Spain's golden visa through the purchase of property worth more than €500,000 was fully abolished in April 2025. Buying property alone no longer grants any right of residency. Those seeking residency should consider other pathways, such as non-lucrative residency.
Obtaining an NIE, the First Step
The NIE (Foreigner Identification Number) is a tax number that every foreigner, whether resident or non-resident in Spain, needs for any official transaction, including buying property. This number can be obtained through Spain's Embassy in Tehran or, by power of attorney, through a legal representative in Spain.
Steps to Buy Property
- Obtain an NIE and open a bank account in Spain
- Carry out legal due diligence on the property (registry status, debts, building permits)
- Sign the deposit contract (Contrato de arras) and pay the down payment
- Sign the official deed before a notary (Notario) and pay the remaining amount
- Register the property with the Land Registry (Registro de la Propiedad)
Taxes and Ancillary Costs
| Cost | Approximate amount |
|---|---|
| Transfer tax on resale property (ITP in Madrid) | 6% of the property price |
| VAT on new-build property (IVA) | 10% of the property price |
| Notary and property registration fees | Approximately 1% to 2% of the property price |
| Lawyer and legal advisory fees | Approximately 1% to 1.5% of the property price |
Annual Tax for Non-Residents
Non-resident owners in Spain, even if they do not rent out the property, must pay annual non-resident income tax (IRNR) based on the property's cadastral value. If the property is rented out, tax is calculated on the actual rental income.
Frequently Asked Questions
Does buying property in Spain grant me residency?
No. The golden visa through property purchase was abolished in 2025. Buying property no longer grants residency on its own.
Do I need to be a resident of Spain to buy property?
No. Any foreign national, resident or non-resident, can buy property in Spain by obtaining an NIE number.
What are the ancillary costs of buying property in Madrid?
Usually between 10% and 13% of the property price, including taxes, notary fees, property registration and lawyer's fees.