Tag Archive for: Buying Real Estate

Land Registry Spain: Information on the “Registro de la Propiedad”

/in

The land registry is common to all countries in the European Union. In Spain, it’s called Registro de la Propiedad. Land registry records are a tool that everyone must access because they provide information about who owns the property and how much each owner owes on any mortgages or land loans. In this article, we discuss some aspects of the Spanish Land Registry.

What is the land registry in Spain?

The Registro de la Propiedad (or in English “Land Registry in Spain”) offers official information on the number and location of all Spanish plots or parcels of property. The Land Registry is a government agency under the Ministry of Justice that strives to provide security in the real estate market. The agency is the only public institution that offers property ownership information.

Functions of the land registry

The Spanish land registry provides information on:

  • Property boundaries
  • Lot position
  • Classes of land
  • Property size
  • Names of the property owner
  • Rights and the charges that fall on a property

The land registry officially recognizes owners until unproven in court and therefore provides legal security.

When do you use the land registry?

There are several reasons to use the land register in Spain. These include:

When you want to change something in the land registry, you will do this through a public notary. The public notary is not there to protect your rights but to protect the rights of the government. To protect your rights in Spain, it is a good idea to work with a property lawyer.

land registry office for transfering property

Transferring property in Spain

It’s important to note that the purchase of a home in the Property Registry is not required by law. For example, if you are buying a farm, it is not necessary to register your purchase in the land registry. But bear in mind that a property registered in the land registry is safer to buy.

Transfer of property is often done with the help of a property lawyer. They will do an initial search of the registry records to see whether any issues could affect your purchasing power. The lawyer will then draft up contracts and protect the interests of the buyer or seller.

Is it necessary to register a property?

Because it is not obligatory to register a property in Spain, some people can think that it is unnecessary or that it is money that we can save. There are many advantages to registering your property in the land registry:

  • If a court decision does not specify otherwise, you will be treated as a single proprietor.
  • Property that is registered will safeguard the buyer from a seller’s creditors. The buyer will be able to protect themselves against unforeseen fees that may affect your house.
  • If you have a mortgage, it must be registered in the land registry.
  • When selling, the seller guarantees the transfer via a notary.
  • Information about limitations that affect the home will be clear so that no surprises can trap you.
  • If you believe that your right to possess is being threatened, there are several ways to get judicial support for it.
  • The fact that you are registering the purchase in the registry guarantees that no one will be able to get any rights over your property without your approval.

As you can see, there are many benefits to registering for owners, buyers, and sellers.

The land registry office

The land registry office has a website on which property owners can find out more about the property they are interested in. The website also provides information for engineers, architects, and lawyers who specialize in real estate.

Nota simple, and the land registry

One of the documents you can get from the land registry is the Nota Simple of a property. The Nota Simple is a document that certifies ownership, either by purchase or inheritance. It contains the date of transfer, the name of previous owners and new owners, plus all other details to establish the property’s history. The nota simple is often used when one buys a house in Spain or applies for inheriting it.

Land registry in Spain

A word from SublimeSpain

The land registry is of great importance to the real estate market in Spain. Unfortunately, scams are still happening where fraudsters sell fake properties they don’t own, or the properties have significant obligations, limitations, and risks attached.

Our property lawyers in Spain can help you with property law in Spain. We can draft contracts, analyze the law, act as a protective layer against a seller, and search the land registry records for any potential issues. If you need assistance with a significant purchase, like purchasing an apartment, villa, or office building in Spain, contact us.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

Stamp Duty in Spain When Buying a New Property

/in

Stamp duty in Spain (or Actos Juridicos Documentados, AJD) is a property tax for new property buyers in Spain. It’s worth understanding how it works if you want to avoid paying more taxes than necessary.

When do I need to pay stamp duty?

You need to pay Stamp duty when you purchase a new property, whether it’s a house, an apartment, land or commercial premises.

Stamp duty is mainly charged on notarial instruments and records documenting economic transactions that need to be registered in public registries (such as company, land, and industrial property registries).

Stamp duty is also charged on court, administrative, and certain commercial documents.

When don’t I need to pay stamp duty?

There is no Stamp duty on products where you need to pay transfer taxes or capital duty. These are products such as shares, securities, and resale property.

How much do I need to pay?

The stamp duty rates in Spain vary depending on the type of transaction and the value of the assets involved.

The stamp duty rate is usually between 0.5 % and 1.5 %, depending on where it is situated.

Who pays the stamp duty?

The buyer pays stamp duty, and if a deposit is paid before the sale is completed, it will be taxed at the point of payment.

Are there any other taxes I need to pay when buying property in Spain?

Yes, when you buy a new property, you will also need to pay VAT (IVA in Spanish). This is a tax on the property’s value, which is usually around 10 %.

Does the stamp duty include the notary cost?

