Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

Inset photo credit: Development Emare, by ERASUR

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of June 2025

Introduction

Continuing with last month’s topic (How to buy resale property in Spain), this month we publish an article on how to buy new construction homes from a developer. I leave for next month, how to buy commercial property in Spain.

The following article provides a sweeping outline of the procedure. If you are looking for concrete advice on a given matter, I suggest you follow the supplied links below for more details.

I have greatly abridged the procedure for ease of comprehension. However, if you fancy delving into greater detail, I advise you to read (or download) our free Guide to Buy Property in Spain.

Buying off-the-plan property normally means paying for a property that is under construction and only exists on paper. New builds take 2 to 3 years to build in Spain. During all that time, you will have to make interim payments to the developer and pay the balance of the asking price upon completion.

First stage: The Reservation Contract

New builds, for the most part, are built catering to the highest quality standards, employing only the most modern materials and technical know-how. This has a significant impact on insulation and noise reduction, which in turn impacts on your town hall bills by greatly reducing them. New properties have a smaller carbon footprint, which translates into town halls slashing local taxes to incentivise their construction. In plain English, fortunate off-plan owners can expect to pay significantly lower local taxes, in some cases 50% less, as opposed to older resale properties. On high-end properties, this translates into massive savings of thousands of euros a year! Not to mention you are actively contributing to saving the planet.

After making enquiries and looking around for a property you may have taken a liking to one. Off-plan properties are normally listed by developers, real estate agencies or property portals such as IDEALISTA. They will nudge you to sign what is known as a reservation contract (or holding deposit) which strikes the new-build property off the market for a pre-agreed period of time, normally spanning 30 days. During this time, the property is tied and cannot be viewed by third parties, nor can any further contracts be signed over it.

The security deposit normally ranges from €3,000 to €6,000, depending on the asking price. High-end properties command larger deposits. The deposit contract is a succinct document that is normally only one page long. It has very few details, amongst them the developer´s name and company details, the development’s facilities, a general property description and the asking price.

The reservation deposit is deducted from the final asking price at completion (third stage, see below).

Pro-tips:

• The first thing a buyer needs to do is open a non-resident bank account. This is required to transfer the amounts for stages two and three below, and also to arrange direct debits on the property and pay local taxes.

• It is strongly recommended you hire an independent conveyance lawyer from the outset (prior to signing a deposit contract). On following this simple, yet essential, advice buyers stand to sidestep most blunders on buying off-plan property in Spain.
• You should not pay any deposit unless the developer has supplied you with a copy of a Building Licence (BL). The reason is because bank guarantees, which secure all your stage payments, require a BL to be valid. In plain English, if there is no granted BL, your bank guarantee is worthless. You would lose all your money without any legal recourse. More details in our article Law 20/2015: Important new bank-guarantee legislation explained for offplan buyers.
• Reservation deposits are non-refundable unless expressly worded otherwise.
• You need to apply for a NIE number (Tax Identification Number for Foreigners). This is an important document that is required by all administrations, including banks. We can get you a NIE in under 2 weeks. More details in our article: NIE Number Explained.

Second stage: Signing a Private Purchase Contract

Before 30 days are up, you will be expected to sign what is known as a private purchase contract (or PPC for short). In Spanish, this is known as Contrato Privado de Compraventa. In English law, we know it as Exchange of Contracts (or Exchanges for short). The PPC will be a long legal contract that lists the buyer and seller´s personal details, a full property description, the agreed sales price, the schedule of stage payments, the buying terms and the time frame to complete before a Spanish Notary Public.

Your lawyer will supply you with a report on title, so you are perfectly aware of the legal situation of the property you want to buy before committing to sign a private agreement. This report on title should cover the following buyer’s checklist:

• Is the developer creditworthy?
• Construction track record?
• Has the developer filed for creditor receivership?
• Does the developer own the land?
• Is there a Building Licence?
• Are there any planning issues overshadowing the development?
• Is the construction site compliant with Spain’s Coastal Law?

Normally, on signing a PPC, you are expected to make a down payment equivalent to 10% of the purchase price, which is deducted upon completion from the asking price (stage three). This amount of money is non-refundable.

Besides this down payment, you will be expected to pay approximately 35% of the final sales price in stage payments over the next two years. These are deducted at completion (stage three) from the balance owed.

Pro-tips:

• All stage payments (including the initial reservation deposit mentioned in stage one) are secured by what are known as bank guarantees. I simply cannot stress enough its importance. This document will be handed to you each time you make a stage payment and acts as a safety net on all the interim payments you make until the property is built. This safeguards your money in the event the development is not finished or if the developer files for bankruptcy proceedings. Attaining copies of a bank guarantee is the top priority for your appointed conveyance lawyer. If your stage payments are not covered by a bank guarantee, you run the risk of losing all your money.
• Remember to store safely a copy of all the stage payments you make to the developer, as they will be required upon completion by the notary in compliance with Anti-Money Laundering Regulations. You may also need them further on should you instigate legal proceedings against a developer.
• A developer cannot amend the agreed delivery date of a property worded in the PPC without your prior written authorisation. A change of a few months on the agreed delivery date is generally acceptable, but more extended periods of time require the buyer’s written authorisation as it is a contractual change. And, should they do so, they need to serve you formal legal notice and even compensate you for serious delays (six months plus). A serious delay is a contractual breach of agreement that allows you to cancel the contract and opt for a full refund.

Third stage: Completion

One of the particularities of buying off-plan property, is that completion normally takes place two years after signing the PPC (stage two). The reason being is that the property is under construction and you only complete when it is delivered legally.

Once a developer has attained a Licence of First Occupation, or legal equivalent , he will serve a two-week legal notice to the buyer (or his lawyer) to complete on the property. 

Completion is the term used to sign the title deed which is witnessed by a Spanish Notary Public. Additionally, if mortgage finance is required, a second deed is signed called a mortgage deed. Completion is the time when you pay the balance owed, normally 65% of the sales price.

You should read carefully through the deed before you sign anything. This is particularly true of a mortgage deed. Your lawyer should ensure you do not sign abusive mortgage clauses.

If you need a mortgage loan to complete on the property, it is highly advisable you negotiate a reasonable time frame to secure it i.e. 45 to 60 days. This is particularly true if a borrower is non-resident. A borrower requires an Offer in Principle (or Agreement in Principle) from his lender known as Oferta Vinculante in Spanish. By law, borrowers must pass a short exam in Spanish on their mortgage terms and conditions in line with Consumer Law protection (your lawyer can take the test for you).

At completion, you take legal possession of the property which is symbolized by being handed over the house keys.

At completion, you may be surprised to find a great number of people:

1. The developer’s legal representative and his lawyer.
2. The bank´s representatives (if a mortgage loan is required).
3. The estate agent
4. A translator.
5. And finally, the notary himself.

