Buying property in Spain as a non-resident: NIE, taxes and off-plan guarantees on the Costa Cálida and Costa Blanca

Buying property in Spain as a non-resident is a well-ordered legal transaction, but one subject to formalities, taxes and guarantees that you should understand before committing any payment. Whether you are buying a second home on the Costa Cálida —the coast of the Region of Murcia— or on the Costa Blanca —the province of Alicante—, you go through the same stages (tax identification, land registry checks, contract, deed and taxes), but with different regional tax rates and, for new-build property, specific rules protecting the buyer. This guide sets out those key points for the international buyer.

What is the NIE and why is it essential to buy?

The NIE is the first step, and the purchase cannot be completed without it. The Número de Identidad de Extranjero (NIE) is the tax identification number Spain assigns to every foreigner carrying out acts with economic effect in the country: signing a deposit contract, executing the deed before a notary, paying taxes or opening a bank account. Its regime is set out in the Immigration Act Regulation, approved by Royal Decree 557/2011, whose article 206 defines it as a personal, unique and exclusive number.

A non-resident may apply for it at the Spanish Consulate in their country of residence or at the Immigration Offices in Spain. Through a poder notarial —a notarial power of attorney authorising a third party to act on the buyer's behalf— the entire process can be delegated to a local representative, so that the transaction is closed without the need to travel.

The prior land registry check: the nota simple

Before handing over any money, you must verify who owns the property and what charges affect it. The nota simple is the document issued by the Land Registry (Registro de la Propiedad) evidencing ownership, the registered description of the property and the charges —mortgages, seizures, easements— that burden it. Under the Mortgage Act (Ley Hipotecaria), registration confers publicity and protects whoever contracts relying on its content, which is why the nota simple is the starting point of every check.

This verification is the core of the property due diligence —the legal review of the property before signing. The full checklist (debts to the community of owners, unpaid IBI, planning status or energy certificate) is set out in our legal guide for the international buyer.

The deposit and the sale contract

The transaction usually begins with a deposit contract before the notarial deed. Arras are a sum the buyer pays as a deposit; their most common form, the arras penitenciales under article 1454 of the Civil Code, allows either party to withdraw: the buyer loses the sum paid and the seller, if it is the seller who withdraws, returns double. The characterisation of the contract —confirmatory, penal or penitential deposit— produces very different consequences and should be set out clearly in writing, a point we analyse in detail in the guide linked above.

How much tax will you pay: the Costa Cálida versus the Costa Blanca

The main purchase tax depends on whether the property is second-hand or new-build, and on the autonomous community where it is located. This is where the Costa Cálida and the Costa Blanca diverge.

On second-hand property you pay Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP), at the regional rate, on the Cadastre reference value:

• Region of Murcia (Costa Cálida): general rate of 7.75%, following the reduction introduced by Law 3/2025 of 23 July, with effect from 25 July 2025 (previously 8%).
• Valencian Community (Costa Blanca): general rate of 9% up to 1,000,000 euros and 11% on the excess, under Law 5/2025 of 30 May, with effect for taxable events accruing from 1 June 2026 (previously 10%).

On new-build property you pay VAT (IVA) at 10% —the reduced rate under the Value Added Tax Act (Law 37/1992)— plus Stamp Duty (Actos Jurídicos Documentados, AJD), also at the regional rate: 1.5% in the Region of Murcia and 1.4% in the Valencian Community. ITP and AJD are self-assessed using form Modelo 600.

Note that the reduced rates for a main residence do not, as a rule, reach the non-resident buying a second home: the general rate applies. Notary and registry costs are added to these taxes, so you should budget between 10% and 14% of the price in additional costs.

Buying off-plan: the guarantee of amounts paid in advance

When you buy off-plan —a property not yet built or under construction—, the law requires the developer to guarantee the return of the sums the buyer pays on account. This is an essential protection: without it, the developer's default or insolvency would leave the buyer with neither the property nor the money.

The first additional provision of the Building Act (Ley 38/1999 de Ordenación de la Edificación, LOE), as worded by Law 20/2015 of 14 July —which repealed the earlier Law 57/1968 with effect from 1 January 2016—, requires the developer to guarantee, from the building licence onwards, the return of the advance payments plus statutory interest, by means of a joint bank guarantee (aval solidario) or a surety insurance policy (seguro de caución), and to deposit those funds in a special, separate account.

