Buying Property in Spain as an American in 2026: Tax, Visa and Process

US citizens can purchase real estate in Spain with the same legal rights as Spanish nationals. There are no ownership restrictions or special permits required for Americans to buy property. What makes the American case distinct is the financial and administrative overlap between the US and Spanish tax systems: FATCA and FBAR reporting, citizenship-based US taxation, a non-resident income tax rate that is higher than the EU rate because the United States sits outside the European Economic Area, and a tax treaty whose Article 13 sends the right to tax Spanish property gains to Spain.

Do US citizens have any restrictions on buying property in Spain?

No. There are no citizenship-based limitations on owning real estate in Spain. Whether you are buying a penthouse in Marbella or a rural finca in Andalusia, you have the same rights to ownership, transfer and inheritance as a Spanish citizen.

The primary prerequisite is the NIE (Numero de Identificacion de Extranjero), the Foreigner Identification Number. You cannot sign the escritura (public deed) at the notary, pay taxes or open a Spanish bank account without it. For US citizens, the NIE is obtained either at a Spanish consulate in the United States or at a National Police station (Comisaria) in Spain, by filing Form EX-15 alongside the application. The Spanish Ministry of Foreign Affairs confirms that a NIE may be requested directly in Spain or at the consular office of the applicant’s country of residence. The supporting documentation requirements for several residency authorisations were reshaped by Real Decreto 1155/2024, which replaced the old Real Decreto 557/2011 and entered into force on 20 May 2025, so a buyer combining the purchase with a visa application will face a slightly different paper trail than pre-2025 guides describe.

How does FATCA impact US citizens buying in Spain?

The Foreign Account Tax Compliance Act (FATCA) is the most significant administrative hurdle for American buyers. Under a bilateral intergovernmental agreement between the US and Spain, Spanish financial institutions are required to identify US account holders and report their financial information directly to the IRS, as the US Treasury’s published agreement sets out.

If you open a Spanish bank account to pay taxes and utility bills, that account will be flagged for FATCA reporting. Separately, US taxpayers holding specified foreign financial assets above set thresholds must report them on IRS Form 8938 (Statement of Specified Foreign Financial Assets), which attaches to the annual tax return. The thresholds are tiered, and the IRS spells them out explicitly:

Filing status	Living in	Last day of tax year	Any time during year
Unmarried	US	USD 50,000	USD 75,000
Married filing jointly	US	USD 100,000	USD 150,000
Unmarried	Abroad	USD 200,000	USD 300,000
Married filing jointly	Abroad	USD 400,000	USD 600,000

The property itself is not a “financial account”, but the funds held in a Spanish account and any rental income deposited there fall under the reporting umbrella. The IRS also notes that FinCEN Form 114 (FBAR) is a separate filing for foreign bank accounts whose aggregate value exceeds USD 10,000, and you may need to file both. Failure to file Form 8938 can trigger a USD 10,000 penalty, rising to USD 50,000 for continued failure after IRS notice, plus a 40 per cent understatement penalty on tax attributable to non-disclosed assets, and a six-year statute-of-limitations extension.

How does FBAR interact with Modelo 720 once you become a Spanish tax resident?

A US citizen who crosses the 183-day threshold and becomes a Spanish tax resident faces a dual filing burden that no EU buyer carries. The FBAR (FinCEN Form 114) is filed electronically with the Financial Crimes Enforcement Network by 15 April (auto-extended to 15 October) for any foreign accounts whose aggregate value exceeded USD 10,000 at any point in the calendar year. FATCA Form 8938 attaches to the IRS return for specified foreign financial assets above the abroad thresholds. Spanish Modelo 720 is filed with the Agencia Tributaria between 1 January and 31 March, declaring foreign assets over EUR 50,000 in each of three blocks (bank accounts, securities and real estate), as our Modelo 720 guide explains in depth.