Pro-tips:

• I strongly advise NOT to complete before you are handed a copy of a Licence of First Occupation (LFO, for short). This key document ensures the property is above board (at least in most cases). Completing without a LFO has associated a large number of problems:

1. It provides a check on the planning legality. A LFO means the developer has built the dwelling in accordance with the original town hall’s Building Licence as well as with all Planning laws. The inspection to grant this licence is carried out by town hall’s technicians who certify a dwelling is deemed apt for human habitation. If there is no LFO granted, it may mean the property has fallen foul of planning regulations.
2. It is required by utility companies to have access to official supplies: water, electricity and gas. Spanish law requires the granting of a LFO to hook up the dwelling to the supply grid. Otherwise, you will be on the builder's supply, which is precarious at best.
3. Lenders will ask for it if you require finance. Banks will also be asking you for a LFO. Even on reselling the property, buyers will demand a copy of a LFO. If there is no LFO, banks will refuse to finance the purchase, in which case you vastly reduce the pool of prospective buyers, as 80% of buyers need a mortgage loan to complete in Spain. You could be waiting many years to sell the property.
4. Holiday lettings. If you are looking to buy as an investment (buy-to-let), a LFO is required by Regional Tourist Authorities to attain a Tourism Licence. If your property hasn’t attained a first occupancy licence, you will not be able to rent out your house in the short term and may be landed with humongous fines if caught red-handed. The fines for non-compliance are eye-watering in some regions of Spain e,g, Catalonia.

• Unlike in other countries, such as the United Kingdom, where chartered surveyors are normally hired only on buying resale property, I strongly recommend you hire one to carry out a snagging list of your Spanish new-build. The time to detect and mend all outstanding construction flaws is before completion. Once you complete, you lose your leverage unless your lawyer has practised a retention, which in practice is fairly challenging and should not be relied upon. Commissioning a comprehensive snagging report avoids countless problems and is worth every eurocent in my experience. Once all the construction flaws are fixed by the developer, you can complete at the notary. More details in our article Off-plan construction guarantees in Spain.
• Failure to secure a mortgage loan in time may result in the loss of the 10% deposit. The developer will always offer a buyer to subrogate himself in his legal position, taking on the developer´s mortgage loan. However, the pre-agreed terms and conditions with a developer are not always suitable for an individual borrower, which is why you should shop around and compare with other mortgage offers.
• It goes against a buyer´s best interests to under-declare part of the sales price at completion (besides being illegal). More on why in my article Taxes on selling Spanish property.
• You should immediately replace all the locks of your new property (including storage rooms) as countless people have had access to copies of your home keys during the construction phase. This avoids thefts and break-ins during the first months.
• Request an Energy Performance Certificate from the developer prior to completion. Properties with high energy efficiency ratings qualify for tax rebates of up to 20% on their local town hall tax (i.e. IBI tax).
• Request a 10-year building warranty from your developer.

 Fourth stage: Post-Completion

Post-completion at the notary office, your lawyer will file and pay the buyer´s taxes and then lodge the title under your name at the land registry. Title registration normally takes several weeks.

Congratulations, you are now the official owner of a Spanish property. Enjoy!

You should open a Spanish bank account if you haven’t done so already. Utility companies do not accept overseas payments. You should set all the below as direct debits against your Spanish account:

• Utility bills (water, electricity, landline, gas, internet, security, etc).
• Rubbish collection tax. Refuse charge is paid one or more times a year, depending on your town hall.
• IBI tax. Normally paid annually (akin to the UK’s Council tax).

Pro-tips:

• On owning property in Spain, it is strongly recommended you make a Spanish will. This avoids your heirs a great deal of problems, saving them time, money and aggravation at a time of bereavement. Spanish wills are exclusive only to your Spanish estate. Ideally, I advise you to make two wills; one in your home country and one in Spain dealing exclusively with your Spanish estate.
• You should set as a direct debit all utilities.
• You should set as a direct debit all local taxes on your property (such as IBI and garbage collection tax). On new build properties, IBI bills are normally received two years after completion.
• On owning property as a non-resident, you must appoint fiscal representation to comply with your annual Non-Resident tax filing. You start paying this tax on the following year of the property purchase.
• If you plan to rent out your property as a holiday home accommodation, some regions in Spain have stringent laws on the matter – seek legal advice. You may need to apply for a Tourism licence, or you register your holiday rental home. Non-compliance attracts humongous fines.
• Buyers should be mindful of La Complementaria or Bargain-Hunter tax.

Associated taxes and fees

As a rule of thumb, purchase costs add 10 – 13% over and above the asking price.

Please take thorough legal advice to budget your purchase before you commit. You can read our article Taxes on buying property in Spain.

On buying new property in Spain, buyers face the following taxes and associated fees:

1. Taxes

• Value Added Tax (IVA, in Spanish): 10%.
• Stamp Duty (AJD, in Spanish): 0.5% – 1.5%

2. Fees

• Notary fees (to witness the sales and mortgage deed): approx. 0.1 – 2 %
• Land Registry fees (for the inscription of the deeds): approx. 0.1 – 2 %
• Mortgage & gestoría fees (if finance is required): 1 – 2 %
• Lawyer’s fees: 1 – 2 %

Pro-tips:

• On selling property, almost all the above-listed items are tax-deductible. It is strongly advised that you keep hard copies of all the invoices above. This will greatly mitigate a seller’s Capital Gains Tax (19% tax rate for non-residents). More details in our taxation article: How to avoid capital gains tax when selling property in Spain.
• Storage rooms (trastero) and car parks (plaza de garaje) sold as separate legal units from the main dwelling, attract a VAT of 21%.

Where to buy property in Spain?

Spain is a wonderful country that offers multiple enticing options catering to all tastes. It is not without good reason that Spain is the second most visited tourist destination in the world!

You will be spoilt for choice: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande, or Valencia.

If you need a visa to stay in Spain, I advise you to read our article on the matter: Moving to Spain in 2025? Spanish visa overview.

Conclusion

The Spanish government pursues a lofty goal of facilitating access to the property ladder for its struggling nationals who, in most cases, are priced out of the market. However, these well-meaning laws have backfired as the government’s misguided housing policies have greatly increased the red tape, leading developers to build fewer new homes compared to previous decades. This has triggered an affordability crisis in Spain.

Under 100,000 new homes are built a year (Spain ranks as the second country in the EU that builds fewer homes), while Spain’s annual housing demand is well over 500,000 and growing steadily due to unbridled immigration. This housing stock shortage translates into a supply crunch, which has led new builds to appreciate by two digits a year, especially in large Spanish cities (such as Barcelona, Madrid, Malaga and Valencia). Indirectly, these housing policies have also caused rental prices to soar i.e. by 20% in Madrid in 2024. 

Although other underlying reasons have also contributed towards the house price hike (such as the disruption in the global supply chain of construction materials caused by the Covid-19 pandemic or the unbridled rise of inflation caused by QE which incentivises savers to pile their savings into real estate to hedge against inflation), Spain’s housing shortage is the main factor by a long shot. Although Spain indeed built a large glut of housing in the last property boom, most of these units are poorly located, far from city centres, and with poor infrastructure, making them unfit and far less attractive compared to sought-after newer developments. 

Unfortunately, following years of the government’s inaction and oversight, there is no quick solution in the short or mid-term, as land takes several years to be developed. We can expect new build prices in Spain to continue to increase without reprieve over the next 3 to 5 years, given the strong fundamentals for housing demand, both domestic and foreign.

Ironically, the government’s housing policy, which aimed to treat housing as a basic necessity and not as a speculative asset, has had the opposite effect. New builds, because of the government’s induced supply crunch, have become the hottest asset, greatly appreciating year-on-year. If you also factor in huge rental yields growing by two digits a year, also caused by the government's intervention in the rental market with its new Housing law from 2023, you have the perfect recipe for investors to pile in and buy property in Spain as buy-to-lets fuelling a new property speculative bubble. The road to hell is paved with good intentions.

In my humble opinion, Spain’s government should step in decisively and defuse the housing situation they have created by cooling down housing prices on allowing developers to build more units and also by proactively fostering state-subsidised property nationwide on a large scale. Banning golden visas or approving a 100% tax on property purchases by non-residents is not the way, as builders will build even fewer homes, further exacerbating and compounding the housing problem.

