Why Americans Are Buying Property in Spain: 2026 Data, Cities & Taxes

Ten years ago, an American buying a home in Spain was a rounding error in the statistics. Today, US citizens are the fastest-rising force in the Spanish property market and they pay the highest price per square metre of any nationality. This is the full picture: the ten-year evolution, the real numbers from Spain's notaries and land registrars, the cities Americans are actually buying in, why they are doing it, and exactly what US owners owe the Spanish tax authority every year through Modelo 210.

1. The ten-year evolution: from anecdote to trend

The Consejo General del Notariado (Spain's General Council of Notaries) records every signed deed, including the buyer's nationality. Its data tells a clear story: while British purchases fell roughly 16% over six years, purchases by US buyers tripled over the same period.

In the second half of 2025, per the notaries' regional maps, Americans were among the top two non-resident buyer nationalities in six Spanish regions — level with the French and ahead of the British, who now appear in four. That is a structural shift, not a blip.

2. Americans pay the highest prices in Spain

The single most striking statistic: US buyers paid an average of €3,465-3,501 per square metre in 2025 — roughly 29% above the average foreign buyer (€2,417/m²) and close to double what Spanish resident buyers pay. Americans outspend Swiss (€3,457/m²), Swedish (€3,421/m²), Norwegian (€3,292/m²) and German (€3,270/m²) buyers.

The reason is simple: Americans overwhelmingly buy in the premium and prime segments — city-centre apartments with character, restored townhouses, sea-view villas — rather than volume coastal product.

3. Where Americans are buying: the city map

Madrid — the number one US destination

Madrid has become the default choice for American families relocating rather than holidaying. Barrio de Salamanca, Chamberí, Justicia and Retiro dominate US demand. Drivers: international schools, direct flights to New York, Miami, Dallas, Chicago and Boston, world-class healthcare and a walkable, safe urban life. Prime Madrid remains dramatically cheaper than Manhattan, San Francisco or Miami Beach for equivalent quality.

Barcelona — design, tech and the sea

Eixample, Gràcia, Sant Gervasi and Sarrià attract US tech workers, founders and creatives. Note the local regulatory tightening on tourist licences: buy in Barcelona for lifestyle or long-term rental, not for short-term letting assumptions.

Valencia — the value play

Valencia has become the standout American discovery of the decade: Ruzafa, El Carmen, El Pla del Real and Cabanyal. Beach plus metropolis, meaningful price discount to Madrid and Barcelona, and a strong US remote-worker community.

Málaga and the Costa del Sol

Málaga capital (Soho, Centro Histórico), Marbella, Estepona and Sotogrande remain the classic prime coastal cluster, with the highest concentration of US luxury transactions and the strongest golf-and-marina lifestyle offer.

The Balearics — Mallorca and Ibiza

Palma, Son Vida, Deià, Pollença and Santa Gertrudis. The top end of the market: US buyers here are frequently buying second or third homes with no financing.

Alicante and the Costa Blanca

Jávea, Moraira, Altea and Alicante city — the province leads Spain in foreign purchases overall, and Americans are an emerging niche in the villa segment.

Emerging: Seville, Granada, San Sebastián, Canary Islands

Spanish-speaking American buyers with Latin American heritage are notably active in Andalusian capitals; the Canaries attract year-round-sun retirees.

4. Why Americans are choosing Spain — the eight real reasons

1. Cost of living arbitrage. A prime Madrid or Valencia apartment costs a fraction of comparable US metro pricing, while restaurants, transport and services cost dramatically less.
2. Healthcare. Spain's public and private healthcare consistently ranks among the world's best, at a fraction of US insurance costs — the single most cited factor by American retirees.
3. Safety and walkability. Spanish cities rank among Europe's safest. Real-estate analysts repeatedly report US families citing the ability to let children walk to school.
4. Political and social climate. Reuters reported agents attributing part of the 2024-2025 US surge to buyers seeking a "permanent escape or backup plan", including Spanish-speaking Americans of Latin American origin.
5. Remote work and the digital nomad visa. Ley 28/2022 created a residence route for non-EU remote workers, with a special tax regime (Beckham-style) taxing employment income at 24% up to €600,000 for up to six years.
6. Direct air connectivity. Madrid-Barajas and Barcelona-El Prat offer dense direct service to a dozen+ US hubs; Málaga and Palma add seasonal routes.
7. A modern, functioning tax treaty. The US-Spain Convention (1990), as amended by the 2013 Protocol in force since 27 November 2019, prevents double taxation and provides certainty.
8. Currency and asset diversification. A euro-denominated hard asset is an increasingly common hedge in US portfolios.

Important 2025 change: Spain's Golden Visa (investor residence by €500,000 property purchase) was abolished by Ley Orgánica 1/2025, effective 3 April 2025. Americans buying today are buying property, not residency. Residence routes now run through the non-lucrative visa (passive income) or the digital nomad visa.

