Are you a foreigner and want to buy a house in Spain? These are the steps you should follow

How can you buy a house in Spain?

First of all, it is essential to clarify that non-residents in Spain also have the right to buy a property in the country.

Looking for a property

The first step is always to look for a property. Think about in which area you would like to livedo you prefer the north or the south? Inland or on the coast? The choice goes hand in hand with the climate: do you prefer dry or humid climates?

Then you will have to think about whether you want a city or a more rural area, and assess whether services or communication with the rest of the country are important to you.

If you are in your home country, don't worry about having to travel to see the visit. You can ask someone you trust who lives here to come and see the property you like. Many platforms offer virtual tours of the property, so it will not be necessary to do it in person.
It is very important that, before signing anything, you make sure that the property has no damages.

Applying for a NIE

If you want to buy a property in Spain, you must obtain a NIE (Número de Identificación de Extranjero, Foreigner's Identification Number)this is the document that will identify the buyer in the contract for the purchase of the property. There are different types of NIE depending on your needs:

• Permanent NIE for European Union citizens who reside in Spain for more than three months. These are usually foreigners who acquire a second residence to spend their holidays. It is granted on presentation of the EX-18 form, a copy of the passport, a description of the reasons for the application, and proof of payment of the fee.

• Temporary NIE for citizens of the European Union who are only going to be in Spain to carry out the purchase procedure.

• Non-resident NIE for non-EU citizens who are going to buy a property but are not going to reside in Spain. In this case, interested parties must submit form EX15, together with a copy of their passport, a description of the reasons justifying the application, and proof of payment of the corresponding fee.

• Resident's NIE (TIE) for non-EU citizens who will reside in Spain for more than 183 days per year. It is granted by presenting form EX-17, together with a recent colour photograph, a copy of the passport and proof of payment of the corresponding fee.

Where can I apply? All you need to do is go to a police station in Spain or to the Spanish embassy in the city where you live.

Open a bank account

Another of the most frequent recommendations is to opening a bank account in Spain. Although it is not a mandatory requirement, it can facilitate the management of taxes and expenses related to the purchase of a property.

In addition, having the money in the country other than the one in which the purchase is to be made can involve delays and complications, especially if the currency is also different. This can be avoided by opening an account with a local bank.

Signing a deposit contract

After contacting the seller, and reaching a mutually favourable agreement, it is time to sign a deposit contract. This is a private contract that will serve as a guarantee, as the seller is obliged to keep his word or, failing that, must compensate you.
In order for it to be valid, you as the buyer must pay a certain amount of money to confirm your intention to buy.

Preparing the necessary documentation to formalise the purchase

After signing the earnest money contract, you must prepare all the necessary documents to formalise the purchase before a notary:

• Nota simple that includes the details of the property (previous owners, classification, if it has debts or mortgages...).

• Technical Building Inspection which indicates the state of the property.

• Public deed. Legal document that grants veracity and legal certainty to both buyer and seller, and allows the property to be registered in the land registry.

Going to the notary to sign the public deed

When the formalities are in order, the buyer must go to the notary to officially sign the deed of sale. This meeting must be attended by all the interested parties (buyer, seller, bank representative...) and the keys to the home will be officially handed over.

Registering the property in the Land Register

If the documentation is already signed, the buyer and new owner must go to the Land Registry to register his property, to confirm that he will be the new owner of the property.

What are the taxes and expenses that a foreigner must consider when buying a property in Spain?

As mentioned above, a foreigner who wants to buy a property in Spain must consider the taxes and costs associated with the purchase. The most important are usually:

• Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP).

• Value Added Tax (VAT).

• Stamp Duty (AJD).

• Notary and registry fees.

• Lawyer's fees.

• Bank charges.

Practical advice that will come in handy when buying a property in Spain

Buying a property, whether in Spain or anywhere else in the world, involves making difficult decisions. To help you in this process, here are some tips that can simplify the purchase of your ideal home:

• Hire a lawyer and a tax advisor: it is advisable to have the help of a lawyer specialised in real estate law and a tax advisor to guide the buyer through the whole process. In addition, an immigration lawyer can help you get the NIE mentioned above.

• Research the property market: before buying, it is important to research the property market in the area where you wish to purchase a property. Analyse sale and rental prices, market trends, and supply and demand.

• Check the documentation: check all property documents, whether it is the title deed, property records and necessary approvals.

• Understand the associated taxes and expenses: make sure you take into account all costs related to the purchase of the property to avoid unpleasant surprises.

• Have the property inspected: prior to the purchase of the property, it is advisable that you carry out an inspection of the property to detect possible structural or maintenance problems.

All in all, although buying a property in Spain may seem daunting, following these tips can help you buy the home of your dreams with greater confidence and security. Enlisting the help of a successful international real estate agency such as Engel & Völkers will help make the whole process simpler.