Buying a castle in Spain
Migration Program Details & Application
Program Overview
Purchase a Spanish castle
Project Description
I. Core Positioning of the Spanish Castle Market
The core characteristics of the Spanish castle market can be summarized as "abundant supply, wide price range, and favorable regulations." More than 500 castles are publicly sold through real estate agents throughout Spain. These castles are mainly concentrated in the historically significant inland provinces of Castilla y León, Castilla-La Mancha, Aragón, and Extremadura. In addition, castles are also listed for sale in popular tourist areas such as Catalonia (around Girona and Barcelona), Andalusia, the Valencian Community, and the Balearic Islands.
The key difference between the Spanish castle market and those of other EU countries lies in the fact that there are no nationality restrictions for foreign buyers, and no permission from the Ministry of the Interior is required. Both EU/EEA and non-EU/EEA citizens are free to purchase property in Spain. The transaction can be completed simply by registering an NIE number and a Spanish bank account beforehand. This favorable policy makes Spain one of the gateway markets for foreign buyers interested in purchasing castles to enter Europe.
II. Price Ranges and Market Segmentation – From €50,000 Ruins to €15 Million Estates
Prices for Spanish castles vary widely, and are categorized into four main price tiers:
Tier 1: Ruins/Skeleton-level Castle (Entry-level) – €50,000–€300,000
The "lowest threshold" for Spanish castles lies in the sparsely populated rural areas of Castile-La Mancha and Castile-León in central Spain. Typical markets are as follows:
• The 12th-century watchtower at Valhermoso de la Fuente, Cuenca: Priced at €50,000, including a 15,000 sq m plot of land available for development; electricity is already connected. Complete renovation is required, with a maximum government restoration grant of 80%. The architectural design has been completed ahead of schedule. This tower is actually a "watchtower," not a complete castle; it has four original floors, and the defensive walls are still recoverable.
• Sharing Chinese experience – Torreón (Tower type): Approximately €100,000 to €300,000, small in size, unique in structure, and with great potential for renovation.
The actual total cost of acquiring this property far exceeds the purchase price, and the renovation costs are extremely high. Buyers must have an expert-level restoration team and be prepared for a restoration cycle of several years.
Second tier: Castles/manors requiring moderate renovation or partial restoration – €400,000–€1,200,000
This is the most active trading segment in the Spanish castle market. The main supply types are late medieval or Baroque Palacio Rural and Castillo Completo pieces requiring moderate refurbishment.
Palacio Rural type: The structure is in good condition but the interior needs renovation. It usually comes with a yard or a small plot of land and is priced at approximately €400,000–€800,000.
• Establés Castle in Guadalajara (15th century): Located in Señorío de Molina de Aragón, originally named "Malasombra", built in the 15th century, it requires a complete interior renovation and is priced at €450,000.
• Historic Castle of Tarragona: An atypical castle asset in the high-end market, with a case listed in 2026 for €425,000, including historic status and tourism development permits.
• Large castle ruins listed for sale: For example, a location within an hour's drive of Madrid has been listed for €1,800,000, including multiple buildings and a moat.
Third floor: Fully renovated/ready for immediate occupancy medium to large castle – €1.2M–€3.5M
This tier has a large number of castles that have been renovated and are ready for immediate occupancy entering the market.
Typical Case:
• Amer Torre d'Amer (Girona): A thousand-year-old property (earliest recorded date is 949), listed as a Bien de Interés Cultural (BCIN), with a building area of 747㎡ (including the main castle, traditional farmhouse, and independent attic), and nearly 1 hectare of private land, currently divided into three independent units and holding a valid Immediate tourist license. It can be used for owner-occupancy or as a guesthouse, with a listed price of €1,450,000. This property features an independent solar photovoltaic system, battery storage, an 80,000-liter water tank, and modern energy-efficient heating, achieving a high degree of energy self-sufficiency.
• A 12th-century Romanesque tower and 16th–18th-century farmhouse complex in Baix Empordà, Girona: 1,800 m² of building area on 2.7 hectares (including 2.35 hectares of rural land and 0.4 hectares of urban land), listed as a BCIN cultural asset, with an asking price of €2,950,000.
• Maresme Castle, Barcelona (built in 1619): 4,553㎡, covering 2 hectares, including corner towers, a church, and a private helipad. The upper two sections have been renovated and include 11 separate bedroom suites, a swimming pool, and a self-generating generator and well. Asking price is approximately €9,000,000 (≈$9.8M).
Fourth Tier: Top-Tier Iconic/Commercially Operated Castles – €6,500,000 and above
The top of the Spanish castle market pyramid includes high-end historic buildings that also function as hotels and all-encompassing estate complexes.
• Gothic-Mudéjar style castle in Segovia, Castilla-León (75km from Madrid): Completely renovated and converted into a 25-room luxury hotel, with a building area of 5,950 square meters and a land area of 79 hectares, including an attached watermill, activity center, swimming pool and gardens, priced at €15,000,000. This castle was listed as a cultural landmark in 1931, with a rich history spanning the 15th and 16th centuries, and has excellent reception and conference facilities.
• Castilnovo Castle Complex (just an hour's drive from Madrid): Spanning 78 hectares (193 acres), including oak forests and rivers, the castle itself is five stories high and features 21 suites with ensuite bathrooms, a swimming pool, and extensive extended spaces, suitable for private residences/hotels/event venues. The initial listing price was $17,677,880 (approximately €16.2 million). According to historical legend, the castle was originally built in the 8th century and was once owned by two Catholic kings.
