Basic and essential documentation required before a notary

To execute a property sale as a public deed in Spain, the notary's office requires a series of legally binding identification and financial credentials. Spanish legislation, particularly regulations aimed at anti-money laundering, requires verifying the identity of all parties and inspecting the payment methods used in the transaction.

1. Foreigner Identification Number (NIE)

The NIE is the personal, unique identification code assigned by the General Directorate of the Police to foreign citizens. It is an indispensable requirement for purchasing any property, paying the associated regional or national taxes, and completing the subsequent registration with the Land Registry. This document is obtained at authorized police stations in Spanish territory or at Spanish embassies and consulates in the buyer's country of residence.

2. Passport or national identity document

Buyers from member countries of the European Union or the European Economic Area may identify themselves using their national identity document or passport. For non-EU buyers, presenting a valid original passport is mandatory. It is essential to ensure that the document does not expire prior to the date set for signing the title deed.

3. Proof of origin of funds and payment methods

In accordance with Law 10/2010 on anti-money laundering, the buyer must provide documentary justification for the origin of the money used in the purchase. To do so, they must submit certificates issued by the financial institution issuing the funds, recent bank statements, contracts of sale for previous assets, or tax returns. If the capital comes from bank accounts outside the Eurozone, proof of the international bank transfer sent to the destination account in Spain is required.

4. Bank account opened in Spain

To execute the payment on the day of signing, Spanish banking and notarial practice requires that payment be made by banker's draft or verified bank cheque issued by a credit institution operating in Spain. Furthermore, having a local account facilitates the settlement of Property Transfer Tax (ITP) or VAT, notary and registry fees, as well as setting up direct debits for utility services.

Additional documents based on tax residency status

The tax status of the buyer at the time of purchase determines the requirement for additional administrative procedures.

Non-tax resident buyers

A non-resident is defined as an individual who spends fewer than 183 days a year in Spain and whose centre of economic interests is not located within Spanish territory. In this scenario, it is necessary to provide:

• Non-Residence Certificate: Official document issued by the National Police certifying that the person does not reside in Spain. Many financial institutions process this document when opening a non-resident bank account.
• Form D-1A (Foreign Investment Declaration): Administrative form sent to the Investment Register of the Ministry of Economy, Trade and Enterprise to notify real estate investments originating abroad.
• Tax Residence Certificate: Document issued by the tax authority of the country where the buyer usually pays tax, useful for avoiding double taxation issues.

Tax resident buyers

If the foreign citizen legally resides in Spain and files their tax returns in the country, the documentary requirements are equivalent to those of any national resident:

• Foreigner Identity Card (TIE): Physical document proving legal residence status and containing the NIE number.
• Tax Residence Certificate: Issued by the State Tax Administration Agency (AEAT) confirming tax residence in Spanish territory.

Financing and brokerage for the purchase

When purchasing a property requires applying for a mortgage loan, Spanish banks request a broader documentation file to assess the applicant's creditworthiness abroad.

Standard documentation requested includes income tax returns for the last two financial years submitted in the country of origin, recent payslips or audited income certificates, bank statements for the last twelve months, and a credit history report issued by recognized organizations in their country of residence. All these documents written in a foreign language must be accompanied by an official sworn translation.

Given the organizational complexity involved in coordinating the valuation, document verification, and binding offer with Spanish banks, seeking professional assistance is advisable. Relying on mortgage credit intermediaries allows for smoother management of bank processing stages, comparing different financing offers for non-residents, and ensuring that the documentation meets the regulatory criteria required at the notary's office.

Signing before a notary by power of attorney

If the foreign buyer cannot travel in person to Spain on the day of signing the deed, they have the option to appoint a legal representative to act on their behalf.

Requirements for a power of attorney granted abroad

1. Specific power of attorney: It must grant explicit powers to purchase real estate, process the NIE, open or close bank accounts, and settle taxes with public administrations.
2. Hague Apostille or consular legalisation: If the power of attorney is granted before a notary outside Spain, it must include the Hague Apostille (for signatory countries to the convention) or the corresponding consular legalisation to ensure its legal validity in Spain.
3. Sworn translation: Unless the power of attorney is drawn up directly in a bilingual format (Spanish and the language of origin) by the issuing notary, a sworn translation carried out by an official translator appointed by Spain's Ministry of Foreign Affairs, European Union and Cooperation is required.

Properties under public protection status (VPO)

In the event of purchasing a Social Housing unit (VPO) within the geographical area of the Comunidad de Madrid, foreign nationals with legal residence must provide documentation proving compliance with the conditions set by the regional housing plan.

It will be essential to submit the municipal registration certificate (empadronamiento), the income tax return demonstrating that annual income does not exceed the limits set by Madrid regional regulations, and certification from the Land Registry confirming non-ownership of another home in national territory. In addition, prior authorization of sale or notification of maximum sale price issued by the competent Department of Housing of the Comunidad de Madrid must be attached.