Guide · United Kingdom
Buying property in Madrid from the United Kingdom
In short
Yes, a UK resident can buy a home in Madrid: Spain does not restrict purchases by nationality. You need a Spanish foreigner's number (NIE), a bank account and a notary. On a resale in the Community of Madrid you pay 6% transfer tax (ITP); on a new build, 10% VAT plus stamp duty (AJD) of 0.75% in general. Since Brexit the UK is outside the EU and EEA, and that matters for tax and for residence.
Buying does not give you the right to live in Spain, because the golden visa was abolished on 3 April 2025. As a non-resident you pay Spanish tax on rent or imputed income at 24%, with no deduction of expenses, and the buyer withholds 3% if you sell. This guide sets out each step with its official source. It is general information, not personal tax advice: consult a tax adviser before you sign.
The essentials: figures and rules, each with its source
Everything this guide states with a figure, in one table: the figure, its linked source and the date of the source. Amounts in euros unless stated otherwise.
| Item | Figure | Source and date |
|---|---|---|
| Purchase taxes | ||
| Resale homes: transfer tax (ITP), not VAT | Exempt from VAT; subject to Transfer Tax (ITP)Second and later sales of buildings are exempt from VAT (art. 20.Uno.22 of the VAT Act). The first sale is the developer's sale of a completed building. A resale pays ITP at the rate set by each autonomous region. | BOE, Act 37/1992 on Value Added Tax, consolidated text |
| VAT on new-build homes | 10%Reduced rate for buildings or parts of buildings fit for housing, with up to two parking spaces and the annexes sold with them (art. 91.Uno.1.7 of the VAT Act). Business premises do not count as annexes. The autonomous region's stamp duty (AJD) is added to the deed. | BOE, Act 37/1992 on Value Added Tax, consolidated text |
| Transfer tax (ITP) in the Community of Madrid | 6%General rate on property transfers (art. 28.1 of the consolidated text approved by Legislative Decree 1/2010, in force since 2014). Madrid has not set higher rates, so the rate does not change with the buyer's nationality or residence. | Ministry of Finance, Regional Taxation. 2026 Measures, chapter IV |
| Stamp duty (AJD) in Madrid, on deeds for new-build purchases | 0.75% general; 0.4% or 0.5% for individuals' homes of up to €120,000 or €180,000AJD taxes the deed when the purchase bears VAT. Above €180,000 the 0.75% rate applies. There is a 10% rebate for a main home worth up to €250,000 (art. 38 bis). If, in a second sale between businesses, the VAT exemption is waived, the rate is 1.5%. | Ministry of Finance, Regional Taxation. 2026 Measures, chapter IV |
| Transfer tax (ITP) in Andalusia (including Cádiz province) | 7%General rate on property transfers (art. 41 of Andalusian Act 5/2021, fixed since 27 October 2021). Andalusia's higher rates only affect certain vehicles, boats and works of art, not housing. The rate does not change with the buyer's nationality or residence. | Ministry of Finance, Regional Taxation. 2026 Measures, chapter IV |
| Costs and prices | ||
| Notary fees | Set by law, on a scale that falls as the value risesScale of Royal Decree 1426/1989 for documents of stated value: €90.15 up to €6,010.12; then 4.5 ‰ up to €30,050.61; 1.5 ‰ up to €60,101.21; 1 ‰ up to €150,253.03; 0.5 ‰ up to €601,012.10 and 0.3 ‰ up to €6,010,121.04. Above that, fees are free. A 5% discount applies, and mortgage loans get a 25% reduction. Pages and copies are added to the scale. | BOE, Royal Decree 1426/1989, Notaries' Fee Schedule, number 2 |
| Land Registry fees | Set by law, with a minimum of €24.04 and a maximum of €2,181.67Scale of Royal Decree 1427/1989 for each property registered: €24.04 up to €6,010.12; then 1.75 ‰ up to €30,050.61; 1.25 ‰ up to €60,101.21; 0.75 ‰ up to €150,253.03; 0.30 ‰ up to €601,012.10 and 0.20 ‰ on the excess. The overall fee under number 2 cannot exceed €2,181.67 or fall below €24.04. A 5% discount applies. | BOE, Royal Decree 1427/1989, Land Registrars' Fee Schedule, number 2 |
| Who pays the costs of the sale deed | Seller: execution of the deed. Buyer: first copy and later stepsUnless agreed otherwise, the costs of executing the deed are the seller's, and those of the first copy and of everything after the sale are the buyer's (art. 1455 of the Civil Code). | BOE, Civil Code, art. 1455 |
| Average sale price, Madrid city | €6,458/m²September 2026, asking price. Annual change +2.4%; all-time high of €6,619/m² in April 2026. | idealista, sale price report for Madrid |
| Average sale price, Community of Madrid | €5,065/m²September 2026, asking price. Annual change +6.9%. | idealista, sale price report for the Community of Madrid |
| Average sale price, Salamanca district | €10,865/m²September 2026, asking price. Year-on-year change -1.2%. It is Madrid's most expensive district. | idealista news, house prices in Madrid in September 2026 |
| Average sale price, Chamberí | €9,159/m²September 2026, asking price. Year-on-year change +2.6%; all-time high of €9,359/m² in March 2026. | idealista, sale price report for Madrid |
| Average sale price, Retiro | €8,515/m²September 2026, asking price. Year-on-year change -0.7%. Third most expensive district after Salamanca and Chamberí. | idealista news, house prices in Madrid in September 2026 |
| Average sale price, Chamartín and El Viso | €8,127/m² in Chamartín; €9,402/m² in El VisoSeptember 2026, asking price. Chamartín +4.6% a year; El Viso +2.2% a year. | idealista, sale price report for Chamartín |
| Average sale price, Centro district | €7,771/m²September 2026, asking price. Annual change +3.7%. Most expensive neighbourhood: Chueca-Justicia, €9,827/m². | idealista, sale price report for Centro |
| Average rent, Madrid city | €23.4/m² a monthSeptember 2026, asking price. Annual change +4.8%. In the Salamanca district, €28.5/m². | idealista, rent price report for Madrid |
| INE House Price Index (transaction prices) | +12.9% a year in Madrid and +11.9% in Andalusia (second quarter of 2026)The national average was +12.2%: +7.4% for new homes and +12.9% for resale. All regions had positive rates. Final data, published on 7 September 2026. | INE, House Price Index (IPV), base 2025, second quarter of 2026 |
| Average sale price, El Puerto de Santa María | €2,652/m²June 2026, asking price and the municipality's all-time high. Annual change +17.8%. Vistahermosa-Fuentebravía, €4,592/m²; Valdelagrana, €3,466/m². | idealista, sale price report for El Puerto de Santa María |
