I am a foreigner and I want to buy a flat in Spain!
Alicante at the head of the Mediterranean and Spain continue to be one of the most popular destinations for foreigners to buy a home. The climate, the geographical situation and the quality of life are important factors in the choice of our country as a destination for a second residence or even retirement. From Yanina Scotta we respond to the main questions that foreigners have before buying a home in Spain: Appraisal, valuation, taxes, documentation and requirements for the purchase of a home for non-residents.
What step does a non-resident foreigner need to take to buy a flat in Spain?
The first step is to obtain the NIE: Foreigners Identification Number. This number is personal, unique and non-transferable, and is the first ESSENTIAL document, for all the rest of the procedures and documents that we are going to have to do. It can be requested in Spain at the General Directorate of Police, Immigration or at the Embassy or consulate of your country.
What taxes does a non-resident foreigner pay when buying a home in Spain?
In the case of using MORTGAGE, a tax levied on notarial documents must be paid, called Documented Legal Acts (AJD) and which represents a percentage that varies according to the autonomous community in which the loan is formalized.
Taxes derived from the transfer of assets in Spain must be paid by non-residents. If the property is new, it will be subject to VAT, and in the case of a used property, you must pay the ITP or Property Transfer Tax (ITP).
What taxes must a non-resident foreigner pay for having a home in Spain?
IRNP: the Non-Resident Income Tax is a tax that is applied to the owner of a property in case they do not live permanently in the country. A person is considered to be a tax resident in Spain if they physically remain in Spanish territory for more than 183 days. In this case it would be taxed by personal income tax.
IP: even if the owner of a home does not reside in Spanish territory, they are subject to Wealth Tax. State law establishes a minimum exemption of 700,000 euros, which is also applicable to non-residents.
IBI: the Real Estate Tax is a local tax that is paid in the municipalities based on the cadastral value. The type of tax (percentage) is established by each municipal administration.
We know that there are many more questions, so do not hesitate to call us and we will study your particular case.
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