The buying process guide
Previous control period to the buy and sell
Analysis of title from seller (deed, deed of donation, exchange deed, deed of extinction condominium, articles of inheritance, judgment award, etc.). If the property belongs to marriage or several individuals determine that all sign the sale and if it belongs to a legal entity to verify the existence of the entity in the trade register of competent Associations and legitimacy of the representatives of the entity to transmit property.
Examination of the entries in the Property Registry in relation to current data ownership, liens and encumbrances on the property. Do not purchase any goods in which the seller may not appear as registered owner. In no case shall a building already built if it does not inscribed the Declaration of New Work will be purchased. If you are noticing the existence of pending legal acts of registration require the seller to rectify these defects before the execution of the deed of sale of the examination of title and the Land Registry. Check the absence in the Property Registry of ALLOCATIONS and CONDITIONS. The encumbrances are liens or burdens on the property to satisfy a legal right, such as, among others, mortgages, easements, liens, crop loans or leases. In the event that they will appear extinguished rights entered or expired, must be requested cancellation. The conditions include assurances that tax administrations have on the property tax to charge for debts incurred in the transfer of goods and rights, such as Goodwill Municipal Excise Tax, Inheritance Tax, Transfer, or also due to tax debts non-Resident.
Material descriptions must match the existing property in the seller’s title in the Property Registry and Cadastre and the above with a plane property.
The seller must prove that the property is free of tenants and occupants.
Lack of retracts, i.e. the right of a third person to settle the purchase is not involved in subrogation to the same conditions of the buyer. This may come at a legal mandate (redemption of rented property, sale of property of a co-owner of adjoining neighboring plots of land by the tenant of the farm cottages) or will the seller in the form of repurchase right.
If the property is part of a Community in joint ownership regime should be checked that there are no economic incomes, litigation or other neighborhood conflicts that may affect the acquisition of the buyer.
Period of execution of the sale
Once adopted the decision to purchase a property some additional control actions against the seller who must certify, before the execution of the deed, be current in the payment of real property tax and garbage collection fee must be made and waste, all contracted supplies such as electricity, water, telephone, etc. and the shares of the Community of Owners of the property.
We recommend the filing of an inventory of furniture and plants that are part of the property subject to purchase signed by the seller.
While it should be concluded in any verbal contracts on real estate concept is common practice to sign a private document of sale, or promise to purchase or option purchase before the granting of the deed. In these cases it is advisable to the possible diversity of residence of the parties, including in the document as the applicable law of the place of establishment of the property to express submission to the Spanish courts. Intervention translator accepted by both parties and bilingual private contract wording is also recommended.
There is not unanimous on whether the legal doctrine of Notaries Member countries of the European Union may authorize deeds of sale of real estate located in Spain, so to avoid future problems we recommend grant them only to Spanish Notary. It is appropriate to ask the Notary written estimate of their fees. If the buyer is not going to appear personally before the Spanish Notary, you can grant in the country of origin or residence purchasing power of attorney for someone you trust to represent you in Spain. Should be provided to the notary before the formalization of the title deed of the seller, supporting identification documents of contractors and, where appropriate, their representatives, Certification Registry of Property, descriptive and graphical cadastral Certification Certification efficiency energy and documentation relating to payment methods. It is mandatory for all participants no Spaniards in a deed of sale of properties in Spain have identity number (NIE) regardless of place of residence and tax identification number (N, I, F.) To settle taxes. It is essential for the non-resident purchaser accompany negative certificate of residence, among other means, may be credited in bank letter stating that the amounts allocated to the investment come from a non-resident account (now called ACCOUNTS IN EUROS NON RESIDENT ) open in a working office in Spain of a depository registered in the Official Register of the Bank of Spain on behalf of the holder of the investment. Such statement may be reflected in the bank promptly in accordance check if this payment method is used. Carriers of means of payment from abroad exceeding 100,000 euros are required to complete an application form S1 model, to be submitted to the State Tax Agency, as notaries and registrars shall inform the Executive Service of the Commission for the Prevention Money Laundering and Monetary Offences any breaches. For exceeding EUR 3,000,000 or investments from tax havens should be formalized statement to the Directorate General of Foreign Transactions in the period subsequent to the execution of the deed, and in addition, in the case of tax havens month, another statement investment project prior to six months before the date of writing. It is preferable to incorporate the deed certificate from the Registry of Property of the property sold, instead of the registry simple note, since certification is an authentic document to third parties and you can apostille under the Convention of The Hague with consequent legal significance in Private International Law. If any of the parties know the Spanish language, the notary may authorize the execution of the deed in two columns in both languages, well translated by the Notary, if allowed their language skills, by a sworn translator or by a person accepted by both the notary public or by the parties.
