Spain is a very attractive country for citizens from inside and outside the European Union. The climate, gastronomy and environment make many tourists end up making the decision to buy a home in Spain to live here permanently or as a second residence.
Can a foreigner buy a home in Spain? What requirements must you meet?
In our country, no restriction is applied to the acquisition of real estate by non-national citizens, regardless of whether they belong to another country of the European Union or to a non-EU state.
It is also not relevant if the buyer already has his residence in Spain or if he is a non-resident. The only requirement in both cases is to have a valid NIE (Foreign Identification Number).
What is not necessary is to have a current account opened in a bank in Spain, although it can be highly advisable to facilitate the operation.
Procedures to buy a house in Spain as a foreigner
1. OBTAINING THE NIE
This procedure is absolutely necessary, since the NIE will identify the buyer in all the documents that are necessary to formalize the sale of a property. The request to obtain the Foreigner Identification Number can be made at the Police stations or directly at the Spanish embassy in the buyer's country of residence.
2. VISIT THE HOME AND NEGOTIATE THE CONTRACT
In order to avoid fraud, it is recommended not to pay a down payment or agree to purchase a home until the property has been personally visited. If you are thinking of buying a home in Spain and cannot travel, you can do the paperwork through a representative.
Once the suitable apartment or house is located, a negotiation is carried out with the seller to set a price. Afterwards, a deposit contract is signed by virtue of which the parties undertake to sell and buy the property respectively. To demonstrate his commitment, the buyer pays the seller an amount as a down payment.
3. FORMALIZATION OF THE PURCHASE
The last procedure to buy a home is the formalization of the purchase contract in a Public Deed that is granted before a Notary. If it has been necessary to request a mortgage loan, it will also be recorded through a Public Deed.
Tax payment
The purchase and sale of a home by a foreigner carries the same taxes as when the operation is carried out by a Spanish citizen.
You have to pay VAT if it is a newly built home and Property Transfer Tax if it is a second-hand house.
Taxes paid by non-residents for having a house in Spain
From the moment a foreigner who does not have his residence in Spain buys a property here, he is subject to the payment of Non-Resident Income Tax and Wealth Tax (the minimum exemption is 700,000 euros). In addition, she must pay the taxes associated with the possession of a property in Spanish territory, such as the IBI.