To close, hiring a seasoned lawyer pays for itself on all the money you stand to save on avoiding the most common pitfalls of buying new build property in Spain. Whilst it is possible to buy property in Spain without using a lawyer, it would be very unwise to do so, particularly if you are a foreigner, as you would be gambling away with your life savings. I should also mention that lawyers’ fees are tax-deductible on selling the property (CGT)!

Make sure you are assisted in your house-hunting by reputable experts (such as a long-established real estate agency, a reliable mortgage broker or a seasoned conveyance lawyer) to benefit most from the wide range of available new builds – you will be spoilt for choice!

It is important you avoid being pressurised into completing; take your time to fully assess the information you are supplied, and do not hesitate to ask any questions. As a quick recap, I advise you to read our article 8 tips on buying new property in Spain.

And finally, as a golden rule for new builds, I draconianly advise not to complete without a Licence of First Occupation.

At LNA, our friendly team can assist you in buying (or selling) your property anywhere in Spain. Give us a call.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specialising in property conveyance and taxation all over Spain. We also assist clients with immigration & residency visas, and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of May 2025

Introduction

The purpose of this article is to provide a general overview of the full legal procedure to buy resale property from a private individual. I leave for next month the procedure to buy property from developers (also known as off-plan, or new-build property).

The following article provides a basic outline of the procedure. If you are looking for concrete advice on a given matter, I highly advise you to follow the supplied links below for more details.

I have greatly abridged the procedure on purpose for ease of comprehension. However, if you fancy delving in greater detail, I advise reading (or downloading) our free Guide to Buy Property in Spain.

Resale property includes both urban and rural property. Urban property is far more expensive. Rustic property is normally riddled with legal problems which explains part of the price difference. If you are buying rural property, make sure you hire a lawyer before you sign any document! Be advised that rural property is a legal minefield in Spain. 

First stage: The Reservation Contract

After making enquiries and looking around for a resale property, you may have taken a liking to one. Properties are normally listed by property portals such as IDEALISTA, or local estate agencies. The real estate agency that has the property listed in its books will prod you to sign what is known as a reservation contract (or holding deposit), which strikes the property off the market (normally spanning 30 days).

The initial security deposit is a standard €3,000 but can be substantially more depending on the asking price (high-end properties command larger security deposits). The deposit contract is a succinct document that is normally only one page long. It has very few details, amongst them the properties’ legal details, the seller´s details, the asking price, and the 30-day reservation. The security deposit is deducted at completion from the asking price (see stage three below).

Pro-tips:

• The first thing a buyer needs to do is open a non-resident bank account. This is required to transfer the amounts for stages two and three below and also to arrange direct debits on the property and pay local taxes.
• It is strongly advised you hire an independent conveyance lawyer from the outset (prior to signing a deposit contract). On following this simple, yet essential, advice buyers stand to sidestep most blunders on buying property in Spain.
• Reservation deposits are normally non-refundable unless expressly worded otherwise.
• You, or your lawyer, need to apply for a NIE number (tax identification number for foreigners).
• An agency´s reservation deposit is a very simple document that should at no time list who pays what taxes and set out other purchase conditions. This is agreed by the parties in stage two (see below Private Purchase Contract).
• Request an Energy Performance Certificate from the estate agency. Properties with high energy efficiency ratings qualify for tax rebates of up to 20% on their local council tax (IBI tax).
• It is strongly recommended you hire a chartered surveyor to carry out a snagging list of the property; this is particularly true of older properties. If you are buying rural property, commissioning a surveyor's report beforehand is essential. This will avoid countless problems.
• Your lawyer will run a Due Diligence on the title to verify all is in order before moving on to the second stage. The title should be clean (free of charges, liens and debts). The golden rule in Spain is that debts and taxes always follow the property, not the owner. Which is why due diligence must be carried out.

Second stage: Signing a Private Purchase Contract

Before 30 days are up, you will be expected to sign what is known as a contrato de arras or Private Purchase Contract (PPC for short). In Spanish, this is also known as Contrato Privado de Compraventa. In the United Kingdom, this second stage is known as Exchanges. The PPC will be a long legal contract which will list the buyer and seller´s personal details, a full property description, the agreed sales price, the buying terms, the inventory, and the time frame to complete before a specified Spanish Notary Public. The buyer has the right to choose the notary.

Your lawyer will have normally already supplied you with a report on title, so you are perfectly aware of the legal situation of the property you want to buy before signing the private agreement.

Normally on signing a PPC you are expected to make a down payment equivalent to 10% of the purchase price, which will be deducted from the asking price upon completion (stage three, see below). The 10% down payment is non-refundable. If a seller pulls out of the sales contract - for whatever reason - he pays the buyer DOUBLE the amount of his 10% deposit.

If you need a mortgage loan to complete on the property, it is highly advisable you negotiate a reasonable time frame to secure it i.e. 45 to 60 days. This is particularly true if the borrower is a non-resident. A borrower requires an Offer in Principle (or Agreement in Principle) from his lender known as Oferta Vinculante in Spanish.

If movables are being sold along the property it is highly advisable an inventory is added to the PPC. This inventory needs to be drawn up in great detail to avoid any misunderstandings which may lead to litigation. This inventory will likewise be added to the Title Deed at the Notary Public on completion. The inventory is regarded as a contractual element which binds both parties. If the seller does not include on the sale a listed item, it will be regarded as a breach of contract. Inventories are drafted by the listing estate agent with photographs of each item plus a brief description.

Pro-tips:

• Failure to secure a mortgage loan in time may result in the loss of the 10% deposit unless expressly worded otherwise.
• If movables are being sold with the property, it is crucial that the inventory is detailed and accurate (with photographs).

Third stage: Completion

Completion is the term used to sign the Title Deed, which is witnessed by a Spanish Notary Public. Additionally, if mortgage finance is required, a second deed called a Mortgage Deed is also be signed at the notary office.

You should read carefully through the deeds before you sign anything. This is particularly true of a Mortgage Deed. Your lawyer should ensure you do not sign any abusive mortgage clauses.

At completion, you pay the balance of the asking price by banker’s draft (less the initial security deposit from stage one and the 10% from stage two). Completion is important because you take legal possession of the property, which is symbolized by being handed the house keys.

You may be surprised to find a great number of people waiting for you to sign at the notary office:

1. The seller and/or his lawyer.
2. The bank representatives (if a mortgage loan is required).
3. The estate agent
4. A translator
5. And finally, the Notary himself.

Pro-tips:

• It goes against a buyer´s best interests to under-declare part of the sales price at completion (besides being illegal). This only benefits the seller and will land the buyer with a huge Capital Gains Tax bill on selling. More on why in my article Taxes on Selling Spanish Property.
• Never agree to allow a seller to stay in your property post-completion. Even if it’s just for a “short time”. This can create massive legal problems for a buyer, which requires a full-blown court procedure that takes over a decade. This is detailed in our article: Possession: why you should never allow a seller to remain in a property post-completion.

Fourth stage: Post-Completion

Post-completion at the notary office, your lawyer will file and pay the buyer´s tax (ITP) and then lodge the title under your name at the land registry. Title registration normally takes several weeks.

Congratulations, you are now the official owner of a Spanish property. Enjoy!

