Madrid has become one of the international buyer's favourite destinations: safety, quality of life, connectivity and a resilient prime market. Buying here as a foreigner is entirely possible and, with the right guidance, straightforward. This is an honest guide to the process, the costs and the decisions that matter.
Can a foreigner buy in Spain?
Yes, without restrictions — whether you are a resident or non-resident, an EU citizen or not. The only essentials are obtaining an NIE (foreigner identification number) and opening a Spanish bank account to channel the payments. The NIE can be applied for at a Spanish police station, at a Spanish consulate abroad, or through a representative holding power of attorney.
The process, step by step
A well-run transaction always follows the same order: defining criteria and budget; search and selection (including off-market stock that rarely reaches the portals); viewing and analysis; the deposit contract (arras, usually 10%, which reserves the home and sets the terms); legal and land-registry due diligence; and signing the deed before a notary, when the balance is paid and the keys handed over. Four to eight weeks typically pass between the deposit and completion.
Taxes and purchase costs
Budget roughly 10-12% on top of the price for taxes and fees. On resale homes, Transfer Tax (ITP) in the Madrid region is 6%. New-build homes are subject to 10% VAT plus Stamp Duty (AJD). Notary, land registry and conveyancing fees apply on top. These figures are indicative for 2026 — always confirm them with your tax advisor before proceeding.
Mortgages for non-residents
Spanish banks lend to foreign buyers. For non-residents, financing typically reaches up to 60-70% of the valuation or purchase price (versus higher ratios for residents), and terms depend on the buyer's profile and country of origin. It is wise to secure pre-approval before signing the deposit contract.
Taxation: an important note
Spain ended its real-estate Golden Visa in 2025, so buying property no longer grants residency through that route. Non-resident taxation — on purchase, on holding the asset and on a future sale — deserves specific professional advice from day one. It is not a formality; it is part of the strategy.
Why an international buyer needs a trusted local advisor
The international buyer's biggest risk is not the language: it is never seeing the best stock, and having no one defending their interests. Madrid's finest addresses — Barrio de Salamanca, Jerónimos, the Castellana axis — frequently change hands off-market, among a few hands. An advisor representing the buyer opens access to that stock, filters out what does not fit, negotiates on your behalf and coordinates lawyers, tax advisors and the bank. For someone buying from abroad, that single point of contact changes everything.
At Horlux we guide both domestic and international buyers through the entire process, with service in Spanish, English, Italian and French, and with the discretion each transaction demands. If you are considering buying in Madrid, let's talk before you start searching — that is where we add the most value.
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