Purchase and sale of a real estate property | Jesús Benavides Notary's Office

What is the Real Estate Cadastre?

The Real Estate Cadastre is an administrative registry, dependent on the Ministry of Finance, in which the real estate, both rustic and urban, is described in the terms established by the Royal Legislative Decree 1/2004, of March 5, which approves the revised text of the Law of the Real Estate Cadastre. Thus, the property to be transferred, in addition to being registered in the Land Registry, is registered in the Real Estate Cadastre, for which purpose the so-called cadastral reference is assigned to each of them, i.e., an official and obligatory identifier of the real estate consisting of an alphanumeric code (of numbers and letters) composed of twenty characters, and which allows its unequivocal geographical location in the cadastral cartography.

What information is registered in the Cadastre in relation to the property?

In the Cadastre, as indicated above, in addition to assigning each property a cadastral reference (for its correct identification), all the information of the property is registered, which in this case is called cadastral description, and which includes its physical, economic and legal characteristics, among which are the location and the cadastral reference, the surface area, its use or destination, the quality of the construction, the graphic representation, the market reference value, the cadastral value, as well as the cadastral titleholder.

How is the cadastral information incorporated into the deed?

The cadastral information is incorporated by the Notary Public himself, who, through telematic means, obtains a descriptive and graphic cadastral certificate containing all the information of the property in the terms detailed in the previous question.

What is the relationship between the Real Estate Cadastre and the Land Registry?

Traditionally, both public registries have operated independently and separately, each with its own procedures and unshared information, which has undoubtedly generated an undesirable situation of lack of coordination and inconsistencies in the information contained in each of them.

Thus, traditionally, in the Land Registry the properties have been described in a literary way, that is to say, detailing in words their location, size and boundaries, but without resorting to plans or cartography.
On the contrary, in the Real Estate Cadastre the properties are described by means of cartography, that is to say, delimiting their location and size on a map.

In order to solve this situation, the current legislation, for some years now, has established a coordination procedure between the Real Estate Cadastre and the Land Registry, for the purpose of incorporating into the latter the georeferenced graphic representation of the registered properties, thus providing greater legal certainty to the location, delimitation and surface area of the registered properties. This means that the Land Registry records the cadastral reference of the property, as well as the possibility of identifying it on a map, providing more detailed information on its location, shape and surface area. Therefore, if the property in question, which is to be the object of the sale and purchase, is not yet coordinated, thanks to the sale and purchase that will be carried out, this procedure can be carried out, providing greater legal certainty to the rights of the parties.

What happens if there are discrepancies between the Real Estate Cadastre and the Land Registry?

If there are differences in the size of the property between what is registered in the Land Registry or in the Real Estate Cadastre, the parties must investigate, if necessary by means of qualified technicians, which of them is the correct one, and then proceed to try to correct the discrepancy in the corresponding Registry. However, it is more usual that the errors are found in the Real Estate Cadastre, in which case it will be necessary to resort to the procedure of correction of discrepancies foreseen in article 18 of the Law of the Real Estate Cadastre, in order to obtain the corresponding rectification.

What information will be included in this section regarding the community of owners?

In the event that the property is subject to a horizontal property regime (such as an apartment located in a block of apartments), there will be a community of owners in charge of managing and looking after the maintenance of all the common elements (staircase, elevator, gardens, swimming pool, etc.). As it is logical, the management and maintenance of all these common elements of the community generate some ordinary expenses, which must be defrayed by all the owners in a proportional way according to their quota of participation (what is commonly known as the monthly quota of the community). Thus, the law establishes that the property in question, in case of transfer, is liable for the debts that the seller has with the community of owners for the amounts owed generated in the current year and in the three preceding calendar years, so that if the previous owner had not paid the monthly community fees, and subsequently sells the property, the new owner would find himself with the unpleasant surprise that he should be the one to assume such non-payments. To avoid this situation, this section of the deed will include a mention of the state of the payments of the general expenses of maintenance of the community (that is to say, if it is up to date of payment or, on the contrary, there is some kind of non-payment), based on what is indicated by the seller, and above all, in attention to what is stated in the certificate of debts with the community.

What is the certificate of debts with the homeowners' association?

The certificate of debts with the community consists of a document issued by the secretary of the community of owners, with the approval of its president, in which it is certified that the property in question is up to date of payment of the general expenses of the community of owners. With this document, which must be delivered by the seller to the buyer, we will make sure that the current owner does not have any debts with the community, because if there were any, the new buyer would be responsible for them. Also, if possible, it is convenient to request that in this certificate it is included a mention that there is no extraordinary expenses pending to be paid by the property to the community of owners.

