How to buy a property in Spain?

Artículo Comprar Inmuebles en España

Spain has become a very interesting destination for foreigners. The number of foreigners that buy a property in Spain has increase during last years. If we focus attention to the country of origin, French, German, Russian and Italian are the main people who buy properties in our country.

Nevertheless, to buy a property in Spain is not so easy. If you want to have a housing the main requirement is to have the NIE (foreigners identification number). This number is personal, and you need it for many transactions from opening a business to buying a real estate. You can get this document even if you don´t live yet in our country.

Usually is better having a bank account in Spain in order to make easier all the transactions or if you need to pay any tax. When you buy a house, you need to make it with a notary and the house became registered in a public register that is called Property Registration.

The main documents you may have to sign and pay when buying a house in Spain are:

  • Earnest money contract. This is a document where you commit to pay an amount of money as a signal for the seller. This amount will be part of the price of the house once the final sale operation is done.
  • Some taxes. In Spain there are several taxes that must be paid in the moment of selling a house. The main taxes are:
  1. VAT (valued added tax): this tax has to be paid when the seller is an entrepreneur or a professional (for example a real estate company), and also if the seller isn´t but the house is new or it is the first transmission. The percentage of this tax is usually 10 %
  2. Property transfer tax (PTT): if is a second-hand house or is the second transmission you may have to pay for this tax. The type for this tax is between 6 % and 8 % but it can vary according to the community where the property is.
  3. Tax of documented legal acts (AJD): this is a tax that you may pay only if there must be applied VAT or if there is a mortgage, it also vary between 0,1% and 1% according to the community.
  4. Municipal Tax on the Increase in the Value of Lands of Urban Nature (Plusvalía): this tax is different in every community of Spain because it depend on the Town Hall.
  • Apart from this there are some more expenses you may have into account. There is necessary to pay for the public deed in the notary and the inscription in the Property Registration.
  • If you are going to ask for a mortgage you will have to pay also the appraisal and the notary, the taxes of the mortgage and the inscription of the public deed.

As you can see the procedures for buying a house in Spain are the same for residents than for foreigners. So, you can be a legal proprietary in Spain if you fulfil all the described requirements even if you are outside the country. If you are planning to buy a house in Spain it is recommended to look for a lawyer that can help you with all these documents.