Author Dmitry Sheynkman Residence permit expert, tax adviser 16 September 2026 7 min read Message the author

Luxury property in Spain: how to buy a villa or penthouse in 2026

Foreigners, including Russian citizens, can buy luxury property in Spain: there is no ban on them buying homes, but on the islands and in some border areas a buyer from outside the EU generally needs military authorisation. Expensive flats and villas are concentrated in Madrid, Barcelona, Marbella, Palma and Ibiza, where a square metre costs two to three times the national average. The price of the property is not the whole bill: purchase tax differs almost twofold between regions, and owning expensive property is subject to wealth tax and the tax on large fortunes. Residence permits are no longer granted for buying property. Here is where to buy, how much tax to pay, how a purchase works and what Russian citizens need to consider.

Where luxury property is bought in Spain

The most expensive neighbourhoods according to idealista for August 2026. These are average asking prices per square metre for the whole neighbourhood, not just the luxury segment: frontline villas and penthouses cost considerably more. The Spanish average is €2,924/m².

City	Most expensive areas	Price, €/m²
Madrid	Salamanca; Chamberí; Retiro	10,841; 9,209; 8,444
Ibiza, Eivissa town	Marina Botafoch — Talamanca; town average	9,060; 7,537
Palma de Mallorca	Son Vida; Portixol — Molinar; old town	8,552; 7,943; 7,366
Marbella	Nagüeles — Golden Mile; town average	8,336; 5,956
Barcelona	Sarrià — Sant Gervasi; Les Corts; Eixample	7,167; 6,670; 6,648

Madrid and Barcelona suit buyers who value business life, schools and an airport with direct flights. Marbella, Mallorca and Ibiza are resort markets with seaside villas and strong seasonal demand. Neighbourhoods, prices and daily life are covered in our guides to Madrid neighbourhoods, Barcelona neighbourhoods, moving to Marbella, moving to Mallorca and moving to Ibiza.

Taxes when buying luxury property

The tax depends on whether you buy a new home from a developer or a resale home from an owner.

A new home from a developer: VAT (IVA) at 10% throughout Spain except the Canary Islands, plus the regional stamp duty on documents (AJD).
In the Canary Islands the local IGIC tax applies instead of VAT: 7% for expensive homes, plus AJD at 1%.
A resale home: transfer tax (ITP) at the regional rate. In Catalonia, the Balearic Islands and Valencia the rate is higher for expensive properties.

Region	ITP on resale homes	AJD on new homes
Madrid	6%	0.75% for purchases over €180,000
Andalusia (Marbella)	7%	1.2%
Canary Islands	6.5%	1%
Valencia	9%; over €1,000,000 — 11% on the whole price	1.4%
Balearic Islands (Mallorca, Ibiza)	scale: 8% up to €400,000, 9% up to €600,000, 10% up to €1,000,000, 12% up to €2,000,000, 13% above	1.5%; from €1,000,000 — 2%
Catalonia (Barcelona)	scale: 10% up to €600,000, 11% up to €900,000, 12% up to €1,500,000, 13% above	1.5%

In Valencia the 9% and 1.4% rates apply to transactions from 1 June 2026; before that they were 10% and 1.5%. Catalonia introduced its progressive scale on 27 June 2025. A buyer who owns more than 10 homes or more than 1,500 m² of housing in Catalonia pays 20%.

The same €2,000,000 villa costs a buyer €110,000 more in Catalonia than in Madrid because of tax alone.

Taxes on owning expensive property

Wealth tax (Impuesto sobre el Patrimonio). State law exempts the first €700,000 of net wealth unless the region sets its own minimum, and a main home is exempt up to €300,000. Non-residents also pay this tax on their assets in Spain.
Temporary solidarity tax on large fortunes. It applies to net wealth above €3,000,000: 1.7% up to €5,347,998, 2.1% up to €10,695,996 and 3.5% above. Regional wealth tax actually paid is deducted. The tax has been extended without a fixed end date and applies in 2026.
Local property tax (IBI) and municipal charges — every year, based on the cadastral value.

If you move to Spain and become a tax resident, wealth tax is calculated on your worldwide assets. That is why the ownership structure and the timing of the move should be discussed with a tax adviser before the purchase. An overview of all taxes is in our guide to property taxes in Spain.

Can you get a residence permit by buying property

No. The golden visa for investment, including buying property from €500,000, was abolished on 3 April 2025. Applications filed before that date are processed under the old rules, and permits already issued remain valid until they expire and are renewed under the rules in force when first granted. How the programme worked and what happened to those who obtained it is covered in our article on the Spanish golden visa.