• Castillo de Ocharán, Cantabria: A landmark castle built in 1914, approximately 7,000 square feet (650 square meters), featuring a clock tower, indoor and outdoor saltwater swimming pools, multiple towers and crenellations. It is listed as a Spanish cultural heritage site and is priced at €6.5 million.
III. Market Dynamics and Trends in 2025-2026
1. Overall tight supply and demand in the residential market – the castle market remains stable and positive. The real estate market experienced a significant overall increase in 2025, with the year-on-year increase in existing home prices reaching 10.91% in March (TP3T). High-end castle properties saw a more pronounced premium due to capital inflows, but the absolute volume of castle transactions remains a niche market, with prices rising steadily rather than experiencing a surge.
2. A mismatch between supply and demand for castles leads to renovated castles commanding a premium. Historic building preservation continues to be a popular long-term wealth preservation strategy in Spain. Fully renovated castles with high energy efficiency (such as Torre d'Amer, equipped with a solar system) receive additional market favor. The inventory of castles awaiting restoration is decreasing annually; while the original price is low, renovation costs rise with the increasing prices of building materials and labor.
3. While the overall policy environment is favorable for foreign buyers, there are signs of tax pressure. The NIE (National Insurance Information Center) and bank account opening systems are mature and have no nationality restrictions. However, in January 2025, Spanish Prime Minister Pedro Sánchez announced plans to levy a tax of up to 100% on real estate purchases by non-EU, non-resident buyers. This proposal, published on January 13, 2025, is currently assessing two implementation paths: ① amending the Intermediate Property Transfer Tax (ITP) for existing homes, and ② creating a new tax. However, this proposal has been challenged by EU free trade provisions and has not yet been formally enacted as of April 2026. Buyers are advised to closely monitor regional and local policy changes.
4. Increased Risk of Regional Housing Purchase Controls (CATALONIA). The Catalan government plans to pass a bill in mid-2025 that would restrict non-resident foreigners from purchasing residential real estate—the bill would require foreigners to prove they have legally resided in Spain continuously for five years before they can buy property. If passed, this proposal would apply to buyers purchasing castles in and around Barcelona, and should be closely monitored.
Project Description
I. Core Positioning of the Spanish Castle Market
The core characteristics of the Spanish castle market can be summarized as "abundant supply, wide price range, and favorable regulations." More than 500 castles are publicly sold through real estate agents throughout Spain. These castles are mainly concentrated in the historically significant inland provinces of Castilla y León, Castilla-La Mancha, Aragón, and Extremadura. In addition, castles are also listed for sale in popular tourist areas such as Catalonia (around Girona and Barcelona), Andalusia, the Valencian Community, and the Balearic Islands.
The key difference between the Spanish castle market and those of other EU countries lies in the fact that there are no nationality restrictions for foreign buyers, and no permission from the Ministry of the Interior is required. Both EU/EEA and non-EU/EEA citizens are free to purchase property in Spain. The transaction can be completed simply by registering an NIE number and a Spanish bank account beforehand. This favorable policy makes Spain one of the gateway markets for foreign buyers interested in purchasing castles to enter Europe.
II. Price Ranges and Market Segmentation – From €50,000 Ruins to €15 Million Estates
Prices for Spanish castles vary widely, and are categorized into four main price tiers:
Tier 1: Ruins/Skeleton-level Castle (Entry-level) – €50,000–€300,000
The "lowest threshold" for Spanish castles lies in the sparsely populated rural areas of Castile-La Mancha and Castile-León in central Spain. Typical markets are as follows:
• The 12th-century watchtower at Valhermoso de la Fuente, Cuenca: Priced at €50,000, including a 15,000 sq m plot of land available for development; electricity is already connected. Complete renovation is required, with a maximum government restoration grant of 80%. The architectural design has been completed ahead of schedule. This tower is actually a "watchtower," not a complete castle; it has four original floors, and the defensive walls are still recoverable.
• Sharing Chinese experience – Torreón (Tower type): Approximately €100,000 to €300,000, small in size, unique in structure, and with great potential for renovation.
The actual total cost of acquiring this property far exceeds the purchase price, and the renovation costs are extremely high. Buyers must have an expert-level restoration team and be prepared for a restoration cycle of several years.
Second tier: Castles/manors requiring moderate renovation or partial restoration – €400,000–€1,200,000
This is the most active trading segment in the Spanish castle market. The main supply types are late medieval or Baroque Palacio Rural and Castillo Completo pieces requiring moderate refurbishment.
Palacio Rural type: The structure is in good condition but the interior needs renovation. It usually comes with a yard or a small plot of land and is priced at approximately €400,000–€800,000.
• Establés Castle in Guadalajara (15th century): Located in Señorío de Molina de Aragón, originally named "Malasombra", built in the 15th century, it requires a complete interior renovation and is priced at €450,000.
• Historic Castle of Tarragona: An atypical castle asset in the high-end market, with a case listed in 2026 for €425,000, including historic status and tourism development permits.
• Large castle ruins listed for sale: For example, a location within an hour's drive of Madrid has been listed for €1,800,000, including multiple buildings and a moat.
Third floor: Fully renovated/ready for immediate occupancy medium to large castle – €1.2M–€3.5M
This tier has a large number of castles that have been renovated and are ready for immediate occupancy entering the market.
