Buying an Apartment in Madrid as a Foreigner: Everything You Need to Know

Madrid has become one of Europe’s most attractive destinations for international real estate investment. With its market stability, exceptional quality of life, strong legal framework, and cultural dynamism, Spain’s capital draws buyers from across the globe. However, purchasing an apartment in Madrid as a foreigner requires an understanding of certain legal, financial, and tax-related aspects to ensure a smooth and secure process.

Step One: Obtaining the NIE

The key requirement for any foreign buyer is obtaining the Foreigner Identification Number (NIE). This document is essential for carrying out financial and legal transactions in Spain, including the purchase of a property. It can be requested at a police station in Spain, at the Spanish consulate in the buyer’s country of residence, or through a notary or tax advisor, although the latter option usually takes longer.

Opening a Spanish Bank Account

Although not strictly required, opening a bank account in Spain is highly advisable. It makes it easier to pay taxes, transfer funds, and manage utilities or community fees. For buyers seeking mortgage financing, this step is indispensable.

Mortgages for Non-Residents

Spanish banks offer mortgages to international buyers, though the conditions differ from those available to residents. Typically, financing covers 60–70% of the appraised value, with shorter repayment terms and interest rates adjusted to the borrower’s profile. Lenders will require proof of income, solvency, and financial stability in the buyer’s country of residence.

Associated Costs and Taxes

L’achat d’un bien à Madrid implique plusieurs frais qu’il convient d’anticiper :

• Transfer Tax (ITP) for resale properties, with a general rate of 6% in Madrid.
  
• VAT and Stamp Duty (AJD) for new-build properties: VAT at 10% and AJD at 0.7%.
  
• Notary and registry fees, usually between 0.5% and 1% of the purchase price.
• Legal and advisory fees, highly recommended to ensure transparency and security.

Legal Security and Professional Guidance

The property purchase process in Spain is backed by a strong legal framework. Notarial deeds, property registry entries, and debt checks ensure transparency. Still, professional guidance is crucial to avoid unexpected issues.

At BARNES Madrid, we provide comprehensive support for our international clients. From property search to final signature, and from legal matters to tax guidance, our multilingual team ensures a seamless, discreet, and tailored buying experience.

Buying an apartment in Madrid as a foreigner is both accessible and secure, offering strong investment potential. Understanding the key steps — NIE, banking, financing, and taxes — is essential for a smooth transaction. With the expertise of BARNES Madrid, international buyers gain access to an exclusive service that maximizes the value of their investment in one of Europe’s most dynamic capitals.