Words: Ashley Rigg
Published: 18th January 2012
*Spanish corruption clamp down to impact agent sales
New rules aimed at clamping down on money laundering and the entry of criminals into Spain is likely to have a detrimental impact on overseas property sales, according to some of the country’s leading agents.
Spanish authorities have decreed that European buyers must now register personally for their ID number (NIE or número de identidad de extranjero) which is required before a property sale can take place.
According to Barbara Wood, founder of
The Property Finders, removing the option of using power of attorney to acquire a NIE is likely to have serious consequences.
“The viewing trips we run have a tight schedule. The rule changes mean buyers will have to get up and queue at 7am at a local police station. In Marbella for example, only 50 NIE’s can be issued a day so our lawyers [acting with power of attorney] have to rise early and spend hours battling Spanish buearcracy. Asking potential buyers to do this poses serious logistical and commercial concerns for agents”.
Buyers “treated like a piece of dirt”
Graham Hunt, owner of Houses for Sale in Spain goes further.
“The applicant needs to present themselves 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”
he writes.
"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!"
Comment: Hard to comprehend
Although in principle the authorities desire to clamp down on corruption should be applauded, there are surely more practical ways of going about it. If the authorities want to check photographic ID why not allow NIE’s to be issued by power of attorney and ask new applicants to show up at a police station within six months? If there are any discrepancies then the NIE could be rescinded and property ownership put at risk.
At a time when international buyers are doing so much to support the economy and tax coffers of coastal regions, why make it much more difficult for them to buy?
Property taxes have already risen in many regions this year. The government seems to be taking a huge gamble that the changes it is introducing won’t be a deterrent to sale.
Source: Global edge
User Comments
One more nail in the coffin of progress for this crazy country! Anything which is put in place to HINDER any upsurge in property sales (however small) to foreigners is surely a BIG step backwards. The spanish generally have little or no notion of "customer service" and this is borne out only to clearly with these new rules. Crazy. Welcome to Spain
British expats in Valencia,
www.thecv35.com
Got to say I disagree Barry. As you know I am also in Valencia and until two weeks ago we could always get the NIE using a POA. It didn't have to be a lawyer either as I have applied for and picked up NIE numbers for clients many times in the past.
Graham Hunt,
Valencia Property
In the Valencia Community, it has unfortunately been the way since 2004 I think that NIE's had to be applied for in person,at a local police station and waiting in a queue. Admittedly those queues are a lot shorter now, but still the attitude shown is not always so inviting especially for those super-rich clients we all wish to attract. Altea does have a particularly helpful Oficina de Extranjeros though I must say.
Barry McCormack,
Ultimate Homes