SELLING & OWNING PROPERTY IN SPAIN
CONVEYANCING IN SPAIN
Conveyancing is a specialist field in the legal profession,
since the property laws are often highly complex.
With this in mind, before purchasing property in Spain,
the buyer must verify in particular the following issues:
a) Make sure the seller owns the property in its totality. We provide guarantee to pass MB7-701 with online exam training 117-101 exam and Test-king, you can also get best quality examsheets mcat along with selftestengine mcat for your guaranteed success.
b) Make sure the property is free of debts and charges such
c) Verify the urban classification of the land on which
the property is built.
d) Verify the urban development plans of the land on which
the property is built.
In order to satisfy these issues, there are a number of
checks that should be carried out by the purchaser. In this
sense, conveyancing will differ from case to case.
Two of the most common are the following:
1) Acquiring a property registry report (Nota Simple Informativa)
from the land registry (Registro de Propiedad), which clarifies
ownership and any charges corresponding to the property.
(The Land Registers record estates, house, etc., including
their transfers, mortgages and other liens and seizures).
2) Checking with the Town Hall the urban classification
of the land on which the property is built, and its place
in urban development plans.
Sales contracts in Spain must be executed before a notary
to have full effect, if they are to be entered in the Land
It is common practise for both parties to enter into an
initial private agreement (which may involve a deposit, or
Earnest) and afterwards to complete a public deed of sale
before a Public Notary and register the transaction in the
After the purchase you should notify the corresponding Gerencia
Territorial del Catastro of the change of ownership resulting
from the sale.
TAX ISSUES IN SPAIN
Applicable taxes on the acquisition of property in Spain
Sales Tax (VAT) & Stamp Duty
These taxes only apply if the property is being sold for
the first time and the seller is a property developer. The
Sales Tax (known as IVA in Spain) is 7% on the price of the
purchase, and the Stamp Duty is fixed between 0,5% and 1,5%
on the price of the purchase, depending on the Spanish Autonomous
Region in which the property is located. If any deposit is
paid before completing of the sale, this deposit will be
subject to VAT (7%) at the moment of its payment.
The buyer always pays VAT and Stamp Duty. VAT is paid directly
to the seller, and the Stamp Duty is paid to the tax office.
Usually the Stamp Duty is paid by the lawyer representing
the buyer through a previous provision of funds.
Transfer Tax (Impuesto Sobre Transmisiones Patrimoniales
This tax only applies if the property has been bought and
sold before. The amount is 7% (in some places it is 6%) on
the price of the purchase, depending on the Spanish Autonomous
Region in which the property is located, and the buyer always
pays the tax.
In this scenario, if any deposit is paid before completion
of the sale it is not subject to the transfer tax. However
the full amount of the transfer tax still has to be paid
upon completion directly to the tax office.
Usually the buyer pays this tax to the lawyer who deals
with the acquisition on behalf of the buyer. The lawyer uses
to require the buyer to advance a provision of funds.
Local Capital Gains Tax (Plusvalía)
A local / municipal tax that applies to the increased value
of the land upon which urban properties are located, and
that is levied at the time of transfer of ownership.
It is calculated on the basis of the 'valor catastral' of
the property (an administrative value that is usually lower
than the market value). The amount due will depend upon how
long the seller has owned the property, with the tax amount
increasing with duration of ownership.
The seller pays this tax, though it is possible that sellers
of resale property may try to shift the burden of this tax
to the buyer. It is common to increase the price of the property
by this tax: in practise, the buyer finally pays this tax.
There are other taxes related to the ownership of real estate
in Spain (Property Ownership Tax or Impuesto sobre bienes
inmuebles - IBI ), and specific taxes applicable only
to non-residents, in which the jurisdiction of residence
for tax purposes is very important because in some cases
the double-tax treaties provide advantages in specific countries.
We will be more than happy to assist you in any question
related to this matter.
Should you need any further information, please contact