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Buying a house in Spain non-resident, risks?
- Thread starter lonizzita
- Start date
Technically yes. You may have to have a proxy to pay taxes etc. for you from a SEPA country.
To buy a property in Spain, you will need a NIE number (Foreigner Identity Number), which you can either apply for in Spain or at the Spanish Consulate in your home country.
As regards a bank account, you do not need one to buy a property, but it is going to be incredibly difficult to arrange accounts for water, electricity, internet and local council taxes without one. Or to pay your Spain taxes.
The Spanish Hacienda (tax authority) was one of the most inefficient in Europe 20 years ago. Now it is one of the most efficient and one of the most penal. They have the authority to freeze any bank account in Spain, and indeed take money directly out of a bank account for unpaid taxes and fines.
As regards visiting, as long as you enter Spain from another Schengen country, there is no border to go through. However if your entry country is not ipart ofSchengen, Spain now has a very efficient border entry system that counts the number of days that you are present in Spain.
As regards a bank account, you do not need one to buy a property, but it is going to be incredibly difficult to arrange accounts for water, electricity, internet and local council taxes without one. Or to pay your Spain taxes.
The Spanish Hacienda (tax authority) was one of the most inefficient in Europe 20 years ago. Now it is one of the most efficient and one of the most penal. They have the authority to freeze any bank account in Spain, and indeed take money directly out of a bank account for unpaid taxes and fines.
As regards visiting, as long as you enter Spain from another Schengen country, there is no border to go through. However if your entry country is not ipart ofSchengen, Spain now has a very efficient border entry system that counts the number of days that you are present in Spain.
Yes. If you enter Spain from Gib now, your passport is now scanned or stamped unless you have residency in Spain, a Spanish passport, or a passport from a Schengen country.
If you have a passport from the UK or outside Schengen, your entry is recorded in their system. If you have a non Schengen/UK passport, you also have to show you have the correct visa to enter Spain (but that I think has always been the case).
Gibraltar is not part of Schengen. Or (much to Spain's anger) part of Spain.
If you have a passport from the UK or outside Schengen, your entry is recorded in their system. If you have a non Schengen/UK passport, you also have to show you have the correct visa to enter Spain (but that I think has always been the case).
Gibraltar is not part of Schengen. Or (much to Spain's anger) part of Spain.
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No more loopholes. But anyways, the problem I was pointing at remains, just take Barcelona for those living in Andorra/Perpignan, etc. How can then conclude days spent in Spain from border controls? Sounds already pretty dumb statement in view of the main purpose of Schengen.
Not a problem, I have citizenship and residence in a Schengen country.
The problem remains buying a house, I think they will see the utilities going on for most of the year and maybe that raises suspicions about a property in the name of a non-resident.
The alternative is to do a lease to some friends so I would have some cover,
what do you guys think? Do you know of any other solutions?
they check the utilities consumption. Just dont be there for like 8 months a year.
Or have a friend renting it for you. Its anyway advisable as you need someone to look after your thing when not there. Or work with a lawyer from the local town.
After all the spanish are pretty cool and there is camaraderie (as its expected when you have to live under such communist / anti-economy poverty-fostering regimes).
Also no spanish bank account needed, depending on what you do, wise or any eu / sepa account is more than enough.
You cant go wrong by getting the nie, its bureaucratic but not overly difficult and it does not have tax consequences IF you stay out for many months during the year.
I own a small piece of real estate in spain since many years and no issues.
Remember, it has to be your holiday home if you wanna stay out of issues.
I'm selling a house in the Canary islands, another one in Marbella, and I'll be selling another property in Mallorca as soon as I can get rid of the Okupas that have been living there for the last 2 years.
Not a smart idea to own property in a country where the Socialist/Communist government is dictating who gets to live in your house (guess what, it's not you the owner...).
This is not legal advice, but based on my research.
1. Don't buy a house in Spain, rent. Same with a car, rent instead of owning assets.
2. If you want to stay in Spain over 183 days, you need to establish tax residence somewhere else too, and form stronger ties. For example, in Barbadas, UAE, or elsewhere, set up a tax residence, which you can do while living there for much less than 6 months that most countries require. Also buy an apt and car there, it can be very cheap, like a used car and a hole in the wall. Join gyms, memberships, etc to have something to show. Ideally, it's a country with a doule taxation treaty with Spain.