You should open a Spanish bank account if you haven’t done so already. Utility companies do not accept overseas payments. You should set at least all the below as direct debits against your Spanish account:

• Utility bills (water, electricity, landline, gas, internet, etc).
• Rubbish collection tax. Paid once, or more times, a year depending on your town hall.
• IBI tax. Paid annually (akin to the UK’s Council tax). I strongly urge this tax is set up as a direct debit; failure to pay it may lead the authorities to auction off your property in a procedure which is surprisingly expedient – as in months. Whoever is the owner of a property on the 1st of January of the current year is liable to pay for this tax. This is explained in great detail in our article IBI Tax explained.

Pro-tips:

• On owning property in Spain, it is strongly recommended you make a Spanish will. This avoids your heirs a great deal of problems, saving them time, money and aggravation at a time of bereavement. Spanish wills are exclusive only to your Spanish estate. You are advised to make two wills; one in your home country and one in Spain dealing only with your Spanish estate.
• You should set as a direct debit all utilities and local taxes.
• You should set as a direct debit all local taxes on your property (such as IBI and garbage collection tax).
• On owning property as a non-resident, you should appoint fiscal representation to comply with your annual Non-Resident tax filing.
• If you plan to rent out your property as a private holiday accommodation, some regions in Spain have stringent laws on the matter – seek legal advice. ¡You may need to apply for a Tourism licence, or that you register your holiday rental home. Non-compliance attracts humongous fines.
• Resale buyers should be mindful of La Complementaria or Bargain-Hunter tax.

Associated tax and fees

As a rule of thumb, purchase costs add 8 – 13% over and above the asking price.

In some regions of Spain, this figure may be higher. Please take thorough legal advice to budget your purchase before you commit. You can read my article Taxes on buying property in Spain.

On buying resale property in Spain, buyers face the following tax and associated fees:

1. Property Transfer Tax (or ITP in Spanish)

It varies depending on the autonomous community where the property is located, ranging between 6% to 11%.

2. Fees

• Notary fees (to witness the sales deed): approx. 0.1 – 2 %
• Land Registry fees (inscription of the sales deed): approx. 0.1 – 2 %
• Mortgage & gestoría fees (if finance is required): 1 – 2 %
• Lawyer’s fees: 1 – 2 %

On selling property, almost all the above-listed items are tax-deductible. It is strongly advised that you keep hard copies of all the invoices above. This will greatly mitigate a seller’s Capital Gains Tax (19% tax rate for non-residents). More details in our taxation article: How to avoid capital gains tax when selling property in Spain.

Where to buy property in Spain?

Spain is a wonderful country that offers multiple enticing options catering to all tastes. It is not without good reason that Spain is the second tourist destination in the world!

You will be spoilt for choice: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande, or Valencia.

If you need a visa to stay in Spain, I advise you to read our article on the matter: Moving to Spain in 2025? Spanish visa overview.

Conclusion

Hiring a seasoned conveyance lawyer, in my experience, pays for itself with all the money you stand to save on avoiding the most common pitfalls of buying a property in Spain. Not to mention that lawyers’ fees are tax-deductible on selling the property (CGT)!

Make sure you are assisted on your house-hunting by reputable experts (such as a long-established real estate agency, a reliable mortgage broker, or a seasoned lawyer) to benefit most from the wide range of property bargains – you will be spoilt for choice.

It is important you avoid being pressurized into completion; take your time to fully assess the information you are supplied with and do not hesitate to ask any questions. Unlike in other countries, Spain has no 10-day cooling off period on buying property.

Spain is a buyer’s market now, with properties greatly appreciating year-on-year (on average by 8% and by two digits in large cities and coastal areas). At times of political and economic instability, people pile their savings in real estate, which is perceived as a safe haven.

At LNA, our team can assist you in buying (or selling) your property anywhere in Spain. Give us a call.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in property conveyance and taxation all over Spain. We also assist clients with immigration & residency visas and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of April 2025

Introduction

On buying property in Spain, you should be mindful the title is clean. It is fairly common the previous owner is in arrears. In Spain, the golden rule is that debts follow the property not the debtor. Meaning, when you take over ownership, you also take on the mantle of all the existing debts from the previous owner. This is why you should hire a conveyance law firm - like us - to carry out a thorough due diligence on the title ensuring everything is above board.

1. Tenants. On buying property, the new owner takes on the position of landlord and must respect - by law - the duration of a pre-existing rental agreement. You should know some rental agreements in Spain lock you in for ten years… and you cannot update the rental.
2. Utility invoices (water, electricity, etc). Outstanding utility invoices are a nuisance as utility companies may shut down the supplies. Reconnecting the electric supply, for example, can set you back 500 euros and you need to wait at least 4 weeks to top it off.
3. Community of Owners. Properties within a community can be in arrears. The new owner takes on all the debts dating back five years, which can be substantial.
4. Local taxes. The property can be in arrears with taxes levied by the local town hall. In the worst case, the property can be impounded and sold off in a public auction to recoup the debt. The new owner is held liable for all taxes going back four years.
5. Title. It is important to acquire a clean title. Mortgages, embargoes, liens, etc can weigh down on a property’s value.
6. Banned holiday rentals. A new trend is developing in community of owners, whereby they agree to ban holiday rentals outright. There is no point investing in a nice beach pad if you are not allowed to rent it out. It goes without saying that a property which cannot be leased legally has a substantially reduced market values as opposed to other similar properties in the area which can.

I have only listed the basic six, but you should be aware there are far more points to look out for. Which is why we strongly urge you to contact an experienced law firm like ours on buying property in Spain, especially if you are a foreigner and are unfamiliar with the buying procedure.

t Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of March 2025

Introduction

It is no secret the best visa in Spain is hands down a Golden Visa.

So much so, that the Spanish government was under huge pressure to put an end to them.

Spain ends its wildly popular Golden Visa program on the 3rd of April 2025.

You have until that day to apply for the best and most coveted visa.

Unbeknownst to you, if you bought a property in Spain on or after September 2013 you are eligible to qualify. It is important to note that Golden Visas work retroactively. If you already own a property in Spain, you may apply for one.

Anyone interested should apply right now, before April’s deadline.

This is your last chance to apply for a Golden Visa before the window of opportunity closes.

Golden Visas take under 3 weeks to attain through us.

For example, US nationals buying property anywhere in Spain could apply for it almost at no extra cost.

Golden Visa frequently asked questions

1. Can I still apply for a Golden Visa?

Yes, you still can.

You have until the 3^rd of April 2025 to apply, hurry.

2. If I apply for a golden visa now, and the Spanish government phases them out in April, am I still entitled to renewals?

Yes, you are.

The fact that the Golden Visa program is being phased out does not preclude your statutory visa renewal rights, do not worry.

You may continue renewing the Golden Visa indefinitely for as long as you please.

3. What happens if I apply now for a Golden Visa, and the Spanish Immigration Office replies after the 3^rd of April 2025?

Nothing happens.

As long as you apply now, before April’s deadline, your application will go through as normal, do not worry.

Madrid can, and will, reply to your Golden Visa application post-April’s deadline; it does not impact on your application in any way, do not worry

4. Can I work in Spain? Can my family work in Spain?

In short, yes.

A Golden Visa is one of the few visas that allows you, and your family, to work in Spain (optional).

5. Are Golden Visas retroactive?

Indeed, they are.

If you bought a property in Spain, on or after the 29^th of September 2013, you may qualify.

6. Can I live anywhere in Spain?

Yes, anywhere you choose:

Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville and Sotogrande; so many great places to choose from.