Where can I find more information about this?

In the following link (HERE) you will find an article written by the Notary who writes these lines, in which much more information about this procedure is detailed.

What is the Real Estate Tax?

The Real Estate Tax (known as IBI) is a direct tax and of municipal ownership, which is levied on the cadastral value of real estate, so that the owners of a real estate property, on an annual basis, must pay this tax to their corresponding town hall. In relation to the same, it is necessary to take into account that the IBI, according to its regulations, is accrued on January 1 of each year, so that the owner of the property at the beginning of the year (that is to say, the seller) is the taxpayer obliged to pay this tax.

What are the implications for the purchase and sale of the property?

It must be taken into account that also, in accordance with the regulations of said tax, the property in question is liable for the tax debts that may exist for said tax, so that, if the seller does not pay the tax, the Local Tax Administration could attack the property in question (by means of an embargo) to obtain the collection of the tax debt. Thus, in order to avoid unpleasant surprises, the Notaries, by means of a telematic system, can have access to a database of the Town Halls to accredit if the property is up to date with the payment of the IBI, in which case they will obtain the corresponding certificate and will incorporate it to the deed.

If no debt results from such certificate, there will be no problem in this respect.
On the other hand, if a debt is found to exist, the buyer may choose to require the seller to settle the debt before the sale or, as the case may be, agree with the seller to withhold the corresponding part of the price, in order to use it for the settlement of the unpaid tax.

However, this telematic communication is sometimes not available, for reasons attributable to the corresponding City Hall, in which case, it is normal for the buyer to demand from the seller the proof of payment of the IBI of the year in which the transaction is carried out, in order to ensure that the tax is paid, because if it is not, it will be necessary to negotiate how to proceed with it.

In addition, for greater security and prudence of the buyer, it would be convenient to request a negative certificate of debts for IBI issued by the Town Hall of the locality, or in its absence, the proof of payment of the IBI of more previous years (at least 4), to ensure that there are no previous tax debts.

In such cases, that is to say, when the IBI of the current year is not paid or is partially paid, in the event that the obligor has split the payment and some of the fractions are pending payment, the most usual thing is that either the seller goes to his Town Hall to pay the IBI, or the buyer withholds part of the price of the sale, in the corresponding amount to pay said tax. Finally, in these cases, it should be taken into account that the agreements entered into between the parties will not be enforceable against the tax administration, so that, in any case, the party obliged to pay will be the owner of the property on January 1 of the year in question.

What is the certificate of occupancy of the property?

It is an administrative document that certifies that a dwelling meets the minimum conditions of habitability provided for in the housing regulations, so that it is possible to establish our domicile in that dwelling in suitable conditions of safety and health.

Which dwellings are required to have a certificate of occupancy?

In accordance with the applicable regulations, all dwellings are required to have a certificate of occupancy. However, the regulations, depending on the time at which the dwellings were built, establish different minimum standards. Thus, for new dwellings, logically, the minimum standards required will be the highest, while additionally, the regulation establishes more stringent standards for dwellings built prior to August 11, 1984, as well as an intermediate regime for dwellings built after August 11, 1984 and prior to the entry into force of the aforementioned Decree.

How long is the cédula de habitabilidad valid?

As indicated above, the certificate of occupancy is a mandatory document for all dwellings, which, however, is not valid for an unlimited period of time, but its validity is limited in time, which determines that, after the period established in the regulation, it will have to be renewed. Thus, in accordance with the provisions of Decree 141/2012 analyzed, the certificate of occupancy will be valid for 25 years for newly constructed dwellings, while for certificates of second occupancy and first occupancy of rehabilitation, its validity is reduced to 15 years.

How can the seller obtain the certificate of occupancy for his property?

In principle, this is a document that the seller of the property should have in his possession. However, if the owner cannot locate the certificate of occupancy, he can request a duplicate from the corresponding autonomous administration (in the case of Catalonia, the Agencia de l'Habitatge).

Is it possible to sell a property without delivering the certificate of occupancy?

The Catalan regulation that obliges to deliver the certificate of habitability in the act of sale, foresees 3 possible exceptions, which are detailed below, in which it is possible to carry out the sale if the buyer expressly exonerates the seller of his obligation of delivery of the certificate of habitability. Thus:

In the case that the housing is going to be destined to rehabilitation or demolition. In the case of rehabilitation, it will be necessary to submit a report issued by a competent technician in accordance with the above mentioned housing will be able to obtain the certificate of habitability once the projected works are finished.
When the destination of the property transferred is not its use as a dwelling, provided that both parties expressly acknowledge it.
When for exceptional and duly motivated reasons, buyer and seller agree before the Notary the delivery of the certificate at a later time than the act of sale. In such a case, it will be necessary to present the request for obtaining the certificate of occupancy filed with the competent administration, together with a certificate of occupancy issued by a competent technical person.

