Frequently Asked Questions
Can foreigners buy and own a property in Spain?
Foreigners can buy and own properties in Spain. The transmission tax applicable is the same for everybody. You will have to obtain NIE or Spanish identification number for foreigners and open a bank account in Spain.
Are there any other buying costs?
What is IBI?
IBI is council tax that you will pay for any property on a yearly basis, though you can fraction it on demand. It will depend on the size of land, built and location.
What is NIE number?
NIE stands for “Número de Identificación de Extranjeros” or identification number for foreigners. It will be your identity and fiscal number in Spain.
How long does the buying process take?
It will vary, but anything from 4 to 8 weeks is rather normal.
Selling inherited property
If you have inherited a property, there are certain steps you need to take before you can sell. First you determine the legal heirs are, either by means of a will or declaration of heirs. These then have to accept the inheritance in front of public notary. Once the inheritance deed gets registered in Land Registry you are in a position to sell.
Can I get a mortgage in Spain?
If you can prove an income that will cover a monthly installment of up to one third of your salary and you can repay the loan back over the time up to your 70 birthday, yes. Spanish banks will offer non-residents 70% of property value or official appraisal, but this percentage my decrease from bank to bank if you are purchasing a property that is not classified as urban or if your salary is not in euros, for example. Every bank has their own policy, and they change according to their commercial goals in every period.
What taxes is the buyer liable for?
Buyer in Andalusia pays transmission tax of 7% for secondhand properties and IVA of 10 % for new-builts.
What is the 3% retention?
If you are selling with a profit, you are liable to pay capital gains tax. This will be calculated in the next tax return for tax residents, but for the tax non-residents a 3 % of the sale price will be automatically retained in concept of capital gains. If the payment does not proceed (you are not selling with a profit) you will then claim that back.
What is CEE?
Energy Certificate must be provided by vendor upon selling the property. They are valid for ten years, so if you buy and sell within that time, you can use the original one.
What happens when I found the right property?
Typically, you will agree a price and conditions over initial reservation or holding deposit. Legal searches and due diligence will be conducted, and you should then enter a vendor purchase contract by paying the balance of 10% of purchase price. Once all agreed, your funds are ready, you will go to sign the Title Deed of Purchase in front of a public Notary. Here you pay the balance of the price and all purchase costs and you will receive keys and possession of the property.
Can a non-EU resident obtain residency in Spain?
Non-EU citizens can obtain various residence permits that will allow you to stay in the country for more than the 90 days in every 180 stipulated. Apart from the obvious work and entrepreneur visas, you can opt for a non-lucrative visa, golden or investor visa and lately we also have digital nomad visas for those who work remotely. Physical residency permit is not to be confused with fiscal or tax residency.