What are the requirements to buy a house in Spain as a non-resident? Here’s everything you need to know!
Buying a house in Marbella, in the famous Costa del Sol, may seem like a distant dream, especially if you’re not a resident of Spain. But what are the requirements to buy a house in Spain as a non-resident? With the right information and some planning, this dream can become a reality. As a real estate agent specializing in luxury properties on the Costa del Sol, I have helped many international buyers, especially from the European Union and the UK, find the perfect holiday home, which they can rent out short-term during the months they’re not using it, thus generating a significant annual income. In this article, I will guide you through everything you need to know to buy a house in Marbella, whether you are a European or non-European citizen.
Why buy a House in Costa del Sol?
The charm of the Costa del Sol
Marbella is one of the most attractive destinations for those looking for a second home or a real estate investment in Europe. Thanks to its mild year-round climate, stunning beaches, and a particularly vibrant social scene, it’s an ideal destination for those who want to enjoy their holidays or even live there year-round. Clients from all over Europe choose Marbella for its exclusive lifestyle and easy access to luxury services like gourmet restaurants, golf courses, and high-end boutiques. Many of my clients, after visiting Marbella for their holidays, were so fascinated that they decided to invest in buying a home here.
A safe investment
Marbella is not only an ideal vacation destination but also a great investment. The growing demand for short-term holiday rentals allows many homeowners not only to cover the costs of their property but also to make a profit by renting it out during the months they’re not using it. Let’s not forget that the “holiday season” on the Costa del Sol is practically all year round, thanks to its consistently mild climate.
The purchase process for EU and non-EU residents
Getting the NIE
Regardless of your citizenship, if you want to buy a house in Spain, the first step is to obtain the NIE (Número de Identificación de Extranjero). This identification number is essential for any legal or financial transaction in Spain, such as opening a bank account, getting a mortgage, and paying taxes.
- For EU citizens: The process to obtain the NIE is simple and quick. You can apply for it at a Spanish consulate in your home country or at a police station in Spain. Additionally, if you prefer convenience, our trusted lawyer can obtain it on your behalf through a power of attorney, so you won’t need to travel to Spain.
- For non-EU citizens: The process can be a bit longer as it requires more thorough documentation. However, I have helped many non-European clients (for example, from the United States and the UAE), and with the assistance of our expert lawyer, obtaining the NIE is smooth and hassle-free. In some cases, you may need a special visa to complete the purchase, especially if you plan to spend long periods in Spain. In any case, we are well-prepared to ensure a stress-free process.
Mortgages for non-residents
Even if you’re not a resident in Spain, you can still obtain a mortgage. Banks typically cover 60-70% of the property’s value.
- For European citizens: The good news is that the process is very similar to that for Spanish residents, and banks are granting mortgages, especially if you have a solid financial standing in your home country.
- For non-EU citizens: Spanish banks may require more guarantees and documentation, but with a good financial presentation and the help of a local consultant, it’s possible to secure favorable terms. We have had clients from the UAE who obtained advantageous mortgages.
In both cases, if you choose to work through a trusted lawyer, you can open a bank account with your chosen bank without the need to travel to Spain.
The importance of legal assistance
Whether you’re from the EU or non-European countries, it’s essential to work with a lawyer specializing in Spanish real estate law. The lawyer will ensure there are no outstanding liabilities on the property, that everything is in order, and will handle the legal procedures.
Legal and tax aspects
Taxes on property purchases
- New builds – VAT is 10%
- ITP (Impuesto de Transmisiones Patrimoniales), which ranges from 7% to 10%, depending on the region and the property’s value. In the Andalusian region the ITP is 7%).
- Notary and registration fees – 1.8%.
Taxes on short-term rentals
If you intend to rent out your home for short periods, you must consider taxes on rental income.
- For EU citizens: Residents of the European Union pay 19% on short-term rental income, and they can deduct costs related to managing the property, such as maintenance expenses, community fees, utilities, management fees ecc., proportionate to the rental period.
- For non-EU citizens: Non-EU residents pay a flat tax rate of 24% on rental income without the possibility of deducting costs. Despite this, many of my non-European clients still generate a significant profit by renting out their properties during the tourist season.
Regulations for short-term rentals
In Spain, to rent out a property for short-term stays, you must obtain a touristic license. This requirement applies to both EU and non-EU residents. It’s important to comply with local regulations, which include meeting certain standard requirements to ensure the property is up to safety codes. Once again, you can handle this process through a trusted lawyer.
Managing the property remotely
Property manager
If you do not live permanently in Marbella, you can entrust the management of your property to a property manager, a company that specializes exclusively in rentals. This professional will handle everything: advertising your property on platforms like Airbnb, Booking.com, and others, managing check-ins and check-outs, maintenance, rental management, and cleaning between bookings. For those who do not reside in Spain, having a reliable property manager is key to maximizing rental profits without stress. Most of my clients have fully entrusted the management of their villa or apartment to a very well-known local vacation rental company that I’ve collaborated with for a long time, and all my clients are happy with their services, enjoying the rental process without any worries.
Platforms for short-term rentals in Costa del Sol
If you want to rent out your property independently, without the help of a specialized property management company, you can promote it on platforms like Airbnb or Booking.com. Be sure to create an attractive listing with professional photos and detailed descriptions. Offering extra services like a pool, free Wi-Fi, or a sea view will help attract more tourists and earn better reviews.
Planning for a future move in Costa del Sol
Obtaining residency in Spain
If you plan to move to Marbella, you might want to consider obtaining Spanish residency. EU citizens can move easily, but they must still register as residents and prove they have sufficient financial resources to support themselves. Non-EU citizens, however, need to apply for a residency visa. I always recommend working with a trusted lawyer who can guide you through every step of the process.
Lifestyle in Marbella | Costa del Sol
Marbella is perfect for those who want to enjoy life in a happy and relaxed manner. Many clients I’ve helped have found Marbella to be the ideal place to live, with a welcoming international community eager to make new friends, and high-quality healthcare services. The Costa del Sol offers a relaxed but sophisticated atmosphere, with recreational and sports activities ranging from long seaside walks to golf, tennis, water sports, and horseback riding. Find out more from this article: MARBELLA | THE PEARL OF COSTA DEL SOL
Costs to consider after the purchase of the house
Annual expenses
- IBI (the local annual property tax)
- Community fees (if your property is part of a residential complex)
- Utilities such as water, electricity, and gas.
Improvements to the property
If you want to increase the value of your property and make it more attractive to renters, you might consider making some extra investments. Based on the experience of my clients, I can tell you that they’ve seen a significant increase in property value after adding features like a pool or Jacuzzi, a barbecue, or modernizing the interiors. These improvements not only attract more renters but also allow you to charge higher rental rates.
Conclusion
Buying a house in Marbella or in Costa del Sol, as a non-resident, whether you’re from an EU country or elsewhere in the world, is entirely feasible with the right information and proper assistance. Marbella is an ideal option for those looking for a second home for vacations, a long-term investment, or a place to live after finishing their working career.
If you have any questions or need assistance during the process, I’m here to help you find the property of your dreams on the Costa del Sol!
Feel free to email me at adriana@amarealestate.es or call me at +34 663671888. WhatsApp is always available!
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