No, the notary fees (fixed fee) and legal fees (around 1%) are not included in the stamp duty, and you will need to pay for these separately.

Another fee that is not included in the land registry fee. This is paid when the property is registered in your name and costs around 0.6% of the property’s value.

A word from SublimeSpain

We hope this article gave you a good understanding of the stamp duty in Spain. If you have any more questions, don’t hesitate to contact our team at SublimeSpain. We can help you with buying property, taxation and company formation.

Costs Buying Property in Spain: Taxes and Services

/in ,

Spain has no shortage of excellent property options for commercial and residential purposes. Spanish property prices are relatively lower than in many neighbouring countries and capital cities. Let’s explore the ins and outs of costs and fees for buying property in Spain.

Can foreigners buy property in Spain?

Having property in Spain is an alluring prospect for many foreigners, both EU nationals and Non-EU nationals. Foreigners can buy property in Spain and take out a Spanish mortgage, even if they are non-resident. That being said, varying tax implications may apply between resident and non-resident buyers in Spain.

Buying property as a foreigner might not be the most straightforward process, but Spain is very welcoming for foreign investors. Before the purchase, you must have a NIE number (financial number).

Golden visa program

Under the Spanish Golden Visa program, foreigners can get a residency visa after investing more than 500,000 EURO in Spanish properties. A Golden Visa is a viable option for investors from outside the EU.

Get the help of a Property Lawyer in Spain

Learn more

Costs you can expect when buying property in Spain

It’s essential to be aware of the Spanish housing market quirks, regulations and taxes in Spain before purchasing a commercial or residential property. As a buyer, it’s your responsibility to pay for all costs and taxes associated with buying a property.

Property transfer tax

When buying Spanish property, the property transfer tax is at 6–10% for existing properties or 10% for new properties VAT (or IVA) fees are only 10% for new properties.

Rental income tax

The applicable tax should be submitted and paid to the local Spanish tax office regarding rental income. The income tax rate is 19% as of 2021 for the EU. However, You can deduct the relevant expenses (including mortgage interest) from the gross rental income. In our article about rental income tax in Spain, you can find more information about the rates, deductibles and process.

Insurance costs

Property insurance isn’t mandatory in Spain. However, some mortgage companies may have it as a requirement. In such a case, you might be required to take some form of insurance coverage before signing the mortgage contract.

As much as insurance may not be a legal requirement, we highly recommend taking insurance for both building and contents as a reasonable consideration to protect your investment from various risks.

Capital gains tax

Capital gains realized on Spanish real estate are subject to a capital gains tax, and the tax rate varies per property and is typically progressive based on the income itself. After selling your property in Spain, you must pay applicable capital gains tax after considering all deductions and allowances.

When purchasing property in Spain, we highly recommend keeping digital and hard copies of all invoices concerning legal fees, notary fees, property register fees, among other expenses. Also, you should keep copies of all licenses and invoices in case of property renovations and other building work on an existing property. Consequently, you can offset such expenses against capital gains when you sell your property, thus reducing Spanish capital gains tax.

Our tax advisors can help you make more informed decisions concerning applicable deductions and allowances depending on specific autonomous regions in Spain. We advise on the best strategies to reduce your capital gains tax liability.

Other costs involved

Additionally, you have to pay notary costs, title deed tax, and land registration fees, usually set at 1–2.5%. There are no fixed fees for lawyers or real estate agents in Spain, but you can expect them to range from 1-7%, depending on the level of service needed.

Is buying real estate in Spain worth it?

As always, location is vital when it comes to real estate. Depending on the specific location, buying property in Spain is an excellent long-term investment for both locals and foreigners. Also, it’s a viable option for investors looking to get residency quickly in the beautiful European Union country.

Some buyers apply for a mortgage, while others purchase without obtaining finance when it comes to property financing. Many Spanish and international banks provide mortgages services, with some of them giving tailored deals for foreigners from specific nations.

Buying vs renting a property in Spain?

Buying or renting in Spain primarily depends on your specific circumstances. For example, most people have limited access to finance, thus opting to rent, which involves a far less financial outlay compared to buying.

If you’re moving to Spain long-term, buying may be more cost-effective. However, renting may be a more prudent choice for a short-term stay or those unsure how long they will stay in Spain.

As with many other nations, both have pros and cons to consider. Thus it would help if you tried to make informed decisions.

We recommend checking the Spanish property market forecasts for speculative buyers before investing or, even better, seeking advice from a professional.

Legal, business, and accounting solutions in Spain

As much as it’s not a legal requirement to purchase property in Spain assisted by a qualified expert, it’s highly recommended that you do. Buying a property is one of the biggest investments people make. So, why take the risk by not obtaining professional advice?

Spain has it all and with the proper due diligence and professional assistance, properties in Spain can provide to be beautiful homes and viable investments for years to come. We offer property buying guidance in Spain which is full-service and will make your purchase safe, secure and easier. We can take care of many processes for you utilizing the power of attorney. Contact us for more information and a quote.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal advice. We highly recommend seeking guidance from a legal expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.