5. The part most Americans get wrong: Spanish non-resident tax

This is where we see the most confusion — and the most penalties. If you own Spanish property and you are not a Spanish tax resident, you have an annual Spanish filing obligation regardless of whether the property produces any income, and regardless of anything you file with the IRS.

5.1. Modelo 210 — the non-resident income tax return (IRNR)

Modelo 210 is the Spanish non-resident income tax return. Three critical rules for US owners:

• One return per owner, per property. A married couple owning 50/50 files two returns, each on their share. Spain does not accept joint filing for IRNR.
• US citizens pay the 24% non-EU rate, not the 19% rate reserved for EU/EEA residents.
• No expense deductions. Because the US is outside the EU/EEA, American landlords are taxed on gross rental income at 24% — no mortgage interest, no IBI, no community fees, no depreciation. This is the single most expensive surprise for US buyers.

5.2. Imputed income: tax on a home you don't rent out

If the property is for your own use and empty for part of the year, Spain taxes a notional "imputed income": 1.1% or 2% of the cadastral value (1.1% if the cadastral value was revised in the last ten tax periods, otherwise 2%), taxed at 24%. Filing deadline: 31 December of the following year.

Worked example. A US couple owns a Valencia apartment 50/50. Cadastral value €140,000, revised recently, used personally all year. Base: €140,000 × 1.1% = €1,540. Each spouse declares €770 × 24% = €184.80 each, on two separate Modelo 210 returns.

Rental example. The same couple rents it for €18,000 a year with €6,000 of costs. An EU owner would pay 19% on €12,000 = €2,280. The US couple pays 24% on the full €18,000 = €4,320. Understanding this before you buy changes the yield maths.

5.3. Selling: the 3% retention

When a non-resident sells Spanish property, the buyer must withhold 3% of the price and pay it to the AEAT via Modelo 211. The seller then files a Modelo 210 capital-gains return within 4 months; if the real gain tax (19%) is lower than the 3% withheld, the difference is refundable — but only if you file.

5.4. IBI is not Modelo 210

IBI is the municipal property tax billed by your town hall — one bill per property. Modelo 210 is the state income tax — one return per owner. Paying IBI does not discharge your Modelo 210 obligation. This is the most common misunderstanding among new American owners.

5.5. Your US side: Form 1116, FBAR and FATCA

US citizens are taxed on worldwide income. Rental income from Spain goes on Schedule E, and Spanish tax paid can generally be claimed as a foreign tax credit on Form 1116 under the 1990 Convention as amended. Additionally, a Spanish bank account over the reporting threshold triggers FBAR (FinCEN 114) and potentially FATCA Form 8938. Filing your Modelo 210 correctly and on time is what makes the US credit clean and defensible. (Coordinate with your US CPA — we handle the Spanish side.)

6. How SpainTaxForm helps American owners

We built SpainTaxForm precisely for this problem: non-residents who own property in Spain, do not have a Spanish digital certificate, do not speak legal Spanish, and cannot navigate the AEAT portal from abroad.

• No digital certificate or Cl@ve required. You fill in a guided form in English; we generate and file the Modelo 210.
• Automatic multi-owner handling. Enter the ownership split once and we produce one correct return per owner — the single biggest source of AEAT errors for US couples.
• Correct 24% non-EU treatment applied automatically, with the right imputed-income coefficient (1.1% vs 2%) based on your cadastral data.
• All three scenarios covered: imputed income (from €30), rental income, capital gains and 3% refund claims (Modelo 210/211 work).
• Deadline reminders and annual renewal, so a year is never missed — late filing triggers surcharges and interest.
• Documentation you can hand to your US CPA for the Form 1116 foreign tax credit.
• Support in 12 languages, with a team that files Modelo 210 for owners from the US, UK, Germany, France, the Netherlands, the Nordics and beyond.

7. American buyer checklist for Spain

1. Obtain your NIE (foreigner identification number) — required to sign the deed and to file Modelo 210. Apply at a Spanish consulate in the US or in Spain.
2. Open a Spanish bank account for utilities, IBI and community fees.
3. Instruct an independent lawyer; run a nota simple land registry check for charges and licences.
4. Budget 10-13% in purchase costs: ITP transfer tax (regional) or 10% VAT on new-build, notary, registry and legal fees.
5. Confirm the cadastral value — it drives your annual Modelo 210 bill.
6. If letting: check the regional and municipal tourist licence rules before you assume short-term income.
7. Register your annual Modelo 210 obligation from the year of purchase — pro-rated for the days you owned it.
8. Coordinate the Spanish return with your US 1040, Schedule E and Form 1116.

8. What comes next

Foreign demand in Spain is broadly flat overall, with total foreign purchases around 138,254 in 2025 and land registrars recording a record ~97,515 transactions involving foreign buyers. Within that stable total, the composition is rotating: British demand declining, Dutch, Italian and American demand rising. Given the price levels Americans transact at, their share of market value is growing faster than their share of units.

If you are one of them, the property is the easy part. The recurring obligation — one Modelo 210 per owner, per property, every single year, at the 24% non-EU rate — is what needs a system. That is exactly what we do.