Faq
Legal
- • What special circumstances apply to foreigners who acquire a property?
Spanish legislation makes no difference between its citizens and foreigners in the purchase of a home. It is only when there are supposed goods of national interest involved or something that could affect national security that there may be limitations on purchases by foreigners.
When it comes to the purchase of a home we only have to take into account certain points:
If the seller is a non resident foreigner, the purchaser has the obligation to make a 5% retention to pay the taxes that really apply to the former, to cover the possibility that they leave the country without confronting their tax responsibilities. If this retention has not been made, and if the seller does not comply with their tax obligations, the purchaser will be obliged to pay the same.
In the opposite case, if the purchasers are non-resident foreigners, they have the obligation to justify the money they will employ in the sale, through the necessary bank certificate on the origin of said money.
National foreigners from countries within the European Union, with residence in Spain, come under the same legal regime as Spanish nationals.
Finally, although it is not obligatory, it is advisable for a foreigner to have a Foreigners Identity Number (NIE) when they want to purchase a home, as the home cannot be inscribed in the Property Registry without it. It is also vital for certain tax declarations for the seller if they are a company.
There are two ways of getting a NIE:
1. Go in person to a national police station, with a current passport, three photos and the motive for the application. You can also obtain more documentation on the subject this way as well as the document that must be filled in. The NIE can be picked up, after roughly 10 days (depending on the time of year and the amount of work), by showing the necessary receipt.
2.- Since October 2003, it is now possible for foreigners from their own country of origin to make the necessary application in Spain for their NIE through a representative, accrediting the said representation through general or specific powers of attorney, and justifying with documents their motives for applying – for example, their reservation.
When it comes to the purchase of a home we only have to take into account certain points:
If the seller is a non resident foreigner, the purchaser has the obligation to make a 5% retention to pay the taxes that really apply to the former, to cover the possibility that they leave the country without confronting their tax responsibilities. If this retention has not been made, and if the seller does not comply with their tax obligations, the purchaser will be obliged to pay the same.
In the opposite case, if the purchasers are non-resident foreigners, they have the obligation to justify the money they will employ in the sale, through the necessary bank certificate on the origin of said money.
National foreigners from countries within the European Union, with residence in Spain, come under the same legal regime as Spanish nationals.
Finally, although it is not obligatory, it is advisable for a foreigner to have a Foreigners Identity Number (NIE) when they want to purchase a home, as the home cannot be inscribed in the Property Registry without it. It is also vital for certain tax declarations for the seller if they are a company.
There are two ways of getting a NIE:
1. Go in person to a national police station, with a current passport, three photos and the motive for the application. You can also obtain more documentation on the subject this way as well as the document that must be filled in. The NIE can be picked up, after roughly 10 days (depending on the time of year and the amount of work), by showing the necessary receipt.
2.- Since October 2003, it is now possible for foreigners from their own country of origin to make the necessary application in Spain for their NIE through a representative, accrediting the said representation through general or specific powers of attorney, and justifying with documents their motives for applying – for example, their reservation.
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