Dreaming of buying a house in the south of Spain? We understand. You can sit on your own terrace with your own garden furniture, cook your own food in your own kitchen or on the barbecue and not least visit the house as often as you like. All on your own terms.
Plus, you don't have to worry about getting a hotel stay on certain dates, the fluctuating prices and much more. You only need to worry about the flight ticket. Something that, by the way, can be purchased very cheaply if you book well in advance.
But to buy a house in Spain you need to make several considerations. First, you have to decide where in Spain you want to live. Spain is a very diverse country with many regions. The location should therefore suit you as a person.
Also bear in mind that the more popular the area you move to, the more likely it is that many tourists will also live there. Big cities like Madrid and Barcelona, and areas like the Costa del Sol are very popular.
The prices for buying a property in those areas are a lot higher than other places in Spain. If you are considering buying a property on the Costa del Sol our real estate agency are specialists in that area, and we can answer all of your questions regarding that.
You'll also need a NIE number, otherwise you won't be able to buy a house according to the Spanish authorities' rules. And that's the most important thing when you're buying a house in Spain. A residencia, on the other hand, is only needed if you are going to live in Spain.
That's why we've put together a little guide for you that tells you the essentials about NIE numbers and residencia. So that you can start your home purchase with peace of mind.
What is a NIE Number?
When buying a house in Spain, it's important that you first apply for a NIE Number. A NIE Number is the national identity number for foreigners.
The reason it's so important to get a NIE number if you have your eye on the Spanish housing market is that a NIE number is what you use when you buy a car, house, choose a doctor, get a job and much more. You also need a NIE number even if you don't want to live permanently in Spain.
You apply on form EX-15, which you can download free of charge from the Spanish Ministry of Inclusion's website. The form is in Spanish, so you need to be aware of what the different things mean. If you apply in Spain, you pay a fee of €9.84 using form 790 código 012 before your appointment. On the day, you bring the completed form (the original and a copy), the receipt for the fee and your passport with a copy.
It can take a while to get your NIE number
In Spain, you hand in the application in person at a foreigners' office (Oficina de Extranjería) or a National Police station, for example in Málaga, Fuengirola, Torremolinos-Benalmádena, Marbella or Estepona. You usually book the appointment (cita previa) through the government's online system, but check the procedure in advance with the office you choose.
If you are not in Spain, you can apply through a Spanish consulate, for example in London. You can apply in person or through a representative with a power of attorney.
When your papers are to be collected, it is important to check when this is to happen. The police must decide on the application within five days. Also remember that you will be given a stamped copy of your application to show together with your passport when you collect your certificate.
Under rules that have applied since December 2006, your NIE number must be stated in the deed when you buy a home, and the Land Registry will not register the purchase without it. So you need the number in place before you sign at the notary. Again, an important reason to get a NIE number as soon as possible.
Fortunately, you can also get help with this, and if you do have a solicitor involved in the home purchase, you can kill two birds with one stone.
Here you can watch a video showing how to get a NIE number.
What is Residencia?
Residencia means being registered as a resident in Spain. Since Brexit, British citizens are no longer covered by the EU rules. If you are British, you can stay in Spain without a visa for up to 90 days in any 180-day period, counted across the whole Schengen area. To stay longer, you need a Spanish visa and/or a residence permit, for example for retirement, work or study.
If you moved to Spain before 1 January 2021 and have lived there legally since, you are covered by the Withdrawal Agreement and can get a residence card (TIE) marked 'Artículo 50 TUE'. The old green residence certificate is still valid in Spain, but both the Spanish and the British authorities recommend exchanging it for a TIE.
If you are a citizen of an EU or EEA country and are going to live in Spain for more than three months, you must instead register in the Central Register of Foreigners. Since 28 March 2007, EU and EEA citizens have received a registration certificate rather than a residence card.
You apply in person at the foreigners' office in the province where you want to live or at the Spanish National Police, also known as Policía Nacional.
Give yourself plenty of time to get your residencia.
You must apply within three months of arriving in Spain.
It is also important that you have plenty of time during these three months, because you need to book an appointment (cita previa) through the government's online system first. Do it right away.
On the day of your appointment, all you need to do is turn up with documentation. That's your passport and so on. If you're not sure what documents you need, you can ask the Central Registry.
The registration certificate is issued straight away at the appointment. It states your name, address, nationality, NIE number and the date of registration.
Residence for tax purposes is a separate matter. You become tax resident in Spain if you spend more than 183 days there in a calendar year, even if the days are not consecutive, or if your main economic interests are in Spain. Being a resident in Spain is not the same as having a nationality.
If you sell your home while you are not tax resident in Spain, the buyer must withhold 3% of the price and pay it to the Spanish tax authorities on account of your capital gains tax. It is your tax residence that counts, not the residencia certificate itself.
Seek legal help
If you have difficulty understanding the system, it is always a good idea to seek legal advice.
A lawyer can help you with many things, such as getting your applications through. It's also worth having a lawyer look at your case if you need help buying a house, writing a contract or making a will. This is because you need to make sure that the house or land you are buying has no debts or other financial commitments.
This can be your responsibility, and not everyone has the financial resources to take care of this in addition to buying a home.
Buying existing projects or new developments
If you want to take over a building project that already has a debt, it is also important to seek legal help with the transfer. Even when buying new developments, legal help is a good idea. You do not want to get caught up in some rules you didn't know.
It is important to remember that Spain has different rules. You may be a housing genius back in your own country, but you can't expect other countries to work exactly the same.
You can also hire a gestoria in Spain, which can handle all the bureaucracy and administration involved in obtaining a NIE number and a residencia. This is a good option for those who don't have the time to go through all the red tape involved in such an application process.