Spanish Property Purchase Tax
New construction : If you wish to invest in new construction, the purchase tax rate to be paid is 11.5% (10% IVA plus stamp duty) on the amount of the property.
Second hand : When considering a purchase of a so-called "second hand” property, the transfer tax known as IPT (Impuesto sobre Transmisiones Patrimoniales) is 10% in the Comunidad Valenciana. This tax varies throughout the country.
For plots of land : To construct dwellings the IPT IS 10% if buying from a private seller.
In addition there are fees to be paid to the Notary and the Land Registry and in general the total "extras" will amount to around 12.5% of the purchase price
Regarding agency fees, they are included in the price displayed and are the responsibility of the seller.
The NIE is the Identification Number of Foreigners in Spain, it is compulsory to carry out all administrative procedures such as for example (Buying property, opening a bank account, registering with the town hall, obtaining a telephone line .. .).
There are, however, two types of NIE.
- Resident NIE : You will be granted this if you reside in Spain for more than 3 months.
- Non-resident NIE : It is valid for 3 months and renewable.
To obtain the NIE, you must go to a registry office of foreigners (oficina de extranjeros)
Documents to provide for obtaining the NIE
- 1 : Certificate of appointment See the link
- 2 : Official model EX15 (in printed version) See the link
- 3 : Copy of your identity card or passport (Full copy)
- 4 : You must also provide a document certifying your request (Economic, professional, social causes ...)
- 5 : Payment of tax 790 (Code 012) to be made to a local bank. See the link
- 6 : One passport photograph
Do Villalingo offer support for to obtain the NIE?
The answer is "Yes", our real estate agency can assist you in carrying out the procedures for obtaining your NIE. This service is offered free of charge to our customers.
Our local Oficina de Extranjeros is located at
Av. del Marquesat, 53
03700 Dénia, Alicante
Due to the high demand during the summer period, it is very difficult to get an appointment in order to make one. It is recommended to make your request between October and May.
Important documentation during the purchase
When signing with the notary, the seller must provide a list of documents. It is strongly recommended to rely on the help of a lawyer or a gestor to carry out these various procedures. For more information, contact us at Villalingo.
List of documents to be provided by the seller :
The certificate of occupancy otherwise known as the Cedula de Habitabilidad :This document certifies that the property in question complies with the standards in force. It certifies that the accommodation is habitable and indicates in particular the capacity of the number of occupants that the property can accommodate. This document is written by an architect, it is valid for 10 years.
The energy efficiency certificate otherwise known as the Certificado de Eficiencia Energetica :As Within the EU regulations the energy certificate specifies the energy efficiency of the property and indicates possible improvements.
The local property tax paid to the Town Hall otherwise known as IBI (Impuesto sobre Bienes Inmuebles) :This certificate will certify the payment of property taxes to the municipality
The community fees otherwise known as Honorarios de la Comunidad :If your purchase is part of a community of owners, and annual charges are levied for maintenance of communal facilities eg lifts, pools and gardens etc this document certifies that the seller has kept their contributions up to date.
Opening a bank account in Spain
Before buying your property, you will need to open an account in a Spanish bank. This bank account will allow you to pay various taxes, pay your electricity, water and gas bills. Opening a bank account in Spain is relatively simple and quick. We can support you in this process.
The vast majority of sellers will refuse a cashier's check from a foreign bank because of the processing time and cashing it. Property purchases are usually made with a bankers draft which is a guaranteed form of payment from your account although electronic transfers are these day becoming more common.