Buying a home in Spain as a foreigner: NIE, bank and taxes
The basic steps for buying a home in Spain as a non-resident: NIE, bank account, purchase taxes and the yearly obligations that follow.
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Foreigners can buy a home in Spain whether or not they live here. The process is similar to any buyer's, with a few extra steps.
The basic steps
- Get an NIE, needed before completing the purchase.
- Open an account at a Spanish bank, usual for paying the price and bills.
- Check the home's legal status before paying any deposit.
- Sign the deed before a notary and record it at the Land Registry.
Purchase taxes
They are the same as for a resident: ITP on second-hand homes, or VAT and stamp duty on new builds. Today you pay no more for being a foreigner, although there is a political proposal on non-EU buyers that we explain in another article.
After buying
Non-residents file non-resident income tax every year, even if they do not rent the home out, on the income the law attributes to them. If they rent it, they pay tax on that income. Municipal property tax (IBI) also applies.
When selling
The buyer normally withholds 3% of the price when the seller is non-resident, as a payment towards the seller's tax.
Each case depends on your country and tax treaties. Consult an adviser before signing.
