Concept
Spain has been Europe's noisiest real estate market for the past two years: headlines about a "one hundred percent tax for non-EU buyers" spread worldwide. The reality as of July 2026 is calmer. The bill never reached a vote in Congress, dropped out of the government housing package, and stalled without coalition votes—non-residents can still buy on the previous terms. What has actually changed: the golden visa was completely abolished on April 3, 2025, and Catalonia sharply raised its purchase tax.
The only real restriction for non-EU buyers is the old defense zone regime inherited from a 1975 law. In some municipalities—border areas, certain coastal districts, islands, and mainly affecting land and houses rather than urban apartments—prior authorization from the Ministry of Defense is required, taking two to four months. The rule does not apply to EU citizens but does apply to Russian citizens: when buying a house with land, check the municipality before paying the deposit.
How the Transaction Works
Everything starts with the NIE—foreigner identification number. Without it, neither tax payments nor registration will go through. It is obtained from the police by appointment or at a Spanish consulate, but the fastest and most convenient way is by power of attorney through a Spanish lawyer. Then comes the standard chain: reservation, deposit agreement contrato de arras—usually ten percent, and if the buyer backs out, the deposit is forfeited, while if the seller backs out, they return double—then escritura before a notary and registration in the property registry. For cash transactions, the deal takes four to ten weeks. A Spanish bank account is not formally mandatory, but without it things are inconvenient: bank checks at closing, annual tax debits, and utilities.
Entry Taxes: Region Is Key
On the secondary market, the regional ITP tax is paid, and the range is huge. Madrid charges six percent, Andalusia seven, Valencia ten (lowering to nine from June 2026), and Catalonia switched to a progressive scale up to thirteen percent in summer 2025 and introduced a punitive twenty percent for large housing holders and purchases of entire buildings. New construction is taxed differently: ten percent VAT plus stamp duty AJD from 0.75 to 1.5% depending on the region.
An important detail: the tax base cannot be lower than the cadastral valor de referencia. Understating the price in the contract won't work—the tax authority will recalculate it themselves. Notary, registry, and gestoría fees typically total up to two to two and a half thousand euros.
What Purchase Provides
Since April 3, 2025—nothing: the golden visa was completely abolished, those issued earlier are renewed under the old rules. For living in Spain without working, the non-lucrative visa remains: passive income of €2,400 per month plus €600 for each family member, a complete ban on work including remote, and actual residence for more than six months for renewal—which automatically means Spanish tax residency with all worldwide income. Owning property strengthens the application but does not replace income. For remote workers, there is a separate digital nomad visa with a threshold of around €34,000 per year. Without a visa—the usual ninety days out of one hundred eighty.
Ownership and Rental
Spain is the only country in the G8 that taxes a non-resident even for a vacant apartment: imputed income of one to two percent of cadastral value is taxed at a rate of twenty-four percent for non-EU, and the Modelo 210 declaration is filed annually. Actual rental for non-EU is structured most harshly in Europe: twenty-four percent on gross revenue without expense deductions. Courts have already sided with taxpayers from third countries several times, but the tax authority's practice remains the same—pay in full and litigate for a refund.
On top of this comes the municipal IBI, and for large portfolios—wealth tax on Spanish assets over €700,000. In Madrid and Andalusia it is practically zeroed out by regional exemptions, but the state "solidarity" tax on estates over three million neutralizes these exemptions. Tourist rental is under pressure: Barcelona is not renewing licenses after 2028, and VAT on short-term rentals is being discussed nationwide.
Structures and Techniques
The standard is personal ownership. Schemes with offshore companies have been dead for a long time and reliably: a company from a non-cooperating jurisdiction pays an annual three percent of cadastral value simply for the fact of ownership. A Spanish SL is justified only for a real rental business. The main local technique is splitting ownership at purchase: children take bare ownership, parents—usufruct. When the usufruct expires, the inheritance base shrinks many times over, and the children become full owners without a new transaction.
Exit and Inheritance
When selling, a non-resident pays nineteen percent on capital gains, and the buyer is obliged to withhold three percent of the price and remit it to the tax authority on behalf of the seller—then there is a recalculation. On top comes the municipal plusvalía on the increase in land value.
With inheritance, Spain is better than its reputation: after decisions of the EU Court and the Supreme Court, non-resident heirs, including non-EU, apply the exemptions of the region where the property is located. In Madrid this is a ninety-nine percent reduction for spouse and children—essentially zero. The choice of applicable law is fixed by will under Regulation 650/2012, and it should be arranged together with the transaction; details of the Spanish forced share are in the breakdown of inheritance in Spain.
Russian Passport
There is no ban; EU-wide restrictions apply—a limit of €100,000 on accounts in EU banks for Russian citizens without European residence permits and strict compliance when opening accounts. Plus military zones: when buying a house with land, check the municipality before the deposit. Payment routes are in the hub.
This material is for reference purposes and does not constitute individual legal advice.