Buying and Selling Real Estate for Non-Residents

At Bufete Barceló, we offer comprehensive advice on all issues affecting the purchase and sale of a property in Spain. We manage the entire process, from the first step to registration.

What do our legal and tax services include?

• Real estate due diligence: we verify that the property is free of burdens, debts, liens, urban or other problems before you sign anything.
• Obtaining the NIE (Foreigner Identification Number) and non-resident NIF: essential for any operation in Spain.
• Review and negotiation of the deposit or reserve contract: we protect your interests before economic commitment.
• Representation before a notary: we can act on your behalf by means of a power of attorney if you are unable to travel to Mallorca for the signature.
• Transfer tax settlement: ITP (Property Transfer Tax, 8— 11% in the Balearic Islands for second hand) or VAT + AJD (new construction).
• Registration in the Land Registry and cadastral updating.
• Change of ownership in supplies (water, electricity, gas).

We work with a fixed price per trade. We'll let you know the total cost before we start, with no surprises.

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Taxation of Non-Residents in Spain

Owning a property in Spain involves annual tax obligations even if you don't live in the country. Ignorance of these obligations may result in penalties and late payment interest. We help you to comply with the Treasury correctly and efficiently.

Non-Resident Income Tax (IRNR/Model 210)

Every non-resident owner is required to submit an annual Form 210, even if the property is not rented. In this case, it is taxed on an imputed income calculated on the cadastral value. If the property is rented — whether for vacation or residential purposes — the income obtained is also taxed by IRNR at the rate of 19% (EU residents) or 24% (non-EU residents). We take care of the presentation and payment.

Wealth Tax (IP)

Non-residents with assets in Spain are required to file Wealth Tax if the net value of their assets in Spain exceeds 700,000€. The Balearic Islands have specific regulations in this area. We advise you on whether it is applicable to you and how to minimize its impact.

Retention on the purchase and sale (3% of the price)

When a non-resident sells their property in Spain, the buyer is obliged to withhold 3% of the sale price and enter it in the Tax Agency as a guarantee of the seller's IRNR. If the withholding exceeds the tax that is actually due to be paid, the seller has the right to request the return of the excess. We process both procedures.

Municipal Capital Gains (IVTNU)

At the time of the sale of a property, the seller must settle the municipal capital gain, a local tax that taxes the increase in the value of the land during the tenure period. We calculate the amount and manage your settlement before the corresponding City Council.

Representation before the Tax Agency

If you receive a notification, request or proposal for liquidation from the Tax Agency in relation to your assets or income in Spain, we represent and defend your interests through administrative channels and, if necessary, before the Economic-Administrative Courts.

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International Inheritances and Successions

When a foreigner with assets in Spain dies, or when a foreigner inherits assets located in the Balearic Islands, a succession procedure is opened with implications in two countries at the same time. The proper management of this process requires knowledge of both private international law and Balearic regional law, which has its own peculiarities different from the Spanish Civil Code.

What do we manage in a heritage with an international element?

• Application of Balearic regional law and the European Inheritance Regulation (EU 650/2012): we advise on the most favorable law for your heirs — a decision that can result in very significant tax savings.
• Inheritance and Gift Tax (ISD): Balearic Islands has significant discounts for certain heirs. We calculate your actual tax rate before accepting the inheritance.
• Acceptance of inheritance and assignment of assets: drafting of the partitional notebook, notary acceptance letter and registration.
• Obtaining the European Certificate of Succession: document that certifies the status of heir or legatee throughout the European Union.
• Preparation of a Spanish will: we strongly recommend that any foreigner with assets in Spain grant a will before a Spanish notary. It is an agile procedure that greatly simplifies inheritance for your heirs.

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Real Estate Investment through a Company

In certain cases, acquiring a property in Spain through a Spanish company (generally an SL) can offer significant tax and estate planning advantages. This structure is especially interesting for investors who purchase several properties, who plan to rent them professionally, or who want to facilitate the transfer of assets to their heirs.

We analyze your specific situation — assets, tax residence, long-term objectives — and recommend if this structure makes sense in your case. If the answer is yes, we manage the constitution of the company, its registration in the Commercial Register and the fulfillment of its accounting and tax obligations in Spain.

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Homeowners' Communities

The Horizontal Property Act (Law 49/1960) is one of the aspects of Spanish law that most surprises foreign buyers. In Germany, the United Kingdom and most of Europe, the property regime for flats and apartments works differently. In Spain, when you buy a flat, an apartment or a parking space in a building or development, you automatically become a co-owner of all the common elements: the portal, the façade, the elevator, the swimming pool, the gardens, the general facilities. This co-ownership has legal and economic consequences that should be known before buying and throughout the life of the property.

What exactly is a community of owners?

It is the mandatory legal organization that brings together all the owners of a building or development for the management and maintenance of common elements. It has its own annual budget, holds landlord meetings at least once a year, and can adopt binding agreements for all landlords, including those who didn't attend the meeting or who voted against it.

What you should know before you buy:

• Debts to the community: when acquiring a property in Spain, the buyer jointly and severally assumes any outstanding debts that the seller had with the community for the current year and for the previous three years. That's why we always check the status of debts with the community in due diligence.
• Community fee: each owner pays a periodic fee (monthly or quarterly) depending on their participation rate. We will let you know the exact amount before you buy.
• Statutes and regulations of the internal regime: each community may have its own rules regarding the use of common elements, vacation rentals, pets, noise or other matters. We review them for you before you sign.
• Extraordinary spills: If the community approves major repair or improvement works, homeowners must contribute an extraordinary payment. We analyze whether there are approved or foreseeable spills before purchase.

Ongoing advice as an owner:

• We explain to you in your language the agreements adopted at each meeting and their economic and legal implications.
• We represent you at homeowners meetings if you are unable to attend or are not fluent in Spanish.
• We write letters opposing or challenging agreements adopted at the meeting when they are contrary to the law or to your interests.
• We legally claim unpaid dues from other landlords if you act as president or administrator of the community.
• We defend you against community claims for fees, works or uses of the property.
• We manage conflicts with neighbors over noise, water damage, misuse of common elements or annoying activities.

Legal advice from homeowners communities:

We also act as permanent legal advisors to owners' communities in the Balearic Islands, advising the president and the property manager on the convening and holding of meetings, the adoption of agreements, the management of defaulters, works and any legal incident that may arise in the daily life of the community.

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Summary table of services

In all cases, we provide a closed budget before starting. Contact us to receive a personalized proposal without obligation.