| Average sale price, Cádiz city and province | €3,382/m² in Cádiz city; €2,539/m² in the provinceSeptember 2026, asking price. Cádiz city +11.7% a year and an all-time high; province +9.9% a year. | idealista, sale price report for Cádiz province |
| Non-resident income tax (IRNR) | ||
| When you are tax resident in Spain | More than 183 days a year in Spain, or your centre of economic interests hereYou are tax resident if you spend more than 183 days of the calendar year in Spain (sporadic absences count unless you prove tax residence in another country) or if the core of your activities or economic interests is in Spain (art. 9 of the Personal Income Tax Act). Anyone who is not pays as a non-resident (IRNR). | BOE, Act 35/2006 on Personal Income Tax, art. 9, art. 85 and additional provision 55 (consolidated text) |
| UK residents after Brexit | 24% and no deduction of expensesFor income accrued since 1 January 2021, UK residents no longer get the 19% rate or the expense deduction of art. 24.6 of the IRNR Act. This affects rent and imputed income. | Tax Agency, Consequences of Brexit for non-resident income tax without a permanent establishment |
| Non-resident income tax (IRNR) rate on income from the home | 24% general; 19% for residents of the EU or EEAThe 19% applies to residents of another EU or EEA state with effective exchange of tax information; everyone else pays 24% (art. 25.1.a of the IRNR Act). The Tax Agency specifies the EU, Iceland, Norway and, since 11 July 2021, Liechtenstein. | BOE, Royal Legislative Decree 5/2004 (consolidated text of the Non-Resident Income Tax Act), art. 25 |
| Imputed income on a home that is not rented out | 2% of the cadastral value; 1.1% if the cadastral value was revisedIf the home is empty or for own use, the non-resident pays tax each year on imputed income, in proportion to the days of ownership (art. 24.5 of the IRNR Act, which refers to art. 85 of the Personal Income Tax Act). The 1.1% applies if the general valuation report came into force that year or in the previous ten. For 2023 to 2026, additional provision 55 of the Personal Income Tax Act, as worded by Royal Decree-law 29/2026, extends 1.1% to values revised since 1 January 2012; that decree-law, in force since 8 October 2026, had not been validated by Congress as of 16 October. Without a cadastral value, 1.1% applies on 50% of the higher of the price and the assessed value. The 19% or 24% rate is then applied to that income. | BOE, Act 35/2006 on Personal Income Tax, art. 9, art. 85 and additional provision 55 (consolidated text) |
| Rent collected by a non-resident | Taxed on gross income; only EU and EEA residents can deduct expensesAs a rule the base is the gross amount, with no deduction of expenses, at 24%. EU or EEA residents can deduct the expenses allowed by the Personal Income Tax Act if they prove a direct link to the income obtained in Spain, and pay 19% (art. 24.6 of the IRNR Act). | Tax Agency, Income from rented property (non-residents) |
| Gain on selling the home (non-resident) | 19%Capital gains on transfers of assets are taxed at 19% for all non-residents, whether or not they are in the EU (art. 25.1.f.3 of the IRNR Act). | BOE, Royal Legislative Decree 5/2004 (consolidated text of the Non-Resident Income Tax Act), art. 25 |
| 3% withholding when a non-resident sells | The buyer withholds 3% of the price and pays it in with form 211Payment is due within one month of the transfer. If it is not paid, the property is liable for the lower of the withholding and the seller's tax. It is a payment on account of the seller's IRNR (art. 25.2 of the IRNR Act). | Tax Agency, Form 211, instructions |
| Form 210: filing deadlines | Imputed income for 2026: 1 April to 31 December 2027Imputed income for 2025 and earlier: during the following calendar year. From 2026, from 1 April to 31 December of the following year. Rent with annual grouping and tax to pay: 1 to 20 April of the following year, for income accrued from 2026. Gain on selling a property: three months, starting once one month has passed since the sale. The changes come from Order HAC/623/2026. | Tax Agency, Non-Resident Taxation Manual (October 2026), Form and filing period |
| Double taxation treaty | ||
| Double taxation treaties and property | Spain may tax income from property located in SpainAccording to the Tax Agency, the treaties signed by Spain give the state where the property is located the right to tax income from it. | Tax Agency, Income from rented property (non-residents) |
| Spain-UK double taxation treaty | In force since 12 June 2014 (signed in London on 14 March 2013)Published in BOE no. 118 of 15 May 2014 and in force until one of the states terminates it (art. 29). The consolidated BOE text is informational and may be affected by the multilateral convention (MLI) of 24 November 2016. | BOE, Convention between Spain and the United Kingdom to avoid double taxation, and Protocol |
| What the treaty says about property income and gains | Spain may tax income and gains from property in Spain; the UK gives credit for the Spanish taxArt. 6.1: income that a resident of one state obtains from immovable property in the other state may be taxed in that other state. Art. 13.1: the same applies to gains on selling that property. Art. 22.2: under UK law, the Spanish tax is deductible against the UK tax computed on the same income or gains. | Ministry of Finance, synthesised text of the treaty and the multilateral convention (United Kingdom) |
| UK tax on income from a home abroad | UK tax residents normally owe UK Income Tax on foreign income, including rent from overseas propertyYou may be able to claim relief if the income is taxed in more than one country, and you may need a certificate of residence to prove you qualify. Foreign Income and Gains relief can also apply. | GOV.UK, Tax on foreign income |
| Wealth tax | ||
| Wealth Tax for non-residents | Only on assets located in SpainA non-resident is taxed on assets and rights located in Spain. This includes unlisted shareholdings in entities whose assets are at least 50%, directly or indirectly, property in Spain (art. 5 of Act 19/1991). The tax accrues on 31 December. | BOE, Act 19/1991 on Wealth Tax, arts. 5, 28 and 37 and additional provision 4 |
| Wealth Tax allowance | €700,000It is the state minimum and also applies to non-residents (art. 28 of Act 19/1991). The Community of Madrid also sets €700,000 (art. 19 of Legislative Decree 1/2010). | BOE, Act 19/1991 on Wealth Tax, arts. 5, 28 and 37 and additional provision 4 |
