When you start looking for property to buy or rent in Sitges area is important that you understand what to expect to avoid unpleasant surprises.
This are few useful steps to take before beginning your search:
- Get a NIE number
- Open a bank account
- Organise your personal finances
- Be aware of the taxes involved to purchase a property
The N.I.E. is the equivalent of a foreigner’s tax identification number and is essential for any financial transactions for resident or no residents in Spain. It has indefinite validity.
To apply for this document you need to present at the National Police Office the following:
- An application form, filled out and signed.
- Original and copy of your Passport or National ID card.
- Two passport photography
- Receipt for payment of a tax fee of ruffly 7 Euros.
You will have a number assign immediately while the original certificate will be issued in few more days. Another way to get a NIE number is applying through the Spanish Embassy of your home country, however this procedure can take several weeks.
To open a bank account you only need a NIE number, which will need to be shown along with photographic identification such as a passport.
If you are a cash buyer, make sure that you have the liquidity or access to the money you need in case you have to hurry to place a deposit.
If you need a mortgage in Spain, we advise to apply for it before to start looking for a property. It is very important that you know what budget you can count on.
Another possibility that often foreigners take in, is to re-mortgage their own property in their home country.
When you buy a resale property in Spain you have to pay a transfer tax, known as ITP (Impuesto de Transmisiones Patrimoniales) which in Catalonia is 10% of declared value of the property and has to be paid upon completion.
The Notary fees are approximate 1% of the value of the property. If you use a mortgage then you will have to pay Notary fees on the mortgage deeds as well.