Question
I just wanted to ask a question about buying property in Spain as part of this process. We intend to buy a property as cash buyers. No mortgage. If we have the Spain Digital Nomad Visa, are we considered residents for the purpose of buying property? I’m a bit concerned about the current press on taxing non-residents on property purchases.
Answers
These are the answers of Spainguru’s Spain Digital Nomad Visa group members:
“If you obtain the Digital Nomad Visa, you will be a resident. The tax on the property will be about 10% only if the purchase is under €1 million (Transfer tax rate changes depending on the region in Spain).
The tax return requirement only makes a difference if you need an 80% mortgage. You can get a 70% mortgage without it. If you need a list of the steps and costs of buying a property, I can send it by email.”
“So for the determination of the possible new ‘laws’ on that, you’d be a resident. It’s a confusing term as it means different things in different instances. You would be only eligible for a non-resident mortgage since you wouldn’t have a long work history within Spain and Spanish tax returns that would give you a resident mortgage.
But you’d be a ‘physical resident’ with a residency card and, soon enough, also a ‘tax resident’ when you start paying taxes here. So for the purpose you are asking about, YES, you will be a resident when you buy your property.”
“If you are buying with cash, there is barely any difference right now, whether you are a resident or non-resident. There are some small differences, like getting a cheque bancario (bank check) being easier if you are a resident.
There is no indication at all as to when the proposed 100% tax for non-EU non-residents will come into effect. If you plan on becoming a resident anyway, there’s no need to worry about this.”
Ainhoa Manero (Immigration expert) and Marcos González (tax expert) give their opinion on the 100% tax for non-EU non-residents:
“When they say 100% tax, does that mean on the purchase price? According to La Moncloa, it does. ‘More specifically, the tax burden they will have to pay in case of purchase will be increased to 100% of the value of the property.'”
Conclusion
According to Spainguru’s Facebook group members, if you hold a Spain Digital Nomad Visa (DNV), you are considered a resident for tax purposes once you start paying taxes in Spain. This means that for property purchases, you will not fall under the non-resident taxation rules that Spain is proposing for non-EU, non-resident buyers.
However, when applying for a mortgage, you may still be considered a non-resident unless you have a strong Spanish tax history and employment records within Spain. Cash buyers will see little difference in property purchasing requirements whether they are residents or non-residents.
As for the proposed 100% tax on property purchases for non-EU, non-residents, there is still no set timeline for its implementation. If you intend to become a resident in Spain, this tax should not affect you.
Join our community!
Make sure to join our dedicated Spain Digital Nomad Visa group here!
