Buying Property in Spain as a Canadian Buyer: A Practical Guide
Canadian buyers have been purchasing property in Spain for decades, drawn by the climate, the cost of living relative to major Canadian cities, and the quality of life on the Mediterranean coast. The practical and legal path for Canadians is well-established – but it has distinct characteristics that differ from European buyers, particularly around residency requirements, tax treatment, and Canadian reporting obligations. Here is a clear account of what you need to know.
Why Canadians are buying in Spain
The motivations are consistent across the buyers reSELECTA works with. Spain’s Mediterranean climate – mild winters, long summers, reliably good weather from March through November – is a meaningful improvement on most Canadian cities for most of the year. The cost of living is materially lower than Toronto, Vancouver, or Montreal: dining, services, and general expenses run at roughly half the cost of major Canadian urban centres. A quality of life that would require significant wealth to achieve in Canada is accessible at a more moderate level of spending in Valencia or the Costa Blanca.
Direct air connections have improved significantly. Air Transat, Air Canada, and European carriers offer seasonal and year-round transatlantic routes between Toronto, Montreal, and Vancouver and Spanish airports (Madrid, Barcelona, Alicante, Valencia). The journey is 8-10 hours – manageable for regular travel between two homes.
The Canadian buyer profile reSELECTA encounters is typically: professionals in their 40s-60s, often approaching or in early retirement, purchasing a primary residence for a significant portion of the year or a secondary property alongside a Canadian home. A growing number are younger buyers working remotely who see Spain as a more affordable and liveable base than Canadian cities.
Residency in Spain for Canadians
As non-EU citizens, Canadian nationals do not have the automatic right to reside in Spain beyond 90 days in any 180-day period under the Schengen rules. Owning property in Spain does not change this – property ownership and residency rights are legally separate.
For Canadians who want to spend more than 90 days per year in Spain, the main options are:
Non-Lucrative Visa (NLV). The primary route for Canadians who want to live in Spain without working. Requires demonstrating passive income of approximately €2,400 per month (for the primary applicant) from sources outside Spain – pension, investment income, savings. The visa is obtained from the Spanish consulate in Canada before travelling to Spain, and allows full-time residency. See our complete guide to the Non-Lucrative Visa Spain.
Digital Nomad Visa. For Canadians who work remotely for non-Spanish employers or clients. Introduced by Spain in 2023, this visa allows remote workers to reside in Spain legally while continuing to work for their existing employer or clients outside Spain. Income requirements are similar to the NLV.
90-day Schengen rule (no visa). For buyers who plan to spend less than 90 days per 180-day period in Spain – using the property as a holiday home rather than a primary or secondary residence – no visa is required. Many Canadian buyers operate this way, dividing their time between Canada and Spain within the Schengen limit.
The purchase process step by step
NIE number. A Numero de Identificacion de Extranjero is required for every Spanish property transaction, regardless of nationality. Apply at a Spanish National Police station in Spain, or at the Spanish consulate in Canada (Toronto, Montreal, or Vancouver). Allow 3-6 weeks for the process. Your solicitor can also obtain it on your behalf with a power of attorney, which avoids needing to be physically present in Spain for this step. Full details in our NIE guide.
Spanish bank account. Required to hold purchase funds, pay taxes, and manage utilities. Open with your NIE and passport at a Spanish bank. Some banks have international or English-speaking departments – Sabadell, CaixaBank, and BBVA are commonly used by international buyers.
Appoint a Spanish solicitor. An independent Spanish abogado who represents your interests – not the seller’s – is essential. They conduct due diligence on the property, review all contracts, and manage the legal process. Budget 1-1.5% of purchase price for legal fees.
Reservation and arras contract. Once a property is agreed, a reservation deposit secures it, followed by a contrato de arras (typically 10% of the purchase price). This contract binds both parties: if the buyer withdraws, the deposit is forfeited; if the seller withdraws, they must return double.
Due diligence. Your solicitor verifies the Land Registry, confirms no outstanding debts or legal charges on the property, checks planning legality, and reviews community fees and any pending obligations.
Notary and completion. The purchase deed (Escritura de Compraventa) is signed before a Spanish Notary, funds are transferred, and keys change hands. The property is then registered with the Land Registry in your name.
Taxes on purchase
Budget 10-13% above the purchase price for taxes and fees on a resale property in the Valencian Community:
- ITP (transfer tax): 10% of the purchase price – the largest single additional cost.
- Notary and Land Registry fees: approximately 0.5-1% combined.
- Legal fees: 1-1.5% of purchase price.
- New build: ITP is replaced by IVA (VAT) at 10%, plus AJD stamp duty at 1.5%.
Annual Spanish taxes as a Canadian owner
As a non-EU, non-resident owner, Canadians pay Spanish tax on the property each year regardless of whether it is rented or used personally:
IBI (local council tax): paid annually to the municipality, based on the cadastral value of the property. Typically €300-€1,500 per year for most Costa Blanca and Valencia properties.
IRNR – imputed income tax (Modelo 210): even if the property is not rented, Spanish law assumes a notional income of 1.1-2% of the cadastral value and taxes it at 24% for non-EU residents. For a property with a cadastral value of €120,000, this amounts to approximately €576 per year. If the property is rented, actual rental income is taxed at 24% on the gross amount – Canadian owners, as non-EU residents, cannot deduct property expenses before calculating the tax due.
Wealth tax: applies to net Spanish assets above €500,000 (Valencian Community threshold). Relevant for higher-value purchases. A Spanish tax advisor should model the specific impact for your situation.
See our full guide to annual property taxes in Spain for non-residents for the complete picture.
Canadian tax obligations: what you must report
This is the area where Canadian buyers most often need specific advice, and where the obligations differ meaningfully from European buyers.
Foreign property reporting (T1135). The Canada Revenue Agency (CRA) requires Canadian tax residents to report foreign property with a cost of CAD $100,000 or more annually via the Foreign Income Verification Statement (T1135). A Spanish property almost certainly qualifies. The T1135 must be filed with your annual Canadian tax return. Failure to file carries significant penalties – CAD $25 per day up to CAD $2,500, and potentially more for wilful non-compliance. This is a reporting requirement, not an additional tax – but it is mandatory and frequently overlooked by first-time foreign property buyers.
Rental income from Spanish property. If you rent your Spanish property, the rental income must be reported to the CRA on your Canadian tax return, in addition to paying the Spanish IRNR. The Canada-Spain double taxation treaty allows you to credit the Spanish tax paid against the Canadian tax due on the same income, so you do not pay full tax twice – but you do need to report and calculate both.
Capital gains on eventual sale. When you sell your Spanish property, Spain will withhold 3% of the sale price at notary as a security deposit against potential capital gains tax (19% on the net gain). In Canada, 50% of the capital gain is included in your income for Canadian tax purposes (subject to the capital gains inclusion rate in the year of sale). The Canada-Spain treaty again provides for credit of Spanish tax paid, but both obligations exist and must be calculated.
Becoming a Spanish tax resident. If you spend more than 183 days per year in Spain, Spain will consider you a tax resident and expect declaration of your worldwide income to Hacienda. This fundamentally changes your tax position in both countries and requires careful planning – ideally with a tax advisor who is familiar with both the Canadian and Spanish systems – before you make the move.
Getting a mortgage in Spain as a Canadian buyer
Canadian buyers can access Spanish mortgages, though as non-EU, non-resident buyers the standard terms apply: 60-70% loan-to-value, requiring a 30-40% deposit plus buying costs. Spanish banks require income documentation from Canada – typically the last 2-3 years of Canadian tax returns (T1 returns), recent Notice of Assessment from the CRA, bank statements, and proof of any other income sources.
Canadian income documentation is generally well-understood by Spanish banks accustomed to international buyers. A mortgage broker who specialises in non-resident cases can compare the current market and navigate the documentation process. See our guide to Spanish mortgages for foreigners.
Currency considerations. The CAD/EUR exchange rate creates ongoing exposure for Canadian buyers – both on the purchase and on any mortgage payments or ongoing costs. Many buyers work with a specialist currency transfer company (rather than their bank) to manage large transfers more cost-effectively and, if desired, to fix rates for future transfers.
Best areas for Canadian buyers
Canadian buyers tend toward the same areas as British and American buyers: the northern Costa Blanca (Javea, Moraira, Altea, Calpe) for coastal living, and Valencia city for urban life with a significantly lower cost of living than Toronto or Vancouver.
The northern Costa Blanca – particularly Javea and Moraira – has an established anglophone community (predominantly British, with a growing Canadian and American presence) and the infrastructure that comes with it: English-speaking professionals, international schools, and a social network that makes the practical transition straightforward.
Valencia city is increasingly attractive to Canadian buyers who want a functioning European city – the culture, the food scene, the public transport – at a fraction of the cost of Toronto or Vancouver. A well-located Valencia city apartment of 90-120 square metres can be purchased for €300,000-€500,000, a price point that buys nothing comparable in major Canadian cities.
FAQ
Can Canadians buy property in Spain?
Yes, without restriction. Spain does not limit property ownership by nationality – any individual, regardless of citizenship, can purchase property in Spain. The purchase process, taxes, and legal requirements are the same for Canadians as for any other foreign buyer. The main differences are in residency rights (a visa is required for stays over 90 days) and in the specific Canadian reporting obligations that apply to foreign property owners.
Do Canadians need a visa to buy property in Spain?
No visa is needed to purchase property. However, a visa is required to live in Spain beyond 90 days per 180-day period. For Canadians who want to spend more than 90 days per year in Spain, the Non-Lucrative Visa (for those with passive income) or the Digital Nomad Visa (for remote workers) are the main routes. Property ownership does not grant residency rights in Spain for non-EU citizens.
Do I have to report my Spanish property to the CRA?
Yes, if the cost of the property is CAD $100,000 or more. Canadian tax residents must file the T1135 Foreign Income Verification Statement annually with their Canadian tax return, declaring any foreign property above this threshold. This is a reporting requirement – not an additional tax – but the penalties for non-compliance are significant. File from the first year of ownership and ensure your Canadian accountant is aware of the Spanish purchase.
What is the 90-day Schengen rule for Canadians?
Canadian passport holders can stay in the Schengen Area (which includes Spain) for up to 90 days in any 180-day rolling period without a visa. This is not 90 days per year – it is 90 days in any 180-day window, which resets on a rolling basis. Exceeding this limit without a visa creates legal complications and can affect future entry rights. Canadians who want to spend more than 90 days in Spain need to apply for the appropriate visa from the Spanish consulate in Canada.
What are the best areas in Spain for Canadian buyers?
The northern Costa Blanca – Javea, Moraira, Altea, Calpe – has an established English-speaking community and the coastal lifestyle most Canadian buyers are looking for. Valencia city offers urban living at significantly lower cost than Toronto or Vancouver. For buyers who want year-round Mediterranean city life rather than a coastal resort, Valencia is increasingly the preferred choice. Both are within 90 minutes of Alicante airport, which has good transatlantic connections.