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If you are a foreigner and think of buying a property in Spain, let us help by presenting a list of the essential requirements to acquiere a property in our country.

Spanish real estate market has always had a great attraction for foreign investors. The current economic situation in Spain makes the purchasing of a property, one of the best chances for a successful outcome. However, acquiring a estate abroad represents the needing of getting a lot of advice and information. Specially getting previous information of the documents needed is essential.

NIE for buying a property in Spain

This is a fundamental document to be able to buy a property in Spain. The Foreigner Identification Number (NIE) is a personal, non-transferable number for the tax identification of foreigners in Spain, issued by the Administration. It is a mandatory code, so without it, there is no chance to buy a property in Spain.

Applying for the NIE is easy for foreigners. When wanting to get in Spain, please simply submit your request at the immigration office or a police station. If the request is done from another country outside Spain, the management must be performed at the embassy or consulate.

In the event of wanting to establish one’s residence in Spain, is also mandatory to apply for the Foreigner Identification Card (TIE).

Expenses and taxes when buying a estate in Spain

Buying a home in Spain implies having to pay taxes stipulated by law listed below,

• Value Added Tax (VAT): This is a tax included within the expenses when acquiring a new construction property. 10% is the rate of taxation.

• Property Transfer Tax (ITP): This tax has to be disbursed when the state bought in Spain is a second hand propety. The percentage varies depending on the Autonomous Community where the property is located although, as a rule, goes between 6 and 10%.

• AJDA (Tax on Documented Legal Acts): The tax is enforceable when purchasing through a mortgage and VAT is applied in the adquisition.

Together with these taxes, please take into accountg other expenses, depending on whether or not there is a request for a mortgage in Spain.

If the mortgage is not needed, there are other expenses to be added. These are the registration of the public deed at the Notary, and the registration of the deed at the Property Registry. If you finally decide to apply for a estate credit, the appraisal expenses and mortgage taxes must be added.

Being aware of how the purchase has to be performed at the Notary and, subsequently, registered in the Property Registry, is of the utmost importance. Before heading to the Notary office – and as a requirement to formalize the purchase commitment- it is necessary to carry out the “deposit contract“, when the owners get 10% of the value of the property, and a date is fixed for the signature at the Notary.

Our experts at Hermes & Mathew, also recommend that before delivering any amount on account, please arrange a viewing to the property, check its status, the neighborhood where it is located, etc. We also recommend to request for a registration note to check on its legal status.

In any case, at Hermes & Mathew we can help guiding throughout all the process of buying a home in Spain. In addition, please have a look at our wide portfolio of properties for sale located at the top areas of Barcelona, with the best features and guarantees in the market.