Buying your new Home
Buying a Property in Spain as a Non-Resident
If you are a non-resident looking to purchase a residential property in Spain, it’s important to understand the documents, taxes, and procedures involved in the process.
National Identification Number (NIE)
To acquire property in Spain, you must have a National Identification Number (NIE), which is a unique personal identification number.
The most efficient way to obtain an NIE is through a Spanish lawyer or Gestoría, using a Power of Attorney. This allows your lawyer to represent you for all aspects of the property purchase.
We can recommend several English-speaking Spanish lawyers who provide this service. The Power of Attorney is signed in front of a Notary in Spain.
If you are not in Spain, you can sign a Power of Attorney at a Notary office in your home country, then have it ratified by the Foreign & Commonwealth Office (FCO) or Spanish Embassy.
Taxes and Fees on Property Purchases
All taxes and expenses associated with buying a property must be paid in Spain. These include:
ITP (Impuesto sobre Transmisiones Patrimoniales / Property Transfer Tax): Applied to resale properties. In Murcia, the rate is 7.7%, while in Valencia it is 10%.
IVA (VAT): Applied to new-build properties. New properties have a higher taxation of 12% (10% VAT plus 1.5% Stamp Duty).
Additional Costs: Notary fees, Land Registry fees, and legal fees.
If you require a mortgage, additional bank fees may apply. For example:
La Caixa Bank: Offers “no-fee” mortgages but has strict eligibility criteria.
Banco Sabadell: Only charges the valuation fee and mortgage arrangement fee.
Other banks may charge multiple fees, including a second notary and registry fees for the mortgage.
Tip: For budgeting purposes, it is recommended to add approximately 12–15% to the advertised sales price to cover all taxes and associated purchase costs.
Non-Resident Income Tax (IRNR)
If you are a non-resident, you must pay Non-Resident Income Tax (IRNR), also known as “Wealth Tax,” on property you own in Spain that is used as a second or holiday home.
The declaration is made in December each year.
The amount is typically similar to the local council tax (IBI) and usually costs a few hundred euros annually.
Opening a Bank Account in Spain
Having a Spanish bank account is no longer essential when purchasing property.
Opening an account is free and usually takes around 45 minutes.
Requirements: Passport for each account holder and proof of address.
Banks offer different account types, and online banking is straightforward and easy to use.
We can recommend banks with English-speaking staff in their branches for added convenience.
For more advice please contact us