Buying Property In Spain - Legal & Tax Advice

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1. Buying Property in Spain

If you are considering buying property in Spain you will need to bear in mind that the legal system and steps to follow are different from those you may have experienced in your country. 

Let us give you some advice:

7. You have to check that town permissions are in order and the property is a legal building. This is particularly relevant when buying off-plan or directly from a developer. The town hall can inform you whether the building has all licences and permits.

8. It is also wise to get the following documentation from the owner:

  • a paid-up receipt for the previous owner’s annual property tax (IBI);
  • the licence of first occupancy or habitation certificate issued by the town hall. You will need this document to connect to electricity and water companies;
  • receipt to prove all utility bills have been paid by the previous owner;
  • if applicable, a certificate signed by the President of the Community of Property Owners stating that there are no outstanding debts;
  • an energy efficiency certificate of the house.

9. As contract of sale, you have to ask for a public deed, issued before a Notaryand register it in the Land Registry as soon as possible to ensure full protection of your rights. The notary should even send advance notification to the Land Registry electronically once the public deed is signed.

  1. First of all, you should consider the convenience to get assessment from a professional, such as a lawyer, who will guide the buyer through all procedures during the purchase of the property.
  2. Identify the person you are speaking to and who acts on behalf of the owner. If your are treating with a company, you should ask for their Tax number (CIF in Spain) and Company Registry, and, if he is an individual, you must ask for the identification card number (DNI in Spain).
  3. The seller needs to provide a copy of the notarial deed that proves he is the property owner, for example a purchasing contract.
  4. In addition, you must verify the property data at the Land Registry, that is the most reliable office in Spain in order to prove the ownership. With an extract from this Register you can check the name of the owner and if there is any burden that affects the property, such as mortgages, usufruct rights, judicial or administrative embargoes or other debts.
  5.  If these kind of burden exist, the landlord should cancel it before you buy.
  6. Check also that the property is not rented and is not occuped by people different from the owner.

Buying Property in SpainWe accompany our clients through all legal procedures - © Photo: Ernst Lalleman

10. Costs to be taken into account when buying property in Spain: It is important to consider that, by law, all expenses of the sale of a property are on the expense of the buyer, except the tax on the increase in Value of Urban Land, that has to be paid to the town hall by the seller.As for taxes, they may consist of the value added tax (10 % for residential buildings or 21% for non-residential buildings) or transfer tax in the case of purchasing a resale home, which is usually between 8% and 10%, depending on the regions.Cost of the deed, according of the price of the sale.Registration of property in the public Register, also according to the purchase price

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At Supporting Investments in Spain, S.L. we guarantee the safety of your investment. We carry out a previous and thorough analysis of the legal condition of the property and advise on all aspects to ensure the buyer's purchase without problems. We can also advise you on any tax issues, financial matters, insurance policies, residence permits, etc. 

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