Requirements for buying a house in Spain as a foreigner

Buying a house in Spain as a foreigner is a relatively straightforward process, but it is important to know the requirements and steps necessary to successfully carry out this transaction. Below, we detail the key requirements and considerations you should keep in mind.

1. Obtain a Foreigner Identification Number (NIE)

The Foreigner Identification Number (NIE) is an essential requirement for any foreigner who wishes to conduct economic transactions in Spain, including the purchase of a property.

How to Obtain the NIE

In Spain: You can apply for the NIE at a Police Station or a Foreigners' Office.
From Abroad: You can also obtain the NIE through the Spanish Consulate in your country of residence.

To apply for the NIE, you will need to present the following documents:

Application form (EX-15).
Valid passport or identity document.
Reason for the application, such as a letter from a lawyer or real estate agency certifying the intention to buy a property.

2. Open a Bank Account in Spain

Although it is not a mandatory requirement, opening a bank account in Spain greatly facilitates the process of buying and managing payments related to the property, such as taxes and utilities.

Required Documents

Passport.
NIE.
Proof of address in your country of residence.
Justification of the origin of the funds to be deposited in the account.

3. Hire a Lawyer

It is highly recommended to hire a lawyer specialized in real estate law in Spain. A lawyer will help you:

Review the purchase contract and ensure that all terms are fair and clear.
Verify the legal status of the property, including possible encumbrances, liens, or legal disputes.
Assist in signing the contract and registering the property in the Land Registry.

4. Reserve the Property

Once you have found the property you want to buy, it is common to make a reservation deposit to secure the purchase. This deposit is usually 10% of the sale price.

Deposit Agreement

The deposit agreement is a preliminary agreement that sets out the terms of the purchase. By signing this agreement, the buyer and seller commit to completing the transaction within a specified period.

5. Obtain Financing (if necessary)

If you need to finance part of the purchase, you can apply for a mortgage from a Spanish bank. To do so, you will need to present:

Proof of income and financial solvency.
Credit history.
Property appraisal.

6. Sign the Public Deed

The public deed of sale is signed before a notary. This document formalizes the transfer of the property from the seller to the buyer.

Required Documents

Passport and NIE.
Sales contract.
Pending debt certificate (if applicable).
Proof of payment of the purchase price.

7. Registration in the Land Registry

After signing the deed, the notary sends a copy to the Land Registry. Registration in the registry is essential to secure your legal right to the property.

8. Pay Taxes and Additional Fees

When buying a property in Spain, you must consider various taxes and additional fees, such as:

Property Transfer Tax (ITP): Ranges between 6% and 10% of the property price, depending on the autonomous community.
Notary and registry fees: Approximately 1% of the property price.
Lawyer's fees: Generally between 1% and 1.5% of the property price.
Appraisal: If you apply for a mortgage, the bank will require an appraisal, which usually costs between 300 and 500 euros.

Buying a house in Spain as a foreigner is an accessible process as long as you follow the legal steps and requirements. Obtaining an NIE, opening a bank account, hiring a lawyer, reserving the property, and managing the financing are key steps to ensure a successful purchase. Additionally, it is important to consider taxes and additional fees to properly plan your budget.

With the right information and proper assistance, acquiring a property in Spain can be a valuable investment and a gateway to life in this beautiful country. Therefore, we offer you the services of our real estate agency in Altea to help you obtain the house of your dreams.