More and more foreigners are buying homes in Spain! Spain does not impose restrictions on foreigners when it comes to acquiring homes or land, regardless of whether they come from countries in the EU or outside of it.
One requirement to start the purchase of a house in Spain that you must meet is to request a NIE (Foreigners Identity Number), which will serve to identify you when making the purchase-sale contract and to pay the corresponding taxes. You can request the NIE in a Police station in Spain or in the Spanish embassy of your country, presenting the form EX-15.
And after this? We highly recommend requesting the help of, at least, a solicitor, but even better, a whole legal team. At MAM, you will find a team of solicitors, barristers and tax advisors with 30 years of experience.
The acquisition of a home in Spain by a non-resident foreigner is a fairly simple procedure. It is only necessary to have the NIE (Foreigners Identification Number). It is a personal, unique and exclusive sequential number that is essential to carry out any type of economic transaction in Spain (from opening a bank account to buying a house).
The NIE is granted by the General Director of the Police to any foreigner who initiates an administrative process, but it can also be requested as long as the reason for the request is proven. This request can be made from outside of Spain -through the embassy or consulate- or from Spain, going to an immigration office or a police station. Here at MAM we can obtain this for use using a Power Of Attorney.
Once the NIE has been requested and obtained, the non-resident foreigner in Spain can start the purchase of the home. It is not mandatory to have a bank account in Spain, although it is recommended. All taxes and expenses associated with the purchase of a home (VAT in the case of new homes, ITP (Transfer Tax) in the case of second-hand residences, notary fees, management and registration, as well as the IBI (council tax) and the garbage fee must be paid in Spain, and having a bank account facilitates the process.
In addition, there is the Non-Resident Income Tax (IRNR) which is a direct tax that taxes the income obtained in Spanish territory by natural and legal persons not resident in Spain, unless they are taxed via personal income tax. It is understood that a person has the habitual residence in our country when they spend more than 183 days in Spain during the calendar year. In this case, it would be taxed by personal income tax and not by IRNR.
Spanish banks offer financing to non-resident foreigners in Spain without any problem. There are also mortgages designed exclusively for them.
However, non-resident foreigners can also access the same mortgages that are offered to nationals. Furthermore, the financial conditions are the same as those that apply to Spanish citizens: maximum financing of 60% of the appraisal or purchase value of the property for non residents (unless they can present multiple proof of guarantee), and a maximum repayment period of 30 years. The bank will also analyze the job stability of the applicant and their level of indebtedness.
Another attraction for non-resident foreigners in Spain who want to acquire a home, not to reside there but to rent, is found in the houses owned by banks and which are offered with discounts of up to 60 % mostly in coastal areas.
These homes owned by financial institutions, enjoy not only very competitive prices but mortgages with very advantageous conditions.