If you are buying a property in Spain it is essential that you have your NIE in place in order to complete the purchase. The number will be issued on a certificate. The certificate has a validity of three months, but the number will never change.
There are a number of ways in which you can apply for the NIE. You can apply in person, either at the local police station in Spain, or at the Spanish consulate in London.
Alternatively, and perhaps more straightforwardly, at E&G Solicitors in Spain we can apply for your NIE on your behalf as part of our property purchase service. This is by far the fastest and least stressful option.
Opening a bank account in Spain can be very straightforward, or it can be very time consuming. That depends upon the bank. At E&G Solicitors in Spain we open bank accounts for our clients as part of our property purchase service.
If you are purchasing a new property, or a property off plan, then you will pay Spanish VAT (IVA), currently 10% of the purchase price (7% in the Canary Islands), and 1.5% in relation to purchase tax (1% in the Canary Islands).
There will also be a Notary’s fee, which will be between 900 Euros approximately, and a property registry fee that will be approximately 500 Euros. There may also be other miscellaneous expenses to cover bank fees, NIE certificates, couriers, etc., which should not amount to more than a further 400 Euros.
In addition to that you will need to make a provision for legal fees.
If you buy an apartment then you will most likely be obliged to pay community fees. These are the fees associated with the maintenance of the common parts of the development in which your apartment is located. It is important to establish the level of community fees before you commit to purchasing the property.
All property owners in Spain are liable to pay IBI, a local tax similar to council tax. The cost varies depending upon the location of the property but, again, this cost can be established before you have committed to purchasing the property.
As a non resident property owner in Spain you are obliged to pay non-resident’s income tax on an annual basis. This is a tax that is based upon the rateable value of your property in Spain. The approximate liability can be calculated prior to your purchase.
Clearly, if you rent out the property then tax must also be paid upon the income generated. For more information on renting out your property in Spain, whether as a holiday let or for longer terms, please see our pages on Renting out Your Property in Spain.