Spain · city research
Madrid
Madrid ITP is 6% — the lowest regional resale transfer tax in the comparison set's Spanish sources. Prime districts sit at just 3–4% gross yield while outer districts (Carabanchel, Ciudad Lineal) exceed 6–7%.
Madrid is Spain's low-ITP capital with a wide prime-vs-outer yield spread
as of 2026-03 · source
Gross yield
Global Property Guide's Spanish average fell from 6.17% in February 2024 to 5.45% in Q1 2026 — yields are compressing as prices outrun rents. Barcelona leads nationally at 7.0–7.4%; Madrid's income story is district-dependent.
Entry costs
ITP is regional: Madrid 6%; Andalusia flat 7%; Catalonia 10%/11%; Balearics progressive to 11–13%. New builds attract 10% IVA plus AJD (Madrid at the low end, about 0.75%). Notary, land registry and legal fees add roughly 1.5%–2.5%. There is no higher headline ITP rate for foreigners.
Tax and ownership
EU/EEA non-residents pay 19% on net rental income after deductions. Non-EU non-residents (including UK, US, UAE and Indian nationals) have historically paid 24% on gross with no deductions — subject to a developing July 2025 National High Court position. Spain also taxes imputed income on empty property. Wealth tax thresholds are regional: Madrid offers 100% relief; Catalonia's threshold is €500,000.
Residency pathway
Spain's investor Golden Visa was permanently closed to new applicants on 3 April 2025 under Organic Law 1/2025. Buying Spanish property at any value confers no residency. Existing holders are grandfathered. Separate visas (Non-Lucrative, Digital Nomad, entrepreneur) stand on their own merits.
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