Typical Case:
• Amer Torre d'Amer (Girona): A thousand-year-old property (earliest recorded date is 949), listed as a Bien de Interés Cultural (BCIN), with a building area of 747㎡ (including the main castle, traditional farmhouse, and independent attic), and nearly 1 hectare of private land, currently divided into three independent units and holding a valid Immediate tourist license. It can be used for owner-occupancy or as a guesthouse, with a listed price of €1,450,000. This property features an independent solar photovoltaic system, battery storage, an 80,000-liter water tank, and modern energy-efficient heating, achieving a high degree of energy self-sufficiency.
• A 12th-century Romanesque tower and 16th–18th-century farmhouse complex in Baix Empordà, Girona: 1,800 m² of building area on 2.7 hectares (including 2.35 hectares of rural land and 0.4 hectares of urban land), listed as a BCIN cultural asset, with an asking price of €2,950,000.
• Maresme Castle, Barcelona (built in 1619): 4,553㎡, covering 2 hectares, including corner towers, a church, and a private helipad. The upper two sections have been renovated and include 11 separate bedroom suites, a swimming pool, and a self-generating generator and well. Asking price is approximately €9,000,000 (≈$9.8M).
Fourth Tier: Top-Tier Iconic/Commercially Operated Castles – €6,500,000 and above
The top of the Spanish castle market pyramid includes high-end historic buildings that also function as hotels and all-encompassing estate complexes.
• Gothic-Mudéjar style castle in Segovia, Castilla-León (75km from Madrid): Completely renovated and converted into a 25-room luxury hotel, with a building area of 5,950 square meters and a land area of 79 hectares, including an attached watermill, activity center, swimming pool and gardens, priced at €15,000,000. This castle was listed as a cultural landmark in 1931, with a rich history spanning the 15th and 16th centuries, and has excellent reception and conference facilities.
• Castilnovo Castle Complex (just an hour's drive from Madrid): Spanning 78 hectares (193 acres), including oak forests and rivers, the castle itself is five stories high and features 21 suites with ensuite bathrooms, a swimming pool, and extensive extended spaces, suitable for private residences/hotels/event venues. The initial listing price was $17,677,880 (approximately €16.2 million). According to historical legend, the castle was originally built in the 8th century and was once owned by two Catholic kings.
• Castillo de Ocharán, Cantabria: A landmark castle built in 1914, approximately 7,000 square feet (650 square meters), featuring a clock tower, indoor and outdoor saltwater swimming pools, multiple towers and crenellations. It is listed as a Spanish cultural heritage site and is priced at €6.5 million.
III. Market Dynamics and Trends in 2025-2026
1. Overall tight supply and demand in the residential market – the castle market remains stable and positive. The real estate market experienced a significant overall increase in 2025, with the year-on-year increase in existing home prices reaching 10.91% in March (TP3T). High-end castle properties saw a more pronounced premium due to capital inflows, but the absolute volume of castle transactions remains a niche market, with prices rising steadily rather than experiencing a surge.
2. A mismatch between supply and demand for castles leads to renovated castles commanding a premium. Historic building preservation continues to be a popular long-term wealth preservation strategy in Spain. Fully renovated castles with high energy efficiency (such as Torre d'Amer, equipped with a solar system) receive additional market favor. The inventory of castles awaiting restoration is decreasing annually; while the original price is low, renovation costs rise with the increasing prices of building materials and labor.
3. While the overall policy environment is favorable for foreign buyers, there are signs of tax pressure. The NIE (National Insurance Information Center) and bank account opening systems are mature and have no nationality restrictions. However, in January 2025, Spanish Prime Minister Pedro Sánchez announced plans to levy a tax of up to 100% on real estate purchases by non-EU, non-resident buyers. This proposal, published on January 13, 2025, is currently assessing two implementation paths: ① amending the Intermediate Property Transfer Tax (ITP) for existing homes, and ② creating a new tax. However, this proposal has been challenged by EU free trade provisions and has not yet been formally enacted as of April 2026. Buyers are advised to closely monitor regional and local policy changes.
4. Increased Risk of Regional Housing Purchase Controls (CATALONIA). The Catalan government plans to pass a bill in mid-2025 that would restrict non-resident foreigners from purchasing residential real estate—the bill would require foreigners to prove they have legally resided in Spain continuously for five years before they can buy property. If passed, this proposal would apply to buyers purchasing castles in and around Barcelona, and should be closely monitored.
Eligibility & Requirements
Evaluate
I. Advantages
1. Zero Restrictions on Foreign Buyers – Spain, along with France and Portugal, is one of Europe's most welcoming countries. Spanish land law and foreign investment policies impose no quantitative restrictions or approval barriers on non-EU citizens. Foreign buyers enjoy the same tax treatment as Spanish citizens when purchasing property. Compared to Austria, Poland, and parts of Germany requiring Ministry of the Interior approval (which can take months), and the Czech Republic, which, while not requiring permits, has complex real estate transfer taxes, Spain wins with the fewest administrative barriers.
2. ITP tax zone differences may lead to lower-level business planning (6%–10%). When it comes to the transfer of second-hand residential properties, the ITP applies a floating tax rate (6%–10%) set by each autonomous region. In some autonomous regions, high-end properties can reach 13%, which is still much lower than France (about 8%) and Austria (3.5%+1.1%), but it depends on the location of the castle.
