Yes, any foreigner can purchase a house in Spain. Nevertheless, there is one difference. In case you are not a Spanish national, you will need to take one extra step prior to the purchase. 

Don’t worry, it is really simple (if not, we can help you out). 

What are we talking about?

The first thing you should do is to get your NIE number. It is the basic identification number that all foreigners must obtain once entering the country. 

Furthermore, we must make a distinction here. Because depending on your country of origin, things change: 

If you are from an European Union country.

If you are from a European Union country, there are two types of NIEs:

• The temporary NIE number, for those individuals who do not want to live in Spain. For instance, if you are planning to visit the country and realize the purchase, but then leave, this will be the type of ID you will need to request.
• Conversely, a resident NIE (a permanent one) for those who actually want to.

If you are a non-EU citizen.

On the other hand, let’s say that you are a non-EU citizen. In that case: 

• You can apply for the Resident NIE number if you are a Spanish resident (if you live in the country more than 183 days per year).
• Non-residesnt NIE, if you are not living in Spain but would like to buy a property either way.

Yes, it is totally possible to buy a home in Spain even if you are not a resident.

As we have already mentioned, the foreign non-resident buyer will be required to obtain the NIE in advance, which must be requested at the General Immigration Office.

This request must be accompanied by a photocopy and original of the complete passport or identity document, as well as the communication of the economic, professional, or social causes that justify the request in question.

In addition, we recommend that the person who intends to acquire a property open a bank current account in Spanish territory (even if he is not going to reside in the country), since this way he will be able to prove the economic means of payment of the price of the sale and of the corresponding taxes. This step is not required, but it will certainly make the process easier.

Already with your NIE number and the house you are willing to acquire, there are now 2 documents you will need to sign:

When acquiring a second-hand property:

• The reservation contract. It normally is 1% of the property price. This percentage represents a tiny amount that you should pay in order to officially make the offer to the seller of the house. 
• If the seller accepts the offer, you need to pay the pre-sales agreement, which is 10% of the amount of the price. 

When acquiring a property that is not yet built, the steps will be as follows:

• Pre-Sales Contract: it normally is 6% or property price.
• Final Sales Contract: The payments will be made as follows:

1.  An initial payment will be made that covers at least the cost of the land, land clearance, official building permits, and the cost of the property’s foundations.
2. A payment will be made to cover the cost of constructing walls and roof, waterproofing, interior partitioning, and aluminium carpentry.
3. A payment will be made to cover the floor and wall tiling, bathrooms, and any other details specified in the contract.

In both cases, the process will conclude with the signing of the public deed on the notary, where the outstanding amount and the notarial, property registry, and Spanish property acquisition taxes will be paid

On a large number of occasions, before signing the public deed on the notary, a prior contract is signed, pre-sales agreement or “contrato de arras”, which is not mandatory.

This pre-contract between buyer and seller has the purpose of formalizing the transaction between both parties: the buyer shows his clear intention to acquire the property, and the seller her intention to sell.

As we have said, it represents 10% of the total price. Once paid, the seller is obliged to sell the property. But what happens if she doesn’t? Good news. She then has to give you back double the amount you paid (20% of the total price).

But be careful. If you, as a buyer, don’t want to finally purchase, then you will lose that money. 

On a large number of occasions, before signing the public deed on the notary, a prior contract is signed, pre-sales agreement or “contrato de arras”, which is not mandatory.

This pre-contract between buyer and seller has the purpose of formalizing the transaction between both parties: the buyer shows his clear intention to acquire the property, and the seller her intention to sell.

As we have said, it represents 10% of the total price. Once paid, the seller is obliged to sell the property. But what happens if she doesn’t? Good news. She then has to give you back double the amount you paid (20% of the total price).

But be careful. If you, as a buyer, don’t want to finally purchase, then you will lose that money. 

Spain is a country with a strong legal framework that provides great security for investors. When an investor purchases a property, a public deed is executed before a notary and subsequently registered in the Property Registry. Prior to this, the Spanish Opportunity company will have provided all the necessary property information, confirming its freedom from encumbrances and liens.

Furthermore, the Spanish real estate market undergoes annual revaluation, ensuring that investors typically profit from the sale of their property in addition to the monthly returns they can generate if they choose to rent out the property.

