Emmaandrichi

Hello everyone,
We want to purchase a house outright in Madrid province and would really appreciate some advice about the necessary bureaucratic elements.
Can we buy a property in Spain with a British bank account (current or savings)? I have a few different savings accounts, should I try to put all the funds into one?
I am looking into getting my foreigner ID number but am aware I need to get my residency card sorted in this transition period before Dec 2020.
We will buy a property in May or June, until then, could I use his parent's address to get my padron? I am not paying them rent so there is no proof I live with them but it would take the pressure off of buying in such a rush just to get my residency ball rolling.
I know I am very lucky to have him to translate and his dad will help us with assessing the place. But if you have any other factors to consider or potential problematic areas I want to know.
I am concerned about the residency aspect because I don't have a job in Spain yet (getting my CELTA qualification later in the year) how much do I need in the bank to begin to reside? I have seen a variety of figures online ranging from 7k to 21k(but I think that article was aimed at americans) as I am buying the house before the end of the transition period I should still fall under EU policy and not be under the same scrutiny as an alien!
Also wondering about the waiting times in Madrid province to get an appointment for residency papers. I understand the process goes as follows:
1. Get my Foreigner Identity Card
2. Get on the Padron
3. Residency application including both of the above, property contract, bank statements...
Do I need to open a Spanish bank account to buy a house? What about providing evidence of continued stay in Spain? Also how long can I go back to the UK for each year and can I work there at all?

Many questions, very glad to meet you all.
E

Casa Santo Estevo

I would think not. As i understand it Spanish laws require buyers to open a bank account in one of the Spanish banks, and transfer the funds there to pay to the vendor directly from the Spanish bank account. All to do with concerns associated with money laundering.
A personal preference. Savings accounts in euro land hardly pay much due to the low EuroBor.
Have you read this? https://www.gov.uk/guidance/residenc...ments-in-spain
Million dollar question read the link above. It says sufficient financial means.
As long as you want and yes.
All of this may change after the end of any Brexit negotiations.
Further reading https://www.gov.uk/topic/help-british-nationals-overseas/europe pan down to read the sections covering Spain.
or this one. https://www.gov.uk/world/spain/news

Barriej

Hi.

The money does not have to be in a Spanish bank account for the property purchase. I transferred all of the funds to our Solicitor by XE at the best rate a couple of days before the completion (gained about €2000 as well)
However you will need a Spanish bank account for the Electric, IBI, taxes, Water etc because most if not all won't bill a UK bank.
You can't legally go on the padron unless you are resident and it must be in the area where you will be living (but you need to provide a padron cert to become resident) Confusing. So what you do if go and get the padron and tell them its for your residence. You will get a cert but it will be time limited. Then get your residencia (the padron cert must be less than 3 months old). You then go back to the council and they will update the padron with your new shiny residence number. You can get the NIE at the same time as applying for residencia.
Money wise. Where we are its a minimum of €7000 in a Spanish bank account per individual (and I assume you are not married to your Spanish partner) If you are then its different but I don't have that info. (the €21 is for third country, which the Uk will be after 31st Dec 2020)
Also buying a house does nothing for your residency, until you apply and get this approved you will be treated as a non resident.

dmu

Hi from the France forum! Can't help with your queries, but you say you are "partners", Do you mean not legally bound? If so, get advice from the Notario as to how best to protect your respective interests in the event of separating or the first of you dying. If Spanish Inheritance/Succession Laws are anything like the French ones, you'd be considered as unrelated joint-owners, with all that this entails in either case.....
HTH

Emmaandrichi

Thank you so much for all of this.
I need some clarification. When you say "our solicitor" do you mean someone in Spain or in the UK? And what do you mean you gained €2000? Do you have to pay a transfer fee?

Which province do you live in?
I thought I needed to get the NIE foreigner number first - as I am staying more than 3 months - then buy the house to get on the padron, then apply for residency. I am in the canary islands now and am trying to get my NIE number here even without an address, i see the form for the NIE is from the Spanish government so shouldn't be province-dependent.
I don't think I can wait til I apply for my residency to get a Foreigner number because I need it in order to buy a house.

