The Costa Blanca and Costa del Sol regions have been favorites among Hungarian buyers for years. Whether it’s for a vacation home, an investment, or even a future move, most prospective buyers ask the same questions: Do I need a Spanish bank account? What is an NIE number? Can I get a loan? How much tax do I have to pay, and what kind of return can I expect from renting it out?
In this article, we’ve summarized the most important things you need to know.

First step: on-site project tour

We always recommend that our clients get to know the area, the projects, and the developers in person before making a final decision. During an on-site visit, you can view not only the properties but also the neighborhoods, beaches, amenities, transportation options, and the developers’ past references.
In many cases, the necessary administrative procedures can be initiated during the first visit, including obtaining a NIE number and opening a Spanish bank account.

What is a NIE number?

The NIE (Número de Identidad de Extranjero) is the Spanish tax identification number for foreigners. It is required for purchasing real estate, opening a bank account, transferring utility services, and handling future tax matters. Without an NIE number, it is practically impossible to finalize a real estate purchase.

Do I need a Spanish bank account?

By law, it is not mandatory in all cases, but in practice, it is almost indispensable. Most owners use it to pay for common expenses, property tax, utility bills, insurance, and, where applicable, mortgage payments. Most of our clients open a Spanish bank account during their first on-site visit.

What additional costs should be expected?

For pre-owned properties, it is generally advisable to budget for an additional 10–14% on top of the purchase price. This includes the property transfer tax (ITP), attorney’s fees, notary fees, land registry fees, and administrative costs.
For newly constructed properties, you should typically expect an additional 13–15% in costs, which includes 10% VAT (IVA), stamp duty (AJD), as well as attorney and land registry fees.

How does the purchase process work?

The process usually begins with a reservation deposit, which typically ranges from 3,000 to 10,000 euros. This is followed by the signing of the purchase agreement, at which point 10–30% of the purchase price is usually paid. For new construction projects, the payment schedule may vary by developer.
The transfer of ownership takes place before a Spanish notary. At this time, the remaining portion of the purchase price is paid, ownership is transferred, and the keys are handed over.

Can Hungarian citizens get a loan in Spain?

Yes. Most Spanish banks provide financing to foreign buyers. Generally speaking, banks finance 60–70% of the purchase price, so a down payment of 30–40% is typically required. The exact terms depend on verified income, credit history, age, and the type of property.

What taxes must owners pay?

Owners must pay the so-called IBI property tax annually, which is comparable to the Hungarian building tax. The amount varies by municipality but is generally a few hundred euros per year.
If the owner is not a Spanish tax resident, they must also file a non-resident tax return annually.

Can the property be rented out?

Yes, for most foreign buyers, the ability to rent out the property is a key consideration.
For long-term rentals, a net annual return of 3–5% is typically achievable, in exchange for less administrative work and more stable income.
For short-term, tourist rentals, the net yield typically ranges from 5–8%, and even higher returns are possible with the right location and occupancy rates. However, it is important to note that in certain regions and municipalities, a tourism license is required for short-term rentals.

Why is the local legal framework important?

During the purchase, a local attorney reviews the title deed, any encumbrances, occupancy permits, community fees, and all documents necessary for a secure purchase. This is particularly important for foreign buyers.

What happens after the purchase?

Many people fear that managing a property abroad is complicated and requires a constant presence. In reality, most tasks can be outsourced.
Our local partners provide assistance with key management, guest reception, organizing cleaning, arranging maintenance work, handling utility bills, tenant management, managing short- and long-term rentals, and handling matters related to tourism permits.
This way, a property in Spain can be safely owned and operated even from Hungary.

How can we help?

Feeling-Spain does more than just help you choose a property. We guide our clients through the entire process, from property viewings to obtaining an NIE number, opening a bank account, arranging financing, and ensuring the legal framework, all the way through to transferring utilities and organizing future property management and rental.
If you’d like to see the most promising projects on the Costa Blanca or Costa del Sol in person, join us on one of our site visits and discover the opportunities of the Spanish real estate market firsthand.
Feeling-Spain – Home under the sun. ☀️🏡🇪🇸