Which coast of Spain to choose for buying a property

A state with a population of 48 million people offers a clear algorithm for those who want to understand how to obtain Spanish citizenship. The Law on Foreigners (LOEX) has systematised all channels – from naturalisation to investment. The period of residence, the amount of capital, the legality of the source of income, the level of integration – each criterion affects the result. Practice shows: the key to the passport is hidden in the details.

Property investments: capital works for status

Citizenship is not granted directly for the purchase of assets. The golden visa mechanism opens a direct path to residence permit and then to permanent residence and naturalisation. Since 2013, the investor admission programme offers a simplified procedure if the applicant has purchased a home for €500,000 or more without loans. This amount is sufficient for an apartment in Alicante, a townhouse in Malaga or a penthouse in Valencia.

The path includes:

• the purchase of the property;
• processing the application through a consulate or in-country;
• processing of an investor visa with the right to work;
• renewal of the residence permit after two years;
• applying for permanent residence in five years;
• formalisation of citizenship status after 10 years.

Thus, how to obtain Spanish citizenship through property investment is a task with a predictable outcome and a clear payback period.

Naturalisation: the law through patience

The longest, but massive way. The law establishes 10 years of legal and continuous residence as a condition for obtaining citizenship. For natives of Latin America, Portugal and a number of countries, the period is reduced to 2 years, in case of marriage to a citizen of the country – to 1 year. Among all the options for obtaining Spanish citizenship, the path through naturalisation is used more often than others.

Key Terms:

• Having a residence permit or long-term residence;
• confirmation of integration;
• passing language (DELE A2) and culture (CCSE) examinations;
• renunciation of previous citizenship (unless otherwise provided for).

The procedure is governed by Articles 21 and 22 of the Civil Code. The Ministry of Justice processes up to 150,000 applications per year, with approval rates varying by region.

Marriage and descent: the shortest route

Not everyone knows how to obtain Spanish citizenship through marriage, but this channel is one of the fastest. A year of cohabitation with a citizen of the country in a registered marriage is enough. At the same time, it is required to live in Spain legally.

The right of descent applies – for children born to Spaniards or adopted under the age of 18. The law takes into account special cases – being in the country at the time of birth, if both parents are stateless.

How to obtain Spanish citizenship: ways

The variety of legal mechanisms allows you to choose an approach depending on your goals, time and budget. The system covers:

1. Naturalisation – if you have lived for 10 years or more with permanent residence.
2. Property investment – through residence permit, residence permit and subsequent filing.
3. Conclusion of marriage – with confirmed cohabitation.
4. Birth or adoption – if there is direct descent.
5. Study or work – after the extension of the temporary residence permit.
6. Refugee – with asylum and integration conditions.
7. Citizenship by descent – if you have Spanish ancestors.

Each of these paths demonstrates how to obtain Spanish citizenship based on legal rules and life circumstances.

Documents and requirements

Migration authorities have specific document requirements for Spanish citizenship. A typical package includes:

• proof of legal residence;
• NIE – foreigner’s identification number;
• examination certificate;
• a criminal record certificate from Spain and the country of origin;
• a certificate of income or tax return;
• health insurance;
• completed application form and fees paid.

The system supports electronic feeding via the Mercurio platform, which halves the processing time. Correctly completed documents for Spanish citizenship shorten the path to the final decision by 4-6 months.

Causes of failures

The Department of Justice strictly monitors background violations. Statistics show that denial of Spanish citizenship status is most often explained by:

• incomplete or inaccurate documentation;
• lack of legal income;
• long trips out of the country;
• by refusing to take the exam;
• a criminal record or an administrative record.

Judicial practice demonstrates: in 70% of cases appeals after refusal remain unsuccessful. Mistakes in the CV are worth several years of waiting.

Peculiarities of the dual status of a citizen

Dual citizenship in Spain is only available for a limited number of countries. Latin America, Portugal, Andorra, Philippines – citizens of these countries retain both passports. For the rest, a renunciation of the previous citizenship is required.

Spanish law strictly controls the retention of a second passport without notification. Attempts to conceal the fact will result in the cancellation of naturalisation. It is therefore important to prioritise and understand the consequences of your choice.

Examinations: the key to recognition

The state requires mandatory language (DELE A2) and culture (CCSE) tests. The Instituto Cervantes certifies the results. The national average pass rate is 92%. The exam lasts 45 minutes and includes knowledge of the Constitution, history, way of life, geography, symbols and rights.

Candidates who have studied the tests in advance pass the threshold in 95% of cases. Preparation takes 2-3 months. Without passing the exam, it is impossible to explain how to obtain Spanish citizenship even with all other conditions fulfilled.

Residence, residence, residence permit and permanent residence: the basis for a future passport

The path to Spanish citizenship always starts with legal residence. The first step is a temporary residence permit, valid for up to 1 year, with the possibility of extension. After 5 years – a permanent residence permit, which gives full rights, except for electoral rights. The residence permit status opens a direct path to applying for a passport.

Residence requires physical presence and active participation in the social and fiscal life of the country. Successful adaptation and a stable income are mandatory parameters. In 2023, the minimum subsistence level was €600 per month per person, equivalent to an annual income of €7,200 or more. This data is used to assess financial solvency.

Everyone who realises how to obtain Spanish citizenship should consider the residence permit and residence permit not as a formality, but as a foundation.

Law and practice: what influences the decision

Formally, the law defines the process, but administrative practice clarifies the details. For example, the legislation does not specify that long journeys abroad are an obstacle. However, if the migration services record absence of more than 90 days per year without a valid reason – the application is rejected.

