What anyone should know before buying a property in Spain

Before acquiring real estate in Spain, potential buyers should be well-informed about the tax regulation and other legal requirements. In these regards, the following information contains the general aspects potential buyers should take into consideration while preparing for their investment.

As a first step, potential buyers should have a Foreigner Identification Number (NIE, in Spanish) granted when the residence application is approved. This residence permit allows foreigners to conduct economic, professional and social interests in the country. Its category depends on the purpose (for example, economic, professional or educational).

How to get golden visa buying property in Spain?

Spain as many countries worldwide offers the annual golden visa to investors who acquire real estate for 500.000€ or more. To be granted the visa, among other requirements, buyers should show a certification of the purchase and the invoice issued by the Property Registry. This visa is easier to obtain and may be extended to investors, their spouses and their children.

Owners should also be informed about the real estate taxes. In general, the Spanish and local tax legislation will ask the taxpayer to deal with different requirements that will depend on the real estate value, years of ownership, and buying conditions (for example, if the property is a residence or an investment). 

Although the type of taxes and their percentages are constantly updated by the local and national governments, it is possible to mention two mandatory taxes that should be paid by the potential owners:

Property taxes (impuestos de bienes inmuebles, IBI in Spanish) paid to the local government; its rate depends on the property value (if it exceeds € 700,000, the owner should pay another tax). 

Capital gain taxes (Plusvalia, in Spain) which are collected when the property is sold and depend on the property value.

At Golden Mile Law Firm located in Marbella, we have the best professionals in the latest national and local tax and legal regulations. Our attorneys are experts in foreign investments and have knowledge in various fields which include commercial and migration law, ensuring that you will get the best advice. 

Disclaimer: The information summarized herein is for general advice only and does not take into account the person’s situation or objectives. Contact Golden Mile Law Firm for further advice. 

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