Spain is a country that attracts millions of tourists from all over the world every year.
Our privileged climate, a unique gastronomy with the best of Mediterranean cuisine and products and the possibility of finding properties at competitive prices compared to other European countries are undoubtedly 3 of the reasons why, especially in the coastal area of the east of the peninsula, the number of properties purchased by foreigners is increasing every year.
However, taking the step to buy a property in Spain can raise many questions, from the purchase process to tax issues or rental regulations.
In our blog we have compiled the most frequently asked questions for foreign investors.
Let’s get started!
Is it necessary to hire a lawyer to buy a property in Spain?
It is not compulsory, but having a lawyer specialised in real estate law is highly recommended, especially if you do not live in the country. A lawyer will ensure that the purchase process is safe, protecting your interests and avoiding unexpected legal complications.
Is it necessary to obtain a Foreigner’s Identification Number (NIE) before signing the purchase?
Yes, the NIE is an essential requirement to formalise the purchase of a property in Spain. This number is also used to manage taxes and open a bank account in the country. The process to obtain it can take several weeks, so it is advisable to start as soon as possible.
Is it possible to apply for a mortgage as a foreigner?
Yes, Spanish banks offer mortgages to foreigners, although the conditions and requirements may vary. It is crucial to consult a financial advisor who knows the local market to make sure you get the best conditions for your profile.
What documentation do I need to buy a property in Spain as a foreigner?
To complete the purchase process, you will need the following documents:
- Foreigner’s Identification Number (NIE): This is essential to carry out any economic transaction in Spain.
- Passport or identity card.
- Bank account in Spain: To manage payments related to the purchase.
- Deposit contract: This document specifies the conditions of the purchase and is usually given as an initial guarantee.
What additional costs should I consider when buying a property?
In addition to the price of the property, you will have to bear costs such as VAT (for new properties), transfer tax (for second-hand properties), notary fees, land registry fees and legal fees. These amounts vary depending on the location and type of property.
Is it possible to rent my property in Spain?
Yes, but you must comply with local regulations and declare the income you earn, as it is subject to tax. Having the advice of a lawyer or manager will help you to manage this process correctly and comply with legal obligations, especially with the new limitations and restrictions that many autonomous communities are developing in relation to holiday rentals and tourist rentals of properties.
Can I sell my property in Spain in the future?
Of course, you can sell your property at any time. However, there are tax implications, such as capital gains tax.
At MAM Solicitors we carry out the entire property purchase process on your behalf.
Buying a property in Spain can be a dream come true, but it is also a process that requires attention to detail and knowledge of the legal framework.
At MAM Solicitors, our team is ready to offer you the advice you need at every stage of the transaction. All you have to do is give us the necessary powers of attorney and we will inform you step by step of the situation and the steps we are taking.
Do not hesitate to contact us to solve your doubts and let us help you in the whole process of buying a property, including the administrative and tax formalities.
