Buying And Selling A Property In Spain.

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 have an official record and proof of both how much was paid as well as the details of the financial entity from which the money to purchase the property originated.

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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. Please ask for advise 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 comunity tax bill -IBI-, suplies: electricty bills, water bills, etc.)

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

3. Payment Of Taxes (8% Of The Declared Value on used properties from Jan-2012 in Andalucia)

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 1,5% of the declared value as the Stamp Duty (in Andalucia region).

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.

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 2,000 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.

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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.

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

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 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.

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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: to be agreed with the buyer as if the buyer is restoring the property or living in less than 3 months a year, it is not mandatory.
  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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