Buying Property in Spain as a Foreigner in 2026

Spain remains one of the most attractive countries in Europe for foreign property buyers. This is especially true in regions such as Costa Blanca, including Guardamar del Segura and Torrevieja, where a mild climate, high quality of life and strong long-term demand continue to attract international buyers.

However, the period from 2025 to 2026 has brought important changes that affect foreign buyers, including new legal discussions, tax adjustments and evolving market trends. Understanding these changes is essential before making a purchase decision.

The Spanish Property Market Remains Open to Foreign Buyers

As of 2026, the fundamental rule remains unchanged: foreigners are legally allowed to purchase property in Spain, regardless of nationality. This includes apartments, villas, townhouses and new-build developments.

The purchase process for foreign buyers is largely the same as for Spanish citizens. Transactions are completed before a notary, and ownership is registered in the Land Registry under Spanish law.

There are limited exceptions related to specific military or strategic zones, where special authorization may be required. These areas represent a very small percentage of the country and do not generally affect standard residential purchases in Costa Blanca, Guardamar or Torrevieja.

The End of the Golden Visa and Its Impact

Until 2025, Spain offered the well-known Golden Visa program, which granted residency to non-EU nationals who invested at least €500,000 in property. This program has now officially ended.

It is important to clarify that the end of the Golden Visa does not restrict the ability to buy property. Foreigners can still purchase real estate freely. What has changed is that property ownership no longer automatically grants residency rights.

For many buyers, especially those purchasing holiday homes or investment properties, this change has little practical impact. However, buyers seeking residency must now explore alternative visa or residency routes.

Taxes and Financial Obligations for Foreign Buyers in 2026

Buying property in Spain involves several taxes and costs, and recent updates make it especially important for foreign buyers to understand their financial obligations.

Property Transfer Tax (ITP)

This tax applies when purchasing resale (second-hand) property. Rates depend on the autonomous region and typically range between 6% and 10% of the declared purchase price.

VAT and Stamp Duty on New Builds

New-build properties are subject to Value Added Tax (IVA), usually at 10%, plus stamp duty (AJD), generally between 1% and 1.5%, depending on the region.

Non-Resident Income Tax

Foreign owners who rent out their property must pay non-resident income tax on rental income.
EU residents are taxed at 19% on net income and are allowed to deduct eligible expenses. This clarification has become especially relevant in 2025–2026.

Even if the property is not rented, non-residents are still required to declare a notional income and pay a small annual tax.

Wealth and Asset Taxes

Foreign owners with high-value assets in Spain may also be subject to wealth or asset taxes, depending on total property value and regional regulations.

Proposed New Taxes for Non-EU Buyers: What Is Being Discussed

In 2025, the Spanish government publicly discussed a proposal that attracted significant international attention:
a potential increase of property transfer taxes for non-EU non-resident buyers, in some cases discussed as a surcharge that could significantly raise acquisition costs for resale properties.

It is important to understand the current situation clearly:

The proposal mainly targets non-EU buyers purchasing resale properties
It does not represent a ban on foreign purchases
The proposal is still under political discussion and has not been fully implemented nationwide

If such measures are approved, they would likely include transition periods before entering into force, allowing buyers time to plan their purchases accordingly.

Rental Registration and New Compliance Requirements

Since mid-2025, Spain has introduced a unified rental registration system. Property owners who rent their homes for short-term or holiday purposes are now required to register their property and obtain an official rental registration number.

This requirement applies even to properties that already hold local tourist licenses. Online rental platforms may remove listings that do not display a valid registration number.

For foreign investors, compliance with rental registration and tax reporting rules is now a critical part of owning property in Spain.

Key Trends Among Foreign Buyers in 2026

Several important trends define the foreign buyer market in Spain in 2026:

Sustained international demand continues, particularly in coastal regions
EU buyers remain highly active, as most proposed restrictions focus on non-EU buyers
Growing interest in new-build properties, due to energy efficiency, modern standards and clearer tax structures
Limited housing supply in prime coastal areas continues to support price stability and growth

Costa Blanca, and especially towns like Guardamar del Segura and Torrevieja, remain among the most competitive and attractive markets for foreign buyers.

Practical Steps for Foreign Buyers in Spain

The standard purchase process for foreign buyers includes the following steps:

Obtaining an NIE (Foreigner Identification Number)
Opening a Spanish bank account
Conducting legal due diligence on the property
Signing a reservation or deposit agreement
Completing the purchase before a notary
Registering ownership and paying all applicable taxes

Professional legal and real estate guidance is strongly recommended to ensure compliance and avoid costly mistakes.

Conclusion: Spain Remains Attractive, but Awareness Is Essential

In 2026, Spain continues to welcome foreign property buyers, but the environment is becoming more regulated and structured.

Key takeaways:

Foreigners can still freely buy property in Spain
Residency through property ownership is no longer automatic
Tax rules and rental regulations require careful attention
New proposals may affect non-EU buyers, but are not yet definitive

For buyers considering property in Costa Blanca, Guardamar del Segura or Torrevieja, understanding these trends and rules is essential for making a secure and well-informed investment.

Working with experienced local professionals ensures that buying property in Spain remains not only possible, but also safe, transparent and strategically sound.

Contact our real estate in Guardamar del Segura now: