Buying Property in Madrid: Guide for Gulf Buyers

Why do Gulf buyers consider Madrid?

Madrid is Spain’s capital and its largest city, with more than three million residents, the national government, many company headquarters, leading universities and Spain’s largest cluster of private hospitals. It is also where your country’s embassy is based. Buyers from the Gulf come for family and study reasons, for business and medical visits, as a pied-à-terre, or as an investment, rather than for a beach holiday.

Madrid-Barajas airport is about 20 to 30 minutes from the centre, and flights from the Gulf vary by season, so check current routes. High-speed trains link Madrid with Barcelona, Valencia, Málaga and Seville in roughly two to three hours. The climate is continental: hot, dry summers and cold winters, unlike the milder coast. Prices vary widely by district and are generally higher in the central residential districts than in the suburbs.

This guide is written for buyers based in Saudi Arabia, Qatar, Kuwait, Bahrain and Oman; if you live in the UAE, see our Dubai and UAE guide. It covers which districts to consider, what the buying costs are and how they compare with the Costa del Sol, visas and residency, the process, financing and currency, taxes, tourist-let limits and the pitfalls specific to Madrid apartments. It does not replace legal, tax or immigration advice. For the coast, read our guide for Gulf buyers in Marbella.

Written byMike Brady

Reviewed byAlberto Bertazzi

Originally published27 October 2026

Last updated27 October 2026

Which districts of Madrid do Gulf buyers consider?

Short answer: Most look at the central residential districts (Salamanca, Chamberí, Chamartín and Retiro) for apartments, or at gated suburbs such as Pozuelo and La Moraleja for houses with gardens. The historic centre is livelier but noisier and more affected by tourist-flat rules.

These are first impressions, not price guidance: prices differ sharply by street and building. Ask for recent comparable sales in the exact street. Districts inside the city share Madrid’s municipal rules; the suburbs are separate municipalities.

What will a Madrid purchase cost on top of the price?

Short answer: About 7.5% of the price for a resale home and about 12% for a new build, in addition to your deposit. Madrid’s regional resale transfer tax of 6% is among the lowest in Spain, which makes the total lower than in most of the coast.

FCG planning values for the Community of Madrid (October 2026), rounded. Resale pays 6% transfer tax (ITP); a new build pays 10% VAT (IVA) plus 0.75% stamp duty (AJD). We assume legal fees of about 1% of the price (minimum €1,200) and about €300 for the gestoría; notary and registry fees are capped in the model, so on very expensive homes the real figure can be higher.

How does that compare with Marbella?

Same price and same assumptions, resale home. The gap is the regional transfer tax: 6% in Madrid against 7% in Andalusia.

• Not included: your deposit, the bank’s valuation (about €500 in our model), furnishing and works, and the cost of converting your currency into euros. Get the exchange rate quoted in writing before you send a large sum.
• Mortgage deed: under current law the bank normally pays the main costs of the mortgage deed; the purchase deed is yours.
• Plusvalía municipal: by law this local tax on the land’s gain is the seller’s; make sure the contract keeps it there.

To run your own price, use our detailed buying costs calculator. More background: Buying costs in Spain for non-residents.

Do you need a visa, and does buying in Madrid give residency?

Short answer: Buying does not give you the right to live in Spain, and visiting depends on your passport: citizens of the Gulf states covered here generally need a Schengen visa for visits. Check the current rules with the Spanish embassy or consulate before you plan trips around a purchase.

General information, position October 2026. Immigration and entry rules change often and depend on your nationality; this is not immigration advice.

How does a Gulf-based buyer buy an apartment in Madrid step by step?

Short answer: Agree financing, get a NIE, open a Spanish bank account, have a lawyer check the property and its building, sign a reservation and an arras contract, then complete at the notary. Allow six to twelve weeks from reservation to the deed, longer if you need a power of attorney or have to move funds from abroad.

1. Know your budget and your financing. Work out your own funds and the likely mortgage before you view anything.
2. Apply for a NIE. Every foreign buyer needs this Spanish tax number. You can apply at a Spanish embassy or consulate, in Spain at a police office (appointments can be scarce in Madrid), or through a lawyer holding your power of attorney.
3. Open a Spanish bank account. You need it for the mortgage, direct debits and the final payment. Banks check non-residents’ identity and funds, and some ask for a visit.
4. Consider a power of attorney. A lawyer can sign the NIE application, and even the deed, on your behalf. A power of attorney signed abroad is usually signed at a Spanish consulate or before a notary and then apostilled or legalised; ask your lawyer what the Spanish notary will accept.
5. Choose the home and hire your own lawyer. Pick someone with no link to the seller or the agent, and have the property checked before you reserve.
6. Reserve. A modest deposit takes the home off the market; find out when you would lose it.
7. Check the property and the building. Your lawyer reads the Nota Simple (register extract) for ownership and charges, compares it with the cadastre, and gets the paid IBI receipt, the community debt certificate and the energy certificate. For a Madrid apartment, also ask for the minutes of recent owners’ meetings, any planned works or levies, and the result of the building’s inspection (ITE) where one applies.
8. Sign the arras contract. About 10% of the price is normally paid on signing. A buyer who withdraws usually loses it, while a seller who withdraws usually owes double, unless the contract says otherwise. Add the conditions you depend on, such as mortgage approval by a fixed date.
9. Move the money. Plan the currency conversion, tell your bank about a large transfer in advance and keep proof of where the funds come from. Cash is not a workable route in Spain.
10. Mortgage offer. After a valuation the bank issues a binding offer; its pre-contract documents must reach you at least ten calendar days before you sign.
11. Complete at the notary. You sign the deed (escritura), pay the balance and receive the keys, in person or by power of attorney. The notary records how the price was paid and acts as a public official, not as your adviser.
12. After completion. Your gestoría or lawyer pays the transfer tax to the Community of Madrid and registers the deed. Then you connect utilities, insure the home, notify the community and set up direct debits. Also put your first non-resident tax return in your calendar.

More on the sequence: Spanish mortgage timeline and process.

Can Gulf residents get a Spanish mortgage for an apartment in Madrid?

Short answer: Yes. Spanish banks lend to non-residents based in the Gulf, usually up to about 70% of the value and often 60 to 70%, in euros. Lenders weigh income, commitments, own funds and the property. The challenge is rarely the distance; it is presenting your income and funds clearly and on time.

Here is a worked example for a resale apartment at €900,000 in Madrid (illustrative interest rate of 3.5% and a 25-year term, not an offer):

Own funds are the deposit, purchase costs of about €66,600 (including €54,000 of transfer tax) and the bank valuation of about €500. The payments come from the FCG costs calculator and are for planning only.

How much you can borrow depends mainly on your net income and your existing commitments. We plan on total monthly commitments staying within roughly 40% of net income, so the €630,000 loan above implies a net income of about €7,900 a month before any other debt.

Which documents do Spanish banks look at for Gulf-based buyers?

Banks differ in what they ask for. Documents in English are normally accepted as issued; if a lender needs a certified translation, it will say so. For more detail by country see Getting a Spanish mortgage from Saudi Arabia or Qatar.

Currency. Your income is in riyals, dinars or rials; the price, the costs and the mortgage payments are in euros. The Saudi riyal, Qatari riyal, Bahraini dinar and Omani rial are pegged to the US dollar and the Kuwaiti dinar is linked to a basket of currencies, so your exposure is largely the euro-dollar rate. If the euro strengthens 10% against the dollar, a €3,154 payment costs about 10% more in your own currency. Our Gulf mortgage calculator takes income in SAR, QAR or AED and shows results in euros.

Sharia compliance. A Spanish mortgage is an ordinary interest-bearing loan, and to our knowledge Spanish retail banks do not offer Sharia-compliant home finance as a standard product. If that matters to you, raise it first: it may decide whether you borrow in Spain at all.

See also How much deposit do you need to buy in Spain?

What are the typical reasons for Gulf buyers to choose Madrid?

What taxes and running costs do Gulf owners pay after buying in Madrid?

