Buying a house in Spain as a non-resident
The procedures for buying a house in Spain as a non-resident are complex, so most people who want to buy a house in Spain without having the certificate of residence seek advice.
At Asesoría Orihuela Costa we put at your disposal a team specialised in this type of buying and selling operations, so that you can resolve the formalities as quickly as possible.
The formalities for buying a house in Spain as a non-resident
Buying a house in Spain as a non-resident may seem like a complicated process, however, with proper organisation and, in many cases, with the help of professionals, the process can be simplified.
- NIE (Número de Identidad de Extranjero): Before being able to buy a property in Spain, non-residents must obtain a NIE (Número de Identidad de Extranjero). This number is essential for any financial transaction in Spain. It can be applied for at National Police offices or at Spanish consulates and embassies abroad.
- Opening a bank account in Spain: Although it is not compulsory, it is advisable for non-resident buyers to open a bank account in Spain. This will facilitate the transaction and the payment of taxes and services related to the property.
- Property search and selection: Use the services of real estate agencies, web portals or even specialised real estate advisors to find the right property.
- Earnest money contract: Once the property has been selected, it is common to sign an earnest money contract or reservation contract. Through this agreement, the buyer pays a percentage of the price (usually between 5% and 10%) and both parties agree to complete the sale within a certain period of time.
- Legal verification of the property: It is essential to ensure that the property is free of encumbrances, debts or litigation. To do this, it is advisable to request a nota simple from the Land Registry.
- This document provides information on the legal situation of the property.
- Financing: If you need financing to purchase the property, you will need to negotiate a mortgage loan with a bank. Although there are banks that offer mortgages to non-residents, the conditions may vary from those for residents.
- Signing in front of a notary: The transaction is formalised in a public deed before a notary. Both parties (buyer and seller) must be present or be represented by power of attorney. At this point, the buyer will pay the remainder of the sale price and, in return, will receive the keys to the property.
- Payment of taxes: After the purchase, the non-resident must pay the Transfer Tax (ITP) if the property is second-hand, or the VAT and the Documented Legal Act (AJD) if it is new.
- Land Registry: Once the taxes have been paid, it is essential to register the property in the name of the new owner at the
- Land Registry. This procedure confirms the ownership and protects the rights of the buyer.
Other costs: Apart from taxes, there are other costs associated with the purchase, such as notary fees, registry fees and, if used, the fees of the agent or advisor. - Non-Resident Income Tax (IRNR): Once you own a property in Spain and are a non-resident for tax purposes, you will have to pay IRNR annually, which is levied on any income earned from the property.
It is advisable to enlist the help of a lawyer or manager specialising in property transactions in Spain for non-residents. This advisor can ensure that all procedures are carried out correctly and that all legal and tax obligations are fulfilled.
How to obtain the compulsory NIE
The Foreigner’s Identity Number (NIE) is an essential requirement for non-residents wishing to buy a house in Spain. It is a unique and exclusive number assigned to foreigners, allowing them to carry out financial transactions and other formalities in the country.
Where to apply
If you are in Spain: You should go to the immigration office corresponding to your place of residence or to the police station with jurisdiction over foreigners.
If you are outside Spain: You can apply at the Spanish consulate or embassy in your country of residence.
Necessary documentation
- Official form EX-15 duly completed and signed.
- Original and valid passport, together with a copy of the page where the holder’s details appear.
- Two recent passport-size photographs.
- Justification of the NIE application. In this case, if the purpose is the purchase of a property, you can present a private purchase contract, a reservation of a property or any other document that proves your interest in buying a property in Spain.
- In some cases, you may be asked for proof of financial means and health insurance.
Payment of fees
You must pay a fee for the assignment of the NIE. This is done through form 790, code 012. After completing and submitting this form, you must make the payment at a collaborating bank.
Appointment
It is advisable to make an appointment in advance to speed up the process, as many offices require an appointment for this procedure. You can do this through the official website of the Spanish administration.
Collection of the NIE
Once your application has been approved, you will receive a document accrediting your NIE. Depending on the office, you may receive it the same day you apply or you may have to wait and return at a later date.
Validity
The NIE itself does not expire, but the document on which it is presented may need to be renewed, especially if your circumstances change or if the document deteriorates.
Although the process for obtaining the NIE is fairly straightforward, it can be beneficial to have the help of a gestor or lawyer in Spain, especially if you are unfamiliar with the country’s administrative procedures or if you are not fluent in Spanish. This will ensure that all documents are submitted correctly and in a timely manner.
At Asesoría Orihuela Costa we will accompany you through the whole process, so that you can have your NIE immediately, and can buy your property with all the legal guarantees.
