Spain has long been a dream destination for Canadians seeking holiday homes, retirement retreats, or real estate investments. With its Mediterranean climate, cultural richness, and competitive property prices compared to Canada’s major cities, Spain continues to attract a growing number of Canadian buyers.
However, the process of acquiring property abroad involves complex legal, tax, and residency considerations. Without proper guidance, buyers risk delays, unexpected taxes, or even invalid transactions.
This 2026 Guide by Lextax provides Canadian citizens with a comprehensive roadmap for buying real estate in Spain — covering legal steps, taxes, financing, and strategic planning to ensure a smooth, secure, and profitable investment.
1. Why Spain Is Attractive for Canadian Buyers in 2026
- Lifestyle appeal: High quality of life, Mediterranean climate, world-class healthcare.
- Property values: Attractive prices compared to Toronto, Vancouver, or Montreal.
- Residency opportunities: Real estate ownership can support visa strategies such as the Non-Lucrative Visa (for retirees) or the Digital Nomad Visa (for remote workers).
- Rental market: Demand from tourists and expats makes short- and long-term rentals profitable.
- Stable legal framework: Spain offers strong property ownership rights under civil law.
2. Legal Requirements for Canadians Buying Property in Spain
Obtaining an NIE (Número de Identificación de Extranjero)
Every foreign buyer must obtain an NIE number — a tax identification number required for property purchases, tax filings, and utilities.
Opening a Spanish Bank Account
While not strictly mandatory, it is highly recommended to open a Spanish account to manage payments, mortgage instalments, and local expenses.
Due Diligence and Title Verification
Before signing, a lawyer must verify:
– Property title (Registro de la Propiedad).
– Outstanding debts, charges, or mortgages.
– Compliance with zoning and building permits.
Signing the Contract
- Private Purchase Contract (Contrato de Arras) – Secures the deal with a deposit (typically 10%).
- Public Deed of Sale (Escritura Pública de Compraventa) – Executed before a Spanish notary.
👉 At Lextax, we manage the full conveyancing process, ensuring all documents are accurate, risks are identified, and your interests are fully protected.
3. Financing Options for Canadian Buyers
- Cash purchases: Common for retirees and investors.
- Spanish mortgages for foreigners: Available, typically financing up to 60–70% of the property value.
- Cross-border financing strategies: Sometimes combining Canadian assets and Spanish loans provides tax efficiencies.
4. Taxes on Property Purchases in Spain
Purchase Taxes
- New properties: 10% VAT (IVA) + 1.5% Stamp Duty (AJD).
- Resale properties: 6–10% Transfer Tax (ITP), depending on the region.
Annual Taxes
- IBI (Municipal Property Tax) – Local tax based on property value.
- Non-Resident Income Tax – Even if the property is not rented, non-residents must file an annual imputed income tax return.
- Wealth Tax – Applies above certain thresholds; varies by region.
Capital Gains Tax on Sale
- Non-residents pay 19% on net capital gains.
- The Spain–Canada Double Taxation Agreement allows credit for taxes paid in Spain.
5. Residency Options for Canadian Buyers
While the Golden Visa program has been discontinued, Canadians still have attractive visa pathways:
- Non-Lucrative Visa: Requires proof of sufficient passive income (approx. €30,000 per year for the main applicant, plus additional amounts per dependent) and private health insurance. Holders cannot work in Spain but can reside long-term.
- Digital Nomad Visa: Designed for remote workers employed by or contracted with non-Spanish companies. Applicants must show at least 3 months of remote work history, a valid work contract, and sufficient income (approx. €28,000 annually). This visa allows residence and provides access to favorable tax treatment under Spain’s Beckham Law regime.
- Work and Residence Permits: For those employed by Spanish companies or relocating for professional opportunities.
At Lextax, we provide tailored immigration strategies that complement your property investment.
6. Strategic Considerations for Canadian Buyers
- Inheritance Planning – Spanish inheritance tax applies to real estate and requires cross-border estate planning.
- Currency Exchange – EUR/CAD fluctuations can significantly affect purchase costs; forward contracts and planning are key.
- Rental Compliance – Tourist rentals require regional licenses; operating without one may result in fines.
- Tax Optimization – Correct application of the Spain–Canada DTA avoids double taxation on rental income and gains.
7. How Lextax Supports Canadian Clients
Our all-inclusive service for Canadian buyers covers:
– Property Due Diligence – Title checks, debts, and legal risks.
– Conveyancing – Drafting and reviewing contracts, representation at notary, registration of deeds.
– Tax Planning – Structuring ownership and applying Spain–Canada DTA benefits.
– Residency & Visa Advice – Non-Lucrative Visa and Digital Nomad Visa strategies.
– Wealth & Estate Planning – Protecting assets for future generations.
With Lextax, Canadian clients enjoy peace of mind, cost efficiency, and full legal protection.
FAQs: Canadian Buyers in Spain
Can Canadians freely buy property in Spain?
Yes. There are no restrictions on Canadians owning property in Spain.
Do I need to live in Spain if I buy property?
No. Ownership does not require residency, but property investment can support visa applications.
How much tax will I pay when buying?
Between 6–11.5% of the purchase price, depending on whether it’s new or resale.
Is rental income taxed in Spain?
Yes, but the Spain–Canada treaty prevents double taxation.
Can Lextax represent me if I am in Canada?
Yes. We handle the entire process remotely with power of attorney.
Conclusion
Spain offers Canadians an attractive blend of lifestyle, investment opportunity, and legal certainty. Yet, without expert guidance, the process can become costly and complex.
At Lextax, we act as your trusted advisor and translator of complexity, ensuring every step of your property purchase in Spain is safe, efficient, and strategically planned.
👉 Thinking of buying property in Spain as a Canadian?
Contact Lextax today for tailored advice and full legal support.