Buying property in Spain as a French resident: comprehensive 2026 legal, tax and inheritance guide
French nationals are the second-largest community of foreign property owners in Spain after the British. This guide explains, in operational detail, how a French resident should plan the purchase, holding and eventual transmission of Spanish real estate: the Spain–France double tax convention of 1995 with its 2021 amending protocol, the interaction between French Impôt sur le Revenu and the Spanish IRNR, the French Impôt sur la Fortune Immobilière (IFI) treatment of Spanish property, the EU Succession Regulation as the cornerstone of estate planning given the radical difference between the French réserve héréditaire and the Andalusian 99% inheritance tax reduction, the SCI question (Société Civile Immobilière as holding vehicle), the tourist rental restrictions in Marbella and Málaga, and the procedural steps to combine French notarial documents with Spanish escrituras públicas.
Why French buyers face specific complexities
French and Spanish civil law share Roman law roots and are both Latin-notarial systems. This creates the dangerous illusion of equivalence. In reality the two systems diverge significantly on inheritance (the French réserve héréditaire is much stronger than Spanish legítima, especially after the 2021 reform that effectively reinstated the réserve for assets governed by foreign law if French children would otherwise be disinherited), on matrimonial property (French communauté réduite aux acquêts versus Spanish sociedad de gananciales — similar but not identical), on the SCI versus Spanish SL, and on wealth tax (IFI in France, no equivalent in most of Spain since the bonificación in Madrid, Andalusia and other regions). This guide walks through each issue.
Tax residency: the 183-day rule and the centre of vital interests
Spanish tax residency is triggered by spending more than 183 days in Spain in a calendar year (article 9 LIRPF) or by having the centre of economic interests in Spain. French tax residency under article 4B CGI uses similar criteria (foyer, lieu de séjour principal, activité professionnelle principale, centre des intérêts économiques). The Spain–France treaty article 4 provides tie-breaker rules. Many French clients want to combine substantial time in Spain (Costa del Sol, Costa Brava, Catalan coast) with formal French residency to preserve French social security and PER pensions; this is feasible but requires diligent cross-border residency planning.
The 2024 Spanish reform of Modelo 720/721 (after the CJEU condemnation of the previous penalty regime in C-788/19) restored proportionate sanctions but maintained the reporting obligation: Spanish residents must declare foreign accounts, securities and immovable property exceeding €50,000 per category. French PEA, assurance-vie and PER all trigger reporting obligations once Spanish residency commences. The reporting penalty is now aligned with general LGT sanctions, but it still requires careful annual compliance.
NIE, bank account and signing logistics
NIE is obtained at the Spanish consulate in Paris, Bordeaux, Lyon, Marseille, Toulouse or in person in Spain. French buyers acting through powers of attorney should execute the procuration before a French notaire and apostille it under the 1961 Hague Convention; an authorised translation by a traducteur assermenté is then required for use in Spain. Our NIE guide details both routes.
A standard French notarial procuration is often broader than Spanish notaries will accept for a specific property transaction. The Spanish notary may require a procuration that specifically identifies the property (full registry data, catastral reference), the purchase price ceiling, the financing terms and the authority to declare matrimonial regime. Sending the draft procuration to the Spanish notary before signing in France avoids last-minute rejection.
Acquisition taxes and the valor de referencia
Andalusian ITP at 7% (resale) or IVA 10% + AJD 1.2% (new build) applies regardless of buyer nationality. The valor de referencia is the catastral reference value applied since 2022 as a floor for transfer tax and inheritance tax. French buyers must understand that negotiating the price below the valor de referencia does not reduce the tax base.
Catalan ITP is 10%-11% (progressive); Madrid 6%; Valencia 10%. Notary, registry, gestoría and legal fees add 1.5%–2%. Our detailed Spanish property tax guide compares all autonomous communities. For French clients buying in Andalusia, the total acquisition cost for resale is typically 10%–11% of the price.
IRNR on imputed and rental income while French-resident
As an EU resident, a French owner of Spanish property pays IRNR at 19% on imputed income (1.1% or 2% of catastral value for non-let property) and 19% on net rental income (gross rent less deductible expenses: mortgage interest, IBI, community fees, insurance, depreciation, repairs, management). The deductibility of expenses is one of the major EU/non-EU distinctions — UK residents lost it after Brexit but French residents retain it. Quarterly Modelo 210 filings are required for rental income; annual filing for imputed income. Our IRNR guide has the full mechanics.