3. Tax Exemption for Inheritance and Gift Transfers Between Immediate Family Members (Regional and Tier System). Inheritance tax in Spain is governed by autonomous communities, with significant differences in exemption amounts, tax rates, and degree of kinship reductions between regions. Andalusia: Group I children and Group II spouses and parents generally enjoy a tax exemption of 99%; Madrid: 99% reduction; Catalonia: Lower exemption amount but with a progressive tax rate. By conducting heritage planning in the area where the castle is located, a highly favorable tax environment can be created for the intergenerational transfer of the castle.
4. The castle possesses immense commercial and tourism potential. Spain receives over 84 million tourists annually, with cultural tourism continuing its strong growth. The castle can be converted into boutique hotels, wedding venues, wineries, museums, corporate resorts, or luxury timeshare tourism products. Historic BCIN buildings are eligible for EU/national cultural heritage restoration grants and tourism development subsidies.
5. BCIN (Bien de Interés Cultural) status tax deduction options. Castles listed as Spanish national cultural interests are eligible for various tax benefits: repair costs (materials and labor) can be deducted from personal or corporate income tax; property tax (IBI) can be reduced or exempted (the maximum reduction can reach 90%, depending on the autonomous region's implementation rules); and inheritance donations can enjoy tax deductions for cultural assets.
6. Relatively low property holding tax rates. Property tax (IBI) is levied at 0.4% to 1.1% of the cadastral value. Cascade cadastral values are typically much lower than market prices, making them affordable. If a castle is classified as a non-rental second home: the annual IRNR is calculated by multiplying the cadastral value (updated value at 1.1%, otherwise 2%) by 19% (EU/EEA residents) or 24% (non-EU residents). This keeps the annual tax rate low for smaller castles.
II. Major Risks and Costs
1. The total additional costs of the transaction can reach 10%–13%—far exceeding the asking price. Buyers of Spanish castles must prepare an additional budget covering: ITP (6%–10%) or IVA+VAT (10% for new buildings + 1.5% stamp duty); notary and land registration fees of approximately 1%–2% of the total price; lawyer and agent commissions (1%–2%); and the costs of setting up a bank and foreign exchange offsetting in NL. For example, for a €1 million castle, the additional costs would be approximately €100,000–€130,000.
2. The regulations for the preservation of historic buildings (BCIN) are extremely strict. Any alterations, exterior repairs, or expansions to BCIN buildings and their surrounding protected areas require item-by-item approval from the regional cultural heritage department, with approval periods ranging from 3 to 6 months. Building materials and surface restorations can only use local stone, lime plaster, and traditional colors consistent with the original walls. Spain's current Historic Heritage Law 16/1985 and its regional extension laws impose mandatory restoration to the original state and fixed fines for any construction work. The BCIN protection classification system has significantly different levels of restrictions, ranging from limitations on decorations to complete inviolability of the internal structure.
3. Renovation and ongoing maintenance are extremely costly and heavily reliant on skilled craftsmen. The cost of renovating a castle is approximately €1,500–€3,500 per square meter. If BCIN (Bien de Interés Cultural, National Cultural Interest) status is involved (using traditional techniques such as thick stucco for towers, hand-forged ironwork, and restoration of wooden components), the cost skyrockets by 3 to 5 times. Roof restoration alone can cost €200,000 to €1 million or more. Annual operating expenses for a castle (heating, electricity, landscaping, cleaning, and insurance for common areas) typically range from €30,000 to €150,000 per year, and can double for extremely large estates.
4. Fixed annual income tax (IRNR) for foreign buyers. Regardless of whether the castle is rented out, non-residents must file an annual return through Modelo 210. For second homes (without generating actual income), the tax is calculated based on the cadastral value, using the formula 1.1% or 2% multiplied by a fixed tax rate (24% for non-EU residents). For non-EU buyers of castles valued at €1.5 million, this could result in several thousand euros in fixed taxes annually, in addition to IBI and wealth tax (Patrimonio).
5. Loan eligibility is tightening and LTV is limited by bank valuations. Spanish banks generally limit loans to non-foreign buyers to no more than 701 million T/3 of the property value; the non-standard nature of castles often amplifies this, lowering loan requirements to 501 million T/3–601 million T/3 of LTV. Lenders require an authentic repair report from an independent surveyor before approval.
6. The Golden Visa program has been abolished (from April 2025). Spain's Golden Visa program officially ended on April 3, 2025. Investors can no longer obtain residency by investing €500,000 in a castle or any real estate. However, a "non-profit residency visa" (provided one has sufficient savings and does not engage in productive economic activity) can still be considered, but requires residing in Spain for more than 183 days per year.
7. Risks related to castle ownership, easements, and incomplete property rights chains. Some castles in Spain may have discrepancies between their land registers and the actual property, missing original boundary easements, or unregistered municipal ownership. A comprehensive check of the land and mortgage registers by a lawyer is essential before purchase, ensuring the clarity of the transaction history.
I. Advantages
1. Zero Restrictions on Foreign Buyers – Spain, along with France and Portugal, is one of Europe's most welcoming countries. Spanish land law and foreign investment policies impose no quantitative restrictions or approval barriers on non-EU citizens. Foreign buyers enjoy the same tax treatment as Spanish citizens when purchasing property. Compared to Austria, Poland, and parts of Germany requiring Ministry of the Interior approval (which can take months), and the Czech Republic, which, while not requiring permits, has complex real estate transfer taxes, Spain wins with the fewest administrative barriers.