The three filings do not offset each other. A Marbella homeowner who is a US citizen tax-resident in Spain typically files all three: FBAR for the Spanish current account used to pay IBI and utilities, Form 8938 for the same account plus any Spanish brokerage holdings, and Modelo 720 for the US-side assets (US brokerage, US retirement accounts, US real estate) now held by a Spanish resident. The IRS confirmed in its comparison of Form 8938 and FBAR requirements that the two US forms have different definitions, scopes and thresholds, and that certain accounts may appear on one but not the other; Modelo 720 is a third, asset-declaration regime independent of both.

What are the Spanish tax obligations for non-resident US owners?

Once you own property in Spain, you enter the Spanish tax net as a non-resident. The Agencia Tributaria’s Non-Resident Taxation Manual sets out two principal obligations:

1. Rental income tax: if you rent out the property, you pay tax on the net profit.
2. Imputed income tax: Spain taxes non-residents on the theoretical rental value of a property kept empty for personal use. Even if you never rent the home and use it for two weeks a year, you must file Modelo 210 to pay tax on this deemed income, calculated as 1.1 per cent (or 2 per cent for older cadastral values) of the property’s cadastral value.

For non-EU residents, which includes Americans, the tax rate on this income is a flat 24 per cent. EU and EEA residents pay 19 per cent and can deduct expenses on rental income; non-EU residents cannot deduct expenses against rental income under Spanish domestic rules. Our guide to non-resident income tax and the annual property taxes for non-residents explain the mechanics in depth.

How does the US-Spain tax treaty handle double taxation?

The US-Spain double taxation treaty allocates taxing rights, but it carries a critical wrinkle for Americans that the AEAT’s own guidance explains plainly. The treaty contains a “reservation clause” under which the United States reserves the right to tax its citizens and residents as if the agreement were not in force. The AEAT states that “taxation borne in the United States by a resident of Spain based on the citizenship criterion does not entitle the resident to apply a deduction for international double taxation in the personal income tax in Spain”.

In practical terms for a non-resident American property owner: you pay the Spanish 24 per cent first, via Modelo 210. You then report the rental income on your US return and claim a Foreign Tax Credit for the Spanish tax paid, which is the mechanism the IRS provides to avoid double taxation. The relief flows from the US side, not the Spanish side, because Spain will not credit the citizenship-based US tax back to you. Our tax residency guide covers what changes if your days in Spain cross the 183-day threshold and you become a Spanish tax resident, and our double taxation agreements guide sets out how the treaty sits alongside the top five owner-country treaties.

How does the US-Spain tax treaty Article 13 treat the sale of Spanish real property?

Article 13 of the US-Spain income tax convention, as amended by the 2013 Protocol (in force from 27 November 2019), is the provision that decides which country taxes the gain when you sell. Paragraph 1 is a situs rule: gains derived by a resident of one Contracting State from the alienation of real property situated in the other Contracting State may be taxed in that other State. For an American selling a Marbella villa, that means Spain has the primary right to tax the gain, and the US side resolves the double taxation through the Foreign Tax Credit.

Paragraph 2 extends Spain’s taxing right to gains on shares in a company whose property consists directly or indirectly mainly of real property situated in Spain. Paragraph 4, as amended by the 2013 Protocol, extends it further to gains from shares or other rights that directly or indirectly entitle the owner to the enjoyment of immovable property situated in a Contracting State, which matters for Americans holding Spanish real estate through a company structure. Paragraph 6 closes the loop: gains on any property not caught by the earlier paragraphs are taxable only in the seller’s country of residence. The IRS publishes the full convention text and the amending Protocol among its Spain tax treaty documents.

How do the US and Spanish real-estate tax regimes compare side by side?

The two systems look similar in shape but differ sharply in rates, thresholds and mechanisms. The comparison a US buyer most often needs is between the retention on a Spanish sale and the withholding on a US sale by a foreigner, and between the three reporting regimes that apply once you hold assets across both countries.

