Legal warning

Buying property.

Buying a property in Spain does not have to be as complicated as it may seem at first. However, it is important to follow some basic guidelines.

Legal representation.

First of all, you must make sure you understand the basic process of buying a property in Spain. The buying process is actually quite simple and the termination can take place in a matter of days instead of months.

However, I insist on the importance of having a good legal representation, although any reputable agent will have already requested an extract of the Simple Note from the Property Registry, to ensure that there are no charges or levies against the property, or if in fact There are, which can be treated as a formality before the completion of the sale.

It is essential to find a good Spanish lawyer who speaks English. Ideally, they are from the locality where you intend to buy, as apart from legal experience they will also have valuable local knowledge.

RB Gestión Inmobiliaria does not have a specific agreement or connection with any local lawyer, however, in the last 25 years we have been able to identify those who appear to be competent and professional, and voluntarily recommend their services on request.

If you want to benefit from our experience do not hesitate to contact us and we will be able to give you some guidance on the things you should ask a lawyer and the things you need to do if you find a property you wish to buy.

Required documentation.

In recent years many Spanish properties have been updated, in terms of legal paperwork, but there are a number of key documents that must be in order before completing the purchase of your new home. These are:

1. The 'Public Deed'.

This is the title of the owners.

It is registered in the Property Registry and is the only title guarantee here in Spain. This includes a brief description of the property, the details of the owners and any details about the charges that affect the property, such as mortgages, rights of way, water wells, etc. And seizures of the court.

Ideally, the deed will describe the property you are buying, but it is likely that this description only details the property as it was purchased by the current owners so please make sure that you are aware of significant changes that the seller could have made while Have owned the property.

While writing is a very important document, it is a private document and therefore may have inaccuracies (passed from seller to buyer for several years). Therefore, it is very important to check the public records of the property you are buying - these include the registration of the property and the Cadastre (more on both later).

2. Tax on Real Estate.

This is a receipt of the annual property tax of the owners which is known as IBI or "contribution."

This receipt is very important because it confirms what the owners have paid in the last year in their rates and also provides information regarding the Cadastre.

The invoice of IBI will show the Cadastral reference number of the property that can give you information (through the Cadastre website) about the property you are buying (this website has details of the size of the land, the size of the property and There may also be pictures showing the property).

The IBI bill will also show the cadastral value of the property as assessed by the Treasury (tax office), which in turn dictates its annual fees bill, as well as any tax possible due to the sale of the property.

Your lawyer (prior to finalization) will ensure that all IBI taxes have been paid during the last 5 years so that there are no liabilities in course for you.

3. The Registry of Property.

The Register of Property is the public register of real estate in Spain.

Once you have purchased your property you will have a "deed of sale" that is signed in front of the Notary and this will confirm you as the new owners of the property.

After signing at the Notary, your attorney must then submit the deed to the Property Registry for public record - this record contains information about the legal ownership of the property along with the details of the mortgages, any other charges and Path, etc.

4. Sale agreement.

Once you have found your new home and agreed to the price you will have to pay a tenancy deposit (usually € 3,000 - € 6,000) to sellers (usually through your lawyer) to make sure the property is withdrawn from the market Immediately, within a period of 10-30 days.

In some cases a small private contract will be drawn up by the buyer's lawyer to safeguard his client's money, although this can often delay the sale from the outset. At no stage should you pay the money to a farm agent (unless they have a clearly identifiable customer account).

You will then need to (with the help of your lawyer) develop the private purchase agreement that confirms the basis of the sale and any specific terms agreed upon by lawyers. Until this agreement is signed, the property may be sold to another party. Once the contract is signed and a deposit (normally 10% of the purchase price) is paid, then you have effectively exchanged the contracts and this now means that the house is sold and the end date is fixed.

There are a number of taxes and fees that will be paid on any property you buy in Spain.

These will vary for each feature, however the general probability is that 10% of the purchase price will be needed to cover all costs.

The Andalusian Property Transfer Tax is levied on all private resale properties and amounts to 8% of the value declared within the contract.

Notary fees are fixed with an official scale of charges. Rates vary according to the amount of land, the size of the property and the price at which the property is sold. In general terms, prices range from 350 to 600 euros. The costs of the Notary can be shared, although often, the buyer is expected to pay all costs of the Notary (especially when buying in Spanish).

The registration of the property will be updated with the details of the new buyer once the transfer has passed and charges for this will be similar to the costs for the notary.

5. Who pays for what?

Unless otherwise agreed, the seller will traditionally pay the capital gains tax on the sale together with Goodwill, which is a tax of the local taxed authority on any increase in the value of the land as shown in the Cadastre.

Usually the buyer will pay the transfer tax and any document charge as mentioned above.

Spanish consumer regulation advises that this division between buyers is the normal way taxes and duties are to be paid, although there are cases (especially when the buyer "trades hard") where the seller will insist that the buyer Pay all fees and taxes.

6. How much to declare?

For a long time it has been common practice in Spain to declare under the value of the house you are buying in order to minimize the transfer tax. This also helps the seller to avoid capital gains tax.

In recent years, Spanish lawyers have begun to advise all clients to declare the agreed price (or very close to it) as Spanish tax inspectors have been investigating more and more sales where they believe that the securities have been sub- Declared.

If you are buying a property and the seller insists on reducing the declared value of the property there is the possibility that the tax authorities will impose a fine once the sale is completed. In addition, when you sell the property, you will be charged the capital gains tax on the gain you have made since you purchased the property (the difference between your stated purchase price and your stated sale price).

Contact information

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