grenadine99

My wife and I are planning to buy in Granada province in the coming months and will be moving to Spain. We're getting a bit confused by all we've read in many books and websites re NIE/Residencia and their role in relation to keeping any cap gains tax at the resident level.

A few questions if anyone out there is able to help?

NIE Application
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being initially in Spain for a buying trip, we'd like to apply for our NIE as soon as we arrive on our first trip later this month. How do we circumvent the permanent-address-in-spain bit in the application? Also are we no longer able to get a gestor to apply for us - do we have to find someone to take along to translate then go in person?

Bank Account / Rental Agreement / Property and car Purchase issues
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If you need an NIE to open a resident bank account and it takes upto 3 months (we've heard) to get one, what does one do in the interim re sorting out a long term rental contract. Also do you not need an NIE before you can transact a property purchase and buy a car?

Residencia Application / Cap Gains (15/35%)
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preferable to have but not essential being EU citizens, but we can't apply for this until we have received an NIE. Re capital gains, do you have to have applied for Residencia or do you have to have it BEFORE you complete on a property purchase to benefit from the resident cap gains? Or can you apply after having bought somewhere and still be considered a resident if you needed to sell up for whatever reason within 12 months?

Sorry this is such a long batch of questions. We're wary of taking "it's no problem" advice directly from any estate agents or selling agents and as yet we haven't been successful in compiling a list of English speaking abogados or gestores in the area. (have emailed british consul...)

Many thanks,

Chris

countryboy

Hi grenadine99
Not to up on this but have got my NIE/Residenciabut this page might help

http://www.ukinspain.com/english/Con...ons=30&lang=en

And work your way round it following the links, I will try to get you some more information but I have found that each area of Spain has differing paperwork, and the people behind the desks dont know what is going on either. :scared:

Good Luck

grenadine99

Thanks Countryboy Will go and have a look.

One estate agent I've contacted says that the solicitor dealing with the property transaction should be willing to allow the use of their address on the NIE form. Also that it shouldn't take more than a few days if you go in person with completed forms and docs, WITHOUT anyone to help interpret for you.

Don't know how reliable this information is...



Chris

svenskidoo

NIE application - you should be able to apply for one on condition that you are purchasing a specific property ..... and that if said purchase falls through you will notify Hacienda accordingly. You will need someone who can speak Spanish and an application in Spanish.

Conflicting advice on whether or not an NIE (there are people who bought and are now waiting for an NIE) is required to purchase a first property but it is certainly something that the Notary likes to have done and dusted on the day of sale/purchase.

Time - well with us personally took about 7-10 working days. Depends on where in Spain I guess.

Bank Account - you do not need an NIE to open a non resident bank account.

Purchasing a car - if you do not have an NIE they (the garage) can usually handle that for you. You would need proof of residence (escritura, empadronamiento, utility bill etc).

IMO Capital Gains will not be an issue for you until you come to sell. You should not be worrying about it too much at this stage apart from the issue of which purchase price to declare. The lower the price the more you save today, but the bigger your future exposure to CG will be , especially if your property shows a dramatic increase in value when you come to sell.

Your status at time of selling will determine the band of CG to be applied, IMO.










edited for typo

grenadine99

Thanks very much Svenskidoo, that's a really helpful and comprehensive piece of advice!

Chris

jdr

I agree with Svenskidoo on most things but NIE takes 30 days in Fuengirola, and you do need an address in the area you are applying, as long as you can fill in the form, very limited Spanish will suffice your visit to the police station.

You also need an NIE to purchase a car legally.

I opened a Spanish bank account in England, also need an address in area.

Regarding capital gains, the Spanish bring out laws every week to stop people buying, selling at a huge profit and running

Study the inheritence laws also.

And whatever you read or hear, make sure its up to date, cos laws change almost as much as bar owners.

Do some searches on this site for NIE etc there are loads of threads covering everything.

Good luck.

grenadine99

Thanks jdr - the more advice the better I'm going to pass all my questions past an independent abogado and possibly one of the UK lawyers which deal in international property law too - so that I can ensure I get all the angles...

Cheers!!

Chris