Purchasing real estate in Spain by a non-resident
Complete Expert and Investment Guide (Valencia)
Buying property in Spain as a non-resident is a legal, transparent, and understandable procedure if organized correctly.
A foreigner can freely purchase an apartment, house, or investment property; however, without knowledge of local regulations, it is easy to make mistakes that lead to financial losses.
SunLine real estate assists non-residents in purchasing property in Valencia: from initial analysis and budget calculation to notarial formalization, registration, and tax support.
Below is a very detailed guide consisting solely of facts without any fluff.
Who is considered a non-resident in Spain?
According to Spanish legislation, a non-resident is a person who:
- lives in Spain for less than 183 days a year
- is not a tax resident
- does not have a center of economic and vital interests in the country
It is important to understand:
the non-resident status does not limit the right of ownership of property in Spain.
Can a non-resident buy property in Spain?
Yes. There are no citizenship restrictions.
Property can be purchased by:
- citizens of EU countries
- citizens of the United Kingdom
- citizens of Ukraine, Israel, Kazakhstan, and other countries
- individuals and legal entities
A mandatory condition is the presence of a NIE.
NIE — Mandatory Foreigner Identification Number
NIE (Número de Identidad de Extranjero) is necessary for:
- signing contracts
- opening a bank account
- paying taxes
- registering property
You can obtain NIE:
- in person in Spain
- through a consulate
- remotely by power of attorney
SunLine organizes the acquisition of NIE without the need to travel to Spain.
Bank Account for Property Purchase
To conduct the transaction and pay taxes, an account in a Spanish bank is required.
The bank requests:
- passport
- NIE
- proof of source of funds
- tax declaration or income statement
These are standard AML (anti-money laundering) requirements.
Step-by-Step Process of Buying Property as a Non-Resident
1. Reserva (Reservation)
A reservation agreement is signed and a deposit is made (usually €3,000–10,000).
The property is taken off the market.
2. Legal Verification of the Property
The following are checked:
- Nota Simple
- mortgages
- liens (embargos)
- community debts
- IBI arrears
- compliance with the cadastre
- licenses and property status
3. Contrato de Arras
Preliminary purchase agreement.
The buyer pays 10% of the price.
- buyer withdrawal → loss of deposit
- seller withdrawal → return in double
4. Signing Escritura
The transaction is formalized at the notary.
The final settlement and key handover occur.
5. Registration
The right of ownership is registered in the Registro de la Propiedad.
Taxes and Expenses When Buying
Secondary Market (Resale)
- ITP — 10% (Valencia)
- notary — ~0.5–1%
- registration — ~0.3–0.5%
New Construction
- IVA — 10%
- AJD — ~1.5%
- notary — ~0.5–1%
- registration — ~0.3–0.5%
Total Budget of Expenses:
usually 12–14% of the property price.
Mortgage for Non-Residents
Spanish banks issue mortgages to non-residents:
- 50–70% of the value
- term up to 20–30 years
- rate higher than for residents
Confirmed income and tax transparency are required.
SunLine helps with the legalization of money in Spain and accompanies the mortgage approval process.
Taxes after purchasing real estate
Non-residents are required to pay:
IBI
Municipal tax — annually.
IRNR
Non-resident tax:
- if the property is not rented — conditional income is assessed
- if rented — tax on actual profit
Rate:
- 19% — for EU residents
- 24% — for third countries
Investment analysis of real estate in Valencia
Valencia is one of the most balanced markets in Spain for non-resident investors.
Why investors choose Valencia
- stable rental demand
- developed infrastructure
- price growth without sharp “bubbles”
- high liquidity when reselling
- lower entry threshold than in Madrid and Barcelona
The market is suitable for both capital preservation and rental income.
Which properties are the most liquid
According to SunLine, the best performing properties are:
- 2-3 bedroom apartments
- area 65–100 m²
- areas with transport and services
- properties without legal risks
We do not recommend properties that are difficult to sell in the future.
Example of rental yield calculation
Initial data
- Apartment price: 220,000 €
- Purchase expenses (~12%): 26,400 €
- Total budget: 246,400 €
Long-term rental
- rent: 1,100 – 1,400 € / month
- annual income: ~15,000 €
- annual expenses: ~1,800 €
Net yield (ROI):
≈ 5 – 8% per annum
The maximum yield is achieved not by price, but by the right strategy.
Main risks for non-residents
- purchase with liens
- community debts
- lack of licenses
- errors in the cadastre / registry
- poorly verified documents
SunLine checks the property before signing arras, not after.
Why non-residents choose SunLine real estate
- specialization in non-residents
- deep knowledge of the Valencia market
- support in Russian
- legal and tax expertise
- investment analysis before purchase
- support until full registration
We do not sell a property if it does not pass our check.
Frequently asked questions by non-residents
Can I buy remotely?
Yes, with a notarial power of attorney.
How long does the transaction take?
On average 3–6 weeks.
Can I rent out the property?
Yes, provided that legal requirements are met.
Does a non-resident pay tax upon sale?
Yes, capital gains tax + withholding 3%.
Get expert analysis before purchase
Before signing a reservation or arras, you can:
- send the selected property
- receive legal and investment analysis
- understand the real yield figures
- avoid mistakes costing tens of thousands of euros
Consultation is free.
We work with non-residents in Valencia.
Response — within 24 hours.
Conclusion
Buying real estate in another country is always a calculation.
SunLine helps make this calculation correctly.
Get professional advice
If you are planning to buy real estate in Spain as a non-resident:
- we will calculate the budget
- we will check the property
- we will explain the taxes
- we will organize the transaction safely
📍 SunLine real estate — Valencia
📞 Consultation for non-residents on real estate purchase
WhatsApp +34 627 876 669
