Buying Property in Spain Without Becoming a Resident
Dreaming of owning a beautiful vacation home by the Spanish seaside or a cozy apartment on the Spanish Riviera but not planning to get residency? Spain has a great property market for people who don’t live there, combining amazing scenery, a rich culture, and good chances for investing. Here’s a complete guide to help you understand how to buy property in Spain without becoming a resident.
Can I Buy Property in Spain Without Being a Resident?
You can buy property in Spain even if you’re not a resident. Spain doesn’t limit foreign ownership of real estate. But, there are key steps and things to think about:
Firstly, you’ll need to obtain a Número de Identificación de Extranjero (NIE), which is a tax identification number necessary for any financial activities in Spain. This can be obtained through a Spanish consulate in your home country or directly in Spain.
Next, it is practical, though optional, to open a Spanish bank account to manage payments related to the property purchase, such as taxes, utilities, and maintenance costs. Engaging a lawyer who specializes in Spanish property law is highly advisable to assist with due diligence, ensuring there are no outstanding debts or legal issues with the property, and to help with contract signing.
Once you have identified a suitable property, you typically sign a preliminary contract known as a Contrato de Arras and pay a deposit, usually 10% of the purchase price. The final purchase is completed by signing the public deed (Escritura Pública) in front of a notary, who will ensure all legal requirements are met.
Be prepared for additional costs such as transfer tax (Impuesto de Transmisiones Patrimoniales, ITP) for resale properties, or VAT (IVA) and stamp duty (Actos Jurídicos Documentados, AJD) for new properties. There are also notary, registration, and legal fees to consider. Ongoing costs include property tax (Impuesto sobre Bienes Inmuebles, IBI), community fees for shared amenities, utilities, and insurance.
If you require financing, Spanish banks do offer mortgages to non-residents, although the terms may differ from those available to residents. Documentation proving your financial stability will be required. If you plan to rent out the property, you must comply with local rental regulations and declare rental income for tax purposes.
By following these steps and seeking professional advice, non-residents can buy property in Spain.
Getting Residency in Spain by Buying Property
Getting a residency permit in Spain with a Non-Lucrative Visa is for people from outside the EU who want to live in Spain without working or having a job. It doesn’t need a certain amount of money for property, but there are other financial and other needs to meet.
To qualify, applicants must demonstrate sufficient financial resources to support themselves and any dependents. The application process involves submitting the application at the Spanish consulate in the applicant’s home country and providing the necessary documentation, including:
- Proof of financial means
- Health insurance
- A criminal background check
- A medical certificate
- Proof of accommodation in Spain (owning a property can serve as proof).
Applicants must obtain private health insurance valid in Spain with no copayments or deductibles. The initial visa is granted for one year and is renewable for two years, provided the financial and other requirements are still met.
After five years of continuous residency, holders are eligible for permanent residency, and after ten years, they may apply for Spanish citizenship
Key Points to Consider
Applying for a non-lucrative visa for Spain involves key points to consider to ensure a successful application process and a smooth transition to living in Spain. Here are the key points you should keep in mind:
No Work Allowed: The Non-Lucrative Visa does not allow you to work or engage in professional activities in Spain. It is for retirees, individuals with independent means, or those who can sustain themselves without employment.
Annual Income and Savings: You must demonstrate that your income or savings are sufficient to cover your living expenses in Spain without the need for employment.
By meeting the financial, health insurance, and accommodation requirements, and following the application process, you can buy a house in Spain and get residency through the Non-Lucrative Visa. House buying in Spain can serve as proof of accommodation, supporting your application.
In conclusion, buying a place in Spain for someone not living there requires getting a NIE, setting up a Spanish bank account, hiring a lawyer, choosing and buying the property, and handling taxes and fees. It’s crucial to research thoroughly, make sure the purchase is legal, and understand all the costs. There are ways to finance the property, and if renting it out, following local laws is important. Getting expert help can make the process easier and more successful with the professional team of Spain Homes.
Originally published at spainhomes.com