Dimension	United States (US source)	Spain (Spanish source)
Buyer withholding on a property sale by a foreigner	FIRPTA: 15 per cent of the amount realised, remitted by the buyer to the IRS within 20 days; a USD 300,000 residence exemption applies if the buyer acquires it as a residence and the amount realised is USD 300,000 or less	3 per cent of the sale price retained by the buyer via Modelo 211 as a capital gains guarantee, settled against the 19 per cent flat non-resident CGT via Modelo 210 within four months
Non-resident tax on rental income	30 per cent flat on US-source rental income (non-resident alien, no treaty benefit); 0 per cent if the electing to be treated as engaged in a US trade or business under IRC 871(d)	24 per cent flat on gross rental income for non-EU/EEA residents, no expense deductions; filed via Modelo 210
Foreign asset reporting for residents	FBAR (FinCEN Form 114) for foreign accounts above USD 10,000 aggregate; FATCA Form 8938 above USD 200,000 year-end (single abroad) or USD 400,000 (joint abroad)	Modelo 720 for foreign assets above EUR 50,000 per block (bank accounts, securities, real estate), filed 1 January to 31 March
Estate tax on the property at death	Federal estate tax exemption of USD 15 million per individual in 2026 (USD 30 million married) under the One Big Beautiful Bill Act; the estate files Form 706	Inheritance and gift tax (ISD) is regional; Andalusia applies a 99 per cent bonification on the cuota for Group I (descendants under 21) and Group II (descendants 21+, spouses, ascendants) under Ley 5/2021 of 20 October
Treaty relief mechanism	Foreign Tax Credit on the IRS return for Spanish tax paid; the US-Spain treaty reservation clause means the US taxes its citizens as if the treaty were not in force	Spain does not grant double taxation relief for US citizenship-based tax; relief must come from the US side

The asymmetry that surprises most American sellers is the retention gap: when a foreigner sells US real estate, the buyer withholds 15 per cent of the gross price under FIRPTA, but when an American sells Spanish real estate the Spanish buyer withholds only 3 per cent. The Spanish retention is a guarantee against the 19 per cent non-resident CGT, not a withholding at the full rate, so the cash-flow drag at closing is materially smaller on the Spanish side. Our guide to the 3 per cent retention and non-resident CGT walks through the filing sequence.

A worked example: a US buyer purchasing a Marbella villa

Consider a US citizen, tax-resident in California, buying a EUR 1,500,000 villa in Nueva Andalucía as a second home, financing 50 per cent, and spending 60 days a year in Spain. The cross-border filing trail runs as follows.

At purchase: the buyer obtains a NIE from the Spanish consulate in Los Angeles, opens a Spanish bank account flagged for FATCA, pays 7 per cent ITP (EUR 105,000) on the resale, plus notary, Land Registry and lawyer fees bringing total acquisition costs to roughly 12 to 15 per cent on top of the price, per the breakdown in our cost of buying guide. The AML and KYC checks guide details what the Spanish bank scrutinises for a US buyer under FATCA and EU AMLR rules.

During ownership: the buyer files Modelo 210 each year for the imputed income tax (1.1 per cent of the cadastral value at 24 per cent), and if the villa is let for part of the year, Modelo 210 on the gross rental at 24 per cent with no deductions. On the US side, the buyer files FBAR for the Spanish account (aggregate value over USD 10,000 once the mortgage drawdown lands), and Form 8938 if the Spanish account plus any Spanish securities exceed the USD 200,000 year-end threshold for a single filer abroad. The buyer does not file Modelo 720 because they are not yet a Spanish tax resident.

On a sale after five years: suppose the villa sells for EUR 2,000,000, a gain of EUR 500,000. The Spanish buyer withholds 3 per cent (EUR 60,000) via Modelo 211. The seller files Modelo 210 within four months, settling the 19 per cent non-resident CGT (EUR 95,000) with the EUR 60,000 retention credited, paying the EUR 35,000 balance. On the US return, the seller reports the gain and claims a Foreign Tax Credit for the EUR 95,000 of Spanish tax paid, subject to the treaty reservation-clause mechanics. Article 13 paragraph 1 of the US-Spain treaty confirms Spain’s right to tax the gain because the property is situated in Spain, so the credit is available on the US side.

