Spain is one of the favourite destinations for those looking to buy a second home, invest in property or retire in a Mediterranean setting. Beyond its climate and lifestyle, many international buyers are interested in the tax advantages of buying property in Spain as a foreigner. In this article we explain what those benefits are, what you need to watch for from a tax perspective and how to make the most of your investment.
Can a foreigner buy property in Spain?
Yes. Any foreign citizen, whether resident or not, can buy real estate in Spain without restrictions. In fact, many buyers come from countries such as the United Kingdom, Germany, the Netherlands, France or Belgium. Areas such as Torrevieja and the Costa Blanca are especially popular for their climate, services, international connections and range of new-build and resale properties.
What tax advantages exist for foreigners?
Although property taxes are applied equally to Spaniards and foreigners, non-resident buyers can benefit from several strategic tax aspects:
Access to double taxation treaties
Spain has tax treaties with many countries (such as Germany, France, the United Kingdom and the Netherlands or Belgium) to avoid paying tax on the same income in both countries. This means that:
- If you buy a property and rent it out, you can offset what you pay in Spain in your country of origin.
- If you sell your property at a profit, you will avoid double taxation on the capital gain.
Always consult a tax advisor —at Mayrasa we offer specialised real estate advice for these cases.
Exemption from VAT on resale properties
When purchasing a used property, the buyer pays the Transfer Tax (ITP), and not VAT, which represents a saving compared to new-build. In the Valencian Community, ITP is usually 10%, but in some cases exemptions or reductions may apply.
Residency is not required to buy
You can buy as a non-resident and become a resident later. This allows you to plan tax matters and change your status at the most convenient time.
Are there additional advantages if I obtain residency?
Yes. If you buy a property worth more than €500,000 you can apply for the residence visa for investors, better known as the Golden Visa. This offers you:
- Legal residence in Spain.
- Freedom of movement within the Schengen area.
- The possibility of including your spouse and minor children.
- Tax advantages in the medium and long term if you decide to transfer your tax residence to Spain.
Although this programme is subject to reforms in 2025, it is still in force. At Mayrasa we guide you in purchasing properties that meet the Golden Visa requirements and put you in touch with legal advisors.
What if I rent out my property?
Many international buyers purchase with investment purposes. In this case:
If you are an EU resident
You can deduct expenses related to the rental (property tax/IBI, community fees, repairs, insurance, etc.).
If you are not a resident or not from the EU
You will be taxed on rental income in Spain, but you can deduct it in your country if there is a tax treaty.
Professional accounting advice is key. Our team will guide you to maximise your profitability and avoid common mistakes. We also offer after-sales and management services for your peace of mind.
Other advantages of buying with Mayrasa
At Mayrasa, we have years of experience helping foreign clients buy safely on the Costa Blanca. Some of our exclusive services:
- Virtual tours and photography for remote purchases.
- Translation and legal review of contracts.
- Assistance with NIE, bank accounts and notary.
- Access to high-yield properties and strategic locations.
- Home staging and rental advisory for investors.
Review our selection of properties or consult our entire sales catalogue.
What other tax advantages should be considered?
Additionally, buying property in Spain can be an excellent strategy for portfolio diversification. By acquiring a property denominated in euros, many investors protect their capital against inflation or the devaluation of their local currencies, especially if they come from more volatile economies.
Another relevant point is that, if you decide to sell your property in the future, you may benefit from tax exemptions for reinvestment in a primary residence, provided you transfer your tax residence to Spain and meet the requirements established by the Tax Agency (Hacienda).
It is also important to consider the impact of the Wealth Tax in some autonomous communities. Although its application depends on the total value of your assets in Spain, in many cases there is an exempt minimum, and you can avoid its effect through proper prior tax planning.
Finally, owning a property in Spain can facilitate the future obtaining of residency through ties (arraigo), should you wish to settle permanently. Having a property registered in your name is a positive factor in immigration procedures.
Conclusion
The tax advantages of buying property in Spain as a foreigner can make a significant difference economically and for planning. From access to favourable tax regimes to incentives such as the Golden Visa, Spain remains one of the best options for investing in real estate from abroad.
At Mayrasa we accompany you from first contact and long after the purchase. You can get to know us better in the about us section, visit our offices or write to us from contact. If you are thinking of starting a career in the sector, you can also work with us.
