Spain has become a favorite destination for Americans looking for a second home, investment property or a place to retire in the Mediterranean. According to the Spanish Association of Registrars, home purchases by non-European citizens have grown by 15 per cent year-on-year, with buyers from the United States accounting for a growing percentage, especially in regions such as the Costa Blanca and Costa del Sol.
Although the process may seem complex from abroad, if you work with the best real estate lawyers in Spain, buying a property in Spain from the USA is entirely possible and safe.
Why are Americans buying properties in Spain?
North American residents choose to buy a home and do conveyancing in Spain for a number of reasons:
· Quality of life and climate, with over 300 days of sunshine in many Mediterranean regions.
· Lower cost of living by 35% compared to the United States.
· Diversity of options.
Can a US citizen legally buy a property in Spain?
Yes, of course. A US citizen can buy a property in Spain without legal restrictions. He or she does not have to have Spanish residency and nationality. You simply need a Foreigner Identification Number (NIE) so that you can arrange the purchase through a lawyer.
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The step-by-step process of buying a home in Spain from the US
If you are planning to buy a property in Spain, these are the steps you should follow to make a correct transaction:
Find a property and negotiate a price
The first thing is to check with your lawyer and different portals, the property you are looking for. The one that best suits your needs and negotiate the price.
Hire an independent expat lawyer
In this new phase, it is best to enlist the help of industry professionals to ensure that the whole process is legal and safe.
Conduct legal due diligence and property checks
Don’t forget to check the ownership, outstanding charges, licences, urban use and land registry situation. Also check if there are any mortgages, liens or irregularities involved.
Sign a reservation contract and pay deposit
You will have to sign the earnest money contract and formalise the purchase with an agreement that usually includes a deposit of 10% of the purchase price. From that moment on, the property is yours.
Complete the purchase at the notary and register the title
The sale is signed in a notary public’s office and the new owner registers his title in the Land Registry. The payment of taxes and fees is also formalised.
Taxes and fees for American buyers in Spain
When you buy a property in Spain, you will be faced with taxes and duties.
Property transfer tax (resale) or VAT (new builds)
· Resale: 6-10% depending on the autonomous community.
· New construction: 10% VAT plus 1.5% AJD (Actos Jurídicos Documentados).
Notary, registry, and legal fees
They represent between 1% and 3% of the purchase value, including notary, land registry, agency and lawyer’s fees.
Ongoing costs: IBI, community fees, non-resident income tax
Non-resident owners must pay:
· IBI (annual municipal tax)
· Community fees if it is a shared building
· IRNR: non-resident income tax, even if the property is not rented (form 210).
How Pellicer & Heredia can help you to buy a property in Spain
Pellicer & Heredia has become the law firm of reference for people seeking international legal advice when they want to buy a property in this country. The team at Pellicer & Heredia advises them throughout the whole process, protecting their interests and reviewing every document that the client has to present.
They also take care of processing the NIE and reviewing the contracts until the new property is registered in your name. With over 20 years of experience advising international buyers, more and more clients are putting their trust in their hands thanks to their focus on legal and fiscal security, ensuring total peace of mind throughout the process
