rule.

CO

Costs

It is advisable to distinguish between purchase taxes, valuation fees and other financing-related costs to avoid duplicating items in the budget.

Investing and renting

Property investment returns should be calculated only after confirming that the intended use is viable

A sound investment is not defined solely by estimated rental income. It must take into account acquisition, financing, recurring costs, periods without income, maintenance, taxes and the legal framework governing the rental activity actually intended.

GR

Gross return

It compares estimated gross income with the capital used as a reference. It is an initial indicator, not the final outcome of the investment.

Annual gross income ÷ reference capital × 100
NR

Net return

It should deduct expenses genuinely attributable to the asset and take account of vacancy periods, maintenance, insurance and management, where applicable.

US

Use and regulation

Long-term, seasonal and tourist rentals should not be treated as the same regime. Tourist use requires checks at both local-area and building level.

Short-term and tourist rentals: a highly regulated area

The national framework for short-term rentals has undergone judicial changes in 2026. In addition, tourist activity depends on the autonomous community, may be subject to municipal planning regulations and may interact with homeowners' association rules. A national guide alone cannot confirm that a specific property may be operated as a tourist rental.

Due diligence and risks

Warning signs should trigger a specific verification, not an automatic conclusion

An issue may relate to the Land Registry, Catastro, planning, contracts, the community, occupancy or payments. The purpose of due diligence is to locate the risk, identify the competent authority and determine what evidence is missing.

R1

Charges and ownership

The nota simple provides useful Land Registry information on the property, ownership and charges, but it must be interpreted in the context of the transaction.

R2

Land Registry vs Catastro

Discrepancies in floor area, description or georeferencing require analysis. Catastro and the Land Registry serve different functions.

R3

Planning

Use, licences, works, enforcement and planning status depend largely on regional regulations and the relevant municipality.

R4

Community

Debts, special assessments, resolutions and possible use restrictions may affect the financial decision and, in certain cases, the transaction.

R5

Existing occupancy or tenancy

Buying a property vacant is not the same as buying one with a tenant, an occupant without legal title or a seller who has yet to hand over possession.

R6

Payments and fraud

Verify payment instructions, identity, bank accounts and any last-minute changes through independent, secure channels.

Open the risk guide

Practical examples

How to turn a general question into a verifiable enquiry

Initial question What needs to be identified Sources to include Correct outcome
“What taxes do I pay when buying a home or sada?” Autonomous community or regional territory, property type, buyer and potential tax benefits. National framework + regional/territorial tax authority + Cadastre where the reference value is relevant. A specific answer for that jurisdiction, not a generic Spanish tax rate.
“I’m going to sell in España and I live abroad.” Tax residency, ownership, gain, municipality and whether special circumstances apply. AEAT/IRNR + local council for municipal capital gains tax + Land Registry/Notary depending on the transaction. Distinguish between withholding tax, capital gains and the municipal obligation.
“I want to rent it out by the week.” Type of rental, autonomous community, municipality, planning use and homeowners’ association. BOE + regional tourism/housing authority + local council + community rules where applicable. Confirm the permitted use only after resolving all applicable layers.

Professionals and specialists

The right professional depends on the location, the service and the issue you need to resolve

An agency can coordinate the search and negotiation, but certain matters require specialised legal, tax, financial or technical advice. Recommendations should be based first on relevance and only then on any commercial priority within the directory.

Real-estate agent or agencyProperty search, marketing, viewings, negotiation, local market knowledge and commercial coordination.
Independent lawyer or legal adviserContracts, legal due diligence, risks, representation and transaction-specific matters.
Tax adviserTax residency, taxation of purchases, sales, ownership, rentals, inheritances or investments, as applicable.
Bank, broker or mortgage professionalFinancial viability, mortgage options, bank documentation and financing timeline.
Architect, building surveyor or technical professionalPhysical condition, measurements, works, licences, discrepancies and technical matters requiring professional verification.
Notary and Land RegistrySpecific public functions within formalisation, legal certainty and registration publicity.