Under the earlier legislation the Supreme Court built a rigorous protective doctrine that informs the current regime: the judgment of the Supreme Court (Full Civil Chamber) of 21 December 2015 (no. 733/2015) held the credit institution liable to the buyer where it accepts the advance payments into an account without requiring the developer to open the special account and provide the guarantee. In practice, before handing over any amount on account you should demand and verify the corresponding guarantee or insurance.

The taxes that follow: the Modelo 210 and the 3% retention on a non-resident seller

The purchase does not exhaust your tax obligations. As an owner, the non-resident files form Modelo 210 for Non-Resident Income Tax (IRNR) each year —which taxes an imputed income for mere ownership if the property is not let— and pays the municipal IBI; the detail of these annual obligations is in the guide linked above.

There is also an obligation that falls on the buyer when the seller is a non-resident: to withhold 3% of the price and pay it to the Tax Agency within one month using form Modelo 211, under article 25.2 of the consolidated Non-Resident Income Tax Act, approved by Royal Legislative Decree 5/2004. The retention is not optional: if the buyer fails to apply it, the buyer becomes jointly liable for the tax the non-resident seller did not pay. It must therefore be anticipated in the price negotiation and reflected in the contract.

Why it pays to have your own legal counsel

A buyer acting without their own legal advice is exposed to the interests of the other parties. The notary authenticates the deed and reviews its formal legality, but does not negotiate on your behalf or assess whether the transaction makes economic sense; the agency and the developer, for their part, have a legitimate interest in closing the sale. Having a lawyer who acts for you alone ensures that someone looks solely to the buyer's interest: checking ownership and charges, characterising the deposit, reviewing the new-build guarantee, quantifying the regional taxes and coordinating the deed and the Registry. That role —defending the buyer, independently of seller and developer— is the whole purpose of having your own legal counsel.

Frequently asked questions

Do I need to be in Spain to buy?

No. With an NIE and a power of attorney granted to a representative, the transaction can be completed remotely, including signing the deed.

Does buying a property give me the right to live in Spain?

No. The residence authorisation by real estate investment —the Golden Visa— was abolished by Organic Law 1/2025, with effect from 3 April 2025. A purchase no longer generates, by itself, any residence right.

What is the tax difference between the Costa Cálida and the Costa Blanca?

On second-hand property, the Region of Murcia applies a general ITP rate of 7.75% and the Valencian Community 9% (11% above 1,000,000 euros). On new-build, VAT is 10% in both and Stamp Duty is 1.5% in Murcia and 1.4% in the Valencian Community.

What happens if the developer does not deliver an off-plan property?

The bank guarantee or surety insurance required by the first additional provision of the LOE must return to the buyer the amounts paid in advance plus statutory interest.

If I buy from a non-resident seller, do I have to withhold anything?

Yes. The buyer must withhold 3% of the price and pay it using form Modelo 211 within one month; failing to do so, the buyer becomes jointly liable for the seller's tax.

How we help you buy your home in Murcia and Alicante at RCM Legal

There are friction points in these transactions that the international buyer rarely notices until they surface: coordinating the NIE, the bank account and the power of attorney from abroad; regional tax rates that changed in 2025 and 2026 and differ between the Costa Cálida and the Costa Blanca; the need to verify the bank guarantee or insurance before paying any off-plan instalment; and the 3% retention when the seller does not reside in Spain, the omission of which shifts the debt onto the buyer. Acting without your own representation is precisely what turns these details into a problem.

At RCM Legal we act for non-resident buyers throughout the transaction, in English and Spanish, as property lawyers in Murcia and Alicante for non-residents: obtaining the NIE, land registry due diligence, negotiating and reviewing the deposit, verifying the guarantees on off-plan purchases, calculating the taxes, and handling the deed and registration, on both the Costa Cálida and the Costa Blanca. Where the purchase forms part of wider estate planning, we coordinate it with the non-resident's succession. You can read about our real estate practice and, if you are considering a purchase in the Region of Murcia or in Alicante, tell us about your case.