Property transfer tax (ITP)

 The property transfer tax is a progressive tax that depends on the price of the property. Again, it varies according to each Autonomous Community in Spain, but as a general rule: 

• Up to 8% for a price of 400.000€
• 9% when the price of the property goes from 400.000€ to 700.000€
• 10% from 700.000€ and above

Nevertheless, in some regions like in Valencia and Catalonia, you will face a flat rate of 10%. 

We must remember that the Tax Agency can claim a higher payment from the buyer if it considers that the home is worth more than what it has paid for it.

This tax is paid after signing the public deed (the total amount). This is important to know as all the deposits that are paid before the end of the sale won’t include the corresponding prorated ITP percentage. Everything is paid at the end. 

Finally, if you are paying property tax you won’t be paying extra stamp duty (AJD). That is because property transfer tax contains the AJD tax within. 

Property transfer tax (ITP)

 The property transfer tax is a progressive tax that depends on the price of the property. Again, it varies according to each Autonomous Community in Spain, but as a general rule: 

• Up to 8% for a price of 400.000€
• 9% when the price of the property goes from 400.000€ to 700.000€
• 10% from 700.000€ and above

Nevertheless, in some regions like in Valencia and Catalonia, you will face a flat rate of 10%. 

We must remember that the Tax Agency can claim a higher payment from the buyer if it considers that the home is worth more than what it has paid for it.

This tax is paid after signing the public deed (the total amount). This is important to know as all the deposits that are paid before the end of the sale won’t include the corresponding prorated ITP percentage. Everything is paid at the end. 

Finally, if you are paying property tax you won’t be paying extra stamp duty (AJD). That is because property transfer tax contains the AJD tax within. 

The list that follows is common for each of the two cases we have analysed before: properties from developers and second-hand houses. 

Not all of them may be applicable to your case, but you can use it as a checklist in order to make sure you don’t miss anything:

 Notary expenses

 Going and using the notary’s services will be required during this legal process. 

Why? 

Because the notary is required to draw up the public deed. And that, for sure, will have a cost. 

The price you will end up paying to the notary depends on many factors, such as: 

• The agreed price of the property
• If there is any mortgage
• The number of pages/sections the contract has
• How many parts interfere on the transaction
• The notary itself, as some offer lower rates than others

Nevertheless, we want you to have a clear image. So, expect to spend from 700 to 1.000€ there (even though the usual thing would be in the middle). 

Registration costs: land registry fees

 Once you finally pay for the property, you will need to register it on the Property Register.

The exact amount will depend on the exact region (again), but usually land registry fees are from 0,1% to 2% of the purchasing price that is declared on the deed. Expect to pay 800€ for this.

This also refers to the simple note of registration; which is required to check the status of the property. It will be critical in order to gather relevant data about the property and about the previous owner. Why? Because it is the opportunity to detect if the property has hidden vices.

Essential if you want to avoid future problems (e.g. paying more). 

Change of utilities

One of the lasts steps in the process will be transferring the ownership of the utilities (gas, water, electricity, etc.) from the previous owner to you.

Transferring money overseas to formalize the payment

This is something that is easily forgotten. But still important: the commission you will pay to transfer the money from your origin country to Spain in order to realize the payment. 

Of course, the exact percentage will vary depending on the option/service provider you choose.

NIE number costs

We included this section here; but in fact, this would go at the beginning. 

Getting your NIE number is the first step to by a property in Spain as an expat. It is the basic identification number for foreigners and you need to pay and sign all the related contracts. 

If you wish Spanish Opportunity to handle the process on your behalf, you will need to pay the fee to a notary in your country of residence, enabling us to obtain powers of attorney to request the NIE on your behalf, pay the fee at the Spanish police station, and provide a certified translation of the document in Spanish.

You cannot use financing, such as getting a mortgage, in order to purchase the property. You need, at least, to invest 500.000€ from your pocket. Without financing.

Nevertheless, for the exceeding part, you can use financing.

Let’s say, for example, that the property you intend to buy costs 1.000.000€. Then, you will need to invest 500.000€ now to get the golden visa. But, for the remaining 500.000€, you can get a mortgage.