Conclusion

There are several visas you can apply for if you plan to move to Spain.

We offer a full summary in our Idealista article: Moving to Spain in 2025? Spanish visa overview.

However, the king of all visas is the Golden Visa.

It is by far the most privileged visa one can attain in Spain.

Which explains why the government was under huge political pressure to suppress them.

Our multidisciplinary team at Larrain Nesbitt Abogados (LNA) has attained over one thousand visas over the last decade for our non-EU clients and their families.

At LNA we get you a golden visa in under three weeks.

Take advantage of Golden Visas while they last, apply today!

Your family’s success is only one call away.

LNA has a 100% track record of attaining Spanish visa & residency permits since 2013. We have assisted over one thousand satisfied visa clients and their families.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Raymundo Larrain gives a sweeping overview of the Spanish visa system. If you are a non-EU national, and plan to move to Spain, this article is for you.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 21 years’ of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8^th of January 2025

Spain is the second most visited country in the world, with over 84 million tourists every year. It’s a beautiful country to explore or live in. Gorgeous weather, delicious food, affordable prices, great amenities, and ultra-low taxation (in some regions) appeal to foreigners at large. Many of these tourists decide to settle down and buy a property in Spain.

In recent years, Spain introduced two new immigration schemes with significant tax advantages associated with those that qualify: Beckham’s Rule  (named after the English football player) and also the Digital Nomad Visa. The former applies only to EU/EEA nationals, whereas the latter applies to non-EUs. The tax advantages offered by both schemes are identical, mirroring each other.

Both of these allow applicants to pay NO tax on assets or income held abroad. Moreover, on the income derived strictly in Spain, applicants pay only a flat fee, which is a mere fraction of the standard tax rates. These two immigration schemes have been purposely devised to attract foreign overachievers, so they relocate to Spain alone, or with their families. Due to their unique tax advantages, they are proving wildly popular amongst foreign applicants (more details below).

The major novelty this year is that Golden Visas will be phased out after a decade. Golden Visas end on the first week of April 2025. However, the lucky few who applied on time will still be able to renew them without any issues going forward.

Post-Brexit, UK nationals have a visa waiver of up to 90 days within every rolling 6 months in the Schengen Area (which includes Spain). However, if they wish to stay for a period of time exceeding 90 consecutive days, they must apply for a Spanish visa. This is known as the 90/180-day rule. This article supplies a brief overview of the main visa permits you can attain in Spain.

As a general rule:

• If you are a non-EU national, and wish to stay in Spain for over 90 consecutive days, you need to apply for a visa. Please be advised not all visas have associated the right to work in Spain.
• If you are an EU/E.E.A. national, and wish to stay in Spain for over 90 consecutive days, you need to apply for a Spanish residency permit. This is cheap and fast-tracked (takes a few weeks). We offer this service: Spanish Residency permit for EU nationals (includes TIE card & NIE number)

A Spanish visa allows you to live anywhere in Spain; you will be spoilt for choice: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande and Valencia.

At LNA, we can help you attain a visa, or a residency permit, to live in Spain legally in record time at an affordable price. Your case will be handled by one of our immigration lawyers assisted by a visa manager.

General requirements for all Spanish visas

Unlike other countries, you are not required to have a minimum proficiency in Spanish language to apply for a visa. Whilst this is true, I strongly advise to learn the language, at least at a basic level, to better blend in and understand Spanish society. You will find that natives greatly appreciate the effort and will be far more receptive towards you. Spanish is fairly easy to learn, by rapport to other languages, and is the second most important language in the world. It is the official language of 21 countries.

The following five are staple requirements across all visa types:

1. Non-EU national
2. Hire private health insurance
3. Clean criminal record, no trace (previous 5 years)
4. Be financially self-supporting (you will not claim benefits)
5. Not be living in Spain illegally at the time of making the visa application

Spanish visa overview

Spain offers five visas for non-EU nationals.

At LNA, we can assist you with all five visas listed below plus Beckham’s Rule (which is not a visa, it’s a tax scheme for EU nationals).

Some visas suit applicants better than others. Some offer unique tax advantages.

1. Golden Visa – Investor Visa

This is the king of all visas.

Spain’s government announced it will be scrapping this visa. It should have ended on the 31-12-24. However, they passed a new law in January giving a 3-month grace period to apply for it during 2025. Golden Visas now officially end on the 3^rd of April 2025.

During this three-month transition period, Golden Visa applications will still be accepted, and applications pending as of the effective date will still be reviewed normally.

The investor visa is for affluent non-EU applicants. It is popularly known as a ‘Golden Visa’. It’s a blue-ribbon visa that rolls out the red rug for its privileged holders and neatly cuts through all the red tape. Its purpose is to foster foreign investments in Spain. Whilst there are many different paths to attain a GV, the most popular (and least expensive) is by investing in Spanish real estate. This requires investing €500,000 in real estate, in one, or more, properties.

Golden Visas apply retrospectively; meaning that any non-EU national who bought a property in Spain for over 500k on, or after, the 28th of September 2013 qualifies.

Unlike the other four visas listed below, renewals are not tied to proving you live in Spain all year round. They are based on keeping the investment. This ability to override the 90/180-day rule and not being ‘forced’ to live in Spain, makes it one-of-a-kind and goes on to explain why it is coveted by affluent individuals.

Another point to consider is that a Golden Visa is the ONLY visa in Spain which does not make you tax resident in Spain on attaining it.

If you do not fancy paying tax in Spain (on your worldwide income & assets), and want to override the 90-day rule, this is the right visa for you. GVs allow you the right to work in Spain (optional).

This visa is for 3 years and is attained by us in under 3 weeks.

Suitable for:

• Affluent applicants who invest €500,000 in Spanish real estate.
• Affluent applicants who deposit €1mn in a Spanish bank.
• Affluent applicants who invest €2mn in Spanish Treasury bonds, or €1,000,000 in shares of publicly trading Spanish companies.
• Business project. Develop a business project in Spain that generates employment, has a significant socioeconomic impact, or involves scientific and technological advances.

Further reading:  Spanish Golden Visa Explained

2. Digital Nomad Visa (tax-free visa)

After the demise of the Golden Visa in April 2025, the DNV is next in line to occupy the visa throne as the most sought after in Spain. DNVs extend to family members i.e. spouse and children under the age of 18 years old. It allows applicants to work remotely from Spain i.e. teleworkers.

The main advantage is its privileged taxation. It grants applicants a special tax regime whereby they pay ultra-low tax (or in most cases none at all!) as opposed to standard tax rates that apply to Spanish tax residents. This visa is attained by us in under 3 weeks.

Key tax advantages:

• No tax on assets & income abroad. This is of special interest for applicants holding substantial assets and overseas earnings (i.e. HNWIs), which would all go untaxed by Spain.
• Pay a flat tax rate of 24% on the first €600,000 of gross annual earnings in Spain. This translates into tax savings of 50%, or more, on income derived strictly within Spain.
• Not required to file a 720 tax return (unlike Spanish tax residents)
• Not required to file Wealth Tax (unlike Spanish tax residents)
• Automatic tax deferrals on call (unlike Spanish tax residents)

Suitable for:

• International teleworkers
• Self-employed (freelancers) who manage their foreign business remotely
• HNWI and UHNWIs
  

Further reading: Digital Nomad Visa explained (tax-free visa)

3. Marriage Visa – Family Regroupment Visa

It’s intended for families or couples that have been separated, in and out of the EU. It seeks to reunite them in an expedited manner within the EU. So, although this type of visa is popularly dubbed as ‘Marriage Visa,’ it would rather be more appropriate to label it as ‘Family Visa’.

