The N.I.E. (Número de Identidad de Extranjero) is a necessity for most dealing in Southern Spain. It is a means of identification and also enables records to be kept of any financial dealings that you might have on the Costa del Sol. Without it you cannot work, open a bank account or buy property on the Costa del Sol. In fact you will be asked for this number in all your official dealings in Spain. Regardless of being a resident or not, you will require this number for any financial dealings.
You can apply directly for an N.I.E. at the nearest national police station along the Costa del Sol where you will need to complete a short form.
It is no longer a requirement for EU citizens to obtain a residence card. This also applies if your home country is part of the Economic Area. Please note though, should you live on the Costa del Sol for more than 182 days per annum you will be considered a tax resident and will be liable to pay taxes on your worldwide assets.
It is a standard procedure for the buyer to put down a deposit to secure the property and to take it off the market. This deposit is normally between 3000 € and 6000 € and is paid either to the vendors lawyer directly or is held in our client account. It should be noted that unless this is a new or off-plan property the deposit is generally taken prior to forwarding your offer to the vendor. Should you then not be able to agree on the offer the deposit is refunded.
Notary fees are set by the government according to the number of clauses in the deeds and the valor catastral (declared value of the property). If you use a mortgage then you will have to pay Notary fees on the mortgage deeds as well.
After signing the deeds you are now in Spain owner, although there are taxes that still need to be paid and your title inscribed in the property register.
You will be given a copia simple (copy of the deeds) to take away after the signing. The copia simple allows you to set up utility contracts and pay taxes. A few days later your lawyer will be able to collect the original deeds signed by the notary (copia autorizada), which are needed to inscribe your title in the property register. In the meantime the notary should have faxed notification of your purchase to the property registry immediately after the sale, thus blocking the register for 10 days and preventing anyone else from inscribing a claim to the same property during this period.
When purchasing a resale property there is a 8% transfer tax, known in Spanish as Impuesto de Transferencia de Propiedad (ITP). For off-plan purchases the tax is still 10% but is referred to as IVA (VAT). If you do not intend to purchase a residential property but are interested in business on the Costa del Sol garage/storage or a plot of land then the tax rate is 16% as opposed to 7%. Please note that as soon as construction of a residential property commences on a plot you are able to reclaim the tax, bringing it down to 7%.
In most cases the 70/80% offered is based on the valuation of the property, not the price that you have offered on a property. So is you offer 190.000€ and the property is valued at 230.000€, a non-resident (60%) will get 138.000 €. And for the residents the mortgage represents 80% will get 184.000€.
The bank will require proof that you can repay the mortgage, employee contract, wage slips, if self-employed copies of your accounts.
Any potential earnings on the property you wish to buy, say from renting a frontline golf apartment, will not be taken into account by Spanish banks.
In addition to your passport(s), you will also need to have the following documentation to hand when applying for Spanish mortgages:
If you do not live in Spain and need to make payments for your property in Euros, you could make significant savings by using a reputable currency exchange company such as Moneycorp, whose expertise can help you obtain the best exchange rates available. They can also help protect you against possible adverse exchange rate fluctuations and offer a range of other useful services.