The Golden Visa: what happened and what it means
Spain's residential property Golden Visa — which granted EU residency to non-EU nationals who purchased property worth €500,000 or more — was abolished in April 2025. The programme had been under political pressure for several years, with critics arguing it contributed to housing unaffordability in major cities. The Spanish government ultimately closed it to new applicants.
Existing holders retain their residency status under transitional provisions, but new buyers can no longer obtain EU residency through a Spanish property purchase. This is a material change for investors who were primarily motivated by the visa pathway.
Golden Visa is closed — do not rely on it
The Spanish residential property Golden Visa is no longer available to new applicants. Any agent or developer advertising "Golden Visa" as a benefit of purchasing Spanish property is either misinformed or misleading you. Verify with a Spanish immigration lawyer before making any assumptions about residency rights.
What Spain still offers international investors
The closure of the Golden Visa removes one reason to buy in Spain — but it does not remove the underlying fundamentals. Spain's property market offers several genuine advantages for international buyers:
No foreign ownership restrictions
Non-EU nationals can purchase Spanish property freely, with no minimum price, no restriction on land type, and no quota on foreign ownership. EU nationals have the same rights as Spanish citizens.
Strong holiday and long-term rental demand
Spain is the world's second most visited country. Coastal properties in the Costa del Sol, Costa Blanca, and the Balearics generate significant short-term rental income — particularly in July and August when occupancy regularly exceeds 90%. Long-term rental demand in Barcelona and Madrid is equally resilient.
EUR-denominated asset with Schengen access
Purchasing in Spain provides a EUR-denominated store of value — relevant for investors seeking diversification away from USD or AED. Property ownership does not grant residency, but owners can visit Spain (and the Schengen area) freely under the 90-days-in-180 tourist rule.
Capital growth track record in key areas
Costa del Sol prime locations — Marbella, Estepona, Benahavis — have seen consistent capital appreciation over the past decade, driven by a shortage of quality new supply and sustained demand from Northern European and Middle Eastern buyers. Barcelona's property market recovered strongly post-pandemic and has remained resilient despite rental regulation changes.
The purchase process
Obtain a NIE number
A NIE (Número de Identificación de Extranjero) is a tax identification number required for any property transaction in Spain. Apply at a Spanish consulate or in Spain at a Foreigners' Office (Oficina de Extranjeros). Processing takes 2–6 weeks.
Open a Spanish bank account
A Spanish account is required to pay taxes, utility bills, and community fees. Most major Spanish banks (Santander, BBVA, CaixaBank) have English-speaking international client teams.
Instruct a lawyer and conduct due diligence
Your lawyer (abogado) will check the Nota Simple (land registry extract) for encumbrances, verify planning status, confirm community fee arrears are clear, and confirm no outstanding mortgage on the property. Always use an independent lawyer — not one referred by the developer or selling agent.
Sign Reservation Contract and pay deposit
A reservation (Contrato de Reserva) removes the property from sale while due diligence is completed. Typically €3,000–€10,000, refundable if legal issues are found. A preliminary purchase contract (Contrato de Arras) follows — this commits both parties, with a 10% deposit.
Complete at Notary
Completion takes place before a Spanish Notary Public (Notario). The title deed (Escritura Pública de Compraventa) is signed, the full purchase price is paid (bank draft or wire transfer), and taxes are paid within 30 days. The property is then registered in your name at the Land Registry.
Purchase costs in Spain
Transfer Tax (ITP) — resale properties
6–10% depending on the Spanish region (Comunidad Autónoma). Andalusia (Costa del Sol) charges 7%; Catalonia (Barcelona) charges 10%.
VAT (IVA) + Stamp Duty (AJD) — new build properties
10% IVA + 1.5% AJD in most regions. New builds from developers are subject to VAT rather than transfer tax.
Notary fees
0.5–1% of purchase price, scale-linked
Land Registry fees
0.1–0.5% of purchase price
Lawyer fees
1–1.5% of purchase price — non-negotiable for proper due diligence
Annual IBI (Impuesto sobre Bienes Inmuebles)
Spain's equivalent of council tax — typically €500–€3,000 per year depending on property size and location
Total purchase costs for a non-EU national buying resale property typically run 10–14% of purchase price — significantly higher than Dubai and more than Malaysia. Factor this into return calculations from the outset.
Rental income tax for non-residents
Non-resident property owners who rent out Spanish property are subject to IRNR (Impuesto sobre la Renta de No Residentes). EU/EEA residents pay 19% on net rental income (after deducting allowable expenses). Non-EU residents pay 24% on gross rental income — with no deduction for expenses. This is a meaningful difference: an investor from the UAE, Singapore, or Malaysia pays tax on the full rent received, not the profit.
Spain also levies an Imputed Income Tax on non-resident owners of property that is not rented out for the full year. Even if you leave a property vacant for six months, you pay income tax on a notional "deemed income" from it. This is calculated at 1.1–2% of the cadastral value and taxed at 24% for non-EU residents — a cost many new buyers are surprised by.
Quarterly returns are required for rental income. Most non-resident owners engage a Spanish gestor (tax agent) to file on their behalf — typical cost €300–€600 per year.
Rental yields and regulation risk
Prime Costa del Sol properties (Marbella, Estepona, Benahavís) generate gross holiday rental yields of 4–7%. The best results are achieved by properties within 500m of the beach with a pool — consistently the most in-demand for short-term lets.
Barcelona and Madrid have introduced significant short-term rental regulation in recent years. Barcelona has effectively banned new tourist licence applications across much of the city since 2028. Madrid's regulations are less restrictive but evolving. If rental income is a primary objective for a city apartment, verify the current licensing position in that specific district before purchasing — it can vary by neighbourhood.
The Costa del Sol and Costa Blanca remain significantly more permissive for short-term rental, with tourist licences (Vivienda de Uso Turístico) still widely available — though regional governments periodically tighten rules.
Spain vs Dubai for the international investor
Ownership costs
Spain
High — 10–14% acquisition costs, 24% rental tax, imputed income tax
Dubai
Moderate — 4% DLD (often developer-paid), 0% income tax, 0% CGT
Rental regulation
Spain
Increasingly restrictive in cities; coastal areas better
Dubai
Highly permissive — 0% rental income tax, short-term rental well-established
EU residency
Spain
Not available via property (Golden Visa closed)
Dubai
Golden Visa from AED 2M — 10 years renewable
Lifestyle
Spain
Unmatched for Mediterranean lifestyle, Schengen access
Dubai
High-specification, tax-free, cosmopolitan — different lifestyle profile
Market liquidity
Spain
Good in prime tourist zones; slower in secondary markets
Dubai
Very high — deep international buyer pool
Entry price
Spain
EUR 200K+ for coastal entry; EUR 500K+ for prime Marbella
Dubai
AED 700K+ (approx. USD 190K) for entry; significant range upward
Spain is best suited to buyers who want a personal-use lifestyle property with incidental rental income, rather than a pure yield play. For investors who primarily want returns — with minimal tax friction, a residency pathway, and high liquidity — Dubai continues to offer a more favourable structure.
Disclaimer
Spanish tax and rental regulation changes frequently. This guide reflects information available as of June 2026. Always engage a qualified Spanish abogado and tax adviser before purchasing. The Golden Visa programme status should be independently verified with a Spanish immigration lawyer.