Buying Property in Spain as an American: Legal, Tax and Residency Guide

Key fact for US buyers: The United States taxes its citizens on worldwide income regardless of where they live. Owning Spanish property creates tax filing obligations in both Spain AND the US. There is no US-Spain income tax treaty covering real estate income. A US tax specialist familiar with foreign property is essential.

American Buyers on the Costa del Sol

The Costa del Sol has seen a growing number of American buyers in recent years, particularly from New York, Miami, Los Angeles, Chicago and Houston. Some are buying holiday homes; others are exploring residency options (Digital Nomad Visa, Non-Lucrative Visa, Golden Visa). A significant number are US nationals of Spanish or European origin returning to their roots.

Can Americans Buy Property in Spain?

Yes. There are no restrictions on US nationals buying property in Spain. You do not need to be a resident or have any prior connection to Spain.

Residency Options for American Buyers

As non-EU nationals, American buyers are subject to the Schengen 90/180-day rule if they want to stay in Spain. For longer stays:

Non-Lucrative Visa (NLV): for those with sufficient passive income or savings (approximately €28,000+/year for a single person) who do not plan to work in Spain
Digital Nomad Visa: for remote workers employed by US companies or self-employed with non-Spanish clients
Golden Visa: property investment of €500,000+ unencumbered

Spanish Taxes for American Buyers

On Purchase

ITP 7% (resale, Andalucía) or VAT 10% + AJD 1.2% (new build). Total additional costs approximately 10–13%.

As a Non-Resident Owner

Modelo 210 annually: imputed income tax if not rented; 19% on rental income if rented. Note: non-EU nationals cannot deduct expenses from rental income under Spanish rules — only EU/EEA residents can. This makes the tax burden on rental income higher for US nationals who are not Spanish residents.

Capital Gains on Sale

19% Spanish CGT on net gain. 3% buyer retention. Modelo 210 within 4 months.

US Tax Obligations on Spanish Property

The IRS taxes US citizens (and green card holders) on worldwide income. Owning Spanish property creates the following US obligations:

FBAR (FinCEN 114): if your Spanish bank account(s) exceed $10,000 at any point in the year
Form 8938 (FATCA): if Spanish financial assets exceed $50,000 (single) or $100,000 (married, filing jointly)
Rental income: must be reported on your US tax return (Schedule E). You can claim a Foreign Tax Credit (Form 1116) for Spanish tax paid.
Capital gains: US and Spanish CGT rates may differ. The Foreign Tax Credit should eliminate most double taxation, but the mechanics require professional advice.

No US-Spain Tax Treaty on Real Estate Income

The US-Spain tax treaty (1990) covers income tax but has limited application to real estate income and gains. There is no comprehensive treaty provision that eliminates double taxation on rental income in the way that some other bilateral treaties do. US tax specialists familiar with Spanish property are essential.

Buying Through an LLC or Trust

Some American buyers consider buying Spanish property through a US LLC or trust. This is generally inadvisable. A US LLC is not recognised as a legal entity under Spanish property law (Spain does not distinguish between an LLC and its members). A trust cannot own Spanish property in its own name. Spanish tax authorities look through these structures and attribute the asset to the individual. Take Spanish legal advice before structuring your purchase.