| When a Wealth Tax return is required | If tax is payable, or if assets are worth more than €2,000,000A return is required if tax is payable after deductions and rebates and, even if none is payable, if assets and rights are worth more than €2,000,000 (art. 37 of Act 19/1991). | BOE, Act 19/1991 on Wealth Tax, arts. 5, 28 and 37 and additional provision 4 |
| Non-residents and regional Wealth Tax rules | May apply the rules of the region where most of their assets areNon-residents may apply the rules of the autonomous community where the greatest value of their assets in Spain lies (additional provision 4 of Act 19/1991). This applies to residents of any country. | BOE, Act 19/1991 on Wealth Tax, arts. 5, 28 and 37 and additional provision 4 |
| Wealth Tax rebate in Madrid | 100% of the tax, limited while the large-fortunes tax existsMadrid rebates 100% of the tax. While the Temporary Solidarity Tax on Large Fortunes is in force, the rebate is replaced by the difference between the Wealth Tax and that tax (transitional provision 7 of Legislative Decree 1/2010). So if the large-fortunes tax is zero, the rebate covers the whole Wealth Tax. Non-residents can apply it if Madrid holds the greatest value of their assets in Spain. | Ministry of Finance, Regional Taxation. 2026 Measures, chapter IV |
| Temporary Solidarity Tax on Large Fortunes | Taxes net wealth above €3,000,000State tax that complements the Wealth Tax. €700,000 allowance, deducted before applying the scale. Scale: 0% up to €3,000,000 of taxable base, 1.7% up to €5,347,998.03, 2.1% up to €10,695,996.06 and 3.5% above. It accrues on 31 December and the Wealth Tax paid is deducted. It remains extended until wealth taxation is reviewed in the regional financing reform (additional provision 5.2 of Royal Decree-law 8/2023). Same taxpayers as the Wealth Tax, including non-residents for their assets in Spain. | BOE, Act 38/2022, art. 3 |
| Tax representative for the large-fortunes tax | Mandatory for non-residents outside the EUTaxpayers not resident in an EU state must appoint a representative resident in Spain before the end of the filing period. It is not required of EEA residents covered by mutual assistance rules on information and collection (art. 3.Six of Act 38/2022). | BOE, Act 38/2022, art. 3 |
| NIE, power of attorney and apostille | ||
| What the NIE is | A personal, unique number for foreignersHeld by foreigners who deal with Spain for economic, professional or social reasons, such as buying a home. It appears on every document issued to them. It is assigned by the Directorate-General of the Police (art. 205 of the Immigration Regulation, Royal Decree 1155/2024). | BOE, Royal Decree 1155/2024, Regulation of Organic Act 4/2000, art. 205 |
| Where to apply for the NIE and how long it takes | In Spain, at the Immigration Office or police station; abroad, at the Spanish consulateIt is requested in person at the Police, directly or through the Immigration Offices or police stations. If the foreigner is not in Spain, they apply through Spain's consular offices. The maximum time to resolve is five days from entry into the register of the competent body; with no reply in time, the request is deemed refused (art. 205.4 of Royal Decree 1155/2024). | BOE, Royal Decree 1155/2024, Regulation of Organic Act 4/2000, art. 205 |
| NIE form and fee | Form EX-15 and fee 790 code 012: €9.84Assigning the NIE at the applicant's request costs €9.84 (heading 5.12 of the annex to Order PJC/617/2025). Certificates or reports at the applicant's request cost €7.31 (heading 5.13). The application uses form EX-15 and the fee form 790 code 012, as the Consulate General in Paris indicates, for example. | BOE, Order PJC/617/2025, immigration fees, annex |
| Power of attorney signed at a Spanish consulate | Needs no legalisation or apostille to be used in SpainSpain's missions abroad are Spanish administration, so their documents are not legalised. The Consulate General in Buenos Aires applies this to powers of attorney: granted at the consulate, they need no legalisation and have the same effect in Spain as one signed before a local notary and apostilled. According to the Consulate General in Los Angeles, consuls exercise notarial functions if the law of the host country allows it, and honorary consulates cannot. | Ministry of Foreign Affairs, Legalisation and apostille |
| Power of attorney signed before a local notary | Needs a Hague apostille (or legalisation) and, if applicable, translationAs a rule, a foreign public document must be legalised to take effect in Spain. Countries party to the 1961 Hague Convention replace legalisation with the apostille of their own authority. In other countries, the country's Ministry of Foreign Affairs legalises it first and then the Spanish diplomatic mission. If it is not in Spanish, it needs an official translation. | Ministry of Foreign Affairs, Legalisation and apostille |
| Hague Apostille Convention | Spain has applied it since 1978The Hague Convention of 5 October 1961 abolishes legalisation of foreign public documents between member states and replaces it with the apostille, which certifies the signature, the signer's capacity and the seal. Spain published its ratification in the BOE of 25 September 1978. | BOE, Instrument of ratification of the Hague Convention of 5 October 1961 |
| The UK and the Hague Apostille Convention | Party since 24 January 1965The UK ratified on 21 August 1964 and the Convention entered into force for it on 24 January 1965; for Spain it has applied since 25 September 1978 (HCCH status table, consulted on 16 October 2026). A power of attorney signed before a UK notary therefore needs an apostille issued by the UK authority. | HCCH, Status table of the 1961 Apostille Convention |
| Mortgage | ||
| Mortgage for non-residents | Some banks have a specific product; the maximum percentage is not publicBanco Santander, for example, advertises a mortgage for people buying a second home in Spain while living abroad, subject to the bank's approval, without publishing the financing percentage. There is no official source on the usual percentage for non-residents. | Banco Santander, Mortgage for Non-Residents |
| Who pays the mortgage costs | The bank pays notary, registry and gestoría (paperwork agent) fees; the buyer pays the valuationAct 5/2019 on mortgage credit contracts splits the costs as follows: valuation, the borrower; gestoría (paperwork agent), the lender; notary fees for the loan deed, the lender (copies, whoever requests them); registration of the mortgage in the Registry, the lender (art. 14.1.e). | BOE, Act 5/2019 on real estate credit contracts, arts. 14 and 15 |
