Frequently asked questions

The NIE (Número de Identidad de Extranjero) is your Spanish tax identification number. It is mandatory for any property transaction, opening a Spanish bank account, and paying Spanish taxes. You can apply at a Spanish consulate in your home country or directly at a police station in Spain. It typically takes 2-8 weeks.

IBI (Impuesto sobre Bienes Inmuebles) is the Spanish property tax paid to the local council every year. It's calculated from the property's cadastral value. For a typical apartment, IBI is 300-800 EUR/year, for a villa 500-3,000 EUR/year.

The Costa del Sol is Andalusia's sun coast near Málaga, with higher prices and a glamorous image (Marbella, Puerto Banús). The Costa Blanca is the Valencia region's coast near Alicante, with lower prices and the largest Northern European expat community in Spain (especially Torrevieja and Orihuela Costa).

Plusvalía municipal is a local tax on the sale of property based on the increase in the land's cadastral value since the last sale. Paid by the seller. Can sometimes be avoided if the property is sold at a loss (but this must be proven). The amount varies between municipalities.

Yes. Spanish banks lend to EU citizens who are not tax resident in Spain (non-residents), and many also lend to non-EU buyers. You can typically borrow 60-70% of the property's appraised value. Rates are Euribor-based. Alternatively, you could release equity from a property at home, which is often cheaper.

The arras contract is the private reservation agreement signed before completion at the notary. The buyer typically pays a 10% deposit. If the seller pulls out, they must pay back double. If the buyer pulls out, they lose the deposit.

It's strongly recommended. An independent Spanish lawyer (abogado) who represents your interests checks the nota simple, planning status, charges and any loans on the property. It typically costs 1-1.5% of the purchase price but can save you from much bigger problems.

On top of the purchase price, budget around 10-13% extra for: property transfer tax ITP (6-10% depending on region), notary fee (0.5-1%), land registration (0.5-1%) and lawyer fees (1-1.5%). For new-build property, VAT (IVA) of 10% is paid instead of ITP.

As a rule, you remain liable for tax in your home country on any rental income or capital gains from your Spanish property. Spain has double-taxation treaties with most countries, so in practice you only pay tax once. Consult an accountant with international experience.

A tourist licence (licencia turística) is a permit required to let your property short-term to tourists. In Andalusia you register with the Junta de Andalucía. In the Valencia region with the Generalitat Valenciana. Illegal letting can result in fines of up to 150,000 EUR.