There are a lot of unsold houses for sale in Spain. You would think that the government would be trying to encourage sales to foreigners in every way they can in order to buy this surplus and maintain investment in Spain at higher levels than would otherwise be the case.
This has now changed since the 3rd of January 2012. Now there are two huge problems. If you are applying for a NIE number (which you need to have in order to buy a property) you need to apply in person now. A full power of attorney, designed for this purpose of course, now isn't valid. Not only that, the applicant needs to take a notarized copy of a document that states which property they are going to buy with catastral and registry details on it and also a notarized copy of their passport. The applicant also needs to present themselves, at least here in Valencia, at a police station in the middle of an industrial estate on the outskirts of Valencia and queue up to be treated like a piece of dirt by the civil servants working there as they are sick of their working conditions and the constant changes of system which irritate and anger the applicants there. This means that millionaires wanting to invest a lot of money in Spain are treated like dirt on their first experience of the country.
You would be wrong.
Spain has just introduced a change to the way that people apply for and get the NIE tax numbers which directly affects all foreigners coming into the country, wanting to invest here in the majority of cases. Let's take an example. Previously a non European resident wanting to buy a property in Spain had to apply for a NIE number. They visited the country and signed a power of attorney for a lawyer or gestor to do the legwork for them or they applied through the consulate in the country where they reside, a longer process but still valid.
This has now changed since the 3rd of January 2012. Now there are two huge problems. If you are applying for a NIE number (which you need to have in order to buy a property) you need to apply in person now. A full power of attorney, designed for this purpose of course, now isn't valid. Not only that, the applicant needs to take a notarized copy of a document that states which property they are going to buy with catastral and registry details on it and also a notarized copy of their passport. The applicant also needs to present themselves, at least here in Valencia, at a police station in the middle of an industrial estate on the outskirts of Valencia and queue up to be treated like a piece of dirt by the civil servants working there as they are sick of their working conditions and the constant changes of system which irritate and anger the applicants there. This means that millionaires wanting to invest a lot of money in Spain are treated like dirt on their first experience of the country.
Do you think this encourages them to invest in the country?
Do you think this helps to bring much needed investment into the country?
Of course not.
However this isn't the only problem. I said earlier that there is another way to get a NIE number, applying through the consulate offices of Spain in other countries. Well in its infinite wisdom the new Spanish government has just closed down the consulate offices in most of the major cities in the Uk and all other countries as a cost saving measure. This means that now the only place to apply for a NIE number in your own country is at the Spanish embassy. Some of my clients live over 1000 miles away from their nearest embassy in China, the USA and Russia and the NIE number department only opens on certain days when the notary is present.Is this good policy? Or is the Spanish government shooting itself in the foot repeatedly?
What this means for you and your NIE number application.
You now need to give over another day when you visit to apply for your NIE number. You firstly need to decide which property you are going to buy and get the registry details of that property. then you need to go to a Notary’s office and pay for both your passport's notarized copy and a document stating your intention to buy that property with the details on it. (Still make sure you do powers of attorney for the lawyer because currently we believe there is no impediment to them picking up the NIE number, the problem is applying for it as they need to see your face at least once.) Then you need to accompany a lawyer who knows the system down to the relevant police station to apply. Use a lawyer because if you do not you will have to join the queue whereas a lawyer who knows the system may well be able to help you to jump that queue, and that queue could be very long. The system is no better if you are a European union citizen except in one respect, the queue will be shorter as it is a different police station and the civil servants who work there are actually quite civil. If you have any doubts get in touch and I will put you in touch with a lawyer to help you with this process even if you are not buying a property through my company, Valencia Property.
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