Step-by-step guide to buying a house in Spain as a foreigner: the necessary procedures and requirements. #RealEstate #Home #Foreigners
If you are thinking of buying a house in Spain as a foreigner, you are in the right place. In this blog we offer you a complete guide on the procedures and requirements needed to buy a property in Spain as a foreigner. With our help, you will be able to buy your home in Spain safely and without any problems. We also offer expert legal advice to make sure you comply with all the necessary laws and regulations - read on for more information!
Table of contents:
How to buy a home in Spain as a foreigner
The only essential requirement for buying a home in Spain is to obtain the NIE (Foreigners' Identification Number). It is a personal and unique number, essential to carry out any transaction in the country, from opening a business to buying a property.
In this article we explain how and where to apply for the NIE, whether you are in Spain or in a foreign country. When the non-resident has the NIE, he/she can start the procedures for the purchase of the house.
It is not obligatory to open a bank account in Spain, but it will facilitate the payment of taxes and expenses.
The purchase of the property is made before a Notary Public and is registered in a public register, which is the Land Registry. It should be taken into account that before making the purchase before a Notary, it is very common to make a private contract of commitment to sell which is called "contrato de arras", where a part of the price is already paid, which is on account of the final price that is paid when the transfer of the property is made before a Notary.
What taxes and expenses must be paid when buying a property in Spain?
The purchase of a property is subject to several taxes, which on average increase the price of the house substantially. Among them are:
Value Added Tax (VAT), in the case of new homes or first transfer. The tax rate is 10%.
Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP), in the case of second hand residences or second transfer, the tax rate is between 6 and 10% depending on the Autonomous Community where the property is located. It must be paid if VAT is not applied to the transfer.
Stamp Duty (AJD). It must be paid if the property is purchased and VAT is applied and if it is purchased with a mortgage.
In addition, there are other expenses that must be taken into account:
Public deed at the notary's office.
Registration of the deed in the Land Registry.
If it is necessary to take out a mortgage, this includes the valuation and the notary, the mortgage taxes and the registration of the deed in the Land Registry.
During the year you will also have to pay other taxes, such as Property Tax (IBI), Wealth Tax (if applicable), Personal Income Tax (IRPF) or, if you do not live permanently in Spain, Non-Resident Income Tax (Impuesto sobre la Renta de las Personas Físicas).
Tips for buying a home in Spain
As far as possible, we recommend you to:
Visit the house in person before paying, i.e. check first-hand the condition of the property, the surroundings, transport links to the area, etc.
Find out who owns the house. You should go to the land registry and check its legal and urbanistic situation. This avoids real estate scams.
Once purchased, register the property in the Land Registry to prove that you have full rights to the house you have purchased in Spain.
If a deposit contract is made before the Notary, go to an expert to verify the content of the contract and its effects.
In summary, buying a house in Spain as a foreigner can be a challenging process, but with the help of a team of specialised lawyers like us, it can be much easier and safer. Easylex Abogados is here to help you every step of the way and make sure that everything goes according to your needs and wishes. Don't hesitate to contact us for more information and to start planning your new life in Spain - we look forward to seeing you!