Buying and selling a property in general, and in Spain in particular, requires a series of procedures and formalities that are vitally important to know in order to guarantee a satisfactory and profitable result. In this article we reveal step by step everything you need to know to buy a property in Spain without having to travel from abroad.
Can a foreign person purchase a house in Spain?
Any foreigner can purchase a house in Spain as long as they have a NIE (Número de Identificación de Extranjeros). This document is unique and non-transferable for each individual and is the only requirement to be able to carry out such a transaction.
If you are an EU citizen
- Temporary NIE: Available for those who don’t wish to live in Spain and are going to carry out an activity for a limited period of time.
- Resident NIE: For individuals who intend to remain in the country for an unlimited period of time.
If you are a non-EU citizen
- Resident NIE: If you are going to stay more than 183 days a year in Spain, you can apply for this number.
- NIE non-resident: If you just want to buy a property without staying in the country, you can apply for a NIE for non-residents.
What is the first step in buying a property in Spain? Who should I turn to?
Once you have decided which property you want to buy, the best option is to go to a law firm with expertise in this type of transaction and in the country concerned, as planning and professional advice will facilitate the process, avoiding mistakes and bringing the purchase to a successful conclusion.
All the necessary formalities to buy a property in Spain without having to travel to the country
The requirements for buying a property in Spain as a foreigner and without the obligation to move are as follows:
Essential: Grant power of attorney to a Spanish lawyer to act on your behalf.
There are two possibilities for granting powers of attorney to a Spanish lawyer without the need to travel to Spain:
- Power of attorney: You can go to a notary in your country to grant power of attorney to the Spanish lawyer of your choice. The document must then be translated into Spanish by a sworn translation and legalised by the Hague Apostille.
- Consular power of attorney: You can go to the Spanish consul to grant the powers of attorney. In this case the document is issued in Spanish.
Obtaining the NIE
As we mentioned at the beginning, this document is essential. It is not possible to buy a property without a NIE in Spain if you are a foreigner. This procedure can be carried out at the consulate, but granting power of attorney to a Spanish lawyer is the quickest and easiest way if you live in an EU country.
What documents are required to apply for the NIE?
- Official Application Form for NIE EX -15 duly filled in
- Justification of the NIE application
- Proof of payment of the fee 790 code 012
- Photocopy of the passport of the purchaser and of the proxy
- Power of Attorney document
Open a bank account in a Spanish bank
After obtaining the NIE, we recommend opening an account in a Spanish bank. This will speed up and facilitate the whole process and the different transactions to be carried out.
Signing of the sales contract
Before signing the contract to buy a house from abroad, there is a document called a deposit contract, which allows you to reserve the property by paying an advance of the final price. You can sign the earnest money contract with power of attorney to a Spanish lawyer to avoid having to travel to Spain.
Taxes when buying a property in Spain as a non-resident
Buying a property in Spain from abroad involves the payment of the following taxes:
- Transfer Tax (Impuesto de Transmisiones Patrimoniales) (ITP) for second-hand homes.
- Value Added Tax (VAT) for newly-built homes
- Stamp Duty Tax (AJD) for new homes
Registration as a homeowner
In order to register as an owner in Spain, it is essential to make the purchase before a notary and carry out the following steps:
Signing of the title deed in the presence of a notary public
The signing of the title deeds in the presence of a notary can be done by a Spanish lawyer with power of attorney.
Registration of the property in the Land Registry from a distance.
This operation can also be carried out by granting power of attorney to a Spanish lawyer.
Processing the payment of taxes
There are no differences between residents and foreigners when buying a property in Spain. In both cases, these taxes must be processed:
Transfer Tax (ITP) and VAT.
The ITP varies according to the autonomous community where the property is located, while the VAT is 10% of the value of the property. Depending on the characteristics of the property, only one of the two will be paid.
AJD (documented legal acts)
The AJD is calculated on the property deed before a notary. It varies depending on the Autonomous Community in which the property is located. The percentage can vary between 0.5% and 2% of the price of the property.
Summary
At García Taboada we are experts in buying and selling property for foreigners. If you have any doubts about buying a property in Spain and are looking for legal advice, please do not hesitate to contact us without obligation.
Other frequently asked questions
Is it compulsory to open a current account in Spain in order to buy a property from abroad?
It is not compulsory, but it is highly recommended. Making transactions from foreign entities can delay the process a lot and cause some problems in the management.
Is it compulsory to contract a real estate agency to buy a property in Spain?
It is not compulsory, but it is advisable to have advisors when buying a home in Spain. It should be borne in mind that a decision of this magnitude should be taken with as much information and professional advice as possible.
What is the difference between the Land Registry and the Cadastre?
The Land Registry designates the owner of the property and guarantees the ownership of the property. The Cadastre records the physical location of the property and gives details of the surface area, uses, cadastral reference, owner, etc.
How much does a notarial process cost?
This procedure has a variable cost. The notary fees for buying a property in Spain can be between 10% and 15% of the price of the property.
How long does it take to make a Power of Attorney?
Making a Power of Attorney to buy a property can take between 1 or 2 days.
How long does it take to complete all the procedures to be able to buy a property in Spain?
The process to buy a property can take from 3 months to 1 year.
