Last year, more people than ever, invested in Spanish property. Over 40 000 homes across Spain were sold to foreign investors. This was an increase of around 13%. Local offices in Spain have also reported a similar increase, even in the smallest regions. Before you set out to jump on the property bandwagon there are a few things you need to know about buying property in Spain. Here we will lay out the essentials that everyone wanting to buy a property in Spain must know:
Is it possible for foreigners to buy property in Spain?
If you are looking at buying an apartment in one of the regions of Spain then you only need an NIE or Identification Number. This number is unique to each person and can be applied for through delegations or sub-delegations and also immigration offices. Those currently living abroad can also apply for an NIE.
If, on the other hand, you are buying a house you will find that the process of getting an NIE number will be streamlined through your real estate agent. The number will be essential in the process of tax provision so be careful not to miss this step. If you are offered a housing opportunity which misses this step you could be falling for a scam.
Will I still need to pay taxes in Spain?
One of the most asked questions is whether a foreigner who buys a property in Spain but maintains their residency in another country will pay Spanish taxes. The first thing you need to know is that any and all expenses which are related to purchasing a property in Spain need to be paid in Spain. These fees will include local property taxes, agency fees, and notary fees.
Can I apply for my mortgage in Spain?
You can currently apply for mortgages for non-residence. These are specialised loans which are exclusively granted to persons who are not Spanish residents. These loans must at all times adhere to the same laws as other mortgage agreements granted to those with Spanish residency. In essence, you can have a bank account in your country of residence and have the fees taken off our account. It is recommended though that you open a Spanish bank account and transfer the needed funds.
Will owning a house in Spain give me residency?
While owning a property in Spain does have its perks, residency is not one. You will still have to follow the right channels in order to gain residency in Spain. You will still need to get an NIE number and you will still have to register with your local municipality.
Which foreigners own the most property in Spain?
According to statistics the most foreign-owned homes in Spain belong to citizens of the UK followed by EU residents. The least owned foreign homes belong to residents of France and Germany. In the emerging property market, we can find Russian and the Chinese. These numbers are a testament to the investment opportunity available in Spain.