Purchasing property in Spain as a foreigner involves several legal steps and requirements to ensure a smooth and secure transaction.
Here's a more detailed overview:
Obtaining a NIE
NIE (Número de Identificación de Extranjero) is an identification number for foreigners and is essential for any significant financial transaction in Spain, including buying property, setting up utility services, and filing taxes.
You can apply for an NIE at the Spanish consulate in your home country or directly in Spain at a local police station. The application requires:
- a valid passport;
- a completed application form (Ex-15);
- a reason for requesting the NIE (such as property purchase).
The process can take from a few days to several weeks.
Opening a Spanish bank account
Having a local bank account is necessary for managing payments related to the property purchase, including the deposit, purchase price, taxes, and ongoing utility payments.
Most banks will require:
- your NIE;
- passport;
- proof of employment or income;
- possibly a proof of address.
Legal checks on the property
The Land Registry (Registro de la Propiedad) is crucial to verify the property's legal status, ensuring it's free of debts, charges, or embargoes and that the seller holds the legal right to sell. This can be done by requesting a nota simple from the Land Registry.
Ensure the property complies with local zoning and urban planning laws. This is particularly important for new builds or rural properties, where there might be restrictions.
Property survey
Although not a legal requirement, it's highly recommended to conduct a property survey to check the physical condition of the property. This can uncover potential issues with the building's structure, utilities, or land.
Signing the preliminary contract
This preliminary agreement between buyer and seller (contrato de arras) secures the purchase and typically involves a deposit from the buyer (usually 10% of the purchase price). It specifies the sale's terms and conditions and commits both parties to the transaction.
If the buyer pulls out, they lose the deposit. If the seller pulls out, they must pay back double the deposit amount.
Completion
The final step is signing the deed of sale (escritura de compraventa) before a notary, transferring ownership. The buyer must pay the remaining purchase price and all associated taxes and fees at this time.
Both parties need to present their identification, the NIE, proof of payment of the deposit, and any mortgage details if applicable.
Registration and taxes
After the deed is signed, the new owner must register the property at the local Land Registry. This step is essential for legal protection.
Buyers are responsible for paying property transfer tax (ITP) for resale properties or VAT (IVA) for new properties, plus stamp duty, notary fees, and registry fees. The total cost can range from 8% to 12% of the purchase price, depending on the region.
Given the complexity of the process, it's advisable to hire a lawyer specialized in Spanish property law. They can handle legal checks, negotiations, and paperwork, ensuring that your rights are protected throughout the purchase.
Some valuable resources for official information include:
- Spanish Ministry of Foreign Affairs: For information on NIE application procedures for foreigners.
- Registro de la Propiedad (Land Registry): For checks on property legal status.
- Agencia Tributaria (Spanish Tax Agency): For details on taxes related to property transactions.
- Colegio de Registradores de España: Offers insights into the property registration process.