Frequently Asked Questions

Most common Frequently Asked Questions.

The Número de Identidad de Extranjero or NIE is the Spanish tax number for non-residents of Spain.  You need to apply for and obtain an NIE to be involved in any off the official processes in Spain, such as buying a property, buying a car, getting your property connected to utilities and for paying taxes.  

If you are buying a property in Spain it is essential that you have your NIE in place in order to complete the purchase.  The number will be issued on a certificate.  The certificate has a validity of three months, but the number will never change.  

There are various ways in which you can apply for the NIE.  You can apply in person, either at the local police station in Spain, or at the Spanish consulate in London. 

No, you do not need to acquire a Spanish Bank Account to purchase a property in Spain, although the funds for the purchase of a property in Spain need not come direct from a Spanish bank account, a Spanish Bank Account is certainly the most sensible way to proceed.   However what is important is that the source of the funds is clear and that the payment of the funds from buyer to seller is apparent from documentation provided.  In addition, and perhaps most importantly when you are the owner of a property in Spain you will find that it is very difficult and in some cases impossible to pay for utilities from an overseas bank account, hence it will be important for you to open a Spanish bank account as early as possible.  

That depends upon the exact specific circumstances of your purchase, as various points regarding the timescale can be subject to a negotiation.  However, the average purchase of a property takes between four and eight weeks from acceptance of the offer to completion of the purchase.

The biggest expense you will discover when buying a property in Spain is the purchase tax.  (Discuss at the start with your lawyer). For a resale property this will be between 6.5% and 10% of the purchase price, depending upon the location of the property in Spain.

If you are purchasing a new property, or a property off plan, then you will pay Spanish VAT (IVA), currently 10% of the purchase price (7% in the Canary Islands), and 1.5% in relation to purchase tax (1% in the Canary Islands).

You must remember there will be a Notary’s fee, which will be 900 Euros approximately, and a property registry fee that will be approximately 500 Euros.  There might also be other miscellaneous expenses to cover such as bank fees, NIE certificates, couriers, etc., which should not amount to more than a further 400 Euros.

In addition to that you will need to make a provision for legal fees. You should be informed of all fees in advance y either the Estate Agent or your Spanish Lawyer.

Yes.
 
Spanish banks often lend up to 60%–70% of the property’s value to non-residents.
You will need a larger down payment compared to locals. 
 
 

A reputable lawyer is crucial to the purchase of any property in Spain.

Ensure the Lawyer are:

  • Specialists in properties purchase.
  • Is part of an established firm.
  • Is registered with Colegio de Abogados.
  • Has the appropriate insurance policy
  • Is qualified as a banking lawyer
  • Is not financially connected with the real estate agent or developer, or property owner.
  • Is highly recommended by others.

Check each lawyer first prior to engaging their services.