For many immigrants, owning a home in Spain represents a significant aspiration, whether as a primary residence or a future investment. Fortunately, purchasing property in Spain is feasible for foreigners, even for those without residency, as long as certain criteria are met. Foreign buyers account for approximately 18% of real estate transactions in the country, showing that more people are achieving the dream of homeownership.
The journeys of individuals like Laurens González from Cuba and the influencer Anita Mateu serve as inspiration for other migrants. Laurens managed to buy a house just 16 months after arriving in Spain, despite facing initial financial challenges. Meanwhile, Anita secured a home in Galicia after three years of careful planning and numerous bank visits to obtain a mortgage. These stories illustrate that with determination and the right information, buying a home in Spain as an immigrant is an attainable goal.
Legal and Financial Requirements
Foreigners are indeed permitted to purchase real estate in Spain, whether they reside there or not. While a passport suffices to buy property, obtaining a Foreigner Identification Number (NIE) and opening a Spanish bank account are essential. The transaction cannot be notarized or legally recorded without the NIE.
Foreign buyers pay the same taxes as residents when acquiring property. Even if immediate residency isn’t planned, a non-resident purchase is possible with a temporary NIE. Furthermore, those investing over 500,000 euros may apply for the Golden Visa, a residency permit for investors.
Spanish citizens, such as many Cuban Americans who gained citizenship through the Law of Grandchildren, do not require an NIE but need a NIF or DNI. Increasingly, Cubans with dual citizenship are purchasing homes in regions like Galicia, Asturias, or the Canary Islands, either to settle down or retire.
Steps to Purchase a Home in Spain
The process begins with searching for a property and signing a deposit contract, called a "contrato de arras," which involves a down payment of about 10%. It is crucial to verify the legal status of the property before signing.
The next step is the notarization of the purchase, where both parties sign the public deed. The notary ensures the legality of the process and the identities involved. Following this, the property is registered in the buyer’s name, and the corresponding taxes are settled.
If a mortgage is necessary, banks typically finance up to 80% of the property's value for residents, but non-residents must provide a down payment of 20% to 30%.
Costs and Taxes Involved
The Transfer Tax (ITP) for used properties ranges from 6% to 10% of the purchase price, varying by region. New properties incur a Value Added Tax (IVA) of 10% (or 4% for protected housing), and the Documented Legal Acts Tax (AJD) ranges from 0.5% to 1.5%, typically covered by the bank if a mortgage is involved. Notary and registration fees vary between 0.1% and 0.5% of the property's value, with registration costs ranging from 300 to 700 euros. Appraisal and administrative fees are common when a mortgage is involved, generally costing between 300 and 500 euros each.
Post-purchase responsibilities include paying the annual property tax (IBI) and, for non-resident taxpayers, the Non-Resident Income Tax (IRNR), which is taxed at a rate of 24% for non-EU residents.
Tips for Immigrant Buyers
Seek professional advice: An experienced real estate lawyer or advisor can help avoid mistakes and expedite processes.
Choose the location wisely: Cities like Madrid and Barcelona have higher property costs, while regions like Galicia or Andalucía offer more affordable options.
Plan your budget: Save at least 30% of the home's price to cover additional expenses.
Learn from others: Stories of persistence and saving, such as those of Laurens González or Anita Mateu, demonstrate the feasibility of the goal.
Clarify your intentions: Determine whether you are buying to live in or as an investment, and assess local taxes, profitability, and regulations accordingly.
Spain remains an appealing destination for those seeking stability, investment opportunities, or a peaceful retirement. With careful planning and expert guidance, purchasing a home in the country is an achievable goal for any immigrant.
FAQs about Purchasing Property in Spain as a Foreigner
Can foreigners buy real estate in Spain without residency?
Yes, foreigners can purchase property in Spain without residency. However, they must obtain a Foreigner Identification Number (NIE) and open a Spanish bank account.
What are the tax obligations for non-resident property owners in Spain?
Non-resident property owners must pay property tax (IBI) annually and, if applicable, the Non-Resident Income Tax (IRNR) at a rate of 24% for those outside the EU.