Can Foreigners Buy Property in Madrid?
Yes — foreigners can legally buy property in Madrid, whether they are residents, non-residents, or investors from outside the EU.
There are no restrictions on nationality or residency status. However, the legal process is complex, and buyers must comply with Spanish property law, tax rules, and registration requirements.
At Borderless Lawyers, we specialize in helping non-residents and international clients navigate Madrid’s real estate market safely and legally.
✍️ The Legal Process of Buying Property in Madrid (Step-by-Step)
✅ 1. Get a Spanish NIE Number
Before you can buy, you’ll need a NIE (Número de Identificación de Extranjero) — your foreign tax ID in Spain.
📌 We help clients obtain their NIE remotely or in-person.
✅ 2. Open a Spanish Bank Account
Required for paying property taxes and fees. Most banks require an NIE and proof of funds.
✅ 3. Appoint an Independent Property Lawyer
Your lawyer will:
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Conduct legal due diligence
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Draft or review contracts
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Represent you before the notary
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Handle taxes and registration
📌 We only represent buyers — not estate agents or sellers.
✅ 4. Sign the Arras Contract (Deposit Agreement)
This private contract secures the purchase and usually involves a 10% deposit. It’s binding, so review it carefully.
📌 We draft and negotiate buyer-friendly arras contracts in Spanish and English.
✅ 5. Complete Due Diligence
Before signing at the notary, your lawyer must:
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Verify the seller’s ownership
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Confirm no debts or charges
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Check urban planning and legal status
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Review the Cédula de Habitabilidad (if needed)
✅ 6. Sign the Escritura at the Notary
This is the public deed of sale. Both parties (or their legal representatives) sign in front of a Spanish notary.
📌 We can represent you via Power of Attorney if you’re abroad.
✅ 7. Pay Taxes and Register the Property
You must:
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Pay the Transfer Tax (ITP) or VAT (IVA)
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File Plusvalía Municipal if applicable
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Register the deed at the Madrid Land Registry
📌 We handle the full registration process for our clients.
💶 What Taxes Do Foreign Buyers Pay in Madrid?
🧾 Resale Properties (Second-hand)
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Transfer Tax (ITP): 6–10% (Madrid applies reduced rates for some buyers)
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Notary and Registry Fees: €800–€1,500
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Lawyer’s Fees: 1% (on average)
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Plusvalía: Seller usually pays, but this must be negotiated
🆕 New Properties (From Developer)
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VAT (IVA): 10%
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Stamp Duty (AJD): 1–1.5%
We provide a full closing cost estimate before you commit.
🛡️ Why Use a Property Lawyer in Madrid?
Because:
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Agents work for the seller
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Many properties have urban legality issues
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Contracts are often written only in Spanish
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You’ll need help with tax filings and post-sale paperwork
📌 We protect foreign buyers from legal pitfalls and costly mistakes.
🌍 Buying from Abroad? Use Power of Attorney
You don’t need to fly to Spain. With a Spanish Power of Attorney, we can:
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Get your NIE
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Sign the deposit and final contracts
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Pay your taxes
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Register your deed
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Open your bank account
📌 We prepare bilingual POAs and handle the whole purchase remotely.
🧭 Areas Foreigners Buy Property in Madrid
Popular zones include:
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Salamanca – luxury apartments
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Chamberí – elegant residential streets
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Centro (Sol, La Latina) – historic flats and rentals
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Chamartín – expat-friendly with parks and schools
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Retiro – scenic area near the park
We help you understand zoning, licensing, and ownership rules across all barrios.
📞 Ready to Buy Property in Madrid?
We handle the entire legal process so you can buy safely — with full transparency and bilingual support.