Its scope goes well beyond a married couple. It ought to be understood in broader terms, as in family reunion. As its name implies, couples should be married (including same-sex partners), this is the core requirement. Alternatively, it can also be a civil partnership. This visa allows you the right to work in Spain. This visa has low fees, and it is fast-tracked, taking between one to four weeks.

Suitable for:

• Separated family members that wish to reunite within the EU
• Married couples
• Non-married couples

Further reading:  Marriage Visa explained

4. Pensioner’s Visa – Non-Lucrative Visa (NLV)

This is Spain’s Retirement Visa. It allows applicants to live but not work in Spain. Only retirees should apply for it.

The applicant will be expected to be financially self-supporting and will be required to prove he or she has enough savings for at least two years. This visa is ideal for retirees who wish to spend extended periods of time in Spain – without working – enjoying the finer things in life.

It is the cheapest visa available. It takes 2 to 3 months.

Suitable for:

• Pensioners

Further reading: Pensioner’s Visa explained

5. Business Visa – Lucrative Visa

As its own name implies, this permit allows the applicant to work in Spain as you will be self-employed. This residency applies to someone who is looking to set up his own business in Spain. This requires a proactive hands on attitude. Typically, you will be acting as a director or managing director overseeing a company. Needless to say, one of the key requirements is that you will have enough means to be self-supporting, both for yourself and your family, for one year.

The catch, besides a cast-iron motivation, is that you need to invest in the ballpark of €80,000 to €100,000 to open & run a business in Spain. You will also be required to hire employees and enrol them in Spain’s Social Security (the cornerstone of this visa). Visa renewals are contingent on the business making a profit every year. This visa allows you, and your family, the right to work in Spain as self-employed. This visa has associated the highest fees, and also takes the longest (3 to 4 months).

Suitable for:

• Entrepreneurs
• Applicants (families) wishing to set up and run a business in Spain
• Self-employed

Further reading:  Lucrative residency permit (Business Visa)

6. Beckham’s Rule

Please note this is not a visa. It applies only to EU/EEA nationals (who do not require a visa).

It is a special tax regime whereby taxpayers pay low tax, or none at all.

EU/EEA nationals who relocate to Spain on the back of a job contract offered by a Spanish employer may apply. It offers identical tax advantages to the Digital Nomad Visa. It has moderate fees and the procedure is expedited. It takes under a month to attain.

Suitable for:

• EU/EEA nationals
• High-ranking expatriate employees
• HNWI and UHNWIs

Further reading: Beckham’s Rule explained

“I speak Spanish to God, Italian to women, French to men, and German to my horse.“– Charles V, Holy Roman Emperor, Archduke of Austria, and King of Spain.

LNA has a 100% track record of attaining Spanish visa & residency permits since 2013. We have assisted over one thousand satisfied visa clients and their families.

At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience specializing  in immigration & residency visas. We also assist clients buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Residency services available from LNA:

• Golden Visa Service (Investor Visa)
• Non-Lucrative Visa (Pensioner’s Visa)
• EU-Family Regroupment (Marriage Visa)
• Digital Nomad Visa (Tax-free visa)
• Lucrative Visa (Business Visa)
• Non-Domiciled Tax Regime (Beckham’s Rule)
• Spanish Residency permit for EU nationals

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Raymundo Larrain reviews Spain Retirement Visa (officially known as a Non-Lucrative Visa, or NLV for short).

Marbella-based Larraín Nesbitt Abogados (LNA) has over 21 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2024. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8^th of December 2024

Introduction

It is not without reason this visa is popularly dubbed the Pensioner’s Visa. The fact is that in my experience young applicants are routinely turned down. To apply successfully, you should be of retirement age.

This visa was devised and aimed at a specific demographic collective which are retirees.

Young applicants, of working age, should abstain from applying.

What is a Pensioner’s Visa?

It is a residence permit granted to all senior non-European nationals who wish to live in Spain.

This visa allows applicants to live in Spain, but not to work.

Key benefits of a Pensioner’s Visa

• Immediate residency. Allows you to live in Spain overriding the 90/180-day limitation.
• Freedom of movement in the European Union. Allows visa-free travel throughout the Schengen Area (29 countries).
• Clear rules. Initially granted for 1 year, then renewable every 2 years.
• Ultra-low fees. Cheapest visa available. Conversely, it’s also the one that takes the longest to process.

Requirements to attain a Pensioner’s Visa in Spain

1. Cannot be working at the time of making the visa application
2. Be of pensioner age
3. Be financially self-supporting. You cannot be working, you need to live of savings and pension pot
4. Secure private healthcare in Spain. You can then switch over to an S1. 
   
5. Relocate to Spain

Pensioner’s Visa application procedure

1. Collate all the required documents
2. Visa application is submitted to Spanish Immigration Authorities
3. Visa granted in several months (2 to 3 months)
4. Attain a biometric residency card in Spain

Frequently asked questions

1. Does this visa allow me the right to work in Spain? I want to set up a bed and breakfast in Spain.

No, it does not grant the right to work in Spain.

Moreover, you cannot be working at the time of applying for this visa. This is closely monitored by Spanish Immigration Authorities, both on the initial application and also on the visa renewal. A B&B is ruled out.

If you get caught working (in Spain or abroad), you will be stripped of this visa and deported.

You are expected to live only on savings and pension.

That is why young people are rejected, because they are of working age.

        2. Do I need to relocate to Spain permanently?

Yes, that’s the whole point. You are meant to start a new life living in Spain all year round.

This is closely monitored on visa renewal.

If you are unable to prove you have been living long-term in Spain your visa renewal will be turned down.

           3. Can I live anywhere in Spain?

Yes, anywhere. Take your pick: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande and Valencia.

Conclusion

Pensioner Visas are only suitable for applicants who are committed to relocate and live in Spain long term. The idea is to retire to Spain and live your twilight years enjoying life at its best.

However, if you plan to continue living abroad (i.e. in the UK), and you are only applying to circumvent the 90/180-day rule, this visa is not for you.

Our multidisciplinary team at Larrain Nesbitt Abogados (LNA) has attained hundreds of visas over the last decade for our non-EU clients.

LNA has a 100% track record of attaining Spanish residency

Larraín Nesbitt Abogados, small on fees, BIG on service.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Residency services available from LNA:

• Non-Lucrative Visa (Pensioner’s Visa)
• EU-Family Regroupment (Marriage Visa)
• Digital Nomad Visa (Tax-free visa)
• Golden Visa (Investor Visa)
• Lucrative Visa (Business Visa)
• Non-Domiciled Tax Regime (Beckham’s Rule)
• Spanish Residency permit for EU nationals

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author will result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved

Raymundo Larrain reviews the Spanish ‘Marriage Visa’.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 21 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2024. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt

Director of Larraín Nesbitt Abogados
8^th of November 2024

Introduction

Although I will refer to it throughout this article as a Marriage Visa (because it rolls off the tongue nicely and it’s snappy for marketing purposes) the fact of the matter is that this is really a Family Reunification Visa. A dull legal term I’ll avoid like the plague.

The legal implication is that the scope of the visa is broader, and goes well beyond marrying someone, let alone an EU national. Moreover, you can attain this visa by not being married to someone (!) who may not even be an EU national (!!). Confused? Good.

