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Madrid region—may be assessed, as these regimes could significantly reduce the overall tax liability in Spain. • Property Transfer Tax (ITP): Typically, between 6% and 10% of the purchase price, depending on the region of Spain. • Capital Gains Tax ( Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana ): Applies to the profit made on the sale of a property. Also, there are two requirements that it is important to highlight: Número de Identificación de Extranjeros (N.I.E.) is a unique identification number assigned to foreign individuals who engage in activities of tax, social, or economic significance in Spain. Regulated by Ley 36/2006, it serves as a tax identification number for foreigners. To obtain an N.I.E., individuals must provide an apostilled copy of their passport, an apostilled notarized power of attorney authorizing the application, and proof of the necessity for the N.I.E. In urgent cases, a temporary N.I.E. may be issued, and the N.I.E. does not entail any ongoing obligations. The Número de Identificación Fiscal (N.I.F.) is required for foreign legal entities involved in economic activities or with fiscal relevance in Spain, as per Ley 58/2003 (Ley General Tributaria) . This number is crucial for fulfilling tax obligations. To secure an N.I.F., entities must present an apostilled document proving their existence, the N.I.E. of their representative, an apostilled notarized power of attorney, and proof of the necessity for the N.I.F. A temporary N.I.F.
can be issued in urgent situations to commence activities. IX. FOREIGN INVESTORS Why is it a good time to invest in Spain? The strength of the labour market and the recovery in investment will boost GDP growth to 2.6%. The favourable environment of lower financing costs, a strong dollar and positive economic fundamentals is making real estate investment in Spain more attractive. 9 Real Estate Keys 10 : • Real estate investment in Spain experienced a 20% increase in 2024, and it is anticipated that in 2025 this dynamism will be maintained with growth between 10% and 15%. Investment will continue to focus on those assets with the capacity to generate more value, and cross-cutting aspects such as digitalization, AI or sustainability that will make the difference. • In the office segment, space contracting in Madrid is expected to stabilize 550,000 square meters, while in Barcelona an increase of 20% is expected. Demand will be oriented towards quality space, driving up prime rents. • The logistics sector will continue to show dynamism, with absorption stabilizing in the main markets in line with the average of the last five years. High demand and the limited supply of new product will maintain the upward trend in prime rents. In addition, the return of large portfolio deals to the market has revitalized investment, while prime
9 Source: CBRE Real Estate Market Outlook Spain 2025
10 Source: CBRE Real Estate Market Outlook Spain 2025
ILN Real Estate Group – Buying and Selling Real Estate Series
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