Should be targeted for immediate presentation of the deed of sale or by the notary or by the individual concerned, due to the legal certainty afforded to the holder of the registration rights against third parties.
We will try to summarize the taxation of major real estate transactions, although it should be noted that there are some specific exceptions that do not develop in our exposure and should be considered in each case. The land acquisition if the seller is a trader or professional purchase is subject to Value Added Tax (VAT) and Flat Fee Tax Stamp Duty and if the seller is an individual is taxed Transfer Tax Onerous property. Purchases of new homes and new industrial or commercial buildings are taxed by VAT and A.J.D. fixed fee. The acquisition of second or buildings purchased by a particular transmission is taxed by the Tax Transfer Tax (ITP); if the buyer is a company taxation is similar, except for some cases of option to do so for VAT instead of I.T.P. We must emphasize the obligation to settle within thirty days of the purchase of the property the ITP or A.J.D. fixed fee for the sale is recorded in the Registry of Property.
Statement of change in ownership in the Territorial Cadastral Management.
We want to highlight just two aspects of taxation that may affect the seller to the buyer. First, when buyer and seller are considered non-residents, the buyer is required to withhold and pay to the State Tax Agency, 3% of the amount of the sale in respect of retention condition of the property acquired by a marginal note on the Land Registry. Moreover, the payment of tax on the increase in Value of Urban Land corresponds to the seller unless otherwise agreed. When the transferor is an individual not resident in Spain will be the substitute taxpayer acquiring the property, so the buyer should make sure that the seller has paid the tribute.
Period subsequent to the sale
The person with the condition of living in Spain who owns any urban property should be taxed under the Income Tax Non-Resident (IRNR) and the Property Tax (IBI). Is also in force in the year 2013, the Wealth Tax.
No specific limitation any foreigners to purchase property. That is, how many foreigners can buy real need in the same conditions as Spaniards.
The only essential document is the identification number (NIE). It can be obtained personally by the person concerned or by proxy, in the offices of the hinterland foreigners, and the Consulates of Spain in Russia. In ISPANDOMUS manage obtaining NIE customers that we request.
It is not necessary. After obtaining the N.I.E. and accredited payment means, such as through bank transfer, the buyer can formalize Russian public deed before the notary personally or by proxy. In the latter case must be empowered to purchase, which can be directed to the Spanish Consulate in Russia that will facilitate certain requirements. ISPANDOMUS performs the functions of representing our clients with the best guarantees.
The visa resident allows you to stay available in Spanish territory 90 days per semester, therefore, a maximum of 180 days per year. Another possibility is to apply the nonprofit residence to remain in Spain for more than 183 days per year. However, in the recent Act Entrepreneurs are expected to apply for residence investor buyers of properties worth over 500,000 € amount to maintain the investment for five years visa a year later temporary residence for two years, renewable for other two. After the initial term of five years, foreign property owners will have access to permanent residence.
No. The purchase of real estate taxation for both the purchase of new housing, essentially subject to VAT, and the second occupation, essentially taxed by the Tax Transfer Tax (TPO) is identical for foreign and Spanish.
We must distinguish between taxes and real character of a personal nature. Regarding the former, all homes are subject to the Property Tax (IBI) and the rate of garbage collection and waste. With regard to personal, yields are calculated primarily on either the assessed value shown in IBI If the property is occupied as a second home, or on the basis of annual income if the property is rented. To determine the applicable tax is due from if the owner resides abroad or in Spanish territory. Resident is considered anyone who legally stay in Spain 183 days a year, in which case it shall be taxed in the Income Tax of Individuals (income tax); otherwise, the foreign owner shall submit the income from your properties in Spain to tax nonresident income (IRNR).
Without supplies of electricity, water or telephone, usually must pay the expenses of the homeowners with authority over the property. Moreover, it is wise to hire an insurance policy to cover possible risks by housing tenure.
We are on hand to explain any questions about the sale of homes in Spain. Do not hesitate to contact us. CONTACT US