Buying And Selling A Property In Spain

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Buying And Selling A Property In Spain. Our Fee will include the following tasks:

1. Legal Assessment Prior to Exchanging Contracts.

You have to be sure the property that you are buying is correctly registered at the Land Registry, or described in the title deed, check the property is free of debts, charges, taxes and tenants. It is advisable to check if the property has planning permission, first occupation license, etc. 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 banker’s draft or bank transfer from your Spanish bank; this way you will have an official record and proof of both how much was paid as well as the source of the funds to purchase the property.

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 we will be there to sort out any last-minute problem that may arise and act as your translator. Please ask for advice regarding the documents you would need to sell/buy a property at the notary’s office (Passport, NIE number, Title Deed, price’s proof of payment: e.g.: bankers draft, bank transfer slip, last community tax bill -IBI-, utilities: electricity bills, water bills, etc.)

If you have changed your passport and the passport number is different than the one you used to buy the property, please, ask for advice.

3. Payment of Taxes

If you want to have your deed registered in your name, first you have to pay the Transfer Tax.

There are tax benefits if you are buying your permanent home, if you are a disabled person, or are under 35 years old, etc., and these exceptions/reductions can be different in each Spanish region.

It is very important to double check the property’s tax value.

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 10% of the declared value. When paying VAT, you have to pay also 1,2% of the declared value as the Stamp Duty (please confirm the tax rates with us as it might change).

Due to the changes in tax rates in the last months please ask for confirmation of the taxes to be paid on a property purchase.

The 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. We can help you to apply and get the NIE Number or residency certificate.

4. Payment of The Notary and Land Registry Fees.

The final amount 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.

If you have changed your passport and the passport number is different than the one you used to buy the property, please, ask for advice.

5. Collection Of The Title Deed From The Land Registry.

It will take a few weeks to have the deed and your ownership right on your property registered at the land registry.

If the property you are buying was not previously registered at the Inland Revenue Office (Catastro) and Land Registry, the registration can take many months or even years depending if the property was previously registered at the Catastro (Cadastre – Tax Office) office or not.

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 property’s tax value. 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.

DOCUMENTS REQUIRED AT THE NOTARY’S OFFICE WHEN PURCHASING / SELLING A PROPERTY:

Buying a property:

1. Passport.
2. NIE number or residency certificate.
3. Proof of price’s payment (bank transfer, bankers draft, etc.).

Selling a property:

1. Passport.
2. NIE number or residency certificate.
3. Certificate as you are tax resident in Spain (only if you are tax resident in Spain).
4. Original title deed of the property you are selling.
5. Last IBI tax receipt.
6. Last invoices for electricity/water/etc.
7. Energy Performance Certificate.
8. Keys.
9. If you are selling and apartment/flat you must provide a certificate of up-to-date community receipts payments.

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Legal Actions

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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.

We have more than 15 years Court experience working on behalf of our 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.

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Tax advice

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We will be able to help you with your income tax declarations, and other tax advisory services, as limited company’s accounts and taxes.

Non-tax residents:

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 (Eligible income from real estate).

When selling the property and claiming back the 3% retention you would need the last four years 210 forms.

Tax residents:

You are considered tax resident in Spain if you meet one of the following criteria:

1. You are in Spain for more than 183 days in a calendar year

2. Your family, spouse (unless legally separated) and/or dependent children are resident in Spain, even if you are in Spain less than 183 days

3. Spain is the main center (directly or indirectly) or base of your activities or economic interests, directly or indirectly.

Once you meet the criteria for tax residency, you must submit at least one annual tax return (RENTA or 100 Form).

Double taxation:

The first principle of taxation is that income (pensions, salary, capital gains, savings etc.) are always taxed in the country of receipt. However, some people live and work in different countries. Others receive income (pensions, interest etc.) in one country, but live in another.

The second principle of taxation is that if you are considered tax resident in a country, then you will be subject to the tax laws of that country, and be subject to taxation on your income and assets. It is possible therefore to receive income which is taxed in one country, which is also liable to tax in another. A number of countries tax residents on their worldwide income and assets.

Consequently, in 1963, the Organization for Economic Co-operation and Development (OECD) published a draft model (double taxation agreement (DTA) which was intended to form the basis of double taxation agreements between member countries.

The purpose of this was to ensure that even though income could be taxed in both countries, the agreements were designed to ensure that credit was received for the tax already paid. The model has been revised a number of times.

Do not hesitate to contact us for further information.

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Spanish Last Wills and Probates.

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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. However, since 17th of August 2015, according to the Regulation (EU) No 650/2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession and on the creation of a European Certificate of Succession, you can choose between your national law or the Law where you are domiciled (article 22.1).

It will make things easier for your heirs if you have a Spanish will drawn up and signed in Spain.

Our 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 submit the inheritance tax form within six months after the testator is deceased.

If you have inherited a real estate in Spain, we 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.

Please contact us for further advice about tax benefits.

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Planing permission to build/rebuild a property.

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In order to apply at the Town-Hall for the works permission necessary to build 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.

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My name is Victorio Heras García and I am an independent Spanish lawyer, fluent in English, with wide experience in property conveyancing in the Granada area and specialising in rural houses and inland properties and cave-houses.

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I have a Law degree from the Complutense University of Madrid. I also have the following qualifications:

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My name is Mari Carmen Martínez González and I am tax advisor, accountant, expert in working relationships and insurance broker, fluent in English, with wide experience (more than 20 years) in wide advisory services and procedures with the different administrations (Government, Junta de Andalucia, Town Halls, Diputacion, Social Security, Tax Office, Tourism…)

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I have the following official degrees:

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