What Documents Do You Need to Buy Property in Spain as a Foreigner?
The investment opportunities in Spain are amazing which, along with the country's climate and culture, make it a popular place for foreigners to buy property. But, before you go looking around properties in your favourite locations, it’s important to think about documents and make sure you’ve got everything in order.
You can get some of the necessary documents in advance of a property search which can help save time later and reduce the risk of someone else swooping in and making an offer while you fill out forms. Others can only be done during the property purchasing process.
The experts at Bueno have compiled this list of essential documents for buying property in Spain, so you can rest assured knowing you’ve got everything organised for when you find your dream home.
Documents for Buying Property in Spain
#1. Valid ID
One of the most important documents you need for buying property in Spain is a valid ID with at least 6 months left on it. Not only will you need this to travel to the country to look at properties but you’ll also need ID for several of the other important documents. Valid IDs for buying property in Spain are:
Passport
ID Card
#2. NIE
Any foreign buyers will need a NIE – a Foreigner’s Identity Number or Número de Identificación de Extranjero in Spanish. This unique number is used to identify any foreigner who is engaged in economic or legal activity.
The process of applying for a NIE can seem difficult but it’s a lot easier than it seems. Some decide to do it online which is definitely helpful if you don’t speak Spanish but bear in mind that they will charge a commission. If you do speak Spanish or have someone who could accompany you to the appointment, then going to your local immigration office or police station is easy and certainly cheaper.
Before heading there, you need to fill out a 790 form which you can find online or pick up from the police station or immigration office in advance. You will have to pay a fee, which is usually around €12 but – and here’s where it gets confusing – you can rarely pay this at the police station or immigration office. You’ll have to go to a specific bank branch and pay it there, where you’ll then get a proof of payment receipt.
If you have an appointment, make sure you do this and bring the proof of payment to the appointment. You can also arrive early on the day and wait for an appointment.
There have been a couple of difficulties for Brits buying property in Spain since Brexit and one of them is the waiting times for a NIE appointment. Other Europeans generally get an appointment quicker, so make sure you do this in plenty of time before starting the property search.
You can also go to the Spanish consulate in your home country, although processing times can be several weeks.
#3. Proof of Financial Solvency
You’ll need to gather documents that prove you can afford the property and justify the funds used for the purchase. If you’re applying for a mortgage from a Spanish bank, they’ll require various documents to prove your income, any debts, and that you can reliably pay the mortgage. After the 2008 financial crisis, Spain has passed laws ensuring that banks only lend money to those who are in a stable position to pay it back.
Documents for financial proof include:
Tax returns (stating income)
Income certificates or payslips
Bank statements for recent months showing available funds
#4. A Spanish IBAN Account
Perhaps this isn’t exactly a document foreigners need but it is one of the most important steps in buying property in Spain. All taxes and fees associated with buying your new property will need to be paid through a Spanish account. Many utility providers only work with Spanish accounts too, so it really is an essential part of the process.
Be careful when opening an account as many of the free banking services in Spain are not actually free. There are lots of hidden costs and you may need to pay extra for specific cards or if you don’t meet the minimum spending requirements.
When you open a Bueno account, there are no hidden costs and you have access to your online banking and card whenever and wherever you need. You can also speak to one of our property banking specialists in over 7 languages, ensuring the process is as smooth and stress-free as possible.
#5. Non-Resident Certificate
As a foreigner buying property in Spain, you might be asked for a non-resident certificate for specific banking purposes. If you are, you can acquire this certificate from your local police station or directly from the bank that is requesting it.
#6. Offer Contract
Once you find your perfect property and want to make an offer on it, you’ll need to sign the offer contract. If you use an estate agent, this usually takes place in the estate agent’s office. You’ll be expected to transfer a reserving fee which is usually around 1000/2000€ which you can either have transferred back or taken off the sale price if everything goes well.
This document clearly states your offer price, the date on which the sale should be completed and whether you’re getting a mortgage or not. If, for any reason, the sale falls through, your reserving fee will be transferred back to you.
#7. Nota Simple
The Nota Simple is an essential document for anyone buying property in Spain, not just foreigners. It shows any debts associated with the property which are transferred onto the new owner – so if you don’t want any nasty surprises, you definitely need one!
To request a Nota Simple, head to your property’s land registry with your ID and the property details. It costs a little less than 4€. You can do it online too, although it tends to be more expensive.
#8. Arras Contract
Again, this is not necessarily specific to just foreigners, but it’s an essential document in the Spanish property purchasing process. This contract clearly states all the terms of the sale. You’ll receive the arras contract a few days before the date to sign and both parties can amend it during this time. Upon signing it, you’ll be asked to transfer 10% of the property price. Don’t be surprised if you’re asked to transfer this directly to the seller, although we advise always transferring it to a safeguarded account.
Should you pull out of the sale at any point after this, you’ll lose your deposit. However, if the seller pulls out, they’ll have to pay you back double.
#9. Public Deed of Sale
The public deed of sale is a very important document that’s signed in front of a notary. This document states all of the legal details of the purchase, including identities, funds and specifics of the property. Whenever you go to the notary to sign, you’ll need to bring all the other important documents on this list too.
#10. (extra) Non-Resident Income Tax
This is more for after you buy property in Spain but it’s still something you should be aware of. Anyone who is a non-resident in Spain but who earns a form of income or has assets needs to pay non-resident income tax. It can be a complicated form to fill out, especially if you’re new to the system or your Spanish isn’t up to scratch.
At Bueno, we help our customers with all their Spanish property financial needs, including non-resident income tax. Our multilingual advisors will happily answer any questions you might have and guide you through the process so you know exactly how much you’ll have to pay and when.
If you have questions about any of the documents you need as a foreigner to buy property in Spain, get in contact with the team at Bueno. We’ll happily make the financial process of buying your dream home in the sun an easy and stress-free reality.
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.