Buying and Selling Property in Spain 2026: The Real Costs Nobody Advertises
When most people look at Spanish real estate from the outside, it seems deceptively simple: find a property you love, negotiate a price, sign some papers, and move in. Then the reality of 10–14% in "hidden" costs hits. You discover regional tax variations nobody mentioned in the brochure. If you eventually sell as a non-resident, there is an automatic 3% withholding at the notary's table. Even the financing is tricky: banks might quote 80% loan-to-value over the phone, but the moment they see a foreign passport, that offer often drops to 60%.
We have spent the last year navigating this market firsthand, buying an apartment in Valencia, assisting friends with purchases in Madrid and Málaga, and watching digital nomads make expensive mistakes because they did not understand the tax implications of owning property in Spain. This guide is the grounded economic and legal reality for serious buyers. Not sure where in Spain to buy? Our life assessment tool can help you identify the right region.
What Property Actually Costs in Spain: 2026 Prices
- Madrid: Central districts like Salamanca hit €5,500–€7,500/m². Outer districts are more manageable at €2,500–€3,500/m².
- Barcelona: The Eixample and Gothic Quarter range from €5,000–€7,000/m².
- Valencia: An excellent middle ground. City-center areas like Russafa are €3,000–€4,500/m², with outer districts from €1,800–€2,800/m².
- Málaga: Rising fast due to the tech sector boom, with beach-proximity properties at €4,000–€6,000/m².
For the best balance of infrastructure and affordability, mid-sized cities like Valencia or Zaragoza deliver 30–50% more space for your money compared to the capital.
The 10–14% Transaction Tax: A Mandatory Reality
The listed price is only the starting point. These costs are non-negotiable and must be paid at or shortly after signing.
- Resale property (Segunda Mano): You pay the ITP (Transfer Tax). Rates vary by region: 6% in Madrid, 7% in Andalusia on properties under €500k, and 10% in Valencia and Catalonia.
- New construction (Obra Nueva): You pay 10% VAT (IVA) plus Stamp Duty (AJD), typically 1.2–1.5% in most regions.
- Plus legal fees, notary, and registry costs: Typically another 1–2% of the purchase price.
Budgeting rule: If you buy a resale property for €300,000 in a high-tax region like Valencia, you need at least €335,000–€340,000 in liquid cash to complete the transaction.
Pre-Purchase Due Diligence: The Non-Negotiables
Spanish law protects buyers, but only if they do the proper legwork. Never skip these three documents:
- Nota Simple: An extract from the Property Registry (Registradores de España). It proves the seller owns the property and reveals any hidden mortgages, liens, or judicial embargoes. Cost: approximately €10.
- Certificado de la Comunidad: Proves the seller is up to date with homeowners' association fees. Unpaid community debts transfer to the new owner on signing.
- IBI Receipt: Proof that municipal property taxes are current. In Spain, these debts follow the property, meaning the new owner inherits the previous owner's arrears.
Also read our guide to property risks and the okupa reality for a complete picture of what to check before buying.
Getting a Mortgage as a Foreign Buyer
Spanish banks are conservative with non-residents. While a local resident with a Spanish employment contract might get 80% financing, foreign buyers should typically expect a maximum of 60–70% LTV (Loan-to-Value).
For a non-resident buying a €300,000 property, you will likely need €120,000 (40% down) plus approximately €36,000 for closing costs. That is €156,000 in liquid cash before any bank will approve your file. Fixed interest rates for non-residents in 2026 range between 3.2% and 4.2%, slightly higher than local resident rates.
Selling and the "3% Withholding" Reality
When you sell as a non-resident, the buyer is legally required to withhold 3% of the total sale price and pay it directly to the Agencia Tributaria on your behalf. If you sell for €350,000, you walk away from the notary's table with €339,500 that day.
This 3% is an advance on Capital Gains Tax, which is 19% for EU residents and 24% for non-EU residents on the profit. If you sold at a loss, you can apply for a refund, but plan for 6–12 months before that money returns to your account. The tax implications of property ownership in Spain are covered in more detail in our Spain tax guide.
Is It Worth Buying?
Property ownership makes sound financial sense for those committed to Spain on a 5-plus year horizon. Short-term speculation rarely works because the 10–14% transaction cost eats your profit margin immediately. For buyers with a long view, owning property in Spain combines solid capital appreciation (particularly in coastal and major city markets), lifestyle quality, and a path toward permanent residency or citizenship.
The most successful expat property buyers are consistently those who hire an independent lawyer rather than relying on the agent's preferred contact. For €1,500–€3,000, a qualified lawyer will conduct real due diligence, not just check signatures. If you are still deciding between renting and buying, read our guide to renting in Spain in 2026 for the full comparison.