Can I buy a house in Spain and live there permanently?

Buying a House in Spain Is an Achievable Dream

Spain is a welcoming country for foreigners, allowing them to acquire properties without restrictions, offering you a permanent home.

If you plan to reside for more than 90 days, you will need to obtain a visa or residence permit—an essential step to fully enjoy the Spanish culture and lifestyle.

Spain awaits you with open arms.

How to Buy a Home in Spain Step by Step

To buy a house in Spain, you must follow certain steps that will guide you toward a safe and successful investment.

1. Research the Spanish real estate market

   • Select a location that suits your needs and lifestyle. Consider aspects such as climate, proximity to the coast or inland areas, and access to essential services.
   • Evaluate the property’s appreciation potential and local infrastructure, as these factors can impact your investment's long-term value.

2. Seek professional advice

   • Consult a real estate agent and a lawyer experienced in international transactions. They will help you understand the buying process, negotiate favorable terms, and ensure compliance with all legal requirements.
   • Choose professionals knowledgeable about local regulations to avoid potential legal issues.

3. Prepare the legal paperwork

   • Once your offer is accepted, sign the purchase contract, pay associated taxes, and register the property.
   • Confirm that the property has no outstanding debts or legal disputes that could affect your ownership rights.

Tip: Ensure that all contracts and agreements are reviewed by a legal professional to avoid future complications.

Tax and Budget Planning When Buying a House in Spain

When acquiring a property in Spain, you must carefully consider the taxes and associated expenses that will affect your final budget.

• Property Transfer Tax (ITP) or VAT

  • Second-hand homes: ITP ranging from 6% to 10% of the purchase price, depending on the autonomous community.
  • New homes: VAT of 10% plus the Stamp Duty (AJD), which ranges from 0.5% to 1.5%.

• Additional costs

  • Notary fees: Between 0.2% and 0.5% of the property price.
  • Property registration fees: Depending on the property’s value and transaction complexity.
  • Lawyer’s fees: Around 1% of the total purchase price.

• Long-term expenses

  • Annual maintenance costs, property taxes, and, if applicable, the Non-Resident Income Tax.
  • If you reside in Spain for more than 183 days a year, you become a tax resident and must declare your worldwide income.

Tip: A clear and well-planned budget will help you avoid unexpected financial burdens and enjoy your new home without worries.

Buying a House in Spain: Deposits and Mortgages

When deciding to buy a house in Spain, you will need to consider the initial deposit, which typically ranges between 5% and 10% of the purchase price.

• Initial deposit (reservation fee or down payment)

  • The deposit guarantees that the seller will keep the property off the market while you complete the purchase.
  • This money is usually transferred to a secure escrow account until the transaction is finalized. Ensure that the agreement clearly states the refund conditions if the sale does not proceed.

• Mortgage options

  • Spanish banks offer various mortgage products tailored to your financial profile.
  • Compare interest rates, repayment terms, and other conditions to find the best option. Banks typically require a down payment of 20% to 30% of the property value for non-residents.

Tip: Seek financial advice and compare offers from different banks to secure favorable terms.

Obtain Your NIE (Foreigner Identification Number)

The NIE is essential if you want to buy a house in Spain. Without it, you cannot complete many legal transactions. Applying for the NIE should be one of your first priorities once you decide to settle.

• What is the NIE?

  • A unique number assigned to foreign citizens who wish to carry out procedures in Spain.
  • Required for property purchases, tax payments, banking, and other financial transactions.

• How to apply for the NIE

  • In Spain: Apply at a local police station.
  • Abroad: Apply at a Spanish consulate in your home country.
  • Required documents: Passport, completed application form, and copies of each document.

• Application timeline

  • Waiting times may vary, so apply as soon as possible to avoid delays.
  • If applying from outside Spain, expect a longer processing time.

Tip: Ensure you have a local address or representative in Spain who can receive official correspondence related to your NIE application.

Search for Properties in Spain With Buscomasia

When you think about buying a house in Spain, you look for options that fit your needs, and here Buscomasia becomes your ally.

• What does Buscomasia offer?

  • An intuitive search engine to explore fincas for sale in Spain, Masias and rural houses exclusively in Catalonia.
  • Properties available in both prominent locations and tranquil areas for a serene lifestyle.

• Benefits of using Buscomasia

  • A wide selection of traditional Catalonian homes, from charming masias to expansive fincas.
  • Search with specific filters to find properties that match your preferences and budget.
  • Specialized agents ensure a safe and efficient buying process, adhering to Spanish regulations.

Find your dream masia in Catalonia with Buscomasia!

Reservation Agreement and Letter of Intent

The reservation agreement is a key step in securing your property.

• Reservation agreement

  • A preliminary contract that ensures the property is taken off the market while you finalize the purchase.
  • Defines the basic terms of the transaction, including the reservation fee and timeframe for completing the sale.

