Do I need a fiscal identity number when investing in Spain?
Yes, as a private person (called a NIE number) and as a business entity (called a NIF number) when investing with a company.
An NIE number can be requested via companies that specialize in creating appointments in the city halls like www.nienumberfast.com, for example.
It is quite difficult to obtain NIE appointments and that is why working together with companies like this is usually the best
option. Keep in mind that with this option the person needs to go themselves in person to this appointment.
This process usually costs less than €100 not including the trip to Spain. If this is not possible, it is also possible to use a lawyer who can sign in the name of the person with a power of attorney (POA). With this POA, that lawyer is legally capable of representing the investor for this specific task. The process to do this usually is as follows:
- Contact a lawyer who creates a legal POA document
- Bring this document to a notary in your home country and both sign it
- Take the document to a court institution to legalize it
- Send it with a protected post to the lawyer
- The lawyer signs in your name and sends the NIE number after
This process costs around €500 for all the necessary steps needed.
Are there any purchase taxes involved?
Yes, in all regions there are purchase taxes involved. This can also differ between regions, however, 10% is the most common percentage to keep in mind, and the percentage use in Valencia.
This means that the 10% purchase taxes need to be paid and calculated on the buying price
of the property.
How are profits taxed if the investor is a legal person resident in Spain, a legal person resident outside of Spain, or through a company?
We advise you to check with your tax advisor. For general information, you can watch our webinar on taxes in Spain. This information should be taken solely for informational purposes. Find the webinar here.
How are profits taxed in the event that an investor is a legal person RESIDENT OUTSIDE OF SPAIN?
This information should be taken solely for informational purposes, however, in general terms:
Interest paid to non-resident investors will be taxed at a rate of 19% in Spain. The investor can deduct in their declaration the amount that, according to the regulation of his country of
fiscal residence, corresponds to the taxable income that appears as income obtained and taxed abroad.
For general information, you can watch our webinar on taxes in Spain. This information should be taken solely for informational purposes. Find the webinar here.
