What do I have to do to buy a house in Spain if I am a foreigner?
Spain, with its Mediterranean climate, rich culture, and vibrant lifestyle, is a dream destination for many. If you’re a foreigner considering buying a home in Spain, it’s natural to have questions about the process. Fortunately, while it involves several steps, the Spanish system is quite accessible for international buyers. Here’s a clear and concise guide to help you navigate this exciting journey.
1. Define your priorities and budget
Before diving into the market, take some time to reflect on your needs. Are you looking for a holiday home, a permanent residence, or an investment? What type of property interests you (apartment, villa, townhouse)? In which region of Spain would you like to live (coast, city, inland)?
Once you’re clear on the type and location, set a realistic budget. In addition to the purchase price, you should consider additional costs, which can range between 10% and 15% of the property’s value. These include taxes (VAT for new builds or ITP for resales), notary fees, land registry fees, and legal expenses.
2. Get your NIE (Foreigner Identification Number)
The NIE is a tax identification number essential for any financial transaction in Spain, including purchasing a property. You can apply for it at a police station in Spain or through the Spanish embassy or consulate in your home country. This is a fundamental step and should be one of the first you complete.
3. Open a bank account in Spain
Having a Spanish bank account will greatly simplify the purchase process. You’ll need one to make payments related to the purchase, set up direct debits for utilities, and manage any mortgage. Most Spanish banks are familiar with opening accounts for non-residents.
4. Find the perfect property
With your priorities and budget defined, it’s time to search for your ideal home. You can do this through online property portals, by contacting local real estate agencies (especially those experienced with international buyers), or by exploring the area you’re interested in.
5. Reserve the property and sign the reservation contract
Once you’ve found the property you want, the next step is usually to sign a reservation contract (known as “contrato de arras”). This is a private agreement between buyer and seller where a deposit (usually 10% of the sale price) is paid to reserve the property.
6. Consider financing if needed
If you need financing, you can apply for a mortgage with a Spanish bank. Keep in mind that, as a non-resident, the requirements may differ from those for residents.
7. Sign the deed before a notary
The final step in the process is signing the public deed of sale before a Spanish notary. At this stage, the final payment is made, the keys are handed over, and the legal transfer of ownership is formalized.
Final Step: Registration in the Land Registry when buying a house in Spain
To complete the purchase of a home in Spain, once the deed is signed, it is necessary to register the property in the Land Registry, which legally guarantees that the home is in your name.
Want to buy a home in Spain? Ikonic Living is with you every step of the way
Buying a home in Spain as a foreigner is an entirely achievable goal if you have the right information and a professional team by your side. Although the process might seem complex, following the correct steps and being guided by experts makes the experience much easier. At Ikonic Living, we not only design and develop exclusive projects in some of Spain’s most attractive areas, but we also accompany you throughout the entire buying process, taking care of all legal, tax, and administrative procedures. Our mission is for you to focus solely on enjoying your new home in Spain.
Ready to take the leap? Contact us and find out how we can help you buy a house in Spain with complete peace of mind and confidence.
- Address: Carrer Ámsterdam, 59, 03509 Finestrat, Alicante
- Phone: +34 603 20 90 69
- Email: info@ikonicliving.com
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