You can live in the villa you bought on other grounds. People living on passive income can use the non-lucrative residence permit, remote employees and freelancers the digital nomad permit. The purchase deed also works for registering your address, which you need for the residence card. Which permit to choose with capital is covered in our guide to Spanish residence by investment.

What Russian citizens need to consider

Buying is allowed. There is no ban on Russian citizens buying homes in Spain.
Military authorisation in special zones. Law 8/1975 on zones of interest for national defence requires a non-EU foreigner to obtain military authorisation to buy land or property in restricted-access zones. Under the list in Royal Decree 689/1978 they include the Balearic and Canary Islands, Galicia, the borders with Portugal and France, the area around the Strait of Gibraltar and the Bay of Cádiz, Cartagena, Ceuta and Melilla. Authorisation is also needed for a mortgage in favour of a foreigner. The exception is centres and zones of national tourist interest, where authorisation is deemed granted. A buyer of a villa in Mallorca, Ibiza or Tenerife should check the plot’s status before paying a deposit. The restriction does not apply to EU citizens.
Deposit limit. EU Regulation 833/2014 prohibits banks from accepting deposits from Russian nationals and residents of Russia if their total in one bank exceeds €100,000. The limit does not apply to anyone holding a temporary or permanent residence permit in an EU or EEA country or Switzerland. This affects how you hold and transfer the purchase money.
Source of funds checks. The bank and the notary ask for documents on where the money comes from. Gather statements, asset sale contracts and tax returns in advance.

How the purchase works

Get an NIE, the foreigner’s tax number; you cannot complete the purchase without it. More in our guide to the NIE in Spain.
Open a Spanish bank account if you plan to pay from Spain or take out a mortgage.
Check the property: a nota simple from the Land Registry shows the owner, charges and debts. How to order one is in our guide to the nota simple.
Sign a preliminary contract and pay a deposit. If the property is in a restricted-access zone and you are not an EU citizen, obtain military authorisation before signing the deed.
Sign the deed before a notary and pay the balance.
Pay the purchase tax and register the title in the Land Registry.

If part of the purchase is financed, the terms differ for non-residents and residents — see our guide to mortgages in Spain.

How we help with buying luxury property

We help you buy property in Spain — in Madrid, Barcelona, Marbella, Mallorca and Ibiza, as well as Valencia, Alicante and Tenerife — and link the purchase with your move and taxes:

we select properties through trusted partner agencies to match your budget, area and goals;
we check the property documents and the Land Registry extract before the deposit, including whether military authorisation is needed;
we calculate purchase and ownership taxes in the chosen region;
we bring in a mortgage broker if you need a loan;
we arrange a residence permit so you can live in the home you bought and advise on registering your address.

More on the property search in Spain page. Tell us where you are looking and your budget, and we will start with a tax calculation and the choice of area.

Frequently asked questions

Can a Russian citizen buy luxury property in Spain?

Yes, there is no ban. You need an NIE, and money in Spanish banks is subject to an EU limit: without an EU residence permit, a Russian citizen’s deposits in one bank cannot exceed €100,000.

What tax is paid when buying a villa in Spain?

For a new home, 10% VAT plus regional AJD; for a resale home, transfer tax at the regional rate, from 6% in Madrid to 13% in Catalonia and the Balearic Islands for the most expensive properties.

Where is the most expensive property in Spain?

According to idealista for August 2026, in Madrid’s Salamanca district at €10,841/m². Next come Chamberí in Madrid, Marina Botafoch — Talamanca in Ibiza and Son Vida in Palma.

Is a residence permit granted for buying property in Spain?

No, the golden visa was abolished on 3 April 2025. You can live in your property on a non-lucrative residence permit or a digital nomad permit.

Do I have to pay wealth tax on a villa in Spain?

If your net wealth in Spain exceeds the exempt minimum, yes, including non-residents. The state minimum is €700,000, and regions may set their own. Above €3,000,000 the solidarity tax on large fortunes also applies.

Which region has the lowest purchase tax on an expensive home?

Among popular regions, Madrid: 6% on resale homes with no higher rate for expensive properties. For a €2,000,000 villa that is €120,000 against €230,000 in Catalonia.

Do I need authorisation to buy a villa in Mallorca or Ibiza?

A non-EU citizen generally does. The islands are restricted-access zones under Law 8/1975, and buying property there requires military authorisation, except in centres and zones of national tourist interest. EU citizens do not need it.

Can I buy property in Spain remotely?

Yes, the deed can be signed before a notary through a power of attorney. You still need an NIE, a bank account and a property check, and a power of attorney issued abroad must be apostilled and translated.