Purchasing Property in Spain as a Non EU citizen

A Guide to Investment, Rental Income & Residency

1. Can Non EU Citizens Buy Property in Spain?

Yes, they can.
There are no restrictions for Non EU citizens purchasing real estate in Spain.

Required Documents:

• Valid passport

• NIE (Foreigners Identification Number)

• Bank account in Spain

• Legal and traceable source of funds

2. Expenses at the Time of Purchase

One-Time Purchase Costs:

Estimated Total Extra Costs:
Approximately 12–15% of the property value.

3. Can You Rent Out the Property?

Yes, you can. Two main options:

A. Short-Term (Touristic) Rentals:

• Touristic license (VUT) is required

• Regional restrictions may apply (e.g. Barcelona, Palma)

• Must meet technical standards (AC, fire safety, etc.)

• Registration with local authorities and tax office required

B. Long-Term Rentals:

• Legally simpler

• Minimum 6–12 month lease agreements

• Strong tenant protection laws in Spain

4. Taxes on Rental Income

If the property owner resides in his country:

Non-Resident Income Tax (Impuesto sobre la Renta de no Residentes):

Deductions:

• Non-EU citizens cannot deduct expenses; tax applies to gross income.

Local Annual Property Taxes:

• IBI (Property Tax): €200–€1,000

• Garbage Collection (Basura): €100–€300

5. Can You Get a Residency Permit in Spain?

Yes, it is possible. However, Spain’s Golden Visa program was officially cancelled in 2024, so buying real estate alone no longer guarantees a residency permit.
Still, there are alternative ways to obtain residency:

🇪🇸 1. Is Buying Property Still a Way to Obtain Residency?

No.
The Golden Visa program, which granted residency for property purchases of €500,000 or more, was cancelled in 2024.
However, owning property can still be an asset when applying for other types of residency permits.

2. Alternative Residency Permit Types

A) Non-Lucrative Visa (Residency Without Work)

• For: Individuals with passive income (e.g. retirees, rental income earners)

• Requirements:

  • Minimum monthly income of approx. €2,400

  • No employment in Spain

  • Private health insurance

  • Property ownership is a plus (not mandatory)

• Validity: 1 year initially, renewable for 2 years

➡️ Rental income from property can be considered passive income for this visa.

B) Self-Employed Visa / “Autónomo” (Entrepreneur Residency)

• For: Those planning to start a business in Spain

• Requirements:

  • Viable business plan

  • Capital & defined activity

  • Must meet tax and social security obligations

➡️ If you plan to manage and operate rental properties as a business, this visa may be appropriate.

3. Things to Know When Renting for Income

• A tourist rental license is mandatory for short-term rentals

• Rental income must be reported in tax declarations

  • 24% tax for non-EU citizens

• No expense deductions for non-EU owners

• Common costs like cleaning, platform commissions (Airbnb, Booking.com), and HOA fees must be considered

4. Conclusion

For Non-EU citizens:

• Buying real estate ≠ automatic residency permit

• However, rental income, asset ownership, and financial solvency can support residency applications

• If you plan to live, invest, or earn passive income in Spain, it’s strongly advised to consult with a legal or investment advisor

6. Top Investment Areas in Southern Spain

For Short-Term (Touristic) Rentals:

For Long-Term Rentals:

7. Final Checklist

✅ Open a Spanish bank account
✅ Apply for NIE number
✅ Hire a lawyer to review contracts
✅ Check for regional licenses & tax obligations
✅ Choose a region that matches your goals
✅ Decide on short or long-term rental strategy
✅ Plan residency path accordingly

At Green Villas Estate, we support you in all steps of your investment journey in Spain – from title deed, legal guidance, management, to rental and tax planning.