Regardless of their origin, if anyone who is a foreigner, does not reside in Spain and wants to buy a home in Spanish territory, then they must follow certain steps to successfully acquire a house in this country.
However, buying a property for living in Spain does not require foreigners to do too many procedures, they just have to take into account some requirements and the taxes that must be paid after the acquisition. Down below you will find some details on how to acquire properties in Spain.
Foreigner Identification Number to buy a home in Spain
First, the buyer must have the Foreigners Identification Number (NIE), a personal, exclusive and unique number granted by the General Directorate of the Police. It can be requested both in Spanish territory and from abroad through the embassy or consulate. This document is essential to carry out whichever economic transaction in Spain, so this document must be available before signing any deeds.
Purchasing a home in Spain by non-resident foreigners
The sale of the house will be carried out before a notary (or embassy or consulate, what it is appropriate at the moment) and will be registered in the Property Registry. Before making the purchase, it is very common to sign a “deposit contract” intended for the sales commitment in which a part of the price must be paid. Once the deed of sale is signed, the property is handed over.
If you want to know even more information, you can find out more here.
What are the taxes that foreigners must pay in case of buying a new home in Spain?
VAT (Value Added Tax): This tax equals to 10% of the total prices and goes up to 21% if it is a commercial property. The Value Added Tax applies when a foreigner buys their house in Spain, this application is consistent on the whole country, so it doesn’t vary depending on the Autonomous Community.
The AJD (Documented Legal Acts): Additionally, to the Value Added Tax, when acquiring a new home, the buyer has to pay this tax, that goes from 0.5% to 2% of the total value of the property purchased.
Tips for buying a house in Spain as a foreigner
- You should visit the house personally before paying, so you may check first-hand the state of the house, the surroundings, the transport routes that connect with the area, etc.
- Know the owner of the house. You have to go to the Property Registry and check its legal and urban situation. This prevents real estate scams.
- Once acquired, register the home in the Property Registry to demonstrate that you have the absolute rights of the house that has been acquired in Spain.
Golden Visa: path of residence for foreign investors
The Golden Visa term refers to a special residence visa intended for foreign investors to reside in Spain for a year throughout the national territory, thereby having as well a work permit. They can have access to the entire Schengen area without requiring continuous residence in Spain.
In this way, the service consists of granting a residence permit to those foreign investors who make a real estate investment of at least 500,000 euros.
Well, as you can see, buying a property in Spain is not as complicated as you may have thought, in fact is fairly easy when compared to other countries. We hope these tips and info serves you well and help you take the decision. Cheers!