Short answer: Yearly property tax (IBI), local charges, community fees and a non-resident return (modelo 210) at generally 24% for owners from outside the EU and EEA. Wealth-related taxes can apply depending on the total value of your Spanish assets.

Spain has signed double-tax treaties with several Gulf states; whether one applies depends on your country and situation. Many Gulf states do not tax personal income, so there may be no tax at home against which the Spanish tax can be offset. The Community of Madrid reduces its regional wealth tax to nothing for many taxpayers, but how that works for non-residents depends on your residence and nationality, so take advice before buying at the top end. When a non-resident later sells, the buyer keeps back 3% of the price as an advance on your Spanish tax. Use an adviser who knows Spain and your home country.

Can you let a Madrid apartment to tourists?

Short answer: Do not assume it. Madrid city has tightened its rules on tourist flats, a national registration is required, and the owners’ community can block tourist use. Confirm the position for the exact building before you pay.

• The city limits new tourist flats. Madrid’s urban plan restricts where new tourist apartments can be licensed, with the tightest limits in the central districts. Existing licences and new applications are treated differently, so ask the lawyer to check the exact address.
• The community has a say. Spanish law now requires the approval of a three-fifths majority of owners for a tourist let in a building, and the statutes may ban it outright.
• Registration. A registration number is needed to advertise a tourist let.
• Longer lets. A normal residential tenancy gives the tenant strong protection under Spanish law, including a minimum duration, so it is not a quick exit.

Rental rules change often and differ by municipality; this is general information, not a guarantee that a let is, or will stay, possible.

Which pitfalls should Gulf buyers in Madrid watch out for?

• Old buildings and their works. Many central buildings are a century old. Ask for the minutes of owners’ meetings, any approved or planned works and levies (facade, lift, roof) and the inspection result, because a levy agreed before you buy can become your cost.
• Occupied flats. A flat sold with a tenant stays let on the existing contract. Check the lease, the rent and how long it runs.
• Bare ownership (nuda propiedad). Offers in Madrid sometimes sell only the ownership without the right to use the flat, which sits with the current occupant, often for life. Make sure you understand which you are buying.
• Size and layout. Listings quote built area, which includes shares of common areas; ask for the usable area and compare it with the cadastre and the register.
• Taking the asking price at face value. Listings often sit above real sale prices. Ask for comparable sales and an independent valuation.
• Money outside the deed. The full price should be in the deed and paid by traceable bank transfer; undeclared extras expose both sides to tax and legal risk.
• Community arrears. Debts for the current and previous year stay with the property. Get the administrator’s debt certificate before signing.
• Unregistered changes. Merged flats, converted attics and enclosed terraces must match the register and the cadastre.
• Off-plan stage payments. Ask to see the bank guarantee for your instalments, the licences and the ten-year structural insurance.
• Restricted zones for non-EU buyers. A few designated areas require authorisation for buyers from outside the EU. Ask your lawyer to confirm the specific address.
• Buying through a company. A foreign company owning Spanish property can face an annual special tax in some cases and must identify its real owners. Take tax advice before choosing the structure.
• Succession. Spanish property is inherited under Spanish procedure. Ask a lawyer how the law of your country and the Spanish rules interact, and consider a Spanish will.

Short answers for Gulf buyers in Madrid

General guide, as of 27 October 2026. Rates, costs, conditions and requirements change, and they depend on the property, the lender and your own circumstances. Nothing here is legal, tax or immigration advice. Information on fees is on our regulatory and fee information page.

Where to find binding information

• Comunidad de Madrid: the regional government, which sets the transfer tax (ITP) and stamp duty (AJD) rates.
• Agencia Tributaria: the Spanish tax authority (modelo 210, tax obligations).
• Registradores de España: the property register and the register extract (Nota Simple).
• Consejo General del Notariado: notaries and the deed.
• Sede Electrónica del Catastro: cadastral data and cadastral value.
• Ministerio de Asuntos Exteriores: Spanish embassies and consulates, visas and the NIE application from abroad.

Do you know what you can buy in Madrid?

If you want to know how much a Spanish bank might lend against your income and own funds, start the FCG online application or speak with us before you sign a reservation. Start the online application →

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