Buying

What do you need to buy a house in Spain?

The only thing you need is an NIE (Numero de identificacion del extranjero), a unique number to each individual.   NIE´s can be time consuming to obtain so some people hire the services of professional individuals for this.  We can recommend such people,

In addition, although it is not compulsory, having a Spanish bank account will make all the formalities easier, as it will speed up payments.

Once you are the owner of a property in Spain, you must appoint a tax representative if you are not a Spanish resident.

How to buy a home in Spain.

  • Get your NIE
  • Get a bank account, although not a necessity, it helps
  • If you need a mortgage then discuss this with the banks or a broker, again I can provide contacts.
  • Estimate your Tax and other costs, these vary from different areas but here is a rough idea
  1. Propeprty transfer tax 6-10% (existing properties) / VAT (or IVA) at 10% (new properties)
  2. Notary costs, title deed tax and land registration fee 1–2.5%
  3. Legal fees 1–2% (including VAT).
  • Search for properties, contact me and we can discuss all your requirements and put together a portfolio.  In this area all agents share their properties, this make it easier for you because you can deal with just one agent instead of several.
  • Once you find the right property we will arrange a Reservation agreement, this is normally between €6000 and €10,000.  This means the property will be taken off the market while you conduct all the legal procedures needed.
  • Then a private purchase contract will be drawn up, this is normally between 10% and 30% of the agreed price.  This is non refundable so you will not be able to claim your money back if you change your mind, however if the seller changes their mind they need to return the deposit with compensation.
  • Day of completion, you will go to the notary where the outstanding amount will be paid and you will receive the keys!

Questions often asked

  • Are foreigners allowed to buy a property in Spain?

Yes, you can purchase properties both residential and commercial or land, if your property is worth more than €500,000 you can apply for a golden visa

  • What taxes will I need to pay?

All property owners in Spain are required to pay different taxes each year.

If you are a resident, you are subject to Income Tax (including Capital Gains Tax) and Real Estate Tax (IBI).
If you are a non-resident in Spain, you are subject to Income Tax (including Capital Gains Tax), Property Tax, plus an additional Non-resident Property Tax.

  • What are the costs of owning a property?

Other than general maintenance costs and utility bills you will need to pay IBI (similar to council tax) every year and Basura (Bin Collection) yearly, the amount differs between regions.  Many properties also have a community fee which goes towards maintaining the communal areas of your urbanization, for example the upkeep of a communal pool.