| Documents and notarial record before signing a mortgage | Documents at least 10 calendar days before; free notarial recordThe bank must hand over the European Standardised Information Sheet (FEIN), the Standardised Warnings Sheet and the draft contract at least ten calendar days in advance (art. 14). The notary draws up a transparency record that carries no fee for the borrower (art. 15.8). | BOE, Act 5/2019 on real estate credit contracts, arts. 14 and 15 |
| Currency and transfers | ||
| Entering or leaving Spain with cash | Prior declaration (form S1) from €10,000Entry or exit of means of payment of €10,000 or more must be declared beforehand, and so must movements within Spain of €100,000 or more (art. 34 of Act 10/2010). The law counts cash, cheques and bearer instruments, non-nominative prepaid cards and commodities such as gold as means of payment. The declaration uses form S1 (Order EHA/1439/2006) and is made to the Tax Agency. A bank transfer is not a means of payment for this purpose. | BOE, Act 10/2010 on the prevention of money laundering, art. 34 |
| Declaration of foreign investment in property | Purchases by non-residents above €500,000Purchases of property in Spain by non-residents for more than €500,000 are declared afterwards to the Investment Register of the Ministry of Industry, Trade and Tourism. If a Spanish notary takes part and the buyer gives them all the data, the notary reports it and the buyer is relieved. If the funds come from a non-cooperative jurisdiction (tax haven), the declaration is made beforehand (arts. 4.h and 5 of Royal Decree 571/2023). | BOE, Royal Decree 571/2023 on foreign investments |
| Euro-pound reference rate | €1 = £0.8461 (ECB, 15 October 2026)The European Central Bank publishes daily euro reference rates for 29 currencies, including sterling and the US dollar. Compare it with the rate your bank or transfer provider offers. | ECB, Euro foreign exchange reference rates |
| Residency and visas | ||
| Non-lucrative residence | Means of 400% of IPREM a month, plus 100% per family member, and health insuranceFor citizens from outside the EU, the EEA and Switzerland who want to live in Spain without working. It is applied for in person at the Spanish consulate of the place of residence, with form EX-01 and fee 790 code 052. It also requires health insurance with an insurer authorised in Spain, a criminal record certificate and a medical certificate. The initial permit lasts one year from entry into Spain. | Ministry of Inclusion, Social Security and Migration, Information sheet 6 |
| IPREM per month | €600 (set for 2023)The 2023 State Budget Act (Act 31/2022) set the IPREM at €600 a month and €7,200 a year. On that figure, the 400% required for non-lucrative residence equals €2,400 a month and the 100% per family member equals €600. No later amount fixed by law was found in the BOE, so the 2026 figure is not confirmed. | BOE, Act 31/2022, 2023 State Budget |
| Visits to Spain without a visa | Up to 90 days in any 180-day periodUK passport holders can visit Spain without a visa for tourism, family visits, business meetings and short courses. Days spent in other Schengen countries in the previous 180 days count. Time on a residence permit or long-stay visa does not count towards the 90 days. The EU Entry/Exit System registers fingerprints and a photo at the first entry. | GOV.UK, Foreign travel advice: Spain, entry requirements |
| Golden visa | ||
| Residence-by-investment visa (golden visa) | Abolished since 3 April 2025Organic Act 1/2025 (BOE of 3 January 2025) emptied articles 63 to 67 of Act 14/2013, which governed the visa and residence permit for investors, including through property purchases. That part came into force three months after publication. Today buying a home gives no right to reside in Spain. | BOE, Organic Act 1/2025, final provisions 21 and 38 |
| Transitional regime of the golden visa | Earlier applications and valid permits are respectedAnyone who applied before 3 April 2025 may receive the visa or permit under the previous rules. Investor visas and permits already granted keep their validity for the period they were issued for. Renewals are decided under the rules in force on the date of the initial authorisation (first and second transitional provisions of Act 14/2013). | BOE, Act 14/2013 on support for entrepreneurs, consolidated text |
| Flights | ||
| Adolfo Suárez Madrid-Barajas Airport | 68,179,054 passengers in 2025 (+3%)It was the airport in Aena's network with the most passengers in 2025. Aena's network in Spain totalled 321,587,316 passengers (+3.9%). | Aena, 2025 year-end press release |
| Direct flights to Madrid from the UK | 10 UK airports, five of them in LondonAena's Madrid-Barajas destinations page lists London Heathrow (British Airways, Iberia), Gatwick (easyJet, Iberia, Air Europa), Luton (easyJet, Wizz Air UK), Stansted (Ryanair, Ryanair UK) and London City (British Cityflyer), and also Manchester (Ryanair, easyJet, Ryanair UK, Iberia), Edinburgh (easyJet, Ryanair UK, Ryanair, Iberia), Birmingham (Ryanair), Bristol (easyJet, Ryanair) and Liverpool (Ryanair). The page gives no date or frequencies. | Aena, Madrid-Barajas airport destinations |
| Community in Madrid | ||
| British nationals registered in Madrid city | 7,842 at 1 January 2022Municipal register of Madrid city (provisional data): 7,842 UK nationals, against 7,775 a year earlier (+0.86%). It is the latest nationality bulletin we could consult. | Madrid City Council, Foreign population in the city of Madrid (register at 1 January 2022) |
| Schools | ||
| Runnymede College | British school in La Moraleja (Alcobendas), founded in 1967Calle Salvia 30, 28109 Alcobendas. Its website presents Pre-Prep, Prep, Senior School and Sixth Form sections and reports A Level results. | Runnymede College, official website |
| King's College, Soto de Viñuelas | English and Welsh national curriculum leading to the IB Diploma or A-levels; ages 16 weeks to 18Paseo de los Andes 35, Soto de Viñuelas (Tres Cantos), 28761 Madrid. Its website presents it as part of the Inspired group. | King's College Soto, official website |
What changes for a UK buyer after Brexit
Spanish law does not restrict property purchases by nationality, so a UK resident buys in Madrid on the same terms as anyone else. What Brexit changed is tax and residence, because UK residents now count as non-EU for several rules.
