Andalucía Lawyers has put together this quick guide to buying a property in Spain from a tax haven country.
Do you live in a tax haven* but would like to buy property in Spain? No doubt you have questions not only about the process, but also about the best possible way to approach it for your particular situation. We are here to help!
*Click here to see which countries Spain classes as tax havens.
Do I need permission from the Spanish government to invest in Spanish property?
In most cases, foreigners are free to buy property in Spain without obtaining approval from the Spanish government beforehand. However, there are a few exceptions. If you are a resident of a tax haven and looking to purchase property in Spain then you fall into the exceptions category. Spanish law states that if the buyer is resident in a tax haven then they are required to file a DP-2 form – a prior declaration of real estate property investment originating in a tax haven – with the Ministry of Economy and Finance.
The DP-2 Form for Purchasing Property in Spain from a Tax Haven
Within the form you must provide your own personal details such as name and address along with the details of the property you intend to purchase. If you wish, our team at Andalucía Lawyers can take care of this step for you, along with all other purchase paperwork, through a power of attorney.
How long is the approval valid for?
Generally, there should be no problem in your request gaining approval. However, once it is approved it will only be valid for six months. If you don’t buy the property within this time frame then you will have to apply again. For this reason, it is essential you seek reliable legal advice from a lawyer with experience in these matters so you are fully aware of the process and information required of you before you begin and avoid wasting time and money. Contact us at Andalucía Lawyers to arrange a consultation.
Can I buy the property as a company or trust?
If you want to buy Spanish property as a resident of a tax haven, you might want to consider doing it as a company or trust. This would provide you with some tax benefits as well as making the sale of the property easier if you were to sell it in the future. Read our article Buying Property in Spain through a Family Trust for more information.
What will I need to purchase a property in Spain?
As a foreign investor, you will need to register for a NIE number or Foreigner’s Identification Number. If you are purchasing property through a company then you will need to register for a Spanish business tax number or CIF. You will also need to open a Spanish bank account for the transaction.
What personal and financial information will I have to provide?
Lawyers and notaries are obliged by the current Spanish Money Laundering Regulations to request full disclosure of the personal details of the owner of the capital to be invested in the property purchase. The property purchase must be carried out either by verifiable wire transfers or bank cheques, to be incorporated by the notary into the purchase deed according to the law.
What taxes will I need to pay?
There are various taxes applicable to property sales in Spain, some of these are fixed as ascertaining to one party, while others are negotiable between the vendor and the purchaser as to who pays them. A good lawyer can manage the purchase on your behalf to ensure that you only pay the amount of tax strictly necessary, without any unexpected added extras. Read our article Costs Involved in Purchasing Property in Spain for more information.
Do I have to go to Spain to purchase the property?
No, this isn’t necessary. By granting us a power of attorney we can take care of all the paperwork on your behalf.
We hope this quick guide to buying a property in Spain from a tax haven country proves useful to you. If you have any specific questions about your own situation, do not hesitate to contact us at Andalucía Lawyers to arrange a consultation with a member of our team. We provide consultations to clients all over the world via phone or email, as well as in-person consultations in our offices in Granada and Marbella.
More Information on Buying Property in Spain
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