Legal Differences Between Renting and Buying as a Foreigner in Spain
Real Estate Situation in Spain
The real estate market in Spain offers great opportunities for foreigners wishing to settle on the Costa Blanca, either by renting or buying a property. However, each option has legal implications that are important to know before deciding.
Legal Differences between Renting and Buying as a Foreigner in Spain
1 Legal Requirements
○ Renting: NIE (Foreigner’s Identification Number) is not required, although it is advisable to make payments and contracts more easily. Financial documentation such as proof of income or a guarantor is usually requested.
○ Purchase: It is mandatory to have a NIE in order to sign the title deed of purchase and pay taxes. In addition, it is recommended to open a bank account in Spain to facilitate the procedures.
- Taxes and Associated Expenses
○ Rent: The tenant generally pays the monthly rent and the utility bills.
○ Purchase: Taxes such as Transfer Tax (ITP) mut be paid or VAT in the case of new construction, in addition to notary, registry and legal fees.
- Contract Duration.
○ Lease: Lease contracts are usually signed for a minimum of one year, with the possibility of extensions up to five or seven years, depending on whether the landlord is an individual or a company.
○ Purchase: There are no time limitations; once ownership is acquired, indefinite ownership is obtained.
- Rights and Obligations.
○ Rent: The owner is responsible for the structural maintenance of the dwelling, while the tenant must keep it in good condition and comply with the agreed payments.
○ Purchase: The owner assumes all maintenance, community and necessary renovation costs.
- Ease of residence in Spain
○ Rent: Does not grant direct benefits for residency in Spain.
○ Purchase: Acquiring a property of more than €500.000 can facilitate the obtaining of the Golden Visa, allowing the residence in the country.
Conclusion: The Best Decision with the Right Advice
Both renting and buying in Spain have different advantages and legal obligations. If you are thinking of taking the plunge, it is essential to have the support of experts in real estate law. At A&G Lawyers, we advise you at every stage of the process, ensuring that you make the best decision for your needs and objectives.
Ready to find your home in Spain? Contact us and let us help you with security and confidence.
