The procedure for buying a property in Spain

Buying property in Spain

It requires the least investment for the investor. In addition to acquiring real estate, the investor must prove his financial viability. To do this, you must have an account in a Spanish bank with an amount of at least 4 times the annual minimum wage.

For 2022, this amount is 27,000 euros. For each dependent, you additionally need to have about 7,000 euros.

Real estate in Spain for obtaining a residence permit

The investor purchases one or more real estate objects in the amount of 500,000 euros. The investor has the right to rent out real estate, and after obtaining the status of a residence permit - to sell.

Real estate can be both residential and commercial. The owner of real estate can be both the investor himself and the company in which he acts as the controlling shareholder.

If you purchase commercial real estate in the name of a company, you can get a tax deduction and get back the paid VAT in the amount of 21%.

When buying real estate, taxes for new buildings range from 7 to 12% of the transaction amount, for secondary housing - 6-10% of the cadastral value, for commercial real estate - up to 25%. The notary fee is between 600 and 1000 euros. Registration fee - 400-650 euros.

Benefits of investing in real estate to obtain a residence permit

You are not required to live in Spain for a set number of days
You have the right to work in Spain

No need for a type D visa
Your residence permit is valid for 2 years, then 5 years

Procedure for acquiring real estate in Spain

Property Selection
Obtaining N.I.E. and Opening an Account: Obtaining the foreigner's identification number and opening an account with a Spanish bank are mandatory for foreign citizens
Reservation Agreement: Signing an agreement that provides the buyer with time for preparation and mortgage approval, excluding the sale of the property during the specified period

Preliminary Agreement: Entering into a more detailed contract with an additional payment, usually 10-20% of the total cost
Official Notarial Deed: The parties meet with a notary to conclude the transaction or can grant power of attorney to a lawyer
Registration in the Property Registry: A necessary procedure that takes approximately 1.5-2 months and is coordinated by the notary. The process typically lasts around 1.5-2 months