How to buy property in Spain?
Nuances of legislation for foreign residents.
Tax and other obligations of the owners.
When a foreign citizen buys property in Spain, he becomes the owner, acquiring the same rights and obligations as a Spanish citizen. However, it is worth paying attention to such features.
Legal nuances for foreign owners
If you buy real estate in the so-called “specially protected areas by the law”, which are recognized as “places of national interest”. This, for example, can be “finca rustica” – a detached house with a garden in rural areas. To acquire such property, a foreigner will need to obtain a special permit from the Ministry of Defense, which will take two months or more. You need to keep this in mind at the time of signing the preliminary contract – “contrato de arras” or “contrato de opción a compra”.
- According to Spanish law, foreign citizens are not allowed to acquire property located in the frontier zones.
- To buy property in Spain, a foreign citizen will need to get a NIE Number (an individual identification number, it also serves for identification in a tax administration).
- Annually it will be necessary to submit a Tax declaration of incoms a non-resident, as this is a mandatory procedure for owners of real estate non-residents in Spain.
- Acquisition and ownership of real estate does not give a foreign citizen the right to permanent residence in Spain. It will be necessary to apply for getting administrative permission for the residence. However, the owner of the property is entitled to an annual visa with a stay limit of 3 months (90 days) for 6 months (180 days).
- The purchase of property in Spain does not give the owner any additional administrative rights.
- All documents and contracts are executed in Spanish. Therefore, during the process of acquiring and concluding a transaction for the purchase of real estate, it is better to use the services of specialists who speak the language and know the intricacies of Spanish law so as not to become victims of fraudsters.
Obligations of the property owner
Having bought an apartment or house in Spain, the new owner will have to deal with such nuances of property maintenance as:
- Liability for damage caused by third parties for inadequate maintenance and its consequences (for example, in the case of renting);
- Liability for damage resulting from repairs, etc.
In addition, the owner should be informed about the following obligations:
- Every year it is necessary to pay municipal duty on real estate and the trash pickup. In addition, depending on the value of your property in Spain, you must pay the real estate tax. The total non-taxable minimum for Spain is 700,000 euros. Each autonomous region has the right to fix its minimum. In Catalonia, this obligation starts from 500,000 euros.
- Utilities: administration and maintenance fees.
- Fulfillment of all the rules and decisions adopted by the administration of the building (“junta directiva”).
- If the building does not comply with certain parameters or ceases to comply with architectural standards (due to dilapidation or unauthorized repair work), then the owner must eliminate these rules breaking, regardless of the fact that the problem arose not through his fault.
In turn, the owner has the right to bring to account the perpetrators
and recover damages if the legal action is still jurisdictional in time. Despite on the fact that home insurance is not mandatory, its registration is highly recommended.
- You must have a certificate of suitability of the property for housing, if it is a residential property), as well as a certificate of energy efficiency (“cédula de habitabilidad” and “certificado de eficiencia energética”).
More details about the nuances of buying various types of real estate and the resulting tax and other obligations of the owner in Spain you can be informed by AlcisDom specialists during an individual consultation.
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