REQUIREMENTS TO BUY A PROPERTY

The process of buying a property could seem slow and wearisome

We are going to see the requirements for buying a property in Spain, since there are aspects normally unknown but compulsory, such as taxes, expenses, paperwork.....

Is it allowed for a non-resident to buy a property?

A non-resident can of course buy a property in Spain as long as all requirements are carried out.

Spain is a very interesting country for non-residents in order of making investments in properties. Furthermore the weather is an important poing when making the decision to choose Spain as a second residence.

The purchase of a property has to be always signed in a Notary and subsequently registered in the corresponding Property Registry .

This is basically the most important requirements but there are also in between taxes to pay and legal documents to fill:

  • VAT (value added tax) This tax is for new construction and is 10% of the price of the property.
  • ITP (property transfer tax) This is the tax in the case of second-hand and depending on the autonomous community where the property is located, it could be between 6% and 10% of the price.
  • IBI (real estate tax) This is a local tax and paid annually.
  • Non-resident income tax. This tax is for non-residents in Spain and is paid annually.

Besides there are other expenses to confront when purchasing a property.

  • Public deed and notary fees.
  • Registration in the Property Registry.
  • In the case of a mortgage, there are associated expenses: appraisal, mortgage deed, Notary and banking fees.
  • Contract for supplies such as water, electricity, gas....

Requirements for a non-resident

There are no restrictions for citizens of any country to purchase in Spain, as long as they carry out all the requirements.

The first and essential requirement is to have the NIE (Foreign Identity Number), which imply the tax identification.

This document is applied at the Police station in Spain or at the Spanish embassy of the foreigner's country of residence.

Another requirement is to have a bank account in a Spanish bank. For reasons of money laundering policy in the deed must be the traceability of the money for the payments done. It is also convenient to have a spanish bank account for the standing orders for supplies and anually taxes.

Advice

It is very important to be advised by a Spanish Lawyer in order to have clear the legal questions you may need.

Before signing the purchase contract your lawyer will asure that the property is according to the spanish law.

When completion your lawyer will guarantee that everything is carried out and you don´t have to worry about it.