PropertinspainBuying in Spain from abroad

Chapter

Buying property in Spain as an American

By Daniel WhitcombeReviewed by Marta Calderón IbáñezPublished Updated Stage 1: Decide

Quick answer

Americans can buy property in Spain with the same process as other foreigners. The complications are tax and reporting: Spanish non-resident tax on the home, US tax on worldwide income, the FBAR and Form 8938 for financial accounts, though foreign real estate held directly is not reportable on them. A US-Spain treaty applies.

Applies toUS citizens and green card holders who are buying or own a home in Spain.

On this page: 15 sections
  1. Buying
  2. The tax picture
  3. The treaty
  4. Reporting foreign accounts
  5. Time in Spain
  6. Paying from the United States
  7. Signing from a distance
  8. Mortgages and credit
  9. Owning for the long term
  10. Practical steps
  11. What we do not cover
  12. Keeping the file
  13. Reviewing as plans change
  14. Back to the section
  15. Other chapters in this section
Checked 26 October 2026by Marta Calderón Ibáñez. Claims on this page are tied to the sources listed at the end.

§ 1Buying

Americans can buy property in Spain. The process is the same as for any foreigner and is explained in the buying-process and legal-process sections: NIE, independent lawyer, checks, deed and registration. For non-EU buyers, properties in restricted zones may need military authorisation, which notaries and registrars check. The chapter for non-EU buyers explains the zones.

§ 2The tax picture

The tax picture has two layers. Spain taxes a non-resident owner on the home, even if empty, and on rent and gains. The Spanish tax agency applies the rate for non-EU residents, which is higher than the EU rate. See taxes for American buyers. The US taxes its citizens on worldwide income wherever they live. The IRS says citizens and residents abroad generally must file income, estate and gift returns, and that the filing test uses worldwide income. See US tax for Americans abroad.

§ 3The treaty

The IRS lists a US-Spain income tax convention of 1990 with a 2013 protocol. The US-Spain tax treaty explains what treaties do in outline and what to ask.

§ 4Reporting foreign accounts

An American who buys a home often opens Spanish bank accounts, which raises reporting duties. FBAR and Form 8938 explains the FBAR and Form 8938, their thresholds, and why foreign real estate held directly is not on them.

§ 5Time in Spain

Americans who want to live in Spain need a visa or permit. Visits are limited by the short-stay rule, and the property route to residence was repealed in 2025. Visas for Americans explains the position.

§ 6Paying from the United States

Funds move from a US account to a Spanish account, usually in euro. Ask your bank for its exchange rate and fees, and compare them with a specialist transfer firm that is authorised in your country. Keep statements that show where the money came from, since Spanish banks and notaries ask about the source of funds. Start early, because a transfer that stalls near the signing date can put the deposit at risk.

§ 7Signing from a distance

Many American buyers sign in person. Others give a limited power of attorney to their independent lawyer, signed before a notary or at a consulate. The legal-process section explains how to limit it. Time zones make calls awkward, so agree on email updates and a named contact for urgent questions.

§ 8Mortgages and credit

Financing is a separate question. Some Spanish banks lend to non-residents on their own terms, and a US lender will not usually take a Spanish home as security. The mortgages section explains the options. Whatever you choose, check how interest and loan costs are treated in the US with your adviser.

§ 9Owning for the long term

Yearly returns continue while you own the home, a sale brings its own taxes and a retention, and an inheritance follows Spanish rules for property in Spain. For Americans, estate and gift rules at home also apply, so review a Spanish will and a US plan together when your family or plans change.

§ 10Practical steps

Appoint an independent lawyer in Spain. Appoint a tax adviser who knows both US and Spanish rules. Keep records of the purchase price in dollars at the exchange rate on the date, since the US reports in dollars. Plan the transfer of funds, and keep documents for both tax systems.

§ 11What we do not cover

We do not give US tax advice. The IRS pages quoted here are the reference, and the tax adviser decides how they apply to you. The questions below are the ones to put to that adviser.

§ 12Keeping the file

Keep one folder with the deed, the Spanish returns, the receipts, the exchange rates and a log of your days. Your advisers in both countries will ask for the same documents each year, and they are also the proof of cost if you sell.

§ 13Reviewing as plans change

Revisit the position when your family, your income or your plans for time in Spain change. A new residence, a sale or a death can alter the tax and the legal steps, and early advice costs less than a correction.

§ 14Back to the section

The chapter on buying by nationality explains how buying differs by nationality.

§ 15Other chapters in this section

British buyers in detail explains buying as a British citizen since Brexit and more on Canadian buyers explains buying as a Canadian.

More on Australian buyers explains buying as an Australian and more on EU and EEA buyers explains buying as an EU or EEA citizen.

More on non-EU buyers explains the rules that differ for non-EU buyers.

FAQRelated questions

Can Americans buy property in Spain?

Yes. There is no general bar on foreign buyers, and the process is the same as for other foreigners. Special authorisation can be needed in military-zone areas for non-EU buyers, which a lawyer checks.

Do I report the Spanish home to the IRS?

The IRS comparison table marks foreign real estate held directly as not reportable on Form 8938 or the FBAR. Income from it, and sales, are different matters. Ask a US tax adviser how to report rent or a gain.

Do I have to file US returns while living in Spain?

Usually yes. Americans abroad stay inside the US system, and the filing test looks at income from everywhere. Credits and the treaty ease double tax, yet the return itself is still due.

Sources

About this page

Written by

Daniel Whitcombe

Writer, buying and living in Spain

Daniel writes the chapters on how a purchase runs, who can buy, where to buy and how to check a location. He writes for readers who are new to the Spanish system and prefers plain explanations that name the official source. He is not a lawyer or adviser.

Reviewed by Marta Calderón Ibáñez, chief editor and source editor, 26 October 2026. Checked: Figures and rules checked against the official texts listed below

Found an error? Report it. Each report gets a dated reply, and confirmed corrections are logged on the updates page.

Legal note. How the process works in general. It is not legal advice, and it never replaces an independent Spanish lawyer acting for you.