- Non-resident income tax (IRNR). For income accrued since 1 January 2021, UK residents pay 24% with no deduction of expenses, instead of the 19% and the expense deduction available to residents of the EU and the EEA.
- No residence by buying. The golden visa was abolished on 3 April 2025. Applications made before that date and permits already granted are respected, but a new purchase gives no right to live in Spain.
- Visits. A UK passport allows up to 90 days in any 180-day period without a visa, and days spent in other Schengen countries count.
- Large fortunes. The Temporary Solidarity Tax on Large Fortunes taxes net wealth above €3,000,000, non-residents included for their assets in Spain, and a taxpayer who is not resident in the EU must appoint a tax representative in Spain.
Taxes and costs when buying in Madrid
The tax you pay depends on the type of home, not on your nationality or where you live.
- Resale home: exempt from VAT, but subject to transfer tax (ITP), which is 6% in the Community of Madrid.
- New build: VAT of 10%, plus stamp duty (AJD) of 0.75% in general, or 0.4% or 0.5% for individuals' homes of up to €120,000 or €180,000.
- Notary and Land Registry: fees are set by law on a scale that falls as the value rises. The registry fee runs from €24.04 to €2,181.67 per property.
- Deed costs: unless you agree otherwise, the seller pays for executing the deed and you pay for the first copy and everything after the sale.
Ask for a written estimate of every cost before you sign the reservation contract. Mortgage costs are covered below.
What Madrid costs per square metre
In September 2026 the average asking price was €6,458/m² in Madrid city and €5,065/m² in the Community of Madrid. By district:
- Salamanca: €10,865/m²
- Chamberí: €9,159/m²
- Retiro: €8,515/m²
- Chamartín: €8,127/m² (El Viso: €9,402/m²)
- Centro: €7,771/m²
The average asking rent in Madrid city was €23.4/m² a month. These are listing prices, not closed sales. The INE index, which measures completed sales, rose 12.9% in Madrid over the year to the second quarter of 2026.
NIE, power of attorney and apostille
You need an NIE to buy. It is a personal, unique number for foreigners who deal with Spain for economic, professional or social reasons, such as buying a home. You apply in person at an Immigration Office or police station in Spain or, if you are abroad, through a Spanish consulate, with form EX-15 and fee 790 code 012 (€9.84).
If you cannot travel to sign the deed, you can grant a power of attorney to someone you trust:
- Signed at a Spanish consulate: it needs no legalisation or apostille to be used in Spain. Consuls only exercise notarial functions where the law of the host country allows it.
- Signed before a UK notary: it needs a Hague apostille, and the UK has been a party to the Convention since 24 January 1965. If it is not in Spanish, it also needs an official translation.
Define the powers narrowly: the property, the price range and the acts the attorney may perform.
Mortgage, pounds and moving the money
Some Spanish banks offer mortgages to non-residents. There is no official figure for how much they usually lend: Banco Santander, for example, advertises a product for buying a second home in Spain while living abroad, subject to its approval, without publishing the percentage. The bank must give you the European Standardised Information Sheet (FEIN) at least 10 calendar days before signing, and the notary draws up a transparency record that costs you nothing. For the mortgage deed the bank pays notary, registry and gestoría (paperwork agent) fees, and you pay the valuation.
On 15 October 2026 the ECB reference rate was €1 = £0.8461. Your bank's rate will differ, so compare it with the reference before you transfer.
- Cash: entering Spain with €10,000 or more in means of payment requires a prior declaration on form S1. A bank transfer does not count as a means of payment for this rule.
- Large purchases: purchases by non-residents above €500,000 are declared afterwards to the Investment Register. A Spanish notary does it for you if you give them all the data.
Tax after buying: Spain and the UK
- Rent: a UK resident pays 24% on the gross rent, with no deduction of expenses.
- Home not rented out: you pay tax on imputed income of 2% of the cadastral value, or 1.1% if the cadastral value was revised, at 24%. Which percentage applies to your home is a question for your adviser. For 2026 the form 210 return runs from 1 April to 31 December 2027.
- Selling: the gain is taxed at 19%, and the buyer withholds 3% of the price and pays it in with form 211.
- Treaty: Spain may tax income and gains from property located in Spain (arts. 6 and 13), and the UK gives credit for the Spanish tax. As a UK tax resident you will normally also owe UK Income Tax on that rent, with relief for the tax paid in Spain, and you may need a certificate of residence.
