Can You Buy Property in Spain on an NLV?
Yes — NLV holders have the same property rights as any other foreigner in Spain. Here is everything you need to know about the purchase process, taxes, mortgages and rental income rules.
The short answer
Buying property in Spain on a Non-Lucrative Visa is completely legal and common. Your visa type places no restriction on property ownership. As an NLV holder you will already have an NIE — the one thing every property buyer in Spain must have — so you are well placed to purchase from day one of your residence.
Budget approximately 10–13% on top of the purchase price for taxes and transaction costs, and always instruct a bilingual solicitor independently of the estate agent.
Why NLV holders choose to buy rather than rent
Many people arrive in Spain on an NLV intending to rent — and that makes sense while you find the right city and neighbourhood. But after the first year or two, buying often becomes attractive for several reasons.
Spanish property prices in most regions outside Madrid and Barcelona remain reasonable by northern European standards. A three-bedroom apartment in Valencia, Alicante or Seville can still be purchased for €200,000–€350,000. Monthly mortgage repayments on such a property can be lower than equivalent rental costs, building equity at the same time. For retirees who plan to remain in Spain long-term, ownership also provides security of tenure — you cannot be asked to leave by a landlord at renewal time.
Owning property also demonstrates genuine ties to Spain, which can be useful context — though not a formal requirement — when renewing your NLV at the two-year and four-year stages.
The property buying process in Spain — step by step
The Spanish property purchase process follows a clear sequence. Allow 2–4 months from agreeing a price to receiving the keys.
Instruct a bilingual solicitor
Before you make any offer, find an independent abogado (solicitor) who specialises in Spanish property conveyancing. They will carry out title searches, check for debts attached to the property, review the building's community of owners (comunidad), and handle all legal formalities. Expect to pay 1–1.5% of the purchase price for this service.
Sign a reservation contract and pay a holding deposit
Once you have agreed a price, you sign a short reservation contract and pay a holding deposit — typically €3,000–€6,000 — to take the property off the market while searches are carried out.
Sign the contrato de arras (private purchase contract)
This is the main binding contract. You pay 10% of the agreed purchase price as a deposit. If you pull out, you lose the deposit. If the seller pulls out, they must repay you double — so it protects both parties seriously.
Arrange financing (if needed)
If you are taking a mortgage, your bank will commission a valuation and issue a formal mortgage offer. This stage typically takes 4–6 weeks. Spanish banks generally lend up to 70% to non-employed buyers on passive income.
Sign the escritura at the notary
Completion takes place before a notary. You pay the balance of the purchase price and receive the keys. The notary witnesses the transfer of ownership and issues the public deed (escritura pública de compraventa).
Register at the Land Registry and pay taxes
Your solicitor registers the deed at the Registro de la Propiedad and pays the applicable transfer taxes on your behalf. This typically takes 2–6 weeks and finalises your legal ownership.
Taxes and purchase costs — what to budget
The "10–13% on top of the purchase price" rule of thumb breaks down as follows.
| Cost | Resale property | New-build property |
|---|---|---|
| Transfer tax (ITP) or VAT (IVA) | 6–10% (varies by region) | 10% IVA |
| Stamp duty (AJD) | Not applicable | 0.5–1.5% |
| Notary fees | 0.2–0.5% | 0.2–0.5% |
| Land Registry fees | 0.1–0.25% | 0.1–0.25% |
| Solicitor fees | 1–1.5% | 1–1.5% |
| Total estimated additional costs | ~8–13% | ~12–14% |
ITP rates by region (examples): Andalucía 7%, Valencia 10%, Madrid 6%, Catalonia 10%, Murcia 8%. Rates change periodically — confirm with your solicitor.
Getting a mortgage in Spain on an NLV
Spanish banks do lend to NLV holders, though the criteria are stricter than for employed residents. Key things to know:
Most Spanish lenders will offer up to 70% of the property value (compared with up to 80–90% for employed Spanish residents). This means you will need at least 30% as a deposit plus your 10–13% purchase costs — so for a €250,000 property, you need approximately €100,000+ in available funds.
Banks will want to see 12–24 months of regular income statements demonstrating consistent passive income — pension statements, investment income records or rental income from overseas property work well. Some international banks such as Sabadell and CaixaBank have dedicated non-resident mortgage teams with English-speaking staff.
Mortgage interest rates in Spain are currently variable (Euribor-linked) or fixed. Fixed rates of 3–4% are available at the time of writing (April 2026) for well-qualified buyers.
Rental income from your Spanish property
The NLV prohibits you from working or engaging in economic activities in Spain, which raises questions about renting out property. The position is nuanced.
Long-term residential lettings — renting your property to a tenant on a standard tenancy agreement — are widely regarded as passive investment income rather than an economic activity, and most immigration specialists consider this compatible with NLV status. You would declare this income on your annual IRPF tax return as a Spanish resident.
Short-term holiday rentals (platforms like Airbnb) are in a greyer area, particularly if you are actively managing bookings, cleaning and guest relations. This begins to look more like a service business. Many NLV holders avoid holiday letting entirely or hire a professional property management company to handle operations.
Always seek specific advice from a Spanish tax adviser and immigration specialist before renting your property out.
Ongoing property costs to budget for
Once you own a Spanish property, the main annual costs are:
IBI (Impuesto sobre Bienes Inmuebles) is the Spanish equivalent of council tax, set by the local municipality. For a typical apartment in a mid-sized city, expect €300–€800/year. Comunidad de propietarios (community fees) cover shared building maintenance — typically €600–€2,400/year depending on the building and facilities. Buildings insurance is strongly advised — around €200–€500/year. If you have a garden or pool, utility and maintenance costs add further.
For a property used as your primary residence, IBI is your main tax cost. Spanish wealth tax (Impuesto sobre el Patrimonio) may apply if your net wealth exceeds regional thresholds — typically €700,000+ for most regions.
Frequently asked questions about buying property in Spain on an NLV
Can you buy property in Spain on a Non-Lucrative Visa?
Do I need an NIE to buy property in Spain?
What taxes do you pay when buying property in Spain?
Can NLV holders get a mortgage in Spain?
Does buying property affect my NLV application or renewal?
Can I rent out my property on an NLV?
Do I pay tax on rental income from Spanish property?
What is a contrato de arras?
How long does buying property in Spain take?
Should I use a solicitor when buying property in Spain?
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