The law “on citizenship through naturalisation” does not set out a specific list of proof of integration, but in practice it is required:

• language skills;
• social engagement;
• the existence of a labour contract;
• participation in the tax system;
• absence of offences.

Therefore, you should not limit yourself to the formal fulfilment of conditions. To understand exactly how to obtain a Spanish passport, it is necessary to take into account both the letter of the law and real cases.

How to obtain Spanish citizenship: conclusions

The path is built sequentially: residency, residence, integration, exams, filing. When choosing how to obtain Spanish citizenship, it is important to consider each stage. Investment, marriage, origin accelerate the process, but do not replace preparation. Civil status is formalised only with a clear strategy.

Buying property in the Kingdom is a serious investment, but the costs do not end there. Many people face an unexpected financial burden, because the taxation system depends on many factors: region, type of property, status of the owner. Taxes for property owners in Spain include one-time payments at purchase, annual fees and special charges, which can vary greatly even in neighbouring provinces.

In Spain, there are fees that owners learn about after the transaction. For example, the luxury tax applied to expensive property, or increased rates for non-residents. Ignorance of the intricacies of the fiscal system can lead to overpayments or even fines for late filing of declarations. Let’s find out what contributions property owners have to pay in the Kingdom, how they are calculated and whether they can be optimised.

Tax for future owners – on the purchase of property in Spain

Buying a property is not only a major investment, but also a compulsory fiscal contribution that depends directly on the region, the type of housing and the legal status of the buyer. In Spain, the tax system is organised in such a way that the purchase of a home is accompanied by different types of fees. Therefore, understanding the obligations in advance helps to avoid unexpected costs.

Varieties of purchase taxes:

• new build (purchase from a property developer) – subject to VAT (IVA), the rate of which is 10% of the value of the property. This is a fixed fee that applies throughout Spain.
• Secondary property – subject to ITP tax (Impuesto sobre Transmisiones Patrimoniales), the rate of which depends on the region and varies between 6-10%.

How tax is calculated

The amount of tax payments depends on the region. For example:

1. In Catalonia, the ITP rate is 10%, which means that if you buy a flat worth €400,000 the fee will be €40,000.
2. In Madrid it is lower at 6%, the tax for the same value of the property would be 24,000 €.
3. In Andalusia, the fiscal multiplier can be as high as 8 per cent, in Valencia 10 per cent.

The regional distinction makes the choice of purchase location a strategic point: buying a home in one region can result in significant tax savings. It is important to take into account: if the purchase is made through a legal entity, the rate may differ.

What else is important to know about property purchase tax in Spain

1. The tax is payable in a single instalment at the time of the transaction. After the tax is paid, the buyer is able to register the property.
2. Late payment can result in penalties and additional interest.
3. Documents confirming the payment of the fee should be kept, as the fiscal authorities may request them in the event of an audit.
4. The tax is the same for residents and non-residents: it does not matter whether the buyer is a Spanish citizen.

Consequently, the purchase levy is an unavoidable expense that must be considered when planning your budget. Ignorance of the nuances can lead to unexpected expenses, so it is important to clarify in advance the rates in the desired region.

Property taxes for non-residents in Spain

Non-local property owners face additional taxation. The main one is IRNR, levied on income derived from property (from renting out).

Tax difference:

• residents pay income tax (IRPF) on a progressive scale (from 19% to 45%);
• non-residents from the EU pay a fixed IRNR tax Spain – 19%;
• non-residents from other countries pay 24%.

Example: if a flat is rented for 1000 € per month, the tax will be 190 € for EU residents and 240 € for others.

Ignoring taxation risks penalties. Spanish fiscal authorities actively monitor property owners through bank transactions and rental contracts.

How much to pay when buying a second-hand car

The purchase of secondary property in Spain is accompanied by the mandatory payment of ITP tax by the future owner. This is a charge levied on the buyer who purchases a home from a private individual rather than a property developer. Unlike a new flat or villa, where VAT of 10% is applied, secondary market apartments are subject to a duty, the percentage of which varies from region to region.

Average ITP rates by region:

1. Catalonia, Valencia – 10%.
2. Madrid – 6%.
3. Andalusia – 8%.
4. Galicia – 9%.
5. Balearic Islands – 8 per cent.

How tax is calculated for property owners in Spain

Let’s say a buyer buys a flat for 300,000 € in Catalonia. At a rate of 10%, the fee would be 30,000 €. In Madrid, with a fiscal rate of 6%, the fee would be €18,000. The difference in tax burden between regions can reach tens of thousands of euros, so when buying it is important to consider not only the value of the property, but also the tax liability.

What you need to know about ITP payment

Four factors:

1. The tax is payable within 30 days of signing the sales contract.
2. Delinquency threatens fines and penalties that increase over time.
3. The contribution is calculated not only from the value in the contract, but also from the cadastral valuation, if it is higher. The fiscal authorities may carry out an audit and assess the difference.
4. The ITP in Spain is paid to the regional tax office where the property is located.

The amount of taxation can have a significant impact on the final value of a property. Buyers who plan to purchase a home in different regions should consider the fiscal rate and the possibility of additional costs when making calculations.

Conclusion

Taxes for property owners in Spain are a complex system involving one-off and regular payments. Understanding your tax obligations can help you avoid penalties and unnecessary expenses.

Key Findings:

• When buying a home, you need to consider not only the price, but also the tax burden;
• for non-residents the coefficient is higher, especially for renting;
• it is important to ensure that the fee is paid on time to avoid penalties.

Spain is a country with a developed tax system, its nuances should be taken into account at the stage of buying a property. Awareness is the main tool for minimising costs and avoiding unpleasant surprises.