Do I need an accountant as a non-resident when buying property in Spain?

When buying property in Spain, there are some absolute musts which help to protect you, your purchase and the seller. There are also many contracts you have to sign and taxes you have to pay by law. But what about an accountant? Is that a must when buying property in this Mediterranean country? Or can you go it alone?

In this article, we’re going to delve into whether hiring an accountant in Spain is a legal requirement when purchasing a property and, if not, the pros and cons of doing it anyway.

Do I need an accountant to buy property in Spain?

The short answer is no. You don’t need an accountant when buying a property in Spain. Unlike other parts of the process, such as getting a NIE (Número de Identidad de Extranjero), signing a Contrato de Arras and exchanging in front of a notary, hiring an accountant is not mandatory.

But should you do it anyway?

The process of buying property in Spain can get very complicated – especially for foreigners who are still getting to grips with it. It can seem like a daunting task and many of the steps that are perfectly normal for Spaniards are very different for people from other countries.

Hiring an accountant means you’ll be getting sound financial advice all the way through your property purchase. They’ll help you understand the Spanish way of doing things and recommend extra steps you can take to protect yourself and the property. But, of course, hiring a good accountant (who also speaks your language) comes at a cost. It’s important prospective buyers weigh up this cost against the benefits of hiring an accountant.

The benefits of hiring an accountant in Spain as a non-resident

There are lots of benefits to hiring a qualified accountant if you don’t live in Spain but are thinking of buying a home there. Here are some of the most important ones for you to consider. 

Benefit #1: Peace of mind
Trust us, this is a big one. There are so many things that differ when buying a property in Spain that it can end up feeling overwhelming. Having an expert on your side that can take you through each step of the financial process relieves a lot of the stress. They can talk you through the different stages and advise on whether what the estate agent, seller, bank or notary is requiring is commonplace or unusual (something which, as a non-resident, would be hard to know). They can also help you to make financially good decisions based on your situation so you know whether your property purchase is a good investment for you.

Benefit #2: Make you aware of extra costs/payments
Wherever you buy a property, it’s never as simple as just paying the amount written on the estate agent’s listing. There are always extra taxes and fees you need to pay. An experienced accountant will make you aware of these. For example, if the property is a new build, you’ll need to pay VAT on top of the asking price or Property Transfer Tax if it’s a resale. Of course, this is often a large amount of money (between 6-10%) which you need to budget for.

An experienced accountant will also let you know when you’re expected to pay what (and whether it’s normal or not). For many non-residents, being asked to pay different sums in advance can come as a shock. For example, when you sign the Contrato de Arras (a contract to reserve the property which includes specifics agreed upon by both parties) you’ll need to transfer 10% of the property value. Whilst this is often done directly to the seller, an accountant can advise you on the safest way of doing this – usually to a safeguarded account. 

Benefit #3: Help you avoid scams
Unfortunately, foreigners who don’t understand the Spanish system can end up the target of scammers. Like other types of scams, property scams are getting increasingly sophisticated and can be hard to spot – especially for non-residents. 

An accountant will help you identify potential scams and ensure that your money is safe. They know the process of buying property in Spain and are experts in finances, so they’ll recognise anything that looks unusual right away.

Benefit #4: Advice on taxes
Understanding which taxes you’ll be expected to pay both during and after the property purchase is another reason why many non-residents hire an accountant in Spain. For example, if you own a property, make an income or have assets in Spain, you’ll be expected to pay Non-Resident Income Tax, amongst others. You can benefit from an accountant’s expertise and they can help you to make appropriate tax savings.

Another important point when it comes to working with an accountant is that they can assist you when tax laws change. Whilst you may be able to keep up with large changes yourself, smaller ones can often go unnoticed which can be an issue for non-residents. An accountant will make sure all payments are up to date and any changes are accounted for. 

Benefit #5: Save time
For many, the end goal of buying a property in Spain is being able to enjoy the sun, culture, food and everything else this wonderful country has to offer. But the process of getting there can be complicated and confusing. Hiring an accountant means you don’t have to spend your own time working out what specific taxes you need to pay, what’s normal when buying a property and the added expenses you’ll need to budget for. They’ll do it all for you, so you can rest assured knowing it’s being handled and spend more time enjoying the country.

Negatives of hiring an accountant for a property purchase in Spain

The biggest negative of hiring an accountant when buying property in Spain is the price. You want to make sure you get one that’s experienced in property buying, is recommended and speaks your language. Of course, this all adds up, especially if you work with them long-term. Most accountants will tell you their costs in advance but you should be aware of hidden fees and changes that may occur in the future.

So, is an accountant worth it?

Whilst it can seem like a lot of money to hire an accountant, it’s important to weigh up the savings you’ll make by following their advice, the security you’ll have and the fewer headaches! Having peace of mind knowing you have an expert advising you on the financials of your property purchase will make the whole process of buying property in Spain more enjoyable. You’ll also spend less time researching changes in taxes for non-residents and more time enjoying the beautiful county!

Note that this article is general and is shared as information. Property, tax, finance and other legal topics are personal and can vary not only from person to person but between the different regions of Spain. We recommend that you seek professional guidance if you need advice on matters covered in this article.