Invest in Spain Real Estate
Spain is one of the most accessible European markets for a Canadian buyer, and one of the most regionally variable. Taxes, rental licensing and even the purchase process differ by autonomous community, so the useful question is not "what is it like to buy in Spain" but "what is it like to buy in this particular region". Mathew Toussaint is a REALTOR® with eXp Realty of Canada and connects buyers with eXp professionals working in Spain.
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What you need before you can buy
Two things come before everything else. You need an NIE, the foreigner identification number, which is required to complete a property purchase, open a Spanish bank account and pay Spanish taxes. And you will be working with a notary, who formalises the deed, alongside an independent lawyer who acts for you. In Spain the notary is a public official rather than your representative, so engaging your own lawyer is not optional in practice.
The rest of the process is reasonably standard: a reservation agreement, a private purchase contract with a deposit, then completion before the notary and registration at the Land Registry.
Taxes and costs, and why the region matters
On a resale property you pay transfer tax, which is set by the autonomous community and therefore differs between Madrid, Andalusia, the Balearics and Catalonia. On a new-build you pay VAT plus stamp duty instead. On top of that, budget for notary fees, land registry fees, your lawyer and any mortgage costs. As an owner who is not resident in Spain you also have an annual non-resident tax obligation, which applies whether or not the property is rented out.
Spain has also been actively debating measures affecting property purchases by buyers from outside the EU. Proposals in this area have changed repeatedly, so confirm the current position for your situation before you commit rather than relying on an article or on this page.
Nothing here is tax or legal advice. Spanish property taxes, rental licensing and rules affecting non-EU buyers are set regionally and change. Confirm the current position with a Spanish lawyer and a tax adviser, and with a locally licensed agent, before you commit.
Madrid
Madrid is the domestic market rather than the holiday one. Demand comes from people who live and work there, which makes it behave more like a conventional big-city property market: steady long-term rental demand, a large professional tenant base, and a centre made up of distinct barrios rather than resort developments. Salamanca, Chamberí, Chamartín, Retiro and Centro each have their own character and price level, and the outer districts and suburbs offer very different entry points.
For an investor, Madrid is the Spanish market least dependent on tourism and least exposed to seasonal rental rules. For a lifestyle buyer it is a city purchase, not a beach one.
Málaga and the Costa del Sol
Málaga has changed considerably over the last decade, from a place people passed through on the way to the coast into a city with its own cultural and business draw. The wider Costa del Sol, running through Torremolinos, Benalmádena, Fuengirola, Marbella and Estepona, is the most established international buyer market in Spain, with a large existing stock of apartments and villas built for that audience.
The practical points here are tourist rental licensing, which is regulated in Andalusia and has been tightened in some municipalities, and community fees on resort developments, which can be significant and vary widely with the amenities. Ask for the community accounts, not just the fee number.
Mallorca and the Balearics
Mallorca is a supply-constrained island market with strong international demand, particularly from northern Europe. Palma, the south-west around Andratx and Santa Ponsa, the centre and the north-east each behave differently, and prices for comparable property vary sharply between them.
The Balearic Islands regulate holiday rental especially tightly. Tourist rental licences are limited, and in many buildings and municipalities holiday letting is simply not permitted. If rental income is part of your plan for a Mallorca property, establish whether a valid licence exists and is transferable before you agree a price, because it materially affects value.
Your eXp connection in Spain
Mathew is registered in Ontario with eXp Realty of Canada and does not practise in Spain. What he does is make the introduction to eXp professionals working in the Spanish market you are interested in, and stay involved so the process is legible from the Canadian side. eXp operates in Spain, so this is an introduction within one organisation rather than a cold referral.
Tell Mathew which part of Spain you are considering and he will connect you with the right people.
Frequently asked questions about buying property in Spain
Can a Canadian buy property in Spain?
Yes. Canadians can buy residential property in Spain. You will need an NIE number to complete the purchase, and you should engage an independent Spanish lawyer. Buying property does not by itself grant residency or the right to live in Spain full-time, and Schengen visitor limits apply to your stays.
What is an NIE and why do I need one?
The NIE is the foreigner identification number used for tax and legal purposes in Spain. You need it to complete a property purchase, open a bank account and meet your Spanish tax obligations. Apply for it early, because the timing can affect your completion date.
How much are the costs on top of the purchase price in Spain?
Budget for transfer tax on a resale, or VAT plus stamp duty on a new build, along with notary, land registry, legal and any mortgage costs. The transfer tax rate is set by the autonomous community, so the total differs between Madrid, Andalusia and the Balearics. Get the figure for your specific region and property before you budget.
Can I rent my Spanish property to tourists?
It depends heavily on where it is. Tourist rental licensing is regulated regionally and, in places, municipally. The Balearics in particular restrict holiday letting tightly, and licences are limited and not always transferable. Verify the licence position on the specific property before you buy if rental income matters to your plan.
Does buying property in Spain give me residency?
Not automatically. Spain’s investor residency route has changed and property purchase should not be assumed to qualify. If residency is your objective rather than a by-product, take immigration advice on the current rules first and let that shape the purchase, not the other way round.
Does Mathew handle the Spanish purchase himself?
No. He is registered in Ontario and does not practise in Spain. He connects you with eXp professionals working there and stays in the conversation so nothing is lost between the two sides.