At Welex, a law firm in Marbella specializing in real estate law, we understand that buying property in Spain is a significant decision that can involve various questions and procedures. For this reason, we have prepared this guide to answer common questions and highlight key considerations when buying property in Spain.

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Buying a property in Spain:

1. What is a “Nota Simple,” and why is it important?

The Nota Simple is a key document that provides detailed information about the legal status of a property. It is issued by the Land Registry and contains:

  • The physical description of the property.
  • The name of the current owner.
  • Information about encumbrances or liens, such as mortgages or embargoes.

This document is essential to ensure the property is free from legal issues. Before signing any contract, a specialized lawyer can review the Nota Simple to confirm everything is in order.

2. What procedures are necessary before the purchase?

The process of purchasing a property in Spain involves several legal and administrative steps. The most important include:

  • Property review: Before signing, ensure the property is free from debts, embargoes, or legal issues.
  • Opening a Spanish bank account: Necessary for managing property expenses such as taxes and utilities.
  • Obtaining a Spanish tax number (NIE): Foreign buyers must obtain a certificate from the Ministry of the Interior that provides them with an NIE (Foreign Identification Number). This personal and non-transferable number must appear on all documents processed, as its main function is to identify the foreign individual.
  • Essential services contracts: At Welex, we handle the contracting and setup of services such as water, electricity, gas, and community fees.

3. What does the 3% withholding tax imply when buying from a non-resident?

If the seller is not a tax resident in Spain, the buyer is legally obligated to withhold 3% of the purchase price and pay it to the Tax Agency. This ensures the seller fulfills their tax obligations related to the transaction. This process is managed through Model 211, and it is crucial to seek advice from a specialized lawyer to handle it properly. Click here to read more about taxes on property sales by non-residents.

4. Assessing the fixed costs of the property

It is essential to analyze the recurring expenses associated with the property, including:

  • Community fees: These vary depending on shared facilities and services (e.g., pool, elevator, security).
  • IBI (Property Tax): An annual tax based on the cadastral value of the property.
  • Utilities: Electricity, water, gas, and general maintenance.

These costs should be included in your overall budget, especially if you plan to rent out the property and need to decide whether the tenant or landlord will cover these expenses.

5. Obligations to the community of owners

When purchasing property in Spain, you assume responsibilities related to the community of owners, including:

  • Contributing to common expenses.
  • Maintaining your property in good condition.
  • Allowing repairs that affect the overall building.

It is important to review the financial status of the community before purchasing, as you could inherit debts from previous owners.

6. Taking the necessary time to decide

Buying a property is a decision that requires careful thought and analysis. We recommend:

  • Visiting the property multiple times.
  • Exploring different options with the help of an advisor.
  • Avoiding hasty decisions due to seemingly attractive offers.
  • Waiting for a property report prepared by your trusted lawyers.

At Welex, we offer comprehensive advice to help you analyze the market and make informed decisions.

Conclusion

Purchasing property in Spain involves various legal and practical aspects that should not be overlooked. At Welex, we provide an all-encompassing service, from the legal review of the property to the management of taxes and administrative procedures. If you have further questions you can find answers on this specific website.

Are you considering buying property in Spain? Contact us to resolve your queries and ensure the entire process is conducted with complete security and transparency.