In France, the Spanish rental income is reported on form 2047 and the income is then included in the determination of the taux effectif under the credit method of the treaty: France grants a credit equal to the French tax that would have been due on the Spanish income, eliminating double taxation but possibly pushing other French income into a higher bracket. The 2021 protocol amending the Spain–France treaty refined the method but did not change the substance for real estate.
Tourist rentals: Marbella, Málaga and Catalan restrictions
French buyers planning short-term rentals through Airbnb or Booking.com on the Costa del Sol must understand the regulatory tightening of 2024–2025. Málaga city has restricted new tourist licences in 43 districts. Marbella requires registration with the Junta de Andalucía under Decree 28/2016 (modified by Decree 31/2024) and increasingly strict community of owners consent. Catalonia has a moratorium on new HUT licences in much of Barcelona and a phased revocation programme.
A common French buyer mistake is signing a purchase contract assuming tourist licence availability, then discovering after completion that no new licences are being granted in the building or municipality. The licence question must be verified before signing the arras (deposit contract), in writing, by Spanish counsel — not by the selling agent.
IFI: Impôt sur la Fortune Immobilière on Spanish property
France abolished the wealth tax on financial assets (ISF) in 2018 but retained it on real estate as the IFI, applicable to French residents with worldwide real estate above €1.3 million, and to non-residents on French real estate only. Spanish property held by a French resident counts toward the IFI threshold. Mortgages on the Spanish property are deductible from the gross value, subject to anti-abuse rules introduced in 2018 limiting interest-only loans and family-financed debt.
Spain repealed the IP (Impuesto sobre el Patrimonio) effectively in Andalusia (100% bonificación since 2022), Madrid and other communities. The 2022 Impuesto Temporal de Solidaridad de las Grandes Fortunas (ITSGF) reintroduced wealth taxation at state level for net wealth above €3.7 million, neutralising the regional bonificaciones for the wealthiest. The interaction between IFI and ITSGF for French residents owning Spanish property exceeding the thresholds is complex; the treaty does not specifically cover wealth taxes, leading to potential double taxation only mitigated by the French unilateral plafonnement.
The réserve héréditaire and EU Regulation 650/2012
French inheritance law imposes the réserve héréditaire: children are forced heirs entitled to a fraction of the estate that cannot be disposed of by will (1/2 for one child, 2/3 for two children, 3/4 for three or more). The quotité disponible is the residual. EU Regulation 650/2012 allows a French national to choose French law via professio iuris in their will, or by default French law applies if France is the habitual residence at death.
The crucial 2021 reform of the French Code Civil (article 913) introduced a droit de prélèvement compensatoire: if foreign law applicable to the succession does not provide for a réserve and the deceased or any child was an EU national or resident at the time of death, the disinherited child can claim compensation from French assets. This radically affects French clients who become Spanish residents and execute Spanish wills choosing Spanish law to escape the réserve: their French children may claim compensation from the French estate.
Strategic planning for French buyers in Spain typically involves: (1) executing a Spanish will limited to Spanish assets with professio iuris in favour of French law, to ensure full respect of the réserve and avoid the 2021 prélèvement; (2) executing a French will for French assets aligned with the Spanish will; (3) considering an Andalusian gift to children during life, using the 99% bonificación, with careful management of the réserve via avancement de part successorale rather than hors part successorale. Our Spanish inheritance guide addresses these issues with case studies.
Spanish ISD versus French droits de succession
Andalusian ISD with 99% reduction means a Spanish flat worth €800,000 inherited by a child triggers approximately €700–€1,500 of Spanish inheritance tax. The same flat inherited under French droits de succession (abattement of €100,000 per child, progressive scale from 5% to 45%) would generate around €175,000 of French inheritance tax. The Spain–France inheritance tax treaty of 1963 attributes taxing right on immovable property to the situs state (Spain) with French unilateral credit available.
