1. Possess NIE.
What is the NIE: It is a personal, unique and exclusive sequential number that is essential to carry out any type of economic transaction in Spain.
To request the NIE, it can be done from outside Spain through the Spanish embassy or consulate in your country; or in Spain by going to an Immigration office or police station. To request it, you have to fill out a form EX15 which can be downloaded on the web in addition to paying a fee using the model 790 code 012.
2. Have a bank account in Spain.
Although it is not mandatory to have a bank account in Spain, it is necessary since all expenses related to the sale of the home as well as future bills must be paid in Spain. In other words, the payment for the purchase of the property is made via the Bank of Spain, either by bank transfer or by certified bank check. Cash payments are not made in the deeds, since they must comply with the regulations that prevent money laundering. In recent months to open an account number it has been mandatory to provide the tax number of your country due to the banking policy on money laundering.
Expenses and taxes in the acquisition of real estate in SPAIN.
A) Purchase of new homes.
1. VAT. %. Payment deadline
The purchase of a new home in Spain involves the buyer the obligation to pay VAT. The current tax rate payable is 10% on the value of the sale of the home that appears in the Public Deed, although there is an exception when it comes to officially protected homes, which is 4%. The payment will be made to the seller who must deposit said amount in the Public Treasury.
2. Documented legal acts.
It is an autonomous tax that is generated by signing at the Notary Public and subsequently registering in the Property Registry. The amount varies depending on each autonomous community, which is between 0.5% -1.5% of the value of the deed, according to the City. where to buy.
B) Purchase of second hand homes.
1. Tax on Patrimonial Transmissions or ITP.
When we buy a second-hand home, this tax is required, which is none other than the transfer tax, which is taxed between 6% and 10% on the registered value of the property. In Barcelona it is 10%. The term to make the income of the tax is 30 business days from the day following the granting of the Public Deed, the payment will be made before the Delegation of Finance of the corresponding Autonomous Community together with the official form, the NIE, DNI or CIF, first copy and simple copy of the Public Deed.
2. Notary and Property Registry.
Notary fees are set by regulations and their amount depends on the amount of the home and those derived from the registration of the property in the Property Registry. They are approximately 1% of the value of the asset acquired.
Expenses and taxes after the PURCHASE of real estate in SPAIN.
3. IBI or Real Estate Tax.
The IBI is the tax that falls on real estate and the amount to be paid varies from each municipality, it is determined from the cadastral value of the home and in any case cannot exceed the market value. It is paid annually in 4 installments (quarterly). If you plan to invest to obtain a rental income, you will have to assume the payment of this annual tax.
In all cases, a percentage is established based on the cadastral value that ranges between 0.4% and 1.10% in urban areas and between 0.3% and 0.90% in rustic areas.
4. Garbage Rate.
It is a rate managed by the town councils and the cost of the fee depends on the cost of the service, it is paid quarterly (4 times a year) and the amount is determined by the town hall. If you plan to invest to obtain a rental income, you will have to assume the payment of this fee annually.
5. IRNR (INCOME TAX FOR NON-RESIDENTS)
It is that tax to be paid by non-residents in Spain who obtain an income in Spain. It is understood that a person has his habitual residence when he stays more than 183 days during the calendar year. You must consult with a manager or accountant in Spain to comply with the payment of this tax once the property is acquired, a presentation must be made in the Treasury regarding this tax.