How to buy a property in Spain?
English citizens are one of the largest buyers of homes in Spain. Although the purchase of a property may seem simple, in many cases, the steps that must be followed are not intuitive. Therefore, many non-residents are asking how to buy property in Spain?
What you should know about how to buy property in Spain
The main requirement to buy a property in Spain is to have the NIE (Foreigners Identification Number). It is a unique and personal number, which is essential to carry out any kind of transaction in the country, such as starting a business or buying a property as is the case.
Although it is not mandatory to open a bank account in Spain, it is very advisable to make the payment of taxes and expenses. On the other hand, it should be noted that the purchase of the property must be done before a Notary and must be registered in a public registry as is the Property Registry.
It is important to remember that before making the purchase before a notary, a private contract of sale commitment is made, where a part of the price is paid on account of the final price paid when the property is transmitted to the Notary.
In Spain, the purchase of a home is taxed by different taxes, which cause the price of the property to increase considerably. Among these taxes, highlights the Value Added Tax (VAT), with a 10% tax in the case of new homes or first transmission.
The Tax on Documented Legal Acts (AJD) must be paid if the home is purchased and the VAT is applied and if it is purchased through a mortgage.
The Property Transfer Tax (ITP) also stands out if they are second-hand housing or second transmission. In this case, the tax is between 6% and 10% depending on the autonomous community where the property is located. It must be paid if VAT is not applied in the transmission.
Other expenses that must be taken into account are the registration of the deed in the Property Registry, the public deed in the notary, the Property Tax (IBI), the Property Tax (if applicable), the Income Tax. of the Individuals (IRPF), the Non-Resident Income Tax and in case it is necessary to request a mortgage, it must include the appraisal, the notary’s expenses and the mortgage taxes.
In case of doubt, it is advisable to have the help of expert professionals, who will be able to advise the client in everything related to the purchase of a property.