Get the help of a Property Lawyer in Spain

Learn more

How to Find the Best Real Estate Lawyer in Spain?

/in

Navigating the real estate market in Barcelona can be complex, and having the right legal support is essential. Whether you are buying property, handling rental agreements, or dealing with property disputes, working with a specialized real estate lawyer ensures your transactions are legally sound and secure. This article explores why you need a real estate lawyer, how to find the best one, and what services they provide.

The Importance of a Specialized Real Estate Law Firm

Real estate transactions involve numerous legal details and regulations that must be carefully managed. A law firm specializing in real estate law understands local and national regulations, helping clients avoid costly mistakes and legal pitfalls.

Experienced real estate lawyers also provide risk assessment, ensuring that contracts are clear, fair, and legally binding. They help protect your investment by conducting due diligence, verifying ownership rights, and identifying any hidden legal complications. Additionally, they offer access to a network of industry professionals, including real estate agents, appraisers, and urban planning experts, who can facilitate a smooth transaction.

How to Find the Best Real Estate Lawyer in Barcelona

Considerations When Choosing a Real Estate Lawyer

We recommend you do some research to choose a real estate lawyer. Think about:

  • Licensing and accreditation
  • Experience and track record
  • Specialization in real estate law
  • Communication skills and language proficiency
  • Transparency in fees and costs
  • Client reviews and testimonials
  • Recommendations from trusted sources

You can also assess your lawyer by checking:

  • Availability and response time
  • Ability to handle legal complexities and disputes
  • Knowledge of local and national regulations

Key Legal Services Provided by Real Estate Lawyers in Barcelona

1. Real Estate Transactions and Contracts

  • Assistance with buying and selling properties.
  • Drafting and reviewing purchase agreements.
  • Resolving disputes related to private sales.

2. Property-Related Legal Issues

  • Addressing construction defects and hidden property issues.
  • Handling disputes over planning permits and municipal complaints.
  • Managing approvals, disputes, and horizontal property regulations.

3. Rental and Lease Agreements

  • Drafting and negotiating rental contracts.
  • Assisting with tenant-landlord disputes.
  • Handling cases of real estate harassment.

4. Legal Assistance for Property Owners and Developers

  • Guidance on real estate company formation and management.
  • Legal support for development and construction contracts.
  • Assistance with property owners’ meetings and compensation claims.

5. Real Estate Litigation and Dispute Resolution

  • Resolving property registration disputes.
  • Handling mortgage-related legal matters.
  • Legal support for contract breaches and cancellations.

Comprehensive Legal Assistance for Real Estate Matters

Real estate lawyers also provide assistance with a wide range of additional legal matters, including:

  • Purchase contracts and sale agreements.
  • Claims for construction defects and hidden property issues.
  • Non-compliance and contract disputes.
  • Planning permits and municipal complaints.
  • Legal disputes related to communities and property ownership.
  • Exchange contracts and disposals.
  • Assistance with incapacity or invalidity claims related to real estate transactions.

Legal professionals ensure that clients fully understand the legal framework surrounding real estate purchases and transactions, providing preventive legal advice and guidance on amicable negotiations when needed.

Other Important Aspects of Real Estate Law in Barcelona

1. Legal Process for Buying Property in Barcelona

The property buying process involves several legal steps, including due diligence, obtaining necessary permits, and paying taxes. A lawyer ensures that everything is in order before completing the transaction.

2. Common Legal Challenges in Real Estate

Buyers may face issues such as unregistered properties, zoning law complications, or hidden defects. A real estate lawyer helps identify and resolve these problems before they become costly mistakes.

3. Foreign Buyers and Legal Assistance

Non-residents purchasing property in Spain need to be aware of specific legal requirements, including obtaining an NIE number (tax identification number) and understanding tax obligations. A lawyer can simplify the process and ensure compliance.

4. Differences Between Residential and Commercial Property

Buying commercial real estate involves additional legal considerations compared to residential properties. These include zoning laws, business licensing requirements, and commercial lease regulations.

5. How to Compare and Choose the Right Law Firm

When selecting a lawyer, compare fees, services, and client reviews. Hiring a bilingual lawyer can also be beneficial for international buyers who need assistance in their native language.

Conclusion

Hiring a specialized real estate lawyer in Barcelona is crucial for ensuring smooth and legally secure transactions. From handling contracts to resolving disputes, a knowledgeable lawyer provides essential guidance that protects your interests. Whether you are a local buyer or an international investor, seeking professional legal assistance can make all the difference in your real estate dealings. If you are planning to invest in Barcelona’s real estate market, start by finding a reliable legal expert who can help you navigate the complexities of property law.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal advice. We highly recommend seeking guidance from a legal expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.