2. ITP tax zone differences may lead to lower-level business planning (6%–10%). When it comes to the transfer of second-hand residential properties, the ITP applies a floating tax rate (6%–10%) set by each autonomous region. In some autonomous regions, high-end properties can reach 13%, which is still much lower than France (about 8%) and Austria (3.5%+1.1%), but it depends on the location of the castle.
3. Tax Exemption for Inheritance and Gift Transfers Between Immediate Family Members (Regional and Tier System). Inheritance tax in Spain is governed by autonomous communities, with significant differences in exemption amounts, tax rates, and degree of kinship reductions between regions. Andalusia: Group I children and Group II spouses and parents generally enjoy a tax exemption of 99%; Madrid: 99% reduction; Catalonia: Lower exemption amount but with a progressive tax rate. By conducting heritage planning in the area where the castle is located, a highly favorable tax environment can be created for the intergenerational transfer of the castle.
4. The castle possesses immense commercial and tourism potential. Spain receives over 84 million tourists annually, with cultural tourism continuing its strong growth. The castle can be converted into boutique hotels, wedding venues, wineries, museums, corporate resorts, or luxury timeshare tourism products. Historic BCIN buildings are eligible for EU/national cultural heritage restoration grants and tourism development subsidies.
5. BCIN (Bien de Interés Cultural) status tax deduction options. Castles listed as Spanish national cultural interests are eligible for various tax benefits: repair costs (materials and labor) can be deducted from personal or corporate income tax; property tax (IBI) can be reduced or exempted (the maximum reduction can reach 90%, depending on the autonomous region's implementation rules); and inheritance donations can enjoy tax deductions for cultural assets.
6. Relatively low property holding tax rates. Property tax (IBI) is levied at 0.4% to 1.1% of the cadastral value. Cascade cadastral values are typically much lower than market prices, making them affordable. If a castle is classified as a non-rental second home: the annual IRNR is calculated by multiplying the cadastral value (updated value at 1.1%, otherwise 2%) by 19% (EU/EEA residents) or 24% (non-EU residents). This keeps the annual tax rate low for smaller castles.
II. Major Risks and Costs
1. The total additional costs of the transaction can reach 10%–13%—far exceeding the asking price. Buyers of Spanish castles must prepare an additional budget covering: ITP (6%–10%) or IVA+VAT (10% for new buildings + 1.5% stamp duty); notary and land registration fees of approximately 1%–2% of the total price; lawyer and agent commissions (1%–2%); and the costs of setting up a bank and foreign exchange offsetting in NL. For example, for a €1 million castle, the additional costs would be approximately €100,000–€130,000.
2. The regulations for the preservation of historic buildings (BCIN) are extremely strict. Any alterations, exterior repairs, or expansions to BCIN buildings and their surrounding protected areas require item-by-item approval from the regional cultural heritage department, with approval periods ranging from 3 to 6 months. Building materials and surface restorations can only use local stone, lime plaster, and traditional colors consistent with the original walls. Spain's current Historic Heritage Law 16/1985 and its regional extension laws impose mandatory restoration to the original state and fixed fines for any construction work. The BCIN protection classification system has significantly different levels of restrictions, ranging from limitations on decorations to complete inviolability of the internal structure.
3. Renovation and ongoing maintenance are extremely costly and heavily reliant on skilled craftsmen. The cost of renovating a castle is approximately €1,500–€3,500 per square meter. If BCIN (Bien de Interés Cultural, National Cultural Interest) status is involved (using traditional techniques such as thick stucco for towers, hand-forged ironwork, and restoration of wooden components), the cost skyrockets by 3 to 5 times. Roof restoration alone can cost €200,000 to €1 million or more. Annual operating expenses for a castle (heating, electricity, landscaping, cleaning, and insurance for common areas) typically range from €30,000 to €150,000 per year, and can double for extremely large estates.
4. Fixed annual income tax (IRNR) for foreign buyers. Regardless of whether the castle is rented out, non-residents must file an annual return through Modelo 210. For second homes (without generating actual income), the tax is calculated based on the cadastral value, using the formula 1.1% or 2% multiplied by a fixed tax rate (24% for non-EU residents). For non-EU buyers of castles valued at €1.5 million, this could result in several thousand euros in fixed taxes annually, in addition to IBI and wealth tax (Patrimonio).
5. Loan eligibility is tightening and LTV is limited by bank valuations. Spanish banks generally limit loans to non-foreign buyers to no more than 701 million T/3 of the property value; the non-standard nature of castles often amplifies this, lowering loan requirements to 501 million T/3–601 million T/3 of LTV. Lenders require an authentic repair report from an independent surveyor before approval.
6. The Golden Visa program has been abolished (from April 2025). Spain's Golden Visa program officially ended on April 3, 2025. Investors can no longer obtain residency by investing €500,000 in a castle or any real estate. However, a "non-profit residency visa" (provided one has sufficient savings and does not engage in productive economic activity) can still be considered, but requires residing in Spain for more than 183 days per year.
7. Risks related to castle ownership, easements, and incomplete property rights chains. Some castles in Spain may have discrepancies between their land registers and the actual property, missing original boundary easements, or unregistered municipal ownership. A comprehensive check of the land and mortgage registers by a lawyer is essential before purchase, ensuring the clarity of the transaction history.
