Under Spanish law, any foreigner can become the owner of a home in Spain. The openness and loyalty of Spanish law is part of the country’s policy. Spain ensures that the country’s budget is replenished by attracting foreign capital and investment in real estate. In turn, foreigners are attracted to Spain by reasonable real estate prices, European legislation, a favorable political climate and a good economic forecast.
Spain is in the top 5 European destinations that lead the market for real estate investment. Tenerife, in turn, is included in the list of the most popular resorts in Spain. Canaries are attractive for their prices (here you can find an apartment from 50,000 euros), preferential taxation and lack of seasonality.
By law, foreign investors in Spain can buy and resell any property without restriction. Excluding certain types of real estate. As a rule, having a strategic location for the country.
*Excluding certain types of real estate. As a rule, having a strategic location for the country.
Any foreigner can buy property in Spain, regardless of whether he is a resident of the country or not. To purchase, you must have an account with a Spanish bank and NIE – tax number of a foreigner. As well as citizens of the country, foreigners in Spain can apply for a loan to purchase a home and apply for a mortgage, must pay purchase taxes and income tax. The tax rate depends on the status of the owner – is he a resident of the EU or not.
To open an account in any of the Spanish banks you will need the following documents:
NIE (Número de Identificación de Extranjero) – foreigner identification number, aka tax number. This is an analogue of the Russian TIN. In Spain, NIE is required for any financial transaction: buying a property, a car, opening a bank account or business in the country. NIE alone does not give the right to reside in Spain and is not a visa document.
List of documents for registration NIE:
There are two ways to obtain NIE. You can arrange NIE in the territory of your country of residence. To do this, apply to the Consulate General of Spain. This document can also be obtained in Spain.
Obtaining a mortgage in Spain can be achieved by both citizens of the country or non-residents. However, there are defined differences between mortgage lending for foreigners and for residents. The differences concern both the list of required documents and the size of the loan. So, for residents of the EU, banks can approve up to 70 – 80% of mortgages, non-residents will be able to get about 50 – 70% of the price of real estate on credit.
*The required list of documents for obtaining a mortgage is requested at a particular bank.
Homeowners in Spain pay property taxes and income taxes annually. In the case of rental housing and profit from real estate investments, taxes on rental income and capital gains are paid. Non-residents pay taxes only on income received in Spain.
In Spain, tax and duty rates vary by region.
Since 2000, the Canary Islands has been a zone of preferential taxation – ZEC, Zona Especial Canaria (special economic zone). The regime of benefits is valid until December 31, 2019, after which it can be extended by the European Commission. The benefits apply to ZEC residents who open a business in the Canary Islands and create new jobs. If key conditions are met – minimum investment and job creation – the income tax rate in the ZEC zone is from 1 to 5%, in contrast to the generally accepted rate of 30%.