Welex knows that there might be several reasons why a non-resident wishes to acquire a property in Spain—perhaps for work-related reasons or simply as a second holiday residence.
As we’ve discussed in other posts, in which we indicated our main advice about taxes for real estate in Spain, acquiring a property is not an easy process.
If you do not have a specific knowledge of the sector, the purchase procedure is not only an arduous task, but also one that really requires study of the viability of any potential investment. Therefore, it is advisable to contact Welex to talk to real estate consultants who will orient and advise you in this process.
We are dealing with a booming market; during 2016 there was a growth of 15% for the housing market. British investors make up the largest portion of foreign persons who decided to invest in Spanish properties, making up 16% of such market investments.
However, this does not mean that all investments are a good idea or are free of risk or fraud.
Therefore, it is very important to go to the Land Registry in Spain in order to identify, exactly, the owner of the property, in addition to gaining in depth information about the legal and regulatory situation of the property at issue.
It is also important to know with absolute certainty if the licenses are correct, to be able to carry out the purchase without any kind of fear that we might be dealing with some kind of scam. Welex is here to help ensure your peace of mind
Doubts and answers about the purchase, by a non-resident, of properties in Spain.
What are the main taxes that a non-resident must face when buying a house in Spain?
First of all, we must clarify that all those expenses or taxes that are subject to the purchase or sales transaction must be paid to the Spanish state.
We refer, for example, to VAT or ITP for second-hand housing, to which we must add the expenses of the notary, administration, or the land registry.
The main Spanish tax for non-residents, though, is the IRNR (Non-Resident Income Tax), which is similar to the famous Income Tax for Natural Persons.
The IRNR is a direct tax in Spain levied on income obtained by a non-resident in Spanish territory, and who is therefore not obliged to make the declaration of income, as residents do.
How can a foreigner access the property market in Spain?
As a general rule, your best access is through experts in the purchase and sale of real estate in Spain, either through real estate agencies in the area or law firms and accountants—like Welex.
The housing fairs are another avenue for access for foreign investors to acquire properties in Spain.
Is there a difference between buying a new home or a second-hand home?
Yes, there are differences. Let us explain. When a non-resident acquires a new property, he or she will have to pay the Value Added Tax (VAT).
On the other hand, if the acquisition is a second-hand property, the purchaser will not have to face the VAT, but will instead pay the ITP (Transfer Tax).
Remember that in both cases, you must pay the tax on documented legal acts (AJD).
Can a Spanish bank grant a mortgage to a non-resident?
Obviously we are dealing with a sensitive issue, here, and it is best to go to an expert to advise you on the matter, because each case is different. You can get expert advice from our team at Welex.
But let’s say that this subject is directly related to all the modifications and reforms carried out in Immigration Law.
There are mortgages for fiscal non-residents in Spain. These loans are granted to non-residents, although the regulations are specifically intended to make it easier for foreigners who want to invest in Spain to apply for residence permits.
In any case, it is necessary for the non-residents to have a bank account in their country of origin, in addition to having one in a branch in Spain.
As we have said, this article aimed at offering a few indications on the operations of real estate purchases in Spain by non-residents, but we remind you that, in order to formalise the entire process, you will need the assistance of legal experts at several stages. Our team at Welex is eager to help in this, and any other, matter!