At death: if the villa is still owned, the US estate tax return (Form 706) is filed because the decedent is a US citizen, but the 2026 exemption of USD 15 million per individual shields the villa from federal estate tax for the vast majority of estates. On the Spanish side, if the heir is a Group I or II family member and an Andalusia resident, the 99 per cent bonification under Ley 5/2021 reduces the ISD cuota to roughly 1 per cent of the state scale; a non-resident heir generally cannot claim the regional bonification, which is the cross-border estate-planning point that most US-Spanish succession cases turn on.

Checklist: US-specific documents for a Spanish notary

US buyers should prepare a specific set of documents. Unlike EU buyers, US citizens often face more scrutiny regarding the origin of funds due to AML and FATCA rules.

Document	Purpose	Source
Valid US passport	Primary identification for NIE and deed	US State Department
NIE certificate	Mandatory ID for all legal and tax acts	Spanish consulate or National Police
Proof of funds	Bank statements showing source of wealth	US bank or brokerage
Apostilled documents	Legalisation of any US-issued certificates	Secretary of State
Spanish bank account	For payment of taxes and utility bills	Spanish bank

What is the total cost of purchase for a US buyer?

The purchase price is only the starting point. You should budget an additional roughly 12 to 15 per cent on top of the price to cover closing costs, per the breakdown in our cost of buying guide.

For resale properties, the primary cost is the ITP (Impuesto sobre Transmisiones Patrimoniales), which in Andalusia is a flat 7 per cent. For new builds, you pay IVA (VAT) at 10 per cent plus around 1.2 per cent AJD (stamp duty). Other costs include notary fees, Land Registry fees, independent lawyer fees (typically around 1 to 1.5 per cent plus VAT) and, where financed, mortgage deed AJD and bank arrangement fees. Our guide to property transfer tax in Andalusia breaks down the ITP and IVA mechanics.

Can a US citizen get a visa to live in the Spanish property?

Buying a property does not grant a US citizen the right to live in Spain, but two residence visas are the common routes. The Non-Lucrative Visa (NLV) requires proof of financial means equal to 400 per cent of IPREM, which the Spanish Embassy in Washington confirms is roughly EUR 2,400 a month in 2026 with the IPREM frozen at EUR 600 a month, plus EUR 600 a month per dependent at 100 per cent of IPREM. The NLV does not permit any work, including remote work. Our Non-Lucrative Visa guide details the application.

The Digital Nomad Visa (DNV) allows remote work for non-Spanish employers and requires income of roughly 200 per cent of the Spanish minimum wage, about EUR 2,442 a month in 2026 with the SMI raised to EUR 1,221 by Real Decreto 126/2026. Our Digital Nomad Visa guide covers the qualifying work and the Beckham Law tax deal. The Golden Visa was repealed on 3 April 2025 by Ley Organica 1/2025 and is no longer a route; our Golden Visa status guide explains what replaced it. Real Decreto 1155/2024, in force from 20 May 2025, reshaped the supporting documentation and procedural steps for several residency authorisations, so a buyer combining the purchase with an NLV or DNV application should expect a slightly different paper trail than pre-2025 guides describe.

How does the EU Entry/Exit System affect American visitors?

The EU’s Entry/Exit System (EES), launched on 12 October 2025 and live at all Schengen border points by 10 April 2026, replaced manual passport stamping with biometric registration for non-EU nationals, including US citizens. Each time you enter the Schengen area, the system records your biometric data (fingerprints and facial image) and automatically tracks your 90 days in any 180-day allowance. The European Union’s official EES page confirms the gradual rollout. For a US property owner visiting a holiday home, the practical effect is that your days in Spain are now digitally counted, removing the ambiguity of manual stamps and making any overstay immediately visible to border officers.