15 Nov Legal considerations for the acquisition of land and real estate in Spain by foreigners and non-residents.
Investment in property and real estate in Spain by foreigners is a subject of growing interest and some legal difficulty. Navarro Llima Abogados, as experts in Real Estate Law, can guide you in depth on the legal aspects surrounding the purchase of land and real estate in Spain in order to carry out this investment with total security.
It is a complex legal matter, so the future purchaser must take into account a series of legal considerations:
1. Real estate regulation in Spain
The Spanish real estate market is highly regulated and subject to legislative changes. Consequently, anyone wishing to invest in property must be aware of the laws and regulations governing real estate transactions in our country as they affect the types of use, taxes, possible charges, private regulations, state, autonomous and municipal regulations.
2. Authorisation and foreigner’s identification number (NIE)
One of the first steps for any foreigner wishing to acquire real estate in Spain is to obtain a NIE. It is not possible to make any kind of acquisition without being duly identified by the immigration and tax authorities. This identification number must therefore be obtained from the Foreigners’ Office or the Spanish consulate in your own country, although it must be registered with the AEAT (Spanish Tax Office). Its absence prevents you from carrying out any transaction at a notary’s office, an essential requirement for the purchase of real estate in Spain with guarantees.
3.Types of properties and specific regulations
Spanish regulation distinguishes between different types of properties, such as dwellings, rural, urban or urban land, and commercial properties or properties for use not compatible with their use as dwellings. Each of the categories will be subject to specific regulations governing their use, development and taxation.
4. Fiscal and tax consequences
The acquisition of property in Spain has important tax consequences, not only at the time of purchase, but also for the mere fact of owning it. It is essential to be aware of the financial implications such as Transfer Tax (ITP) or Value Added Tax (VAT), Property Tax, etc.
5. Contracts y Due Diligence
The acquisition of real estate in Spain is completely secure. The Spanish property system guarantees the property rights of the purchaser of the property, as long as this is done in compliance with the established procedure. Prior to this, the appropriate legal due diligence must be carried out to ensure that the property has no encumbrances, its usability, debts associated with it, as well as verification that the seller is the true owner of the property. It is essential that this review is carried out by lawyers specialised in Real Estate Law, in order to avoid conflicts of any kind arising at a later date.
6. Notary and Land Registry
In Spain, the role of the notary is fundamental in real estate transactions, as the granting of the deed of purchase is legally assimilated to the handing over of the property, which is one of the requirements of the Spanish legal system for the acquisition of property. It will also provide certain guarantees for the transaction to be legally effective. In addition, the registration of the property in the Land Registry guarantees the legal security of the investment.
The acquisition of land and real estate in Spain by foreigners or non-residents is a complex legal process where important economic interests are involved. You can count on Navarro Llima Abogados to deal with any acquisition process in the whole of Spain with guarantees.