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Foreign investor. What you should know to buy a property in Spain.

| 03/08/2017

buy home spain

The first step is finding the right housing. You should decide the area and type of property, whether we want beach or mountain, the tranquility of a town or an isolated house, or a flat in a city with a good cultural and leisure offer… The best option is the search by internet, this will prevent the buyer from traveling unnecessarily from his country.

The process of buying a home in Spain by a non-resident foreigner is quite simple. Just is necessary to have the NIE (Foreigner Identification Number) .This document is essential for any economic transaction you make in Spain

The NIE can be request from their country, through the embassy or the consulate, or from Spain to the General Direction of the Police.

Once you have the NIE can initiate the purchase of the housing. The steps to follow are the same as for a Spanish buyer.

For investors from non-EU countries, buying a property in Spain in which they invest more than 500.000 euros allows them to apply for a visa or special residence permit for investors.

It is not mandatory to have a bank account in Spain, but it is advisable, since the taxes derived from the sale and the costs of notary, management and registration must be paid in Spain. Just like if we want to apply for a mortgage loan. To open it you will need the NIE and the passport in force.

A “Arras” contract is usually signed. It is a private contract between the buyer and seller, where both parties formalize the agreement of the future sale and a sum of money is given as guarantee. This private contract will include the sale price of the house and if it is free of charges (for this a Simple Informative Note is requested in the Property Registry).

The public deed of sale. It is done in presence of a notary, who will give authenticity to the content of the document. The granting of the deed is equivalent to the delivery of the dwelling. The notary will record in writing the amount and the pay mode. Before authorizing the deed, the notary will request to the Property Registry for a Simple Informative Note certifying ownership and charges of the property. In case the foreign buyer does not speak or can not communicate in the official language (spanish) the notary will force the presence of an official translator in the notary’s office. Once the deed is signed, a communication will be sent to the Property Registry stating that the deed has been authorized, avoiding the buyer from being affected by any embargo or load of the seller prior to the purchase.

Finally comes the payment of taxes derived from the sale. In the purchase of second-hand housing is the Tax on Patrimonial Transmissions, which is paid to the Autonomous Community where the dwelling is located through the autoliquidación of its amount in an official form and their pay in an account of the Public Treasure. Its amount varies between 6 and 7%.

Costs of the purchase. Who should be paid?

Buying a home involves a number of costs to the buyer, which sometimes is not clear why or to whom they should be paid, and which make the initial outlay increase significantly.

gastos compraventa

 

The following payments should be distinguished:

To the seller. The price of the purchase of the housing. If a part has been paid in the “Arras” contract, a payment of this amount is deducted at the time of signing.

To the notary. By law, the seller is responsible for the authorization of the deed and for the purchaser to issue copies of the deed. The amount of notary fees has been established by its Tariff or Regulatory Tariff.

To the managers. The amount of management services in case its have been hired. It is very important that we require the original invoices issued by the notary and the registrar, as well as the letter of payment of the Taxes, so we know how much we pay for each service.

To the Property Registry. The amount of the fees corresponding to the extension of the registration of our right and, if its has been agreed, the amount of the fees corresponding to the registration of the mortgage. The amount of registered tariffs has been established by a Regulatory Tariff, available to the user in each registry office.

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