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.