- Wealth Tax: non-residents pay it only on assets in Spain, with an allowance of €700,000. A return is required if tax is payable or if assets exceed €2,000,000. Madrid rebates 100% of the tax, limited while the large-fortunes tax exists, and non-residents may apply the rules of the region where most of their assets are.
These are general rules, not advice on your own position.
Getting to Madrid, the British community and schools
Madrid-Barajas handled 68,179,054 passengers in 2025. Aena lists direct connections from 10 UK airports, five of them in London: Heathrow (British Airways, Iberia), Gatwick (easyJet, Iberia, Air Europa), Luton, Stansted and London City, plus Manchester, Edinburgh, Birmingham, Bristol and Liverpool.
At 1 January 2022, the latest nationality bulletin we could consult, 7,842 UK nationals were registered in Madrid city. Two British-curriculum schools near the city are:
- Runnymede College in La Moraleja (Alcobendas), founded in 1967.
- King's College, Soto de Viñuelas (Tres Cantos): English and Welsh national curriculum leading to the IB Diploma or A-levels, for ages 16 weeks to 18.
Prices in Madrid, area by area
Market data from the Aurovas area pages for Madrid, as they appear there, each with its source and date. Asking prices and valuations are not prices of completed sales.
Madrid
| Item | Value | Source and date |
|---|---|---|
| Average sale price, Madrid city | 6,458 €/m²-0.2 % monthly; -1.8 % quarterly≈ 5,410 GBP/m² · 7,240 USD/m² | idealista (price report)September 2026 |
| Annual change in sale prices | +2.4 %All-time high: 6,619 €/m² in April 2026 | idealistaSeptember 2026 |
| Barrio de Salamanca, sale | 10,865 €/m²-1.2 % year on year; Chamberí 9,159; Retiro 8,515≈ 9,100 GBP/m² · 12,200 USD/m² | idealistaSeptember 2026 |
| Cheapest district, Villaverde | 3,365 €/m²+23.7 % year on year≈ 2,820 GBP/m² · 3,770 USD/m² | idealistaSeptember 2026 |
| Average rent, Madrid city | 23.4 €/m² a month+4.8 % annually; Salamanca 28.5 €/m²≈ 19.6 GBP/m² a month · 26.2 USD/m² a month | idealistaSeptember 2026 |
| Rent, Community of Madrid | 21.45 €/m² a month-2.3 % in the third quarter; +0.3 % annually≈ 18 GBP/m² a month · 24 USD/m² a month | Fotocasa (via MadridActual)September 2026 |
| Sale, Community of Madrid | 5,065 €/m²+6.9 % annually≈ 4,240 GBP/m² · 5,680 USD/m² | idealistaSeptember 2026 |
Barrio de Salamanca
| Item | Value | Source and date |
|---|---|---|
| Average asking price, sale | 10,865 €/m²District average asking price; city of Madrid: 6,458 €/m².≈ 9,100 GBP/m² · 12,200 USD/m² | idealista (price report, cited by rentaspasivas.com)September 2026 |
| Average rent | 28.5 €/m² per monthAnnual change +5.0 %; all-time high.≈ 23.9 GBP/m² a month · 31.9 USD/m² a month | idealista, rental price trendSeptember 2026 |
| Valuation price | 7,883 €/m² (+17.43 % annual)Finished homes, new and second-hand; 90 m² apartment at 709,501 €.≈ 6,600 GBP/m² · 8,830 USD/m² | TinsaQ2 2026 |
| Annual change in sale prices | +10.3 %Average of 10,001 €/m² at that time. | Funciohouse, with data from idealista and IndomioEarly 2026 |
| Population and housing stock | 146,148 inhabitants; 83,575 homesMost homes were built before 1960. | Ayuntamiento de Madrid, cited by Funciohouse2026 |
Chamberí
| Item | Value | Source and date |
|---|---|---|
| Average sale price | 9,159 €/m²+2.6 % year on year; all-time high 9,359 €/m² in March 2026≈ 7,670 GBP/m² · 10,300 USD/m² | idealista (price report, Chamberí)September 2026 |
| Average rent | 26.0 €/m² a month+3.5 % year on year; all-time high≈ 21.8 GBP/m² a month · 29.1 USD/m² a month | idealista (rental report, Madrid)September 2026 |
| Average price, Madrid city | 6,458 €/m²+2.4 % year on year; Chamberí, second most expensive district after Salamanca (10,865 €/m²)≈ 5,410 GBP/m² · 7,240 USD/m² | idealista newsSeptember 2026 |
| Asking price (other source) | 9,332 €/m² sale; 27.09 €/m² rentSale +0.54 % and rent -1.67 % year on year | IndomioSeptember 2026 |
| Fotocasa price and average purchase | 9,425 €/m²; 1,162,679 € average purchase | Fotocasa, cited by The Avenue Real EstateMay 2026 |
| Most and least expensive neighbourhood | Almagro 10,503 €/m²; Vallehermoso 7,921 €/m² | idealista, cited by The Avenue Real EstateApril 2026 |
| District population | 140,866 inhabitantsSix neighbourhoods; area of about 4.7 km² | Ayuntamiento de Madrid, Municipal Register (District 07)2020 |
Retiro
| Item | Value | Source and date |
|---|---|---|
| Average sale price (idealista) | 8,444 €/m²-0.5 % year on year; all-time high of 8,579 €/m² in September 2025≈ 7,070 GBP/m² · 9,460 USD/m² | idealista, Retiro sale price reportAugust 2026 |
| Average sale price (Fotocasa) | 8,704 €/m²Third most expensive district in Madrid after Salamanca and Chamberí≈ 7,290 GBP/m² · 9,750 USD/m² | Fotocasa Life, house price trends in MadridOctober 2026 |
