What is “NIE” and how to apply ?
“NIE” is a Spanish ID number for those foreigners who would have some activities in Spain. It is necessary to have a NIE number buying a property in Spain. For citizens of EU countries, NIE can be easily applied in Palma.
For more information, you can check the official site here.
What is the legal check or due diligence for a spanish property?
A brief check of the NOTA SIMPLE is a must. It contains the information about the registered data (built area, address, type of land, type of property, etc), owners, burdens, tax issue, etc.
Apart from those, a complete check would include the related contracts, local tax paid certification, energy certification, habitability certification, community paid certification, etc.
Note: in Mallorca rural areas, we strongly recommend the check due to many “ilegal house” risks.
What is the process of purchase and how long does it takes?
Let’s say that you as a BUYER have found the target property.
For the purchase, you could firstly sign a contract of Arras (Reserve) normally with a payment of 10% of the price.
Others should be prepared as well like: NIE, bank account to pay, or mortgage arrangement to pay.
Notary Deed Signing: the notary and us will help with prepare all. The seller should provide a lot of documents. The deed signing and payment will be made in front of the notary.
Change of related suppliers, water, electricity, gas, etc.: we will do it for free.
Registration: a gestor will take care of the registration of the new deed later. It takes about 1 or 2 months.
What are the buyer taxes and fees?
As a buyer, in Mallorca, you should prepare about 13% of the price in terms of taxes and fees. Here you have the aproximate numbers.
Notary fee: 700 – 1000€
Registry fee: 500 – 800 €
Laywer (optional): 1-2%
New construction: IVA + ADJ tax 10% + 1.2%
Second hand property: ITP tax 8 – 11%
For more information, you can check the official site of ATIB here.
Can i have a spanish residency and what is the “golden visa” ?
If you are EU citizens, you can easily apply for the Spanish Residency in Palma, only providing the certified reason of willing or necesity of staying more than 3 months in Spain.
If you are non – EU citizens, by fulfilling several criterias, such as purchase a property, you can apply for the Spanish Residency. This is normally called “Golden Visa”. The process might be complex, so normally we suggest our client with a lawyer to deal with it.
For more information about Golden Visa, you can check the official site Portal de Inmigracion here.
Can i buy a property as a company ?
Yes. But normally we suggest to buy as natural person when it is only a house or apartment for living.
For those who might buy for rent, setting a company could be a good choice.
In Spain, according to the law, there is a specific type of company for obtaining real estate. Although, the company maintanance will be a cost, in Palma there are many law firms and consluting firms can manage it.