Before You Buy: Essential Preparations for Purchasing Property in Spain
You’re ready to buy your dream holiday home or make the move to Spain! Before you begin your property search, there are some key things to have in place:
1. Identification
If you’re a Spanish national, you’ll use your DNI for identification. As a foreign buyer, you will need an NIE (Número de Identidad de Extranjero), which is your identification number in Spain. This number is crucial and will stay with you for life, required for property purchases, registering on the electoral roll, taxes, and other official matters in Spain.
2. Proving the Source of Your Funds
Spain has strict anti-money laundering laws, so when purchasing a property, you must prove that your funds come from legitimate sources. Be ready to provide documentation showing the origin of the money you plan to use for the purchase.
3. Mortgage Financing
If you require a mortgage, it’s a good idea to contact a bank or mortgage broker before you begin your property search to get an idea of how much you can borrow. Generally, residents can borrow up to 80%, while non-residents can borrow up to 70% of the property value. The amount will also be dependent on your specific affordability.
4. Eligibility to Visit or Live in Spain
Depending on your nationality, your eligibility to visit or reside in Spain differs:
- Spanish Nationals: You are not affected by the rules on residency or visas.
- EU Citizens: As a European citizen, you can stay for up to 180 days in Spain in any calendar year without issue. If you plan to stay longer than 3 months or work, you’ll need to apply for Residencia.
- Non-EU Citizens (Specifically UK and USA citizens): You are allowed to visit Spain and the rest of Europe for 90 days within a 180-day period without a visa. After staying for 90 days, you must leave and can only return after another 90 days. If you plan to live or stay longer, here are the most common visa options:
- Non-Lucrative Visa (NLV): Ideal if you plan to live in Spain without working. You’ll need to prove that you have sufficient funds or income to support yourself and that you have private health insurance.
- Digital Nomad Visa (DNV): Perfect if you work remotely for a company outside Europe. You must prove you have secure employment, and you will pay taxes in Spain.
- Golden Visa: Available if you invest €500,000 or more in Spanish property. Be aware that there are discussions about changes to the Golden Visa scheme, so check for updates on the rules.
Before starting your journey, we highly recommend you seek professional legal advice regarding your visa eligibility. More information can be found through the Spanish Consulate.