Professional directory

Find professionals by location, language and service

RealtorList organises agency and agent profiles to make relevant searches easier. Use the location and service you need before comparing profiles.

Verified official sources

Check the rule with the competent authority

The following sources form part of AI Realty’s official register and were revisadas on 8 August 2026. For a regional tax rate, municipal ordinance or specific tourist licence, the relevant local authority must be added.

AEATIVA or ITP when buying a home?Official tax guide to distinguish the tax framework applicable to the purchase. General Council of NotariesBuying a homeInstitutional information on the process and the notary’s role. Association of Property RegistrarsProperty RegistryOfficial information on the Land Registry’s role and the public record of rights and encumbrances. Directorate-General for the CadastreCadastre frequently asked questionsCadastre, reference value and cadastral concepts that may affect the transaction. Banco de EspañaTaking out a mortgageProcess, transparency and information for mortgage customers. Ministry of the InteriorDocumentation for foreign nationalsOperational source for NIE and foreign-national documentation; forms and fees must be revalidated before use. AEATWhat happens when I sell a propertyOfficial tax information on the transfer for taxpayers within the relevant jurisdiction. BOEMortgage ActPrimary legal framework for the Land Registry, registered rights and encumbrances.

Resources from RealtorList

Continue with the guide that matches your next decision

Buying and Selling Process Explore the stages of a property transaction and the main checkpoints. Risks and Warning Signs Review which issues should trigger additional legal, technical or document checks. Real estate directory of Costa del Sol Explore professionals and locations within the Costa del Sol market. Real estate agencies View corporate profiles and filter by location, services and specialities.

Frequently asked questions

Buying, selling and investing in property in España

No. The tax depends on the type of transaction and the jurisdiction. For resale properties, ITP details depend on the autonomous community or foral territory. For new-build properties, IVA and AJD may apply under the relevant regime, with special territorial treatment that must be verified.

Tax residency and nationality are different concepts and affect different parts of the process. A foreign buyer must address identification requirements, including the NIE where applicable, as well as applicable tax and anti-money laundering obligations. Buying a home does not in itself grant immigration residency.

It should not be assumed to be a universal requirement. A sale and purchase may include a reservation agreement, arras or other private agreements, but their effects depend on the wording and applicable civil law. Before paying any money, it is advisable to understand the terms for refunds, default and deadlines precisely.

No. A nota simple provides Land Registry information on the property, ownership and charges, but planning compliance may require checks of planning regulations, licences, permitted uses and records with the relevant regional or municipal authority.

No. They are separate systems with different functions. The Land Registry relates to registered rights and charges; Catastro contains cadastral information and also serves as a basis for certain tax matters. Discrepancies should be analysed, not ignored.

There is no universal commercial percentage that this guide can present as a legal maximum for all banks and buyers. Financing depends on the lender, financial profile, valuation, purpose and risk policy, in addition to the applicable legal framework for consumer protection and transparency.

This cannot be confirmed based on a national rule alone. The regional tourism or housing regime, municipal planning and rules, the property's permitted use and, where applicable, the rules of the homeowners' association must be reviewed. The current national framework for short-term rentals must also be checked.

Taxation of a non-resident seller is governed by IRNR and may trigger a withholding tax that the buyer must withhold and pay when the legal conditions are met. Capital gains tax and, separately, municipal capital gains tax should also be considered where applicable.

It is a value determined by the Directorate-General for the Cadastre that may be relevant to the tax base for certain taxes, including ITP/AJD and ISD in the cases provided for. The relevant tax year and its application to the specific tax should be checked.

No. This guide organises general information and official sources. A real transaction may require legal, tax, financial, planning or technical analysis tailored to the property, the parties, the contract and the specific jurisdiction.

Notice: This content is for information purposes only and does not constitute personalised legal, tax, financial, mortgage, technical or notarial advice. Rules, procedures, forms and criteria may change, and some matters depend on the autonomous community, foral territory, municipality, tax residence, type of property and date of the transaction. Before making a decision, check the current official source and consult the relevant professional where necessary.

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