Buying a new-build villa in Menorca as a foreigner: what Spanish law says
Yes. A European Union citizen buys in Menorca on the same terms as a Spanish national. A buyer from outside the EU can also buy, but on the islands the law requires a military permit, except in the urban areas the regulation itself excludes: check this before signing.
EU citizens: no special requirements
Spain's Law 8/1975 restricts property purchases by foreigners in so-called “zones of restricted access to property by foreigners”. Since 1991, its additional provision has exempted EU nationals from those restrictions:
“The restrictions on acquiring ownership […] that apply in territories declared, or to be declared, zones of restricted access to property by foreigners […] shall not apply to natural persons holding the nationality of a Member State of the European Economic Community.”Ley 8/1975, additional provision, paragraph 1 (added by Ley 31/1990)
Non-EU buyers: the military permit
The regulation implementing that law (Royal Decree 689/1978) declares all the islands a restricted-access zone:
“a) Island territories. 1. This comprises all islands and islets under national sovereignty.”Real Decreto 689/1978, art. 32.1.a)
In those zones, a purchase by a non-EU foreigner requires military authorisation:
“a) The acquisition, under any title, by foreign natural or legal persons, of ownership of rural or urban properties, with or without buildings, or of works or constructions of any kind.”Real Decreto 689/1978, art. 37.a) (same wording in art. 18.a of Ley 8/1975)
However, the same regulation excludes town centres and developed areas:
“The area occupied by the current urban centres of non-border towns or their current developed or expansion areas falls outside the scope of this chapter […]. As regards future ones, this paragraph shall apply provided they appear in plans approved under planning legislation which have received a favourable report from the Ministry of Defence.”Real Decreto 689/1978, art. 35.1
So whether an urban plot is excluded depends on its planning status. Article 35.4 gives the way to check it: when town halls issue the certificate confirming that a plot is included in a development plan, they must state whether the Defence report was favourable. If the permit is required, the notary and the land registrar must ask for it before the deed is signed and registered (Ley 8/1975, art. 20).
You need a tax identification number
Any transaction with tax implications, such as buying a home, requires a tax identification number. The general tax management regulation sets it out as follows:
“For natural persons who do not hold Spanish nationality, the tax identification number shall be the foreigner identity number assigned to them […].”Real Decreto 1065/2007, art. 20.1
Anyone without a foreigner identity number (NIE) must ask the Spanish Tax Agency for a tax identification number beginning with the letter M (art. 20.2).
Buying off-plan: your money must be guaranteed
When a developer collects payments on account before handing over the home, the Building Act (Ley 38/1999) requires it to guarantee them:
“a) Guarantee, from the moment the building permit is obtained, the refund of the amounts paid plus statutory interest, by means of a surety insurance contract […] or a joint and several bank guarantee issued by credit institutions […], in the event that construction does not start or is not completed within the period agreed for delivery of the home.
b) Receive the amounts advanced by buyers through credit institutions, where they must be deposited in a special account, separate from any other funds belonging to the developer […].”Ley 38/1999, first additional provision, section One.1
The guarantee also covers the taxes paid and the statutory interest (section One.2). Ask for the policy or bank guarantee in your name before handing over any money: the law requires “an individual insurance policy for each buyer” (section Two.1.a).
Ten-year structural insurance
Residential buildings require a ten-year guarantee covering damage to the structure (foundations, supports, beams, slabs, load-bearing walls…), under article 19.1.c) and the second additional provision of Ley 38/1999. There is an exception for people who build their own home, explained in our article on managed self-build.
Buying no longer gives access to a “golden visa”
The residence visa for property investors was abolished on 3 April 2025: Organic Law 1/2025 left article 63 of Ley 14/2013, which regulated it, without content. Buying a home in Spain no longer gives access to that residence permit.
How to buy a LLUM villa
The LLUM villas, on Calle Acacias in Coves Noves, already have their building permit and can be bought in two ways:
- Managed self-build: you buy the plot with the approved project and the permit, and you hire the construction yourself, estimated at 16–20 months.
- Off-plan purchase: you buy the finished villa, with a fixed price from day one and turnkey delivery in 20–26 months.
Each option is taxed differently: see Taxes when buying a new home in Menorca. If you live outside the EU, read also our article for British and American buyers.
Sources
- Ley 8/1975, de zonas e instalaciones de interés para la Defensa Nacional (consolidated text, BOE) — art. 18, art. 20 and additional provision
- Real Decreto 689/1978, Reglamento de zonas e instalaciones de interés para la Defensa Nacional (BOE) — arts. 32, 35 and 37
- Real Decreto 1065/2007, Reglamento general de gestión e inspección tributaria (BOE) — art. 20
- Ley 38/1999, de Ordenación de la Edificación (BOE) — art. 19 and first and second additional provisions
- Ley 14/2013, de apoyo a los emprendedores (BOE) — art. 63, without content since 3 April 2025
- Ley Orgánica 1/2025, de 2 de enero (BOE) — twenty-first final provision
Informative article, written on the basis of the regulations in force on the review date. It does not replace advice from a lawyer or tax adviser on your specific case. Quotations from Spanish legislation are unofficial translations: only the Spanish text published in the official gazettes is authentic.