For French residents inheriting Spanish property: France taxes the worldwide estate but credits Spanish ISD paid. The 99% Andalusian reduction means little Spanish credit, so France effectively taxes nearly the full Spanish flat. For Spanish residents inheriting French property: Spain taxes worldwide assets, France taxes the French situs immovable property, and Spain credits French droits de succession paid — but the Andalusian 99% means most of the credit is wasted because the Spanish liability is already near zero.
Planning conclusion: the Andalusian reduction is fully effective only for couples and families fully transferring their domicile to Spain and surviving long enough to be outside the French 6-year déclaration de revenus issue and the residual scrutiny. Sham residence is detected: France has an active fiscal residency audit programme on the Côte d’Azur–Costa Brava–Costa del Sol corridor.
SCI: holding Spanish property through a French civil company
The Société Civile Immobilière is the standard French vehicle for family real estate holding. Some French buyers want to acquire Spanish property through their existing SCI or a newly incorporated SCI. The Spanish administration treats the SCI as a transparent or opaque entity depending on its specific characteristics; the default for a classic SCI à l’IR is transparent for Spanish purposes, meaning the partners are taxed directly on rental income and capital gains as non-residents. An SCI à l’IS is treated as opaque and as a non-resident company.
The opaque SCI à l’IS holding Spanish real estate triggers: (1) Spanish corporate income tax at 25% on rental income and gains; (2) Spanish anti-abuse rules on Spanish-situs share transfers (article 314 LMV) if more than 50% of company assets are Spanish real estate; (3) French corporate tax with Spanish credit; (4) IFI exposure at the SCI level. Most French tax advisers conclude that for residential property used personally, the SCI is a tax-inefficient holding structure. For pure investment portfolios it may be neutral; the choice depends on the family situation.
Direct personal indivision is usually preferable for a French couple buying a Spanish second home. If asset protection is the driver, a Spanish SL with the family as shareholders can be considered, with full corporate compliance and the loss of personal-use convenience. The structuring decision should be analysed individually before purchase.
Beckham law and digital nomad visa for French executives
French executives relocating to Spain can apply the Beckham regime: 24% flat tax on Spanish income up to €600,000, exemption for foreign income (except certain categories), for six years. Eligibility requires not having been Spanish tax resident in the previous five years, taking up an employment contract or director position in a Spanish entity, and electing the regime within six months. The 2023 reform extended access to remote workers under Ley 28/2022 (visa de teletrabajador).
For French families considering the relocation, the combination of Beckham (six years of advantageous taxation on the salary), Andalusian 99% ISD reduction (inheritance planning), no IP (no wealth tax in Andalusia), and a sunny lifestyle is fiscally extraordinary. Our Beckham law guide details eligibility, application procedure, and the six-year planning horizon.
Capital gains on sale: Spanish 19% and French taxe sur la plus-value immobilière
On sale by a French non-resident, the Spanish buyer retains 3% under Modelo 211, the vendor files Modelo 210 with 19% on the net gain. Acquisition costs (ITP, notary, registry, legal fees) and improvement costs (capex, not maintenance) are added to the cost base. Inflation correction (corrección monetaria) was abolished in 2015; capital gains are nominal.
In France, the gain is reported and the treaty applies the credit method: French tax due on the gain, with credit for Spanish 19%. The French plus-value rules grant abattement for holding period (no taxation after 22 years for income tax and 30 years for social contributions). For French residents who held the Spanish property more than 22 years, the credit relief should fully cover the French liability. Our sale guide covers the timing and refund procedure for the 3% retention.
Practical recommendations for French buyers in 2026
Based on extensive French clientele on the Costa del Sol, our consolidated recommendations are: (1) plan tax residency before purchase, not after; (2) execute coordinated French and Spanish wills with professio iuris and réserve compliance; (3) avoid SCI à l’IS for residential property unless specifically advised by a French tax adviser with Spanish experience; (4) verify tourist licence and community statutes before signing; (5) document acquisition costs meticulously for future capital gains; (6) use the Andalusian 99% reduction in inheritance planning, with full understanding of the French 2021 réserve protection; (7) consider Beckham relocation for executives; (8) review IFI and ITSGF exposure annually; (9) appoint independent Spanish counsel — never share the developer’s lawyer.
For ongoing representation we offer all-inclusive annual packages covering IRNR, ISD planning, will updates and structural reviews. Contact us via the contact page to arrange an initial conversation in French, Spanish or English.