Spain has become one of the most attractive destinations for U.S. citizens looking to invest in real estate. Whether as a second home, a retirement plan, or an investment opportunity, purchasing property in Spain offers both lifestyle and financial benefits.
However, buying property abroad involves navigating a different legal, tax, and regulatory system. For Americans, the process requires careful planning to ensure compliance and avoid costly mistakes.
At Lextax, we specialize in guiding international buyers through every step of purchasing property in Spain. This article explains the requirements, taxes, and legal steps U.S. citizens must consider.
1. Can U.S. Citizens Buy Property in Spain?
Yes. Spain imposes no restrictions on foreigners purchasing property. U.S. citizens can buy real estate in Spain as individuals or through companies, regardless of whether they are residents or non-residents.
Owning property in Spain does not automatically grant residency, but it may open pathways such as the Golden Visa for investments above €500,000.
2. Legal Requirements for U.S. Buyers
Obtain an NIE (Número de Identidad de Extranjero)
- Mandatory for all property transactions.
- Required to sign the purchase deed, pay taxes, and open a bank account.
- Can be obtained in Spain or through the Spanish consulate in the U.S.
Open a Spanish Bank Account
- Necessary to pay taxes and property-related expenses.
- Facilitates mortgage payments if financing is needed.
Hire a Spanish Lawyer
- Essential for due diligence, contract review, and tax planning.
- Ensures you understand Spanish legal terminology and avoid pitfalls.
3. Taxes When Buying Property in Spain
U.S. citizens must account for several taxes, both at the time of purchase and annually thereafter.
At Purchase
- Property Transfer Tax (ITP): 6–10% (applies to resale properties).
- VAT + Stamp Duty: 10% VAT + 1–1.5% AJD (applies to new properties from developers).
- Notary & Land Registry Fees: approx. 1–2% of the purchase price.
- Legal Fees: usually 1–1.5% of the property price.
After Purchase
- Annual Property Tax (IBI): based on cadastral value.
- Non-Resident Income Tax: applies even if the property is not rented (imputed income tax).
- Wealth Tax: applies if worldwide assets exceed €700,000 (regional variations exist).
👉 Under the U.S.–Spain Double Taxation Treaty, certain taxes may be credited in the U.S., but careful coordination is required.
4. Financing and Mortgages for U.S. Buyers
Spanish banks do offer mortgages to non-residents, but:
– Typically cover up to 60–70% of the property price.
– Require proof of income, U.S. tax returns, and credit checks.
– Interest rates may be higher than those offered to Spanish residents.
Having strong legal and financial advice helps structure the transaction and ensure compliance with U.S. reporting obligations.
5. The Legal Steps in Purchasing Property
- Reservation Agreement – Payment of a deposit to take the property off the market.
- Private Purchase Contract (Contrato de Arras) – A more detailed agreement with a deposit of 10% of the purchase price.
- Due Diligence – Your lawyer checks the property’s title, debts, zoning issues, and community charges.
- Completion at Notary – Signing the purchase deed (Escritura Pública) and registering it with the Spanish Land Registry.
- Tax Payments & Registration – Payment of transfer taxes and updating ownership records.
6. Residency Options for U.S. Buyers
- Golden Visa: For property investments of at least €500,000, grants residency rights to the buyer and family.
- Non-Lucrative Visa: For retirees or those with sufficient passive income.
- Digital Nomad Visa: For remote workers wishing to relocate to Spain while benefiting from special tax treatment.
7. Common Mistakes U.S. Buyers Make
- Not securing an NIE before starting the process.
- Signing contracts without independent legal review.
- Underestimating additional costs (10–15% on top of purchase price).
- Ignoring Spanish inheritance and wealth tax planning.
- Not considering currency exchange fluctuations when wiring large sums from USD to EUR.
8. How Lextax Supports U.S. Buyers
At Lextax, we simplify the process of buying property in Spain by offering:
- Legal Due Diligence – Ensuring the property is free of debts and legal issues.
- Tax Advisory – Planning for Spanish property taxes and coordinating with U.S. obligations.
- Residency & Visa Support – Assisting with Golden Visa, Digital Nomad Visa, or other residency pathways.
- Contract Review & Negotiation – Protecting your interests in every legal document.
- Complete Transaction Management – From NIE application to notary completion.
With our expertise, U.S. citizens can invest in Spanish real estate with confidence, clarity, and security.
FAQs: Buying Property in Spain as a U.S. Citizen
Can Americans buy property in Spain?
Yes. There are no restrictions on foreign property ownership in Spain.
How much are taxes when buying property in Spain?
Expect to pay an additional 10–15% of the purchase price in taxes and fees.
Does buying property in Spain give me residency?
Not automatically. However, investments over €500,000 qualify for the Golden Visa.
Do I need to pay tax in the U.S. as well?
Yes. U.S. citizens are taxed on worldwide income, but the U.S.–Spain tax treaty prevents double taxation.
Can Lextax help me remotely from the U.S.?
Absolutely. We manage the process end-to-end, representing you in Spain while keeping you informed every step of the way.
Conclusion
Spain is a prime destination for U.S. citizens seeking property abroad. With the right guidance, the process can be smooth, secure, and highly rewarding.
At Lextax, we act as your translator of complexity, simplifying Spain’s legal and tax system so you can focus on enjoying your new property.
👉 Ready to buy property in Spain from the U.S.?