Do you need an NIE to start a renovation?
For the building work itself, no; for documents in your name, yes. The NIE is the foreigner's identity number, and the owner of a flat in Spain usually has one from the purchase. It is needed wherever a document is issued in your name: the permit application, utility contracts, invoices to a private individual.
If you do not have an NIE, it is requested from the police in Spain or at the Spanish consulate in your country, stating the reason. Timing depends on location and appointment availability, so it is better to do it before signing the contract so as not to stall the works at the permit stage. If a representative handles it, check what powers are needed: we covered this in our guide to power of attorney.
This is not tax advice: the taxation of a non-resident owner is a matter for a tax adviser, and we do not discuss it here.
Can you pay the contractor from a foreign account?
Yes, a transfer from a foreign account to the company's Spanish IBAN is accepted as ordinary payment. What matters is that the details match the contract and the invoice: the beneficiary is a legal entity, the IBAN is the one in the contract, and the payment reference carries the invoice or stage number.
Before the first transfer, verify the details through two channels: for example the contract and a call to a number you already know. Swapped bank details in correspondence are the most common fraud on large payments. Pay only to the company account named in the contract and not to employees' personal accounts.
For a large international transfer the bank may ask for documents: the contract, the invoice, an explanation of the source of funds. This is a routine check and the papers are best kept to hand. If you pay in euros within the EU, the transfer runs as an ordinary SEPA payment; from outside the eurozone a conversion and an intermediary bank's fee are added. The order of payment by stages is described in our guide to staged payments.
What are the limits on cash payments in Spain?
The general limit is 1,000 euros when one party acts as a businessman or professional, and 10,000 euros for private individuals with tax domicile outside Spain. This follows from Law 7/2012 as amended in 2021, and is how the Spanish tax agency (AEAT) describes it.
In practice it means you cannot pay large renovation sums in cash. Even where the limit allows it, cash is a bad idea: you have no bank record and the company has trouble with its accounts. A contractor who asks for cash sends a warning signal; why to be wary is covered in our guide to cash payments in renovations.
Exceptions: payments through credit institutions and transactions in which neither party is a businessman. Splitting a payment into parts to dodge the limit is treated as a single operation. Rules can change, so check the current wording on the tax agency's website and confirm it with an adviser.
Do you need a Spanish bank account?
For paying the renovation it is not essential, but it makes life easier. With a Spanish account it is simpler to pay by IBAN without conversion, set up direct debits for water, electricity and internet, and pay comunidad fees and local taxes. Without one, utility bills must be paid from foreign cards and transfers, and delays arise when changing a supplier.
A non-resident can open an account at banks that work with foreign clients; they usually ask for a passport, NIE and proof of address, sometimes property documents or an explanation of the account's purpose. Each bank decides how to treat non-residents and timescales vary, so it is better to approach them early and not a week before the first payment.
If opening one is difficult, the renovation can be paid for by international transfers. It then helps to keep, for each payment, the payment order with the bank's stamp and the invoice. How to match stages and payments is covered in our guide to a reasonable advance.
How are stages paid, and what should you check on an invoice?
Payment follows the contract, by stages: after a stage is completed and accepted, an invoice is issued, you check it and transfer the amount. On the invoice you check the company details, your details, the description of the work, the amount before VAT, the rate and amount of VAT, and the number and date. VAT in our estimates for renovating existing housing is usually 21% and for building new housing 10%; the rate depends on the nature of the works.
Compare the invoice with the estimate and the stage certificate. If new lines appear on the invoice that were not in the estimate, that is a change and it must be agreed in writing before payment. Transfer the exact amount on the invoice and put its number in the payment reference.
Keep all invoices and payment confirmations with the contract, in one cloud folder: they are needed for guarantees, insurance claims and your tax adviser. The advance and tying payment to real progress are covered in our guides to staged payments and to the advance, and VAT in our guide to the 21% and 10% rates.
How long does a transfer take, and how do you fix the exchange rate?
A euro transfer within the EU usually takes from a few seconds to one working day, and an international SWIFT transfer one to five working days. These are guides: holidays, weekends and bank checks lengthen the time. So the payment is sent several days before the stage date, not on the day the result is needed.
The exchange rate. If your account is not in euros, it is better to keep the contract in euros: the price is fixed in the estimate and you do the conversion yourself. The rate on the day of payment cannot be guessed, so good practice is not to leave conversion to the last day and to spread payments across stages: part of the sums is transferred as the work progresses. If you need protection against fluctuations, discuss it with your bank or a currency intermediary; we do not give financial advice.
Keep the transfer confirmation with amount, date and operation number: the contractor will be able to match the payment to the invoice faster, and you keep a document in case of a dispute.
How does BCN YARD organise payments for owners abroad?
Payment follows the contract, by stages, and invoices are issued by BCNYARD, SLU with the details stated in the contract. We run projects in Russian and Spanish, with one person responsible who reconciles stages, certificates and payments. Write to us and, after the visit and survey, we will prepare the estimate and the payment schedule. As a guide, the Luxury level starts from 3,000 €/m² excluding VAT.
Frequently asked questions
Do I need an NIE to start the renovation?
Not for the physical work, but it is needed for documents in your name: permits, utility contracts, invoices. The owner of a flat nearly always has one from the purchase. If not, apply in advance, at the police in Spain or at a consulate, so as not to stall the permit stage.
Can I pay the contractor by card?
Cards are awkward for large sums: limits, fees and difficulty of reconciliation. The main method is a bank transfer to an IBAN quoting the invoice number. A card can be used for small purchases or a reservation payment, if the contractor accepts one. Fix the choice in the contract.
What if I made a mistake with the bank details in a transfer?
Contact your bank immediately and ask it to recall the payment or request a refund, then tell the contractor. The sooner, the better the chance of stopping or recovering the money, especially within SEPA. That is why details are verified beforehand, and it is wise to make the first payment a small test transfer.