DE → ES
Buying property in Spain as a German citizen
Germans buying Spanish property enjoy the EU citizenship benefit set: 19% rental tax on net (with full deductions), mortgage terms close to Spanish residents, no Schengen 90-day limit, and direct access to Spanish residency through standard EU free-movement rights. The okupa risk and tourist licence reality remain — but the tax treatment is materially better than for British or American buyers.
Last updated:
1. Full EU citizen rights
As a German citizen you have unrestricted right to enter, live, and work in Spain under EU free movement. No visa is required to spend any length of time. To formalise residency you register with the local Oficina de Extranjeros within 90 days of arrival, obtaining a Certificado de Registro de Ciudadano de la Unión.
2. Spanish mortgage at near-resident terms
German citizens get the best non-resident mortgage terms available in Spain. BBVA, Santander, CaixaBank, and German-Spanish desks at Commerzbank and Deutsche Bank Spain offer up to 70-80% LTV for German buyers (vs 60% for non-EU), at rates within 25-50bps of resident rates. Income proof via German Lohnsteuerbescheinigung or Steuerbescheid is widely accepted. Loan applications take 4-8 weeks.
3. 19% on NET rental — full deductions
EU residents (including Germans) pay 19% IRNR on net rental income, with full deductions for mortgage interest, repairs, IBI, community fees, agent fees, and depreciation. This is dramatically better than the 24% on gross that non-EU buyers face. On a €1,400/month flat with €700/month deductible costs, the German buyer's effective tax is roughly €1,600/year versus €4,032/year for a British owner — a €2,400 annual difference.
4. Patrimonio wealth tax — region-dependent
As a non-resident German owner, you may face Spanish wealth tax (Patrimonio) on assets above €700,000 in Spain. Madrid applies a 100% bonification — effectively 0%. Andalucía 100% bonification. Catalonia applies the full rate (0.21-3.5%). Valencia and Baleares charge full rate. If you buy a flat in central Barcelona for €800,000, you face Patrimonio on €100,000 of value at progressive rates. If you buy the same in Madrid, you pay nothing.
5. Beckham Law if you relocate
If you become tax-resident in Spain to take up Spanish employment, the Beckham Law lets you elect to be treated as a non-resident for tax purposes for 6 years — paying 24% flat on Spanish-source income only, while remaining non-resident on worldwide income. This is particularly attractive for German tech workers and consultants relocating to Madrid or Barcelona, but it requires actual Spanish employment.
6. ITP regional rates apply equally
Purchase tax (ITP) varies by autonomous community for all buyers regardless of nationality. Madrid 6%, Catalonia 10-11%, Andalucía 7%, Valencia 10%, Baleares 8-13%. No EU preferential rate exists.
7. EU CRS reporting — Germany is in the loop
Spain and Germany both participate in the OECD Common Reporting Standard (CRS). Your Spanish bank account and rental income are automatically reported to German tax authorities via inter-agency exchange. This means German tax residents must declare Spanish rental income on Anlage AUS and apply the double-tax credit. Failing to declare is detectable.
8. Capital gains and double-tax treaty
German non-residents pay Spanish CGT on disposal (19-27% progressive). The Germany-Spain Double Taxation Treaty (1968, updated 2011) gives Spain primary taxing rights on Spanish real estate disposal — Germany then exempts the gain or credits the Spanish tax depending on classification. Plusvalía municipal also applies.
Frequently asked
Does German Erbschaftssteuer apply to my Spanish property?
Yes — Germany taxes worldwide assets on inheritance for German tax residents. Spanish IS (Impuesto sobre Sucesiones) also applies. The double-tax treaty credits one against the other. Spanish IS has very generous reductions in some regions (Madrid up to 99% bonification for spouse/children), but the German Erbschaftssteuer remains payable on the worldwide estate.
Can I use my German bank for the Spanish purchase?
You will still need a Spanish bank account for utilities, IBI direct debit, and community fees — but you can transfer the purchase price directly from a German account via SEPA. Deutsche Bank Spain and Commerzbank have integrated cross-border desks specifically for this.
Is okupa risk a real concern for German buyers?
Yes — okupa risk applies regardless of the owner's nationality. German buyers of empty apartments in Madrid, Barcelona, Sevilla, or Valencia face the same 12-24 month eviction timeline. Anti-okupa insurance (~€300-400/year) is a sensible precaution.
Can I rent short-term as a German owner?
Subject to the same local licence regimes as everyone else: Barcelona PEUAT freeze means no new tourist licences. Mallorca moratorium. Madrid requires separate building entrance. Outside the major cities, individual autonomous communities set their own rules. Outpost flags the licence status at the address level in every Spanish dossier.
Run a dossier
Analyse a property →