3. If Spain ever comes after you for taxes, show you're a tax resident elsewhere, with much stronger ties, and they would probably lose based on that.
4. Enter the EU from another country and then go to Spain. That way, it will be harder for them to check the number of days you're in Spain. If you also don't have bank accounts in Spain, there's little to nothing that would even flag them to look into you.
5. Never get a NIE. If you do want a bank account, you can open a foreigner account at BBVA by paying around 200 euros a quarter for their health insurance, which is also useful in Spain.
1. Don't buy a house in Spain, rent. Same with a car, rent instead of owning assets.
2. If you want to stay in Spain over 183 days, you need to establish tax residence somewhere else too, and form stronger ties. For example, in Barbadas, UAE, or elsewhere, set up a tax residence, which you can do while living there for much less than 6 months that most countries require. Also buy an apt and car there, it can be very cheap, like a used car and a hole in the wall. Join gyms, memberships, etc to have something to show. Ideally, it's a country with a doule taxation treaty with Spain.
3. If Spain ever comes after you for taxes, show you're a tax resident elsewhere, with much stronger ties, and they would probably lose based on that.
4. Enter the EU from another country and then go to Spain. That way, it will be harder for them to check the number of days you're in Spain. If you also don't have bank accounts in Spain, there's little to nothing that would even flag them to look into you.
5. Never get a NIE. If you do want a bank account, you can open a foreigner account at BBVA by paying around 200 euros a quarter for their health insurance, which is also useful in Spain.
i have a nie for like a decade. Never had any issues, but my time in Spain is highly limited.
It looks like communists dont come for you, if they dont suspect you of being filthy rich, after all they shun hard work.
But overall agree to this.
Canary islands? Why not just do Caribbean?
In winter is not that warm there. You cannot swim in the sea. Not much difference of South of Europe in winter
In Caribbean you have almost same nice weather year round
In winter is not that warm there. You cannot swim in the sea. Not much difference of South of Europe in winter
In Caribbean you have almost same nice weather year round
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"Spain is a tax hell hole"
Whilst this is mostly true, Madrid and Andalucia have significantly friendlier tax arrangements (no wealth tax and near to no IHT). And relative to other places in Europe, the tax rates on divs/interest and cap gains isn't terrible.
There is however solidarity tax across the country for those with a net wealth of 3m+. If you don't fall into that bracket no sweat.
Yes its not terrible but there are way more attractive tax situations in Europe such as Ireland or Malta etc with non-dom schemes. Spains rates below are debatable as to what one is willing to accept when other alternatives exist in Europe.
"Taxable investment income (e.g., dividends, interest, and certain capital gains) is subject to progressive rates of 19% on
the first EUR 6,000 of income; 21% on income over EUR 6,000 and up to EUR 50,000; 23% on income over EUR 50,000
and up to EUR 200,000; 27% on income over EUR 200,000 and up to EUR 300,000; and 28% on income exceeding EUR
300,000."
As I have said before. It is a nice place to live and raise a family if your not rich or ambitious. But if you have money or significant income stay the hell away,
I think Dominican Republic has been recommended many times here
Yes, Dominican Republic would be a great option.
DR has improved a lot, the economy is doing much better, they have a lot of trade with the U.S.
DR gets around 10 million tourists every year.
Punta Cana has grown a lot, and the northern part of the Island, like Puerto Plata, is receiving cruise ships all year around.
Properties are still affordable, and DR has a very easy residency program, as well as citizenship program, very straightforward.
Although many Expats don't even bother to get residency, they just live there, somewhat illegal, and if and when they leave the island, they just have to pay a small fine at the airport.
I like Santo Domingo, plenty of shopping malls, great restaurants, awesome people, very friendly. The only drawback of Santo Domingo is the traffic, it's horrible.
I know a few people living in DR and they love it!
If it was me it would be Cayman Islands. A lot of other islands have annual property taxes including mine (Bahamas) but Cayman has one time stamp duty and that's it. Cayman is unique in that it has no other direct taxes whatsoever. It makes Monaco seem like a high tax country....lol.
https://taxsummaries.pwc.com/cayman-islands
P.S Cayman Islands government makes its money as below:
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