Application Process & Advice
suggestion
I. Clearly define the prerequisites – non-restricted purchase countries, but due diligence must be strictly adhered to.
Spain is extremely welcoming to foreign buyers, but castles remain non-standard assets. Suggested budget resource allocation format:
Recommendation on the proportion of the project cost to the purchase price
Castle purchase price (including agent commission): 58%–68%
Additional transaction costs (ITP + notary + registration + legal fees) amounting to 10%–13% of the purchase price.
Emergency castle repairs/historical preservation renovations budget: 35%–75% (120% and above for ruins).
Annual operating reserve (HVAC, IBI, insurance, landscaping) 1%–3%/year of the purchase price
The aforementioned buffer is extremely important in the actual purchase and renovation of Spanish castles, especially for overseas buyers who are unable to do it themselves.
II. Establishing a Highly Skilled Professional Team
When purchasing a castle in Spain, the following local professionals must be employed:
• Bilingual Spanish Real Estate Lawyer (Abogado): The ultimate line of defense for secure overall purchases, handling formal inquiries to the land registry (Nota Simple), and overseeing the entire process of NIE (National Insurance Agency) and bank account management, including contract signing. They also check whether the castle complies with urban planning regulations and whether there are any inheritance tax liens or outstanding debts.
• Notary Public: In Spain, the final signing of a purchase agreement is authenticated by a notary public. The notary public ensures the legal validity of the contract and the legitimacy of both parties' identities, but does not represent the legal interests of either party; therefore, the buyer's lawyer cannot replace the notary public.
• Heritage preservation expert (historical building architect, familiar with the provincial cultural department): guides BCIN's renovation application and construction specifications.
• RICS Chartered Surveyor (or Spanish homologado Technical Architect): Conducts comprehensive structural inspections, geological assessments, compliance assessments, and maintenance cost estimates.
• Tax Advisor (Asesor Fiscal): Develop estate planning for the castle and personal income tax IRNR installments, as well as family company shareholding structures as supplementary tax avoidance strategies.
III. Tax Optimization for BCIN Heritage Certification
For BIC/BCIN castles, maintenance costs and property tax (IBI) are eligible for a reduction of up to 90%, while the Ministry of Culture provides funding for restoration over time (some cases receive an 80% subsidy). Buyers should assess the castle's status on the cultural heritage list after purchase, apply for tax relief from the regional cultural department, and develop a multi-year restoration plan.
IV. Pre-purchase due diligence on title – the final review of the castle ownership chain
The lawyer conducted a "Nota Simple" (official summary of the land register) check, examining:
• Completeness of the ownership chain (whether there are any seizures, mortgages, or family inheritance disputes).
• The property area, land boundary, and surrounding wall are consistent.
• Easements (right of way over public trails and farmland)
• Debt situation: Does the seller have any outstanding IBI taxes or community fees?
BCIN confirms the specific protection level and restricted areas of the castle.
• Is it located within a special zone as defined by urban planning laws?
The castle's energy efficiency certificate (Certificado de Eficiencia Energética) also serves as a guarantee for mortgage loans and future lease operations.
V. Optimize inheritance tax planning to prevent problems before they arise.
Inheritance tax in Spain varies greatly by region. Recommendation:
• During the acquisition phase, a tax plan should be designed in advance based on the autonomous region where the castle is located. Autonomous regions such as Andalusia and Madrid, which offer exemptions from inheritance tax, are the most advantageous.
• Pre-allocation scheme for castle inheritance – gifting property to children annually during the lifetime, within the tax-free allowance, with an annual tax exemption of €6,000–€8,000 (depending on the autonomous region's regulations). The castle is held in the form of a legal entity (joint-stock company SL).
VI. Pay attention to the developments of the 100% tax proposal.
The bill proposed in January 2025 to impose a maximum tax of 100% on home purchases by non-EU non-residents has not yet been passed as of April 2026. However, potential future amendments remain uncertain. Recommendation:
• Lock in castle purchases in advance within the existing tax rate framework.
• Include a "legal amendment clause" in the purchase contract that allows for withdrawal from the contract if changes to the legal terms result in increased taxes.
Purchase process of Spanish castle
The process of buying a house in Spain differs fundamentally from the notary system in France, Italy, and the Netherlands. Spain employs a "voluntary registration system" and a "consensus-formalism" model, involving the signing of three contracts in stages (Reservation – Arras – Escritura Pública). The land registry is merely a record-keeping institution; ownership is finalized through the Escritura contract, and registration serves to publicize the agreement and protect it against third parties.
Phase 1: Apply for an NIE number and open a Spanish bank account (4–6 weeks)
Non-EU buyers complete first:
• Apply for a NIE (Ex-15 form, currently costing approximately €12–€15 per form) from the Spanish consulate or the Spanish National Police in your country of residence.
• A NIE must be obtained before signing the final Escritura; otherwise, taxes cannot be paid and land registration cannot be completed.
• Open a Spanish bank account (not mandatory but recommended) for deposits, final payments and subsequent tax payments.
Phase Two: Finding a Castle and Making an Offer (2–6 months)
• Find castles through Idealista (Spain's most renowned property portal), high-end agencies (Spain Sotheby's, Engel & Völkers, Lucas Fox, etc.), or private channels.
• By issuing a written offer, the seller typically does not lock in the housing market.
Phase 3: Signing a reservation contract (Contrato de Reserva) (optional, but recommended)
• Pay a small deposit (usually €3,000–€6,000) to put the property off the market for about a month, allowing the buyer's lawyer to conduct due diligence.
