przez Adam Hejducki Buying property in Spain as a non-resident requires going through several key steps and gathering the necessary documents. Here is a detailed description of the process:
1. Obtaining an NIE (Número de Identificación de Extranjero)
- This is a foreigner identification number required for all financial transactions in Spain.
- It can be obtained at a Spanish police station, a Spanish consulate in your home country, or through a legal representative.
2. Opening a Bank Account in Spain
- While not mandatory, having a Spanish bank account makes payments related to the purchase (e.g., taxes, utility bills) easier.
- Required documents:
- Passport
- NIE number
- Proof of income (e.g., bank statement, employment certificate)
3. Finding a Property and Making an Offer
- It is advisable to use the services of a local real estate agent and a lawyer specializing in property law.
- After agreeing on the price, a preliminary reservation contract (Contrato de Reserva) is signed, and a deposit is paid.
4. Signing a Pre-Sale Agreement (Contrato de Arras)
- This contract legally binds both parties to complete the transaction.
- The buyer usually pays a 10% deposit of the property value.
- If the seller withdraws from the deal, they must return double the deposit.
5. Obtaining Financing (If Needed)
- If purchasing with a mortgage, the following documents are required:
- Proof of income
- Tax declaration
- Bank statements
- Credit report
6. Legal Verification of the Property
- A lawyer or notary should verify:
- The Land Registry (Registro de la Propiedad)
- Any existing debts or mortgages on the property
- The legality of the construction
7. Signing the Notarial Deed (Escritura Pública de Compraventa)
- The final step takes place at the notary’s office.
- The buyer must provide:
- Passport
- NIE number
- Funds for the payment
- The seller hands over the keys upon signing the deed and receiving the payment.
8. Registering the Property
- After signing the notarial deed, the property must be registered in the Land Registry.
- The new owner must also pay the property transfer tax (ITP) or VAT if purchasing a new property.
9. Fees and Taxes
- Property Transfer Tax (ITP) – 6-10% of the property value (for second-hand properties).
- VAT (IVA) and Stamp Duty (AJD) – 10% + 1-1.5% (for new properties).
- Notary and Registration Fees – approximately 1-2% of the property value.
- Annual Property Tax (IBI) – varies based on location and cadastral value.
10. Transferring Utility Contracts and Administrative Procedures
- After purchasing, the new owner must transfer contracts for water, electricity, gas, and other services into their name.
The process of buying property in Spain is relatively straightforward, but it is recommended to seek assistance from professionals (a lawyer and a real estate agent) to avoid legal and tax issues.
