Buying & selling · · 7 min read
Buying a home in Madrid as a foreigner: NIE, taxes and the notary (2026)
Anyone can buy a property in Spain, but the process has its own steps: an NIE, a deposit contract, a notary and purchase taxes that depend on whether the home is new or second-hand.
There are no restrictions on foreigners buying property in Spain. What changes is the paperwork: you need a Spanish tax number, a notary and a clear idea of the taxes you will pay on top of the price.
Your NIE
The NIE (número de identidad de extranjero) is your personal, permanent identification number in Spain. It does not give you residence; it identifies you for the notary, the taxes and the land registry. You can apply at a Spanish consulate in your country (allow several weeks) or in Spain at a police station.
From offer to keys
- Offer: agreed price and conditions.
- Deposit contract (arras): usually around 10% of the price; if the buyer walks away they lose it, and if the seller does they return double.
- Checks: land registry extract, debts, community fees and the property tax (IBI).
- Deed of sale before a Spanish notary, who records how the price was paid.
- Registration in the Land Registry.
Purchase taxes in the Madrid region
| Type of home | Tax |
|---|---|
| Second-hand | 6% transfer tax (ITP) on the higher of the price and the cadastral reference value |
| New build | 10% VAT + stamp duty (AJD): 0.75% above €180,000; 0.5% from €120,000 to €180,000; 0.4% up to €120,000 |
Rates in force in October 2026. There are reductions for some groups, such as large families or under-35s buying their main home.
On top of that come notary and land registry fees, and the mortgage costs if you finance the purchase.
Golden visa: no longer available
Spain abolished the residence permit for investors buying property worth €500,000 or more. It ended on 3 April 2025; applications filed before then are processed under the old rules.
Every year after buying
- Property tax (IBI), paid by whoever owns the property on 1 January.
- If you don’t live in Spain and don’t rent the home out: non-resident income tax on an imputed income (form 210), calculated on the cadastral value.
- Community fees, if the building has them.
Frequently asked questions
Can I get a mortgage as a non-resident?
Yes, Spanish banks lend to non-residents, usually with a lower loan-to-value than for residents. A mortgage broker can compare options.
Do I have to be in Spain to sign?
No. You can sign through a power of attorney granted before a notary in your country (with an apostille) or at a Spanish consulate.
Is the price negotiable?
Usually, yes. A valuation based on real recent sales in the area is your best argument.