Phase Four: Signing the Deposit Contract (Contrato de Arras o de Compraventa)
• Negotiate formal sale and purchase terms, with the buyer paying 10% of the purchase price as a deposit, which is deposited into the seller's lawyer's trust account or escrow account.
• Agreed completion deadline (usually 2–4 months).
• If the buyer defaults, the deposit will be forfeited by the seller; if the seller defaults, the seller must return double the deposit.
• The contract should include detailed "preconditions" clauses, such as full refund of deposit if loan approval fails, refund of deposit if due diligence reveals significant flaws, and a liability exemption mechanism.
Phase 5: Castle Due Diligence (overlaps with Phase 4)
• Lawyers conduct Nota Simple's registry check for legality, and technical surveyors conduct structural and historical site surveys.
• The seller should provide energy certificates, cadastral reference certificates, and proof of tax clearance.
• If any easement issues, unreported repairs, or conflicts between urban planning and the castle's intended use are discovered, the buyer has the right to cancel the contract or modify the terms.
Phase Six: Completion of the Final Notarized Contract (Escritura Pública de Compraventa)
Ultimately, both parties signed the Escritura Pública directly in the presence of a notary, who reviewed the documents and NIE to confirm the identities and ownership of the seller.
• At this stage, the buyer pays the remaining balance (by bank check or bank transfer) and settles the taxes (ITP or IVA+AJD).
• Upon signing, the transfer of ownership is legally completed, and the buyer receives a certified copy of the Escritura Pública on the spot.
Phase 7: Registration at the Land Registry (Registro de la Propiedad)
• A notary or lawyer will submit a copy of the Escritura to the Land Registry within approximately 4–6 weeks to apply for registration.
• Once registration is complete, the buyer's name will be officially added to the land register.
Registration is not mandatory, but it is required to protect against third-party claims and potential future mortgage sales. Castles, for example, must be registered.
Phase 8: Handover (Llave) and Completion
• On the date of signing the contract or the scheduled date, the seller shall deliver the keys and the vacant property to the buyer.
Overall Time Frame
Estimated time for each stage
NIE application + bank account: 4–8 weeks
Search for castles + negotiate a price (2-6 months, castles are rare and complex).
Reserved contract + due diligence 2-5 weeks
The deposit agreement (Arras) is signed 1–2 weeks later.
The notarized deed (Escritura) takes 2–4 weeks to sign (starting from the deposit agreement).
Land Registry registration takes 4–8 weeks
Key handover date or agreed date
From the initial offer to the final acquisition of ownership, the total time for non-EU buyers is approximately 5–9 months, which can extend to 10–14 months if the castle title is complex or loan approval is slow.
I. Clearly define the prerequisites – non-restricted purchase countries, but due diligence must be strictly adhered to.
Spain is extremely welcoming to foreign buyers, but castles remain non-standard assets. Suggested budget resource allocation format:
Recommendation on the proportion of the project cost to the purchase price
Castle purchase price (including agent commission): 58%–68%
Additional transaction costs (ITP + notary + registration + legal fees) amounting to 10%–13% of the purchase price.
Emergency castle repairs/historical preservation renovations budget: 35%–75% (120% and above for ruins).
Annual operating reserve (HVAC, IBI, insurance, landscaping) 1%–3%/year of the purchase price
The aforementioned buffer is extremely important in the actual purchase and renovation of Spanish castles, especially for overseas buyers who are unable to do it themselves.
II. Establishing a Highly Skilled Professional Team
When purchasing a castle in Spain, the following local professionals must be employed:
• Bilingual Spanish Real Estate Lawyer (Abogado): The ultimate line of defense for secure overall purchases, handling formal inquiries to the land registry (Nota Simple), and overseeing the entire process of NIE (National Insurance Agency) and bank account management, including contract signing. They also check whether the castle complies with urban planning regulations and whether there are any inheritance tax liens or outstanding debts.
• Notary Public: In Spain, the final signing of a purchase agreement is authenticated by a notary public. The notary public ensures the legal validity of the contract and the legitimacy of both parties' identities, but does not represent the legal interests of either party; therefore, the buyer's lawyer cannot replace the notary public.
• Heritage preservation expert (historical building architect, familiar with the provincial cultural department): guides BCIN's renovation application and construction specifications.
• RICS Chartered Surveyor (or Spanish homologado Technical Architect): Conducts comprehensive structural inspections, geological assessments, compliance assessments, and maintenance cost estimates.
• Tax Advisor (Asesor Fiscal): Develop estate planning for the castle and personal income tax IRNR installments, as well as family company shareholding structures as supplementary tax avoidance strategies.
III. Tax Optimization for BCIN Heritage Certification
For BIC/BCIN castles, maintenance costs and property tax (IBI) are eligible for a reduction of up to 90%, while the Ministry of Culture provides funding for restoration over time (some cases receive an 80% subsidy). Buyers should assess the castle's status on the cultural heritage list after purchase, apply for tax relief from the regional cultural department, and develop a multi-year restoration plan.
IV. Pre-purchase due diligence on title – the final review of the castle ownership chain
The lawyer conducted a "Nota Simple" (official summary of the land register) check, examining:
• Completeness of the ownership chain (whether there are any seizures, mortgages, or family inheritance disputes).
• The property area, land boundary, and surrounding wall are consistent.
• Easements (right of way over public trails and farmland)
• Debt situation: Does the seller have any outstanding IBI taxes or community fees?
