RSSLegal Service By Victorio Heras Garcia
A.- Buying And Selling A Property In Spain.
My Fee will include the following tasks:
1.- Legal Assessment Prior To Exchanging Contracts.
You have to be sure that the property that you are buying has the same information and description as described in the title deed, i.e. that it is free of debts, charges, taxes and tenants. It is, therefore, VERY IMPORTANT to contact a lawyer before signing a private contract to secure the property or pay the deposit. If you contact a lawyer before signing the private contract, he or she would be able to advice you about clauses designed to protect you and save you money.
Due to the new Laws on money laundering, non residents in Spain are not permitted to pay more than 10,000€ in cash for a property without completing an S1 form. The best way to pay the seller is by bankers draft from your Spanish bank the vendor’s name; this way you will be able to prove where the money comes from.
2.- Assistance And Translation On Signing The Title Deed.
If you do not speak Spanish you will need a translation service when signing the title deed, and I will be there to sort out any last minute problem that may arise and act as your translator.
3.- Payment Of Taxes (8% Of The Declared Value on used properties from Jan-2012)
If you want to have your deed registered in your name, first you have to pay the Transfer Tax. This is paid in the tax office that usually is at land registry and it is 8% of the declared value.
The 8% as tax is normally paid but it can be reduced if you are a disabled person, or are under 35 years old, etc., and these exceptions/reductions can be different in each Spanish region.
If you are buying a new property or a second hand restored property sold by a company, you will pay VAT (or IVA as it is called in Spain). VAT is be 8% of the declared value. When paying VAT, you have to pay also 1% of the declared value as the Stamp Duty.
I usually ask the client on the completion date for financial cover to pay all the legal fees and taxes. This financial cover will depend on the property value but usually is 2000 euros to cover the legal fees (including mine) and 8% of declared value to pay the transfer tax/stamp duty or VAT (4% or 7% or 8%).
A NIE number (Foreigner identification number) is necessary to sign the title deed and to pay the taxes as the NIE number will be your tax identification number in Spain. I can help you to apply and get the NIE Number or residency certificate.
4.- Payment Of The Notary And Land Registraty Fees.
The final amount that you will be paying to the notary and land registry will depend on the declared value, the number of sellers and buyers, it is not a fixed price, but the notaries and land registries have their prices legally established.
5.- Collection Of The Title Deed From The Land Registry.
It will take one or two months to have the deed and your ownership right on your property registered at the land registry.
If the property you are buying was not previoulsy registered at the Inland Revenue Office (Catastro) and Land Registry, the registration can take many months or even years as the Catastro is notoriously inefficient and inept!
6.- Changes Of The Ownership At The Tax Office (Catastro).
If the title deed does not include the last receipt paid to the Inland Revenue Office (Catastro), it is important to fill in a form (901-S) to communicate to the tax department (Catastro) that you are the new owner of the property.
The tax you have to pay for owning a property in Spain is not very high, depending of the price of the property. It is paid once per year, between September and November, and usually you get the receipt by post.
7.- If The Property Is Not Registered At The Land Registry.
The first thing to do will be to research why it has not been registered and whether it will be possible to registry it or not, and what documentation will be necessary. Normally a certificate from an architect and a survey (maps and plans) of the property are required.
B.- Legal Actions.
Lawyers are like doctors, no one wants to see you, but if you have to bring an action, or someone sues you for damages, etc., it is advisable to have an English speaker lawyer on your side. I can help you on civil and criminal issues, labour-law, and administrative legal actions.
I have over five years Court experience working on behalf of my clients.
The attorney in Spain is the person you need to appoint to represent you in front of the Court and he will be in charge of getting the notifications/resolutions from the Court and submitting the documentation provided by the Lawyer.
The attorney’s fee will be paid separately from the lawyer’s.
C.- Tax advice.
In agreement with an English speaking tax advisor located in Pozo Alcon (Jaén) I will be able to help you with your income tax declarations, and other tax advisory services, as limited company’s accounts and taxes.
If you own a property in Spain and it is classified as urban, you need to fill in the form 210 once per year and pay the tax that will be a percentage on the property’s Catastral value.
Do not hesitate to contact me for further information.
D.- Spanish Last Wills and Probates.
According to Spanish civil Law, the inheritance law that applies to foreigners is the Law that applies in their home country, even if they make their Last Will in a different country, i.e. Spain.
If you pass away in Spain without a Spanish Will, the probate will be done in England (if that is your home country), and later it will have to be translated, apostilled (attach an apostille-legalisation certificate) following which an inheritance title deed will be signed in Spain, so your heirs will be able to register the estate in their names.
However, it will make things easier for your heirs if you have a Spanish will drawn up and signed.
My fee includes drafting out your Will by email and assisting at the notary office as translator.
The inheritance tax will depend on the person inheriting the testator’s properties, value of the properties/estate, and the Spanish area where he/she was last domiciled. It is mandatory to pay the inheritance tax within six months after the testator is deceased.
If you have inherit a real estate in Spain, I would be able to help you on the property’s registration, payment of taxes, etc. Please ask for an estimate of the costs involved and/or the best way to proceed and documents required.
E.- Planing permission to build/rebuild a property
To apply in your Town-Hall for the works permission necessary to built a new house or rebuild an old one. Depending of the kind of restoration and the Town Hall you might need a project signed by an architect.
There is a tax on the planning permission that is normally the 2% of the project’s estimate.