Spain makes it very easy for foreign buyers to acquire property in national territory. Depending on your country of origin or your legal situation in the country, the procedures will be more or less complex. Therefore, in this post we tell you the most important aspects to take into account if you find yourself in this situation, as well as the fiscal and tax obligations you will have to face.

Steps for foreigners who want to buy a property in Spain

Personal identification document

The first step that every foreigner who wants to acquire a property in Spain must take is to apply for a Foreigners Identification Number (NIE). This number, which is unique and personal, is absolutely essential when carrying out any procedure in Spain.

The NIE can be applied for in person at the “Dirección General de la Policía”, through the Foreign Offices, in the police stations themselves or by applying through the consulate of the country of residence.

It is also possible that the person is interested in creating a company as a foreigner, in which case our recommendation will always be to put yourself in the hands of a specialised tax advisor who will guide and accompany you throughout the process.

Bank account

Although it is not necessary to open a current account in Spain, at Proyectos Insulares we recommend that you do so, as it can facilitate certain procedures, such as making payments more quickly or directing future payments.

Deposit contract and notary's deed

The procedure for purchasing the property will be carried out in the same way as for a domestic buyer. Thus, a deposit contract is usually drawn up to reserve the property, giving a deposit of the total price -which will usually be around 10% of the total value, and then the deed of sale is signed before a notary.

Taxes and expenses associated with the sale and purchase

Once the property has been purchased, all buyers must pay a series of taxes:

- Value Added Tax (VAT) of 10%, or the General Indirect Canary Islands Tax (IGIC) of 7% if the property is in the Canary Islands, only when it is a new home or one that is being transferred for the first time.
- In the case of a second-hand or -transfer home, the buyer must pay the Property Transfer Tax (ITP), which varies between 6% and 10% depending on the Autonomous Community.
- Documented Legal Acts Tax (AJD). 

As for the most common expenses, it is worth highlighting:

- Notary fees for the deed of sale

- Registration of the purchase-sale in the Land Registry

- If you have acquired the property by means of a mortgage, this will also involve notary fees and registration in the Land Registry 

In addition, it should not be forgotten that you have 30 days from the signing of the sale to notify the change of ownership in the Cadastre.

At first sight, these are not very complicated procedures; however, the recommendation in these cases is always to resort to professional advice in order to avoid unnecessary mistakes. In Proyectos Insulares we have staff with extensive experience in the sector, so do not hesitate to contact us to guide you through the process of buying and selling.