SERVICES
CONTACT

FAQ's Spain

What are the legal requirements for foreign investors?​

Foreigners can freely purchase property in Spain, but certain legal requirements must be met:

  1. NIE Number: All foreign buyers need a Número de Identificación de Extranjero (NIE), which is essential for any financial or legal transactions.
  2. Bank Account: A Spanish bank account is typically required to handle local payments like taxes and utilities.
  3. Legal Representation: Hiring a local lawyer is advisable to navigate the legal process, verify property documents, and ensure compliance with regulations.
  4. Due Diligence: Ensuring the property has a clear title, no outstanding debts, and proper permissions is essential.
  5. Compliance with Residency Rules: While purchasing property doesn’t grant residency, certain programs can be an option for non-EU buyers.

By fulfilling these requirements, foreign investors can confidently enter the Spanish real estate market.

When purchasing property in Spain, buyers should account for several costs beyond the property price:

  1. Taxes:
    • Property Transfer Tax (ITP): 6-10% for resale properties.
    • VAT (IVA): 10% for new properties, plus 1.5% Stamp
  2. Duty.2.Legal and Professional Fees:
    • Lawyer fees: Typically 2% of the property price.
    • Notary and registration fees: 1-2%.
  3. Real estate agent fees: Usually 4-6% (paid by the seller in most cases).
    • Mortgage Costs:
    • Bank fees: Around 1-2% of the loan amount.
    • Valuation fees: Approximately €300-€600.
  4. Ongoing Costs:
    • Annual property taxes (IBI).
    • Community fees for shared facilities.
    • Utilities and maintenance costs.

Budgeting 10-15% of the property price for these additional expenses is recommended to
avoid surprises.

To optimize returns on real estate investments in Spain, consider the following strategies:

  1. Choose the Right Location: Invest in high-demand areas like major cities (Madrid, Barcelona) or tourist hotspots (Costa del Sol, Costa Brava).
  2. Targeted Rental Strategy:
    • Short-term rentals yield higher income in tourist areas.
    • Long-term rentals provide stability in urban or residential zones.
  3. Property Improvements: Renovate or upgrade properties to increase rental income or resale value.
  4. Diversify Portfolio: Invest in various property types (residential, commercial, vacation homes) to spread risk.
  5. Take Advantage of Tax Incentives: Utilize benefits for property investors, such as deductions for renovation expenses.
  6. Stay Informed: Monitor market trends and legal changes to adapt your investment strategy effectively.


Strategic planning and understanding local market dynamics are key to maximizing profitability.

Purchasing property in Spain with cryptocurrency is legally possible but requires careful planning. Buyers must work with sellers willing to accept crypto or convert it to euros through a trusted intermediary. Legal documentation must reflect euro values for tax and registration purposes. It’s essential to ensure compliance with Spanish laws, including anti-money laundering regulations, and consult with a lawyer familiar with crypto transactions.

FAQ's Portugal

  1. Key Steps: Obtain a Portuguese Tax Identification Number (NIF), open a Portuguese bank account, and hire a lawyer to review contracts and legal compliance.
  2. Documentation: Requires ID, proof of funds, and a promissory contract (CPCV) before finalizing the deed (Escritura).
  3. Regulations: Ensure the property is free of liens, debts, or legal disputes by verifying with the Land Registry.
  1. Golden Visa: is not coming to an end or suspended. However, there were important modifications to the program.
  2. Non-Habitual Resident (NHR) Tax Regime: Offers tax exemptions on foreign income and a flat 20% tax on certain Portuguese income for up to 10 years.
  3.  Property Taxes: Includes favorable rates for non-residents, but investors should be aware of IMT (property transfer tax) and annual IMI (municipal property tax).
  1. Trends: Portugal has experienced consistent price increases, driven by high demand, limited supply, and strong tourism.
  2. Growth Areas: Urban regeneration projects and investments in sustainable developments.
  3. Challenges: Rising property prices and potential changes to residency schemes, such as the Golden Visa, could affect future investment dynamics.
  1. Transaction Costs: Include IMT (6%-7% on average), stamp duty (0.8%), notary/legal fees (1%-2%), and agency fees (~5% + VAT).
  2. Ongoing Costs: Annual IMI tax (0.3%-0.8% of property value), utility bills, maintenance fees, and insurance.
  3. Rental Income Taxes: Non-residents pay 28% on rental income, but deductions for maintenance and repairs are allowed.
Go to home page

CONTACT FORM

Contact me to find out how I can help you with your legal and real estate needs. Fill out the form and I will respond as soon as possible.​

solutions@florianperrez.com

+34 972 978 551

+351 276 400 091

+41 772 765 829

"*" señala los campos obligatorios

Consentimiento*
Este campo es un campo de validación y debe quedar sin cambios.
SERVICES
CONTACT
FAQ's

Legal notice

Cookies policy

Privacy policy