| Sale valuation (idealista) | 7,671 €/m²≈ 6,430 GBP/m² · 8,600 USD/m² | idealista, property valuation in MadridSeptember 2026 |
| Average rent (idealista) | 24.0 €/m² a month+2.5 % year on year; all-time high for the series≈ 20.1 GBP/m² a month · 26.9 USD/m² a month | idealista, Retiro rental price reportSeptember 2026 |
| Average rent (Fotocasa) | 22.66 €/m² a month≈ 19 GBP/m² a month · 25.4 USD/m² a month | Fotocasa LifeOctober 2026 |
| District population | 119,757 inhabitants in 5.48 km² | Hallamadrid (municipal data)2026 |
| Age of the housing stock | Mostly built before 1960 | idealista Maps2026 |
Chamartín
| Item | Value | Source and date |
|---|---|---|
| Average sale price in Chamartín | 8,127 €/m²Annual change +4.6 %; monthly -1.2 %; peak of 8,343 €/m² in May 2026.≈ 6,810 GBP/m² · 9,110 USD/m² | idealista, sale price reportSeptember 2026 |
| Price in El Viso | 9,402 €/m²Annual change +2.2 %.≈ 7,880 GBP/m² · 10,500 USD/m² | idealistaSeptember 2026 |
| Price in Bernabéu-Hispanoamérica | 8,719 €/m²Annual change +12.1 %.≈ 7,300 GBP/m² · 9,770 USD/m² | idealistaSeptember 2026 |
| Price in Prosperidad | 7,127 €/m²Most affordable neighbourhood in the district.≈ 5,970 GBP/m² · 7,990 USD/m² | idealistaSeptember 2026 |
| Average rent in Chamartín (latest verified figure) | 22.8 €/m² per monthAnnual change +11.5 %.≈ 19.1 GBP/m² a month · 25.5 USD/m² a month | idealista, rental price reportAugust 2025 |
| District population | about 145,000 inhabitantsApproximate figure. | DFlat Madrid (blog)2025 |
| Madrid Nuevo Norte | almost 10,500 homes38 % under municipal management; development of Las Tablas Oeste approved on 29 January 2026. | MadridiarioMarch 2026 |
La Moraleja
| Item | Value | Source and date |
|---|---|---|
| Sale, La Moraleja average | 7,574 €/m² (+12.8% year on year)Record high of 7,715 €/m² in April 2026.≈ 6,340 GBP/m² · 8,490 USD/m² | idealista (via precioviviendamadrid.es)June 2026 |
| Average sale price | 2.15 million eurosAt 7,158 €/m². Typical homes exceed 300 m². | Diza, published by idealista (Merca2)September 2026 |
| Fall in sales | -46.3% since December 2025 | Diza (Merca2)September 2026 |
| Sale price by sub-area | Urbanización 7,715 €/m²; El Soto 6,806 €/m²; Encinar de los Reyes 6,377 €/m² | idealista (via The Avenue Real Estate)April 2026 |
| Overall trend | From 5,466 to 6,760 €/m² (+23.7%)≈ 5,660 GBP/m² · 7,570 USD/m² | idealista (via The Avenue Real Estate)April 2024 to April 2026 |
| Average rent | 31.8 €/m² per month (+7.0% year on year)The idealista page for the area shows 19 €/m². It depends on the property type.≈ 26.6 GBP/m² a month · 35.6 USD/m² a month | idealista (via precioviviendamadrid.es)June 2026 |
| Average gross income, postcode 28109 | 196,429 € per taxpayerThe Alcobendas average is 60,576 €.≈ 165,000 GBP · 220,000 USD | Agencia Tributaria (via lamoraleja.com)2023 data |
| Housing stock | 9,994 homes; most over 240 m², built in 1980-1989 | idealista2026 |
Pozuelo de Alarcón
| Item | Value | Source and date |
|---|---|---|
| Average sale price | 5,015 €/m²Recent peak of 5,078 €/m² in May 2026≈ 4,200 GBP/m² · 5,620 USD/m² | idealista (price report)August 2026 |
| Annual change in sale price | +2.6 %Compared with August 2025; in May 2026 the annual rise was 12.3 % | idealista (price report)August 2026 |
| Average rent | 16.6 €/m² a monthAnnual change of +9.5 %≈ 13.9 GBP/m² a month · 18.6 USD/m² a month | idealista (price report)April 2026 |
| Avenida de Europa area | 5,612 €/m²Annual change of -3.9 %≈ 4,700 GBP/m² · 6,290 USD/m² | idealista (price report)August 2026 |
| Somosaguas | 5,039 €/m²Annual change of +22.2 %≈ 4,220 GBP/m² · 5,650 USD/m² | idealista (price report)August 2026 |
| Zona Pueblo | 4,319 €/m²Annual change of -0.4 %≈ 3,620 GBP/m² · 4,840 USD/m² | idealista (price report)August 2026 |
| Price range by area | 4,100 to 5,656 €/m²Municipal average of 4,951 €/m²; lowest in Monte Claro, highest in Prado de Somosaguas≈ 4,740 GBP/m² · 6,340 USD/m² | IndomioJuly 2026 |
| Population and income | 89,770 inhabitants; average net income of 30,524 € per inhabitantIncome data for 2023≈ 25,600 GBP · 34,200 USD | The Avenue (cites INE, Atlas de Renta 2023)2026 |
Amounts marked “≈” are an indicative conversion into GBP and USD using the ECB reference rate of 22 October 2026. The actual amount depends on the exchange rate on the day you pay.
The Cádiz coast, for comparison
Many UK buyers also look at the Cádiz coast: Sotogrande, Vistahermosa in El Puerto de Santa María, Sancti Petri, and Tarifa and Zahara. The same NIE and non-resident tax rules apply, but transfer tax is 7% in Andalusia against 6% in Madrid.
Asking prices are lower: €2,652/m² in El Puerto de Santa María in June 2026 (Vistahermosa-Fuentebravía: €4,592/m²) and €2,539/m² on average in Cádiz province in September 2026, against €6,458/m² in Madrid city. They are listing prices from different months. The INE index rose 11.9% in Andalusia over the year to the second quarter of 2026.
