What steps must a foreigner follow to buy a property in Spain?

Steps to be followed by foreigners to purchase a property in Spain Foreign citizens must follow a series of steps to complete the process of buying a property in Spain, from hiring an expert to obtaining a Foreigner Identification Number (NIE) and opening a bank account in Spanish territory.

Engage a professional to provide assistance It is advisable to have a professional to accompany you throughout the entire purchase process. This expert will save you travelling and will guide you through all the necessary procedures. Although it is not compulsory, it is highly advisable to consider this option.

If you plan to apply for a mortgage, it is important to carry out a financial feasibility analysis. You can do this at a bank specialised in international clients. Within 72 hours, this institution will confirm the viability of the operation through its online platform, without the need for translations. There are several financial institutions that specialise in transactions with foreigners.

Apply for the NIE for your identification Applying for a Foreigner’s Identification Number (NIE) is a fundamental requirement for your identification in Spain. If you need it, an advisor can take care of the necessary paperwork to obtain the NIE.

Open a bank account in Spain Once you obtain the NIE, it is essential to open a bank account in Spain. All taxes and fees associated with the purchase transaction must be paid through this account. You do not need to travel if you are a resident of one of the 15 eligible European countries, such as Austria, Germany, Belgium, Denmark, Italy, Norway, Luxembourg, the Netherlands, Finland, France, Ireland, Portugal, Sweden, Switzerland and the United Kingdom.

If you prefer to do this in person, you can do so by means of a Power of Attorney allowing another person to act on your behalf at the office. This will require an official translation into Spanish and a certified colour copy of your ID card or passport with the Hague Apostille stamp, which certifies its authenticity. As for the necessary documentation, you will be asked for your passport or identity card, Tax Identification Number (NIF) and proof of economic activity and income.

It is advisable for the professional who assists you in Spain to request the nota simple registral, which contains relevant information about the property.

Make a deposit as a reservation of the property Secure the property through an earnest money contract and make a deposit, usually 10% of the value, as a down payment. It is important to bear in mind that if the purchase does not go through for reasons beyond the seller’s control, you could lose the deposit. If it is the seller who decides not to go ahead, he will be obliged to compensate you with double the amount given as a deposit.

If you need a mortgage, you will need to collect a number of documents for the financial institution to assess your financial situation. Below are the documents that banks usually require to analyse the financing operation.

Mandatory documentation for all cases:

Valid ID card of each holder or party involved.
Application from the corresponding entity, signed by all parties.
Recent work history (less than 30 days) of each holder.
Latest income tax return for each holder.
Bank movements for the last 3-6 months.
Deed of sale.
Last 3 receipts for payment of loans and cards.
Proof of payment of property tax (IBI) for the current year.

Additional documentation for salaried applicants:

Last 3 payslips of each holder with employment contract.
Employment contract for each holder.

Additional documentation for self-employed applicants:

Quarterly income tax returns (last 4).
Quarterly value added tax returns (last 4).

Other documents that may be required on a case-by-case basis:

Deed of marriage settlement.
Judgment of separation and regulatory agreement.
Deposit contract.

Appraise the property to determine its real value Before signing the mortgage, it is important to have the property appraised by a specialised company to determine its real value.

Sign the pre-contractual documents and find a notary The penultimate step involves signing the pre-contractual documents and then observing a 10-day cooling-off period. This will allow you to clarify your doubts with the notary chosen to sign the mortgage.

Finally, after completing the previous steps, it is time to sign the purchase contract and the mortgage in front of a notary. The purchase contract obliges the seller to hand over the property in exchange for a previously agreed amount of money. It is worth mentioning that the non-fulfilment of any of the parties could have legal consequences.