What does a Non-EU Property Buyer on the Costa del Sol need to know?

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My fellow Brits, for the purposes of Spanish residency issues, you are regarded as  Non-Europeans (Non-EU). The same classification is also given to Americans, Canadians, those hailing from UAE, Australia, New Zealand etc. As a result, Non-EU buyers often have additional concerns when compared to nationals of EU member states when purchasing a property in the Marbella region.

So, below we have a 9 point checklist that briefly illustrates: What does a Non-EU Property Buyer on the Costa del Sol Need to Know?

1. NIE Number (Foreigner Identification Number)

• Mandatory for any property purchase in Spain. If there is more than one person comprising “the Buyer” each person will require an NIE personal to them.

• Needed for signing the title deed, paying taxes, and setting up utilities.

• Can be obtained via the Spanish consulate in their home country or locally in Spain (your trusted local Spanish lawyer (Abogado) should be asked to handle).

2. Bank Account in Spain

• A Spanish bank account is usually required to pay purchase taxes, utilities, and community fees.

• Some banks may request additional documentation from non-EU buyers such as proof of funds, tax returns, sources of income.

3. Financing Considerations

• Spanish banks typically lend less to Non-EU residents (around 60–70% loan-to-value is usual).

• Interest rates may be slightly higher for Non-EU residents.

• Proof of income and international financial documents will required.

4. Taxes & Costs

• Transfer Tax (ITP) or VAT + Stamp Duty depending on resale vs. new build.

• Notary & Land Registry fees, legal fees (usually 1% of purchase price).

Non-EU residents are also subject to:

• Wealth Tax (though allowances apply).

• Non-resident Income Tax on potential rental income, even if not rented. Please note the recent change to the calculation upon which tax will be due – please see our previous MPL post, here: https://marbellapropertylawyers.com/great-news-for-brits-who-own-a-marbella-property/

5. Visa Opportunities

Broadly, Non-EU residents are permitted to remain in the EU (including Spain) for a period not exceeding 90 days in any 180 day period. Year round living in such circumstances mag not be feasible. Of course, for the purchaser of a property intended to be used as a holiday home such matters will be academic but Visa solutions do exist in given cases. 

However, if Non-EU buyers can demonstrate their earnings over a given threshold and hold acceptable medical insurance they may apply for what’s called a “Non-Lucrative Visa”. Typically, such a Visa would suit a retired person with a demonstrable income via pensions and investments. 

Alternative, for those seeking to continue earning their living they may also want to consider if they qualify for a so-called “Digital Nomad Visa” – please see our previous MPL post here: https://marbellapropertylawyers.com/post-brexit-spanish-solution-for-on-line-brits/

6. Currency Exchange & Transfers

• Transferring large sums internationally can carry risks and costs.

• Using a regulated FX company or bank with hedging options can reduce exposure to exchange rate swings.

7. Inheritance & Succession Rules

• Spanish heirship laws may apply.

• Non- EU property buyers should take tailored legal + tax advice on structuring ownership (personal, company, joint ownership).

8. Property Buying Process 

Understand Purchase Costs Expect to add 10–13% on top of the agreed purchase price for:

• Property transfer tax or VAT (IVA)

• Notary & land registry fees

• Legal & administrative costs

 Due Diligence Is Critical

Hire an independent, local and experience qualified Abogado (lawyer)(not linked to the seller) to:

Verify property ownership;

Check for debts, planning issues or irregularities; and

To ensure the property is properly legally registered.

9 Practical Property Matters

• Community of Owners: Rules, fees, and restrictions (rentals, renovations, pets) may apply.

• Utility setup: Water, electricity, internet require NIE + Spanish bank account.

• Power of Attorney: Extremely helpful for overseas buyers to manage the entire process without multiple trips.

Bottom line: With the right legal guidance, buying as a non-European in Marbella is very secure — but planning for residency options, taxes, and inheritance from the start makes the investment safer and smoother.

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Should you be interested in discussing the process involved in buying a property in the Marbella region, we would be delighted to assist you. We have an experience-qualified and best of breed Associates Network comprising professionals focused on the Marbella region’s property market. Their services include property search, mortgages, legal and tax services, visas, surveying, insurance and currency brokerage. We have done the leg work, testing the quality of our Associates Network and now feel confident in recommending their services to you.

Please note that our posts are for general interest. There is no substitute for proper advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law. Nothing contained in this article should be seen or taken as legal, tax or financial advice and cannot be relied upon as such. Neither the writer nor the publisher accepts any responsibility for liabilities arising as a result of reliance upon the information given. All details have been reasonably fact-checked and all efforts have been taken to ensure that facts are accurate as at the date of publication.

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My details: Mark FR Wilkins, during usual business hours on +34 600 343 917 or e-mail me at mark@therightsgroup.com

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