At MAM Solicitors we have been advising our clients on the purchase and sale of their properties in Spain for over 30 years.
During this time, we have helped to complete countless transactions, always based on our in-depth knowledge of the sector and, very importantly, on the constant ongoing training of all our teams to ensure they are always aware of the latest legislative, administrative and tax issues that may affect the sale and purchase of properties in each region.
As you can imagine, during these more than 30 years at the service of our clients, there are many questions that we can consider as frequent and that many of our clients share with us.
However, we can extract the questions that all of them have in common as a small summary of the most frequent pregrentas that our foreign customers ask us, in this case, when they intend to buy a home in Spain.
Here are the main questions and their answers!
Can I buy property in Spain as a foreigner?
Yes, foreigners can buy property in Spain without any problem. To do so, you do not need to be a resident in Spain but you do need to obtain a NIE (Número de Identificación de Extranjero) as this is a legal requirement for any financial transaction in our country.
How do I obtain the NIE?
The NIE (Número de Identificación de Extranjero) must be applied for at the foreigners’ offices in Spain or at the Spanish consulate in your home country. You will need to complete an application form, provide a copy of your passport and pay an administrative fee. It is advisable to obtain this number as soon as possible, as you will need it to sign the purchase contract.
In addition, the application can be made in person or through a duly accredited representative, although the physical presence of the applicant or his/her representative is always mandatory.
What documents do I need to proceed with the purchase of a property in Spain?
As we have seen, obtaining the NIE is the first step to be able to buy a property in Spain. In addition, it is usually necessary to obtain a passport, proof of funds for the purchase (such as bank statements), the contrato de arras (a pre-contract of
purchase) and the title deeds of the property. Property documentation including energy certificates and relevant legal documentation is also required.
What are the costs associated with buying a property in Spain?
In addition to the price of the property, you must consider several additional costs, such as property transfer taxes (usually 10% of the property value), notary fees, registration costs and lawyer’s fees.
These additional costs usually amount to between 10% and 15% of the purchase price.
Is it necessary to hire a lawyer to buy a property in Spain?
It is not compulsory, but it is highly recommended. A lawyer will help you to check the property documents, ensure that there are no outstanding debts and verify that the transaction is carried out in accordance with the law. In addition, they can assist you with the negotiation of the contract and any legal issues that may arise.
In this regard, MAM Solicitors has a track record of over 30 years helping to manage the purchase of property for our clients in San Javier (Murcia), Orihuela Costa (Alicante) and Vera (Almeria).
Can I get a mortgage in Spain?
Yes, Spanish banks offer mortgages to foreigners. However, conditions may vary depending on your financial situation, your credit history and the property you wish to buy.
Generally, banks will finance up to 70% of the value of the property for non-residents although they may require a higher down payment or deposit than for nationals.
What are the recurrent taxes I have to pay in Spain once I own a property?
Once you are a property owner, you will have to pay the Impuesto sobre Bienes Inmuebles (IBI), which is an annual tax based on the cadastral value of the property.
You should also consider community fees if you buy in an apartment complex or urbanisation.
In addition, the non-resident income tax (Impuesto del renta de no residentes), which is paid annually as a result of owning a property in Spain, must also be paid each year.
Can I buy a property in Spain as an investment to rent it out later?
Yes, you can rent out your property when you are not using it or rent it out as a long stay if you have purchased a property as an investment.
However, when it comes to holiday rentals or holiday flats, it is true that Spain is becoming less and less flexible in terms of limiting the number of licences granted, so it is important to consider this in the immediate future.
At MAM Solicitors we have over 30 years of experience in helping our clients.
If you need any kind of advice on this procedure, do not hesitate to contact us and our specialists will help you with everything you need.
