Foreigners can buy a house in Spain but in order to do so, they must meet a series of essential legal requirements. If this is your situation, we give you more details about the steps to follow so that you don’t have any problems.

Legal requirements for the purchase of a house in Spain

Foreign nationals can buy homes in Spain whether they are residents or not, although it is easier for people who are already in the country. A resident pays the same taxes as a Spanish national and does not have to do additional paperwork.

These official requirements are designed for those who do not have property in the country because, if you are a resident, you won’t have to comply with them.

NIE (Foreign Identification Number)

A NIE is the code which will allow you to carry out necessary procedures in the Tax Agency. You must ask for this number from the Spanish Treasury because without it, you won’t be able to make any kind of property transaction which involves registering it.

This number is granted by the Directorate General of Police and is valid both for residents and non-residents. You can ask for it in Spain or through any Spanish embassy or consulate.

Make all payments in Spain

The housing payments and the corresponding taxes must be made in Spain. In practice, and although having a bank account in the country is not obligatory, we recommend that you do get one. This way, the whole process will be easier and the transactions will be cheaper. In fact, this is what any foreign national who wants to own property in Spain should do.

Opening an account in a Spanish financial institution is very simple and in this way you can centralize all your payments of supplies, taxes and mortgages. This is the way to avoid problems due to non-payments which can sometimes arise due to a simple lack of coordination.

Tax payment

Foreign nationals who buy a home in Spain have to pay a series of taxes (as do people of Spanish nationality). Specifically, it is necessary to pay VAT (Value Added Tax) if the house is new and the Property Transfer Tax (PTT) if it is second-hand.

In addition, you’ll have to pay the Non-Resident Income Tax payment, but only if this is not your main residence. To avoid this tax, you must live a minimum of 183 days a year in Spain and be able to prove it.

Other aspects to consider are those related to notary and registration expenses. These payments will depend on two factors; who you buy the property from and if you do it by means of a mortgage.

If you have the necessary information, it will be much easier to buy a house in Spain. At Gilmar Off Plan, we have various options so that people who want to enjoy the sun in this country can do so.