• Letter of intent

  • A non-binding document stating the offered price and conditions of the purchase.
  • Demonstrates your serious interest and facilitates negotiations with the seller.

Both documents are essential for avoiding surprises during the purchase process. Clear terms from the start help you manage the transaction smoothly and ensure all expectations are met.

Tip: Consult a lawyer to verify that the terms of both documents align with your needs and comply with Spanish law.

Payment of Property Transfer Tax or VAT

When buying a house in Spain, you must pay either the Property Transfer Tax (ITP) or the Value Added Tax (VAT), depending on the property type.

• ITP for second-hand homes:

  • Rates vary by autonomous community, typically ranging from 6% to 10% of the purchase price.

• VAT for new homes:

  • Standard rate of 10% plus the Stamp Duty (AJD), which ranges from 0.5% to 1.5%.

Paying these taxes on time ensures a legally valid transaction and prevents potential legal issues in the future.

Costs When Buying a House in Spain

In addition to taxes, several other costs are associated with buying a property in Spain:

• Notary and property registration fees

  • Notary fees: Between 0.2% and 0.5% of the property's price.
  • Property registration fees: Vary depending on the property value and transaction complexity.

• Real estate agent fees

  • Typically between 3% and 6% of the sale price.
  • Negotiate and clarify these fees before signing any agreements, as they are often paid by the buyer.

• Legal fees

  • Lawyer’s fees usually amount to around 1% of the total purchase price.
  • Legal advice ensures the process is transparent, compliant with Spanish law, and free from hidden risks.

Tip: Budget for these additional costs to avoid unexpected expenses during the purchasing process.

Is It a Good Idea to Buy a House as an Investment in Spain?

Investing in a house in Catalonia, particularly in the charming masias, can be a strategic decision with long-term benefits.

• Real estate market stability

  • The Catalonian market has shown consistent stability and potential for property appreciation.
  • Traditional countryside estates, such as masias, are especially desirable due to their rustic charm and historical significance.

• Tourism and rental income

  • Tourist hotspots like Barcelona and the Catalonian coast maintain a high demand for short-term rentals.
  • Seasonal rentals in areas with high tourist influx can generate additional income during peak seasons.

• Investment analysis

  • Assess capital gains, rental yield, and local market expectations before purchasing.
  • Properties in high-demand areas often yield competitive returns on investment.

Tip: Seek advice from real estate and tax professionals to maximize your investment and ensure compliance with local regulations.

Are There Any Requirements to Buy a House in Spain?

Although buying a house in Spain is accessible to foreigners, there are a few requirements to meet:

• Foreigner Identification Number (NIE)

  • Essential for legal transactions, tax payments, service contracts, and opening a bank account.

• Payment methods

  • While cash payments are allowed within legal limits, bank transfers are preferred for security and transparency.

• Legal assistance

  • Hiring a lawyer ensures the property is legally sound, with no outstanding debts or ownership issues.

Can I Buy a House in Spain After Brexit?

Yes, you can buy a house in Spain after Brexit.

• Investment rights

  • British citizens can still invest in Spanish properties, although they no longer benefit from EU privileges.

• Residency regulations

  • You can stay in Spain for up to 90 days within a 180-day period without a visa.
  • For longer stays, you need to apply for a visa or residence permit.

• Additional considerations

  • Post-Brexit regulations may change, so stay informed about the latest requirements for non-EU citizens.
  • Tax and immigration rules now involve additional procedures compared to pre-Brexit conditions.

Tip: Professional legal and tax advice is crucial to ensure a smooth buying process and compliance with current regulations.

Can You Get Spanish Residency by Buying a House?

Yes, buying a house in Spain can help you obtain residency, although it is not automatic.

• Golden Visa program

  • Minimum investment: €500,000 in real estate.
  • Benefits: Two-year residence permit, renewable as long as the investment is maintained.

• Path to permanent residency

  • After five years of legal residence, you can apply for permanent residency.
  • After ten years, you may be eligible to apply for Spanish citizenship.

• Tax obligations

  • The Golden Visa does not exempt you from Spanish tax laws. Ensure you comply with tax requirements, including property taxes and income declarations.

Tip: Work with legal professionals to manage your investment, residency application, and tax obligations efficiently.

How Long Can You Live in Spain If You Own a Property?

If you own property in Spain, you can reside in the country for up to 90 days within a 180-day period without needing a visa. This applies whether you use the property as a vacation home or occasional residence.

• Long-term stays

  • To stay longer than 90 days, apply for a visa or residence permit.

• For EU citizens

  • Simply register with the Central Register of Foreigners to live indefinitely in Spain.
  • Proof of sufficient financial means is required to demonstrate that you can support yourself without relying on public funds.

• Tax residency

  • If you reside in Spain for more than 183 days per year, you become a tax resident and must pay taxes on your worldwide income.
  • Ensure you understand the implications of tax residency, including income tax rates and reporting obligations.