For simplicity’s sake, I’ll just continue to call it a Marriage Visa, but in the understanding its scope goes well beyond marriage. Perhaps Family Visa would be a more appropriate name.

What is a Marriage Visa?

It is a residence permit granted to all non-European nationals on being married to an EU national, or alternatively, to a settled non-EU.

It also applies to analogous affectionate relationships (so long as proven).

This visa allows applicants to live in Spain and work (optional).

It opens the path to permanent residency (after 5 years) and to Spanish nationality (after 10 years).

Key benefits of a Marriage Visa

It offers multiple advantages. A red rug is rolled for its applicants, as the EU wants families to reunite as fast as possible.

• Immediate residency. Allows you to live in Spain overriding the 90/180-day limitation.
• Freedom of movement in the European Union. Allows visa-free travel throughout the Schengen Area (29 countries).
• Fast-tracked. They are expedited, in some cases granted in under a week.
• Longest-lasting visa. Right off the bat you are given 5 years (the maximum). Renewals every 5 years.
• Clear rules. Initially granted for 5 years, then renewable every 5 years.
• Right to work. This visa allows the right to work in Spain.
• Low fees. Processing fees are low, making it one of the cheapest visas available.

Requirements to attain a Family Visa in Spain

1. Marry an EU national (civil or religious weddings are accepted), or
2. Marry a non-EU national who has already attained a residency permit to live in Spain (settled), or
3. Be in a relationship with someone who is residing in Spain. This will have to be proven by official documents.
4. Be financially self-supporting.
5. Secure private healthcare in Spain.
6. Relocate to Spain.

Marriage Visa application procedure

1. Collate all the required documents
2. Visa application is submitted to Spanish Immigration Authorities
3. Visa is granted in under 30 days through us
4. Attain a biometric residency card

Examples of Marriage Visa holders

• Non-EU marries non-EU. UK Barry marries Josephine, a Jamaican national with a residence permit to live in Spain.
• Non-EU marries EU national. Arianne, a Canadian national, marries Gunther, a German national residing in Spain.
• Non-EU marries Spanish national. Lula Mae, a US national, marries Maria Luisa, a Spanish national.
• Non-EU family reunification within the EU. Mohammed, a Moroccan national residing in Spain, brings his family over to Spain (wife, four children, and mother-in-law).
• Analogous relationships. Surfer Tyler is in a relationship with David, a French DJ working in Ibiza.

Frequently asked questions

1. Do I really need to get married?

Eh, not really.

It is the core requirement, but alternatively, other types of analogous relationships – other than marriage – are also accepted, at least in theory.

However, in practice, a great deal of problems arise with proving analogous relationships, which leads to widespread visa rejections.

2. Will I become tax resident in Spain?

Yes.

3. Does this visa give me the right to work in Spain?

Yes, on equal footing with any Spanish national.

4. Can I live anywhere in Spain?

Yes, anywhere. Take your pick: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande and Valencia.

Conclusion

Marriage Visas are only suitable for applicants who are committed to relocating and living in Spain. If you plan to remain abroad, or do not fancy becoming tax resident in Spain, this visa is not for you.

Our multidisciplinary team at Larrain Nesbitt Abogados (LNA) has attained hundreds of visas over the last decade for our non-EU clients.

At LNA we get you a Marriage Visa in under four weeks.

Your family’s success is only one call away.

LNA has a 100% track record of attaining Spanish residency

Larraín Nesbitt Abogados, small on fees, BIG on service.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Residency services available from LNA:

• EU-Family Regroupment (Marriage Visa)
• Digital Nomad Visa (Tax-free visa)
• Golden Visa (Investor Visa)
• Non-Lucrative Visa (Pensioner’s Visa)
• Lucrative Visa (Business Visa)
• Non-Domiciled Tax Regime (Beckham’s Rule)
• Spanish Residency permit for EU nationals

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author will result in criminal prosecution. Ní neart go cur le chéile. VOV.

Raymundo Larrain reviews Spain’s Digital Nomad Visa, a new type of visa which allows its privileged holders to pay no tax in Spain on income and assets abroad. The DNV is all about paying no tax.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 21 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2024. Plagiarism will be criminally prosecuted

Amanda busy at work from her new Marbella office

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8^th of October 2024

Introduction

Do you fancy living in Spain but paying fewer taxes (or even none at all)?

Are you a high-earner, or have a sizeable estate abroad?

Are you able to relocate and telework from Spain?

If the answer to all three is yes, the DNV should be top on your radar.

What is a Digital Nomad Visa?

The DNV is a residence permit granted to non-European nationals on teleworking from Spain.

It requires you to either be hired by a foreign employer or be a freelancer.

This visa allows applicants, and their dependants, to live and work in Spain.

Tax benefits of a Digital Nomad Visa

The DNV is the first of a new generation of visas which aims to attract high-rollers to Spain. Spain saw the wild success of the UK’s popular non-domiciled tax scheme (geared towards UHNWIs) and decided to copy it. First, it came up tentatively with Beckham’s Rule in 2015 (only aimed at EU nationals), and then decidedly in 2023 it expanded its tax benefits to all non-EUs through its Digital Nomad Visa program.

Needless to say, the main outlier of DNVs is that you pay little to no tax. No other Spanish visa offers these superb tax advantages collated below.

This is of particular interest to HNWI, or UHNWI, who are being overtaxed in their home countries.

The DNV allows you to relocate to Spain and pay a testimonial tax rate on personal income earnings.

It has associated multiple tax benefits:

• All income derived abroad goes untaxed by Spain.
• All assets located abroad go untaxed by Spain.

In other words, any source of worldwide income or assets are tax-exempt (just like with the popular UKs non-dom tax scheme). The only exception is any income derived abroad from working.

• DNV holders only pay tax strictly on the income they derive working remotely in Spain for a foreign employer. They will pay a flat tax rate of 24% on the first €600,000 of gross annual earnings over a five-year period. This translates into tax savings of 50%, or more, on income you earn strictly in Spain
• You are not required to file a 720 tax return (unlike Spanish tax residents)
• You are not required to file Wealth Tax (unlike Spanish tax residents)
• You can request to defer tax payments on the first and second year, without attracting penalties or delay interests being rolled on top (as is standard)
• For the purposes of other tax agencies, you will be tax resident in Spain.

Example of a DNV holder

Amanda Hollingsworth is the CEO of a young and upcoming AI company. She holds £8mn in savings and investments. She owns two rented properties in London, one in Paris, and a penthouse in New York adding a further £21mn. Amanda believes she overpays tax in the United Kingdom and decides to explore new options to pay less tax.

The nature of Amanda’s job allows her to relocate to Spain and telework from there, commuting unfettered to the UK – or elsewhere – as many times as she sees fit. The Company’s Board decides to reward her with a £400k wage packet on working from Spain.

If she attains a DNV in Spain:

• The £8mn she holds in savings & investments would go untaxed by Spain.
• The £21mn property portfolio she holds abroad (London, Paris, and New York) would also go untaxed by Spain.
• The rental income she derives from her two rented properties in London would also go untaxed by Spain.
• The only tax she would be subject to in Spain is personal income tax on the £400k she earns. Normally – as a Spanish tax resident – she would be subject to a top marginal rate exceeding 50%, but because she holds a DNV, she only pays a flat tax rate of 24% on her gross annual earnings, saving over 50% in personal income tax!

In view of the above, Amanda concludes she can greatly mitigate her tax bill by applying for a DNV and relocating to Spain.

Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande and Valencia; so many great places to choose from.