You assume correctly, we aren't yet married. The 7k is good news. How long and when was your process accepted?

Many thanks again

Emmaandrichi

Hi,
yes we aren't married legally. Do you mean the Notario who we buy the house with? We want to write wills. I wonder if I would need to make one in the UK and he in Spain until I am a resident...

Barriej

The solicitor is a Spanish one, in Albir. Because I waited for a good exchange rate I gained on the deal. No transfer fee with XE but they had to break up the transfer as sometimes Spanish banks charge for deposits of more than €25000 (thats what they said and I just let them separate the money) You 'pay' with most currency transfers either by waiting 24hrs for the money to transfer or with a slightly lower rate. BUT they are all better than the Banks.

We are still in the UK we got our NIE's on Sept 2018 purchased the flat in Jan 2019 and will be moving over permanently July 2020.

You don't need to wait 3 months, you can apply for residency the day after you arrive. So the NIE is given at the same time (talk to a Gestor or a solicitor) If you are living with your partner you can get the Padron and sort all your paperwork before buying the property. It took 2 months for the purchase of the flat to go through.

We are planning to arrive at our place by the 7th July and hopefully will have our residence appointment within a week or so. Then Ive got to get my driving licence changed and we will be all set for our adventure.

Good luck with your plans.

mikelincs

I did the same thing, all monies were sent via XE to the agent we were buying the house from, they did everything, via a solicitor and we had given POA to sign. just transfered to money on the due date, mind you we were getting a mortgage as well, and that was all done for us as was opening bank accounts, when we arrived in Spain we already had accounts, and debit cards had been arranged. This was, however, in 2004 so things will have changed.

Casa Santo Estevo

That says it all.

dmu

Yes, the Notario who will be taking care of the house sale. He can draw up Wills at the same time...
If you both die intestate, your respective next-of-kin will inherit your respective shares of the property. Not a comfortable position for the surviving partner to share the property with foreigners......
If your Spanish partner nominates you in his Spanish Will, and you nominate him in a UK or Spanish Will, the survivor will have to pay Spanish Succession Taxes, thankfully not as high as for unrelated heirs in France (60%!!) but to be paid even so. If there are children from earlier relatonships, the situation becomes complicated. The Notario is also best placed to advise on how to protect your respective interests in the event of your separating....
Your partner could consult the Notario on this subject before the house sale - you might be advised to get married, to avoid all the hassle!

Tweedpipe

DMU, I know what you mean relating to succession taxes etc and lessoning the hassle etc. But I think CAUTION should be the keyword before taking the big plunge of marriage - especially to a foreigner. Both of us seem to have got it right notwithstanding the language barrier, but this is certainly not always the case with mixed-language/culture marriages.

dmu

I realise this, which is why I put a wink smiley!!

Emmaandrichi

Thank you.
We weren't planning to marry until 2022. If we bought the house in both our names, made wills and got married later, would that mean the succession tax would be less?

Emmaandrichi

Thank you again, all very helpful.
I have never spoken to a solicitor before, we are both quite young and out of the loop with society and how these things work. I suppose I should find someone neutral to help with the property transaction and help guide us through the process (am I right in assuming the notario would be employed by the estate agency?) And someone who is familiar with processing transactions between countries.

Regarding the NIE I saw that the form requires me to have an address, which is strange as the card is for tourists who stay for more than three months and wouldn't necessarily have a fixed place. I had read that it was possible to collect it from a police station at a later date. It seems to vary from province to province. Maybe I am overthinking it and should just make an appointment with the office for foreigners in Madrid centre when we return to the peninsula in the spring.. it seems that Brits are being given priority at the moment with regards to the waiting lists.

All the best for your big adventure

Barriej

No. Make sure you get proper legal advice. DO NOT use the same people the estate agent uses as they will not have your interests as a priority.

There must be some good solicitors in the area (why not see if your partners family know someone) I would not advise anyone to purchase a property anywhere without proper legal advise. Besides you have to go before a Notary to do the final paperwork and the NIE so its better to use one that your legal advisor works with.

The transaction will all be conducted in Spain. The fact that you are foreign makes no difference. Spanish people have to follow the same rules..

Good luck with your house hunt.