Buying property in Spain as a foreigner can seem complicated due to legal and tax differences. However, with the right information and the right steps, the process can be simple and transparent. In this article, we offer a complete checklist so you can make the purchase efficiently and without surprises.
1️⃣ Obtain an NIE (Foreigner Identification Number)
Before carrying out any real estate transaction in Spain, you need an NIE. This number is essential for tax and legal procedures, and it will allow you to open a bank account, sign contracts, and, of course, buy a property.
How to obtain it: You can apply for the NIE at the Spanish Police Station or Consulate in your country. You can also do it through a lawyer or specialized agent.
Cost: Approximately €100-200.
2️⃣ Open a bank account in Spain
(Not essential; all procedures can also be completed with a non-Spanish bank account)
To purchase the property, you will need a bank account in Spain. This is essential for managing payments, the property deposit, and other related costs.
Required documents: Passport, NIE (Foreigner Identification Number), and proof of address in your country of origin.
Cost: Free at most banks, although some may charge a small maintenance fee.
3️⃣ Property and documentation review
Before signing the contract, it is essential that your real estate agent/lawyer review several legal aspects of the property:
Title deed: Confirm that the seller is the legitimate owner.
Debts: Verify that the property has no outstanding mortgages, taxes, or liens.
Building permits: Ensure that the property complies with all urban planning regulations.
4️⃣ Signing the Purchase Agreement
Once everything is in order, it’s time to sign the purchase agreement. This document will detail the property price, payment terms, and delivery dates.
Deposit Payment: Upon signing the contract, a deposit of 10% of the purchase price is usually paid. This money is non-refundable if you decide to cancel the purchase, unless the seller fails to meet the agreed-upon conditions.
Notary: The signing takes place before a notary public who certifies the agreement.
Cost: The cost of the notarization can vary between €700 and €1,000, depending on the property’s value.
5️⃣ Taxes and Additional Expenses
It’s important to be aware of the taxes and additional expenses you must cover when buying a property in Spain.
Property Transfer Tax (ITP): In the Valencian Community, this tax is 10% of the purchase price.
VAT: If you buy a new property, you pay 10% VAT on the purchase price.
Notary and registration fees: Between €1,000 and €2,000, depending on the property value.
Property management fees: If you decide to hire a property manager to handle the tax and legal procedures, it can cost around €200-€500.
6️⃣ Property registration
Once the contract is signed and the full price is paid, your property must be officially registered in the Property Registry. This ensures that the property is legally associated with your name.
Cost: The cost varies, but it is usually between 0.5% and 1% of the property value.
7️⃣ Additional considerations
Residency: Buying a property in Spain does not guarantee residency. If you wish to obtain residency in Spain, you will need to apply for an investor visa or residency permit, or through other legal procedures. Maintenance costs: Take into account annual homeowners association fees, local taxes (such as property tax) and other recurring maintenance costs.