What is better, to apply for a DNV from a Spanish consulate or from Spain?

You can apply for a DNV either from a Spanish consulate in your home country or from Spain (through us). However, the time frames, visa duration, and general support provided are indeed very different. In the below chart you can clearly see the advantages of applying through us from Spain in lieu of a consulate:

Requirements to attain a Digital Nomad Visa in Spain

Core criteria you need to meet to apply for a DNV

1. You are employed (or self-employed i.e. freelancer) by a foreign company
2. You have a work contract (12 months, or more) from a foreign company that allows you to work remotely in Spain i.e. telework
3. You have been working for three months, or more, for this foreign employer.

 I. General staple requirements (apply to all Spanish visas)

1. You are a non-EU national.
2. Hire private health insurance from an approved Spanish health provider, or
3. Enrol in the Social Security
4. Clean criminal record (no live trace) on the previous 5 years.
5. Not be already in Spain illegally at the time of making a visa application.

II. DNV specific requirements

1. You need to prove you are hired by a foreign company. You need to have been working for this employer at least 3 months prior to making a DNV application. A work contract is the core requirement (12 months, or more). A copy of your job contract is required. Alternatively, if self-employed (freelancer), a letter from the company and company records proving it has been operational for more than 12 months.
2. You need to supply a copy of holding formal academic qualifications i.e. a university degree, business school, or professional qualification, or
3. alternatively, you need to prove you have at least 3 years of work experience in the job position you are being hired for.
4. Not to have resided in Spain during the previous 5 years of making a DNV application (e.g. a holder of an existing Golden Visa would be excluded).
5. Not to obtain income from a permanent establishment in Spain.

Digital Nomad Visa application procedure

1. Collate all the necessary documents
2. Electronic visa application is submitted to Madrid
3. Visa is granted
4. Attain a biometric residency card

How long does a DNV take to attain?

Through us, under 3 weeks.

Conclusion

If you are a high earner, or simply a very wealthy individual, and don’t fancy paying much tax, you should look into a Digital Nomad Visa.

DNVs offer unique tax advantages that no other visa can hope to match, including the coveted Golden Visa.

Some clients don’t even care about the visa, all they want is to pay 90% less tax. And the DNV allows it. If done right, DNVs can be wielded as a powerful tax-mitigation tool at the disposal of non-EUs. Why overpay tax?

At LNA we assign you a visa agent who will guide you throughout the whole application procedure, cutting through all the red tape. This saves you time, money, and aggravation.

LNA attains a DNV in under 3 weeks.

Our multidisciplinary team at Larrain Nesbitt Abogados (LNA) has attained hundreds of visas over the last decade for our non-EU clients.

Your family’s success is only one call away.

LNA has a 100% track record of attaining Spanish residency

Larraín Nesbitt Abogados, small on fees, BIG on service.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Residency services available from LNA:

• Digital Nomad Visa (Tax-free visa)
• Golden Visa Service (Investor Visa)
• Non-Lucrative Visa (Pensioner’s Visa)
• Lucrative Visa (Business Visa)
• EU-Family Regroupment (Marriage Visa)
• Non-Domiciled Tax Scheme (Beckham’s Rule)
• Spanish Residency permit for EU nationals

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author will result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved

Raymundo Larrain reviews the Spanish 'golden visa', which can still be obtained despite government plans to abolish it.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 21 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2024. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8^th of September 2024

What is a Golden Visa?

The Golden Visa is a residence permit granted to non-European nationals on investing in Spain.

This visa allows applicants to live and work in Spain (optional).

It opens the path to permanent residency (after 5 years) and to Spanish nationality (after 10 years).

Key benefits of a Golden Visa

It offers multiple advantages which I cover extensively in my article: Golden Visa in Spain: 21 reasons to apply. 

Spain’s Golden Visa offers several benefits, namely:

• Immediate residency. Allows you - and your family - to live and work in Spain overriding the 90/180-day limitation.
• Freedom of movement in the European Union. Allows visa-free travel throughout the Schengen Area (27 countries).
• Tax advantage: Unlike every other visa in Spain, the Golden Visa is the only one that does not automatically make you a tax resident in Spain on renewals. This is a unique trait of golden visas that is not shared by any other visa.
• Extended family included. Allows the possibility to include the applicants’ parents.
• Clear rules. Initially granted for 3 years, then renewable every 5 years.

Requirements to attain a Golden Visa in Spain

There are several paths to qualify for a Golden Visa:

1. Real estate investment. Invest a minimum of €500,000 in real estate in one, or more, properties (this is hands down the least expensive option).
2. Bank deposit. Deposit €1mn in a Spanish bank.
3. Capital investment. Invest €1mn in shares of a Spanish publicly traded company.
4. Invest in public debt. Invest a minimum of €2mn in Spanish Treasury bonds.
5. Business project. Develop a business project in Spain that generates employment, has a significant socioeconomic impact, or involves scientific and technological advances.

State of Golden Visas in Spain

Recently, there have been many discussions about the possible elimination of the Golden Visa by the Spanish government. However, to date, the Golden Visa remains active and available to any interested investors.

Golden Visa application procedure

1. Collate all the required documents
2. Electronic visa application is submitted to Madrid
3. Visa is granted in under 3 weeks through us
4. Attain a biometric residency card

Frequently asked questions

1. Can I still apply for a Golden Visa? I heard the Spanish government is axing them

Yes, you still can.

The Spanish government announced its plans to eliminate them on the 8^th of April 2024.

However, since then, no concrete date has been given.

All we know at this point is that they intend to eliminate them shortly, but no specific date was supplied.

2. If I apply for a golden visa now, and the Spanish government phases them out, am I entitled to renewals?

The short answer is yes.

As long as you apply now, before they are phased out, you will have no issues to renew your Golden Visa residence permit.

3. When will Golden Visas be phased out by the Spanish government?

No specific date was given.

You can reasonably expect them to be eliminated over the next months. Likely, by early 2025.  

4. Can I work in Spain? Can my family work in Spain?

In short, yes.

A Golden Visa is one of the few visas that allows you - and your family - to work in Spain (optional).

5. Are Golden Visas retroactive?

Indeed, they are.

If you bought a property in Spain, on or after the 29^th of September 2013, you may qualify.

    6. Can I live anywhere in Spain?

Yes, anywhere you choose:

Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande, and Valencia; so many great places to choose from.

Conclusion

There are several visas you can apply for if you plan to move and live in Spain. We offer a full overview in our article: Moving to Spain? Spanish visa overview.

However, the king of all visas is the Golden Visa. It is by far the most privileged visa one can attain in Spain. Which explains why the government was under political pressure to suppress them.

Our multidisciplinary team at Larrain Nesbitt Abogados (LNA) has attained hundreds of golden visas (and other visas) over the last decade for our non-EU clients.

At LNA we get you a golden visa in under three weeks.

Take advantage of the Golden Visa, apply today!

Your family’s success is only one call away.

LNA has a 100% track record of attaining Spanish residency

Larraín Nesbitt Abogados, small on fees, BIG on service.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Residency services available from LNA:

• Golden Visa Service (Investor Visa)
• Non-Lucrative Visa (Pensioner’s Visa)
• Lucrative Visa (Business Visa)
• EU-Family Regroupment (Marriage Visa)
• Digital Nomad Visa (Tax-free visa)
• Non-Domiciled Tax Scheme (Beckham’s Rule)
• Spanish Residency permit for EU nationals

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author will result in criminal prosecution. There is nothing impossible to him who will try. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.