BCIN confirms the specific protection level and restricted areas of the castle.
• Is it located within a special zone as defined by urban planning laws?
The castle's energy efficiency certificate (Certificado de Eficiencia Energética) also serves as a guarantee for mortgage loans and future lease operations.
V. Optimize inheritance tax planning to prevent problems before they arise.
Inheritance tax in Spain varies greatly by region. Recommendation:
• During the acquisition phase, a tax plan should be designed in advance based on the autonomous region where the castle is located. Autonomous regions such as Andalusia and Madrid, which offer exemptions from inheritance tax, are the most advantageous.
• Pre-allocation scheme for castle inheritance – gifting property to children annually during the lifetime, within the tax-free allowance, with an annual tax exemption of €6,000–€8,000 (depending on the autonomous region's regulations). The castle is held in the form of a legal entity (joint-stock company SL).
VI. Pay attention to the developments of the 100% tax proposal.
The bill proposed in January 2025 to impose a maximum tax of 100% on home purchases by non-EU non-residents has not yet been passed as of April 2026. However, potential future amendments remain uncertain. Recommendation:
• Lock in castle purchases in advance within the existing tax rate framework.
• Include a "legal amendment clause" in the purchase contract that allows for withdrawal from the contract if changes to the legal terms result in increased taxes.
Purchase process of Spanish castle
The process of buying a house in Spain differs fundamentally from the notary system in France, Italy, and the Netherlands. Spain employs a "voluntary registration system" and a "consensus-formalism" model, involving the signing of three contracts in stages (Reservation – Arras – Escritura Pública). The land registry is merely a record-keeping institution; ownership is finalized through the Escritura contract, and registration serves to publicize the agreement and protect it against third parties.
Phase 1: Apply for an NIE number and open a Spanish bank account (4–6 weeks)
Non-EU buyers complete first:
• Apply for a NIE (Ex-15 form, currently costing approximately €12–€15 per form) from the Spanish consulate or the Spanish National Police in your country of residence.
• A NIE must be obtained before signing the final Escritura; otherwise, taxes cannot be paid and land registration cannot be completed.
• Open a Spanish bank account (not mandatory but recommended) for deposits, final payments and subsequent tax payments.
Phase Two: Finding a Castle and Making an Offer (2–6 months)
• Find castles through Idealista (Spain's most renowned property portal), high-end agencies (Spain Sotheby's, Engel & Völkers, Lucas Fox, etc.), or private channels.
• By issuing a written offer, the seller typically does not lock in the housing market.
Phase 3: Signing a reservation contract (Contrato de Reserva) (optional, but recommended)
• Pay a small deposit (usually €3,000–€6,000) to put the property off the market for about a month, allowing the buyer's lawyer to conduct due diligence.
Phase Four: Signing the Deposit Contract (Contrato de Arras o de Compraventa)
• Negotiate formal sale and purchase terms, with the buyer paying 10% of the purchase price as a deposit, which is deposited into the seller's lawyer's trust account or escrow account.
• Agreed completion deadline (usually 2–4 months).
• If the buyer defaults, the deposit will be forfeited by the seller; if the seller defaults, the seller must return double the deposit.
• The contract should include detailed "preconditions" clauses, such as full refund of deposit if loan approval fails, refund of deposit if due diligence reveals significant flaws, and a liability exemption mechanism.
Phase 5: Castle Due Diligence (overlaps with Phase 4)
• Lawyers conduct Nota Simple's registry check for legality, and technical surveyors conduct structural and historical site surveys.
• The seller should provide energy certificates, cadastral reference certificates, and proof of tax clearance.
• If any easement issues, unreported repairs, or conflicts between urban planning and the castle's intended use are discovered, the buyer has the right to cancel the contract or modify the terms.
Phase Six: Completion of the Final Notarized Contract (Escritura Pública de Compraventa)
Ultimately, both parties signed the Escritura Pública directly in the presence of a notary, who reviewed the documents and NIE to confirm the identities and ownership of the seller.
• At this stage, the buyer pays the remaining balance (by bank check or bank transfer) and settles the taxes (ITP or IVA+AJD).
• Upon signing, the transfer of ownership is legally completed, and the buyer receives a certified copy of the Escritura Pública on the spot.
Phase 7: Registration at the Land Registry (Registro de la Propiedad)
• A notary or lawyer will submit a copy of the Escritura to the Land Registry within approximately 4–6 weeks to apply for registration.
• Once registration is complete, the buyer's name will be officially added to the land register.
Registration is not mandatory, but it is required to protect against third-party claims and potential future mortgage sales. Castles, for example, must be registered.
Phase 8: Handover (Llave) and Completion
• On the date of signing the contract or the scheduled date, the seller shall deliver the keys and the vacant property to the buyer.
Overall Time Frame
Estimated time for each stage
NIE application + bank account: 4–8 weeks
Search for castles + negotiate a price (2-6 months, castles are rare and complex).
Reserved contract + due diligence 2-5 weeks
The deposit agreement (Arras) is signed 1–2 weeks later.
The notarized deed (Escritura) takes 2–4 weeks to sign (starting from the deposit agreement).
Land Registry registration takes 4–8 weeks
Key handover date or agreed date
From the initial offer to the final acquisition of ownership, the total time for non-EU buyers is approximately 5–9 months, which can extend to 10–14 months if the castle title is complex or loan approval is slow.