The first step to acquiring a residence is, of course, looking for it. The managers at MY HOUSE BARCELONA can help you to choose your preferred area, depending on your priorities and budget. Once you have settled on a place, it becomes much easier to narrow down an apartment or house to live in. Processing all the necessary paperwork can be done simultaneously to searching for the property.
The first thing is that we can help you apply for an NIE, the Spanish Tax Identification Number for Foreigners, which, as opposed to a passport number, does not change and will remain the same for your entire life. The NIE is necessary for carrying out property transactions, buying a car and selling properties.
Who needs an NIE number? — All individuals who are registered on the purchase deed (document of ownership).
When the NIE number has been obtained (after no more than 7 working days) then it is necessary to open a Spanish bank account. To do that you will need a passport, NIE and confirmation of the customer’s income. For that reason, when opening an account, it is vital to have a certifying document in your possession from your place of work, listing your position, the amount earned and a statement of tax declaration, if possible. It is much better to obtain the certifying documents in English, as it will not then be necessary to translate them into Spanish.
The NIE number will only be needed when signing the notarised deeds (Escritura). Reservation of the property can be carried out with a passport (should the NIE not yet be available).
After you have chosen the property to buy, it has to be reserved, thereby confirming your intentions. For that purpose, a symbolic sum (amounting to less than 10% of the property’s price) is required. The reservation stage is not obligatory. It is often the case that both sides prepare a deposit contract (Contrato de Arras), which is regulated by Article 1454 of the Civil Code of Spain. The sum to be paid as a deposit for the contract amounts to 10% – 20% of the property’s total value.
It is vital to point out that, by the moment you will be signing the Contrato de Arras (deposit contract), your manager at MY HOUSE BARCELONA will provide you with a NOTA SIMPLE (note from the registry with information on acquiring the property). At this point the notary dealing with your transaction will recheck the documentation, requesting the Nota Simple immediately before signing the deeds. For this reason, property transactions in Spain are extremely reliable and do not pose a risk to the buyer. In accordance with Spanish law, it is always the buyer who chooses the notary.
How much time passes between signing the deposit contract and the deeds? – As a rule, anywhere from a few days to three months.
If the buyer needs to take out a mortgage, then the deeds are signed between a month and two following submission of the deposit. During this time, the bank will review the documents and perform an evaluation of the property which you buy.
The notarised deeds are to be drawn up in the period specified by both parties (as prescribed in the Contrato de Arras), in the presence of a notary. The buyer pays the outstanding sum and the seller hands over the keys of the apartment or house. It goes without saying that the property changes hands without paying any taxes or other charges.
It is important to pay particular attention to Spanish Tax Legislation.
The tax for purchasing property amounts to 10% of its value, which is the same sum in the case of new and secondary housing.
If purchasing with the help of a mortgage, then the tax sum (10% of the property’s value) should be present on your account when signing the deeds with the notary, as well as the amount for the notary fee and the costs of registration of the property.
According to the law, the taxes due when purchasing properties (amounting to 10%) should be paid within 30 days of the deeds being signed.