Area pages: El Puerto de Santa María · Vistahermosa · Sotogrande · Sancti Petri and La Barrosa · Tarifa · Zahara de los Atunes
How Aurovas can help
Aurovas is a boutique real estate agency with an office in El Puerto de Santa María (Cádiz) and a team in Madrid. We search for homes that match your brief, organise the viewings, negotiate with the seller and go with you to the notary. We work in Spanish, English and French.
We are not tax advisers: for your position in Spain and in the UK, consult a qualified adviser before you sign.
Frequently asked questions
Can a UK citizen buy property in Madrid?
Yes. Spain does not restrict purchases by nationality. You need an NIE, a Spanish bank account for the payments, and a notary to execute the deed. If you cannot travel, a power of attorney signed at a Spanish consulate needs no legalisation or apostille to be used in Spain.
Does buying a home give me a visa or residence?
No. The golden visa was abolished on 3 April 2025. To live in Spain without working you can apply for non-lucrative residence, which requires means of 400% of the IPREM a month, plus 100% per family member, and health insurance. With the last IPREM fixed by law, €600, that is €2,400 a month, but the 2026 IPREM has not been confirmed.
How much tax do I pay when I buy?
On a resale in the Community of Madrid, 6% transfer tax (ITP) and no VAT. On a new build, 10% VAT plus stamp duty (AJD) of 0.75% in general. Notary and registry fees are set by law and added to that.
What tax do I pay on rent as a UK resident?
In Spain, 24% on the gross rent, with no deduction of expenses, filed on form 210. The treaty lets Spain tax rent from property in Spain, and the UK gives credit for the Spanish tax, but UK residents normally also report that income in the UK.
Can I get a Spanish mortgage as a UK resident?
Some banks have products for non-residents, but the maximum percentage they finance is not public. Ask the bank for the FEIN at least 10 calendar days before signing; the bank pays notary, registry and gestoría (paperwork agent) fees on the mortgage deed and you pay the valuation.
Do I have to declare my purchase to anyone?
If you pay more than €500,000 as a non-resident, the purchase is declared to the Investment Register after the deal; a Spanish notary does it for you if you give them all the data. If you bring €10,000 or more in cash, you must declare it beforehand on form S1.
Sources
Laws, statistics and official or market pages this guide relies on. They open in a new tab.
- Tax Agency, Income from rented property (non-residents)
- BOE, Convention between Spain and the United Kingdom to avoid double taxation, and Protocol
- Ministry of Finance, synthesised text of the treaty and the multilateral convention (United Kingdom)
- GOV.UK, Tax on foreign income
- BOE, Act 35/2006 on Personal Income Tax, art. 9, art. 85 and additional provision 55 (consolidated text)
- Tax Agency, Consequences of Brexit for non-resident income tax without a permanent establishment
- BOE, Royal Legislative Decree 5/2004 (consolidated text of the Non-Resident Income Tax Act), art. 25
- Tax Agency, Form 211, instructions
- Tax Agency, Non-Resident Taxation Manual (October 2026), Form and filing period
- BOE, Act 37/1992 on Value Added Tax, consolidated text
- Ministry of Finance, Regional Taxation. 2026 Measures, chapter IV
- BOE, Royal Decree 1155/2024, Regulation of Organic Act 4/2000, art. 205
- BOE, Order PJC/617/2025, immigration fees, annex
- Ministry of Foreign Affairs, Legalisation and apostille
- BOE, Instrument of ratification of the Hague Convention of 5 October 1961
- HCCH, Status table of the 1961 Apostille Convention
- Banco Santander, Mortgage for Non-Residents
- BOE, Act 5/2019 on real estate credit contracts, arts. 14 and 15
- BOE, Act 10/2010 on the prevention of money laundering, art. 34
- BOE, Royal Decree 571/2023 on foreign investments
- ECB, Euro foreign exchange reference rates
- Aena, 2025 year-end press release
- Aena, Madrid-Barajas airport destinations
- Madrid City Council, Foreign population in the city of Madrid (register at 1 January 2022)
- Runnymede College, official website
- King's College Soto, official website
- Ministry of Inclusion, Social Security and Migration, Information sheet 6
- BOE, Act 31/2022, 2023 State Budget
- GOV.UK, Foreign travel advice: Spain, entry requirements
- BOE, Organic Act 1/2025, final provisions 21 and 38
- BOE, Act 14/2013 on support for entrepreneurs, consolidated text
- BOE, Act 19/1991 on Wealth Tax, arts. 5, 28 and 37 and additional provision 4
- BOE, Act 38/2022, art. 3
- BOE, Royal Decree 1426/1989, Notaries' Fee Schedule, number 2
- BOE, Royal Decree 1427/1989, Land Registrars' Fee Schedule, number 2
- BOE, Civil Code, art. 1455
- idealista, sale price report for Madrid
- idealista, sale price report for the Community of Madrid
- idealista news, house prices in Madrid in September 2026
- idealista, sale price report for Chamartín
- idealista, sale price report for Centro
- idealista, rent price report for Madrid
- INE, House Price Index (IPV), base 2025, second quarter of 2026
- idealista, sale price report for El Puerto de Santa María
- idealista, sale price report for Cádiz province
Verification
Verified on . This guide is for information only: it does not replace personal tax or legal advice, and rules and prices change.
Talk to Aurovas
We assist you in Spanish, English and French. Write or call and we will tell you what you need to buy in Madrid.
AUROVAS Agencia Inmobiliaria
Av. Juan Melgarejo, 10 · 11500 El Puerto de Santa María (Cádiz, Spain)
Phone and WhatsApp: +34 654 841 986
Email: info@aurovas.com
Opening hours: Monday to Friday, 9:00–14:00 and 16:00–20:00
We assist you in Spanish, English and French.
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