What is the NIE number and what do I need it for?

The NIE number is an identification number for foreigners in Spain. It is necessary to be able to arrange certain things in Spain, such as buying a house, taking out a mortgage and registering in the property register. You also need this personal number to open a bank account and to buy a car.

An NIE (Numero de Identificacion de Extranjeros) can be compared to the citizen service number as we have it in the Netherlands/Belgium. Both residents and non-residents must have this number.

You can apply for this in different ways. You can apply for an NIE yourself. You can do this at a police station with a department for foreigners. It is important to make an appointment in advance. There are also various parties that can apply for the NIE for you. When you buy a house in Spain, it is easy to have your lawyer or gestor do this. You can also apply for it through the consulate of the country in which you live.

Do I need to have a Spanish bank account?

You are no longer required to open a bank account in Spain due to the fact that foreign bank accounts can be domiciled. However, not every company accepts this.

What are the annual costs in Spain?

The annual costs in Spain consist of:

- IBI (property tax)

- Basura (refuse collection tax)

- Non-resident tax

- Community charges for the urbanisation

- Fire and theft insurance

The property tax (IBI) is much cheaper than in Belgium.

You do not receive an invitation to pay the non-resident tax, you must make a spontaneous declaration.

Do I have to declare a second home?

From the 2022 tax year, you must declare your foreign home in the same way as a second residence in Belgium.

After you become the owner (after the notarial deed), you have four months to make a (spontaneous) declaration to Minfin. The Administration of Surveys and Valuations will determine a cadastral value based on the information provided by the owner. This means you must declare the non-indexed cadastral income of your home. This amount will be added to your income and taxed at the highest tax rate.

Should I hire a lawyer?

It is best to hire a lawyer or legal expert before buying real estate. The notary is only authorised for the notarial deed.

The lawyer or solicitor is responsible for the following matters, among others:

- He/she checks who is the effective owner of the house.

- He/she checks what debts are attached to the house.

- He/she checks whether the house has the necessary permits.

- He/she checks whether the selling party has no arrears in payments.

- He/she checks whether there are any ongoing disputes.

- …

Do I need to draw up a will?

It is not compulsory to draw up a will after you have bought a house in Spain.

However, it is advisable because, in the event of the death of one of the owners, it can save a lot of administrative hassle and costs for the heirs.

Do I need to take out fire insurance?

It is best to take out fire insurance for your property in Spain as well. It doesn't really matter where your property is located, there is always a risk of fire, so make sure that your ‘second home’ is properly insured.