You and your Money: A Guide to Property related Taxes in Spain
Being fully prepared financially before visiting Spain will enable you to negotate with sellers in the knowledge you are in the strongest position to buy and have the ability to move quickly without putting your deposit monies at risk.
REAL ESTATE PURCHASES BY FOREIGN NON-RESIDENTS:
Requirements for the purchase of real estate by foreigners
- To have a NIE Number
The NIE is the so-called “foreigner identification number” and must be obtained for the completion of the purchase. In order to accomplish this:
- You can apply in person or through an authorized representative at the Government Delegation or Subdelegation and at the Immigration Office.
- It is possible to process this document from abroad.
- The earnest money contract can be used to facilitate the NIE application process.
- To Open an Account in Spain
This is necessarry in order to meet home maintenance payments and pay those taxes necessary for the purchase of the property.
The opening of the account must be done in person.
What is known as IRNR, or Non-Resident Income Tax, is a Spanish tax levied on income earned in Spanish territory by individuals and legal entities.
You are considered a resident in Spain if you spend more than 183 days here during the calendar year. In this case, you will be taxed according to IRPF, the Income Tax paid by Spanish residents.