Where can I find more information about this?

In the following link (HERE) you will find an article written by the Notary who subscribes these lines, in which much more information about this document is detailed.

What is energy efficiency?

In accordance with the regulations governing this matter, the energy efficiency of a home can be understood as the energy consumption, calculated or average, estimated to be necessary to meet its energy demand under normal operating and occupancy conditions, including needs such as heating, cooling, ventilation, domestic hot water production, as well as lighting. Its usefulness lies in the fact that, knowing the energy efficiency of a house, potential buyers will be able to know, before the purchase, if the energy consumption of the house will be very high or not, information that is certainly important when deciding whether or not to buy a property.

How is the energy efficiency of the building assessed?

The assessment of the energy efficiency of the dwelling is made through the so-called energy efficiency rating, which reflects the result of the calculation of the energy consumption necessary to cover the energy demand of the building under normal operating and occupancy conditions. Once the calculation of the building's energy consumption has been made, it is compared with the energy consumption and CO2 emissions of reference buildings with similar characteristics and location, and as a result of this comparison, the dwelling is assigned a specific classification. The classification is based on a scale of seven grades, ranging from the letters "A" to "G", with "A" being assigned to the most efficient buildings and "G" to the least efficient.

What is the energy efficiency certificate?

It consists of an official document prepared and signed by a technician (usually an engineer) detailing the energy characteristics of the building in terms of the energy required for its normal use.

What is the purpose of the energy efficiency certificate?

With this document we will obtain information on whether or not the house in question has a high energy consumption to develop a normal life in it (such as for heating in winter, etc.).

Is it possible to sell a house without delivering its energy performance certificate?

Indeed, if the buyer expressly exempts the seller from delivering the energy performance certificate in the deed, the regulations governing this matter also allow the sale and purchase to be carried out without the document being delivered or, if applicable, to be delivered at a later time.

Where can I find more information about this?

In the following link (HERE) you will find an article written by the Notary who subscribes these lines, in which much more information about this document is detailed.

What will be included in the stipulation regarding price and method of payment?

As its own name indicates, this section of the deed will detail the price agreed between the parties, that is to say, the amount of money that the buyer delivers to the seller in exchange for the transfer of the ownership of the property, as well as the detail of the way in which this amount of money is paid, that is to say, if it is done for example in cash, by means of a bank check or a transfer.

How will payment of the agreed price be made?

Payment of the agreed price may be made by any of the legally admitted means of payment. However, the normal and most reasonable is to make the payment either:

By means of a bank check: A check issued by the buyer of the property in favor of the seller, but with the particularity that it has the direct guarantee of its financial entity, so that this one, when it generates it, directly deducts the money from the buyer's account, with which, the seller is assured that when entering that check in its bank, its amount will be cashed without any problem.
By immediate bank transfer / via the Bank of Spain (OMF): Transfer method that is carried out immediately, so that the amount transferred is credited directly to the seller's account, without any possibility of revocation by the sender.

In both cases, the means of payment used shall be recorded, either by means of proof of the transfer made or, if applicable, by means of a photocopy of the bank check delivered.

Is it possible to make cash payments?

It is also possible, where appropriate, to pay part or all of the price in cash (i.e. in cash). In such a case, the delivery shall take place between the parties and they must jointly state that this is so and that the seller acknowledges having received the said amount. In any case, it must be borne in mind that:

Payment in cash is not very convenient, since the origin of the funds used is not known.
Also, because there are always risks associated with security (possible theft after the fact, falsification of part of the money delivered, etc.).
In any case, tax fraud prevention and money laundering prevention regulations impose limitations on cash payments (in particular, €2,500 as a general rule) if one of the parties to the transaction is a professional.

In addition, if the amount paid in cash is greater than 100,000 euros and therefore involves the movement of these funds within the national territory, the Declaration of Means of Payment (or form S-1) must be provided.

What happens if a deposit has been previously signed?

Indeed, it is very common that, once the seller and buyer reach the commitment to make the sale of the property, both parties sign a deposit, that is to say, a commitment to formalize a future sale, so that the seller reserves the property to a future buyer, in exchange for the anticipated delivery of a part of the price (normally, it is common practice that the deposit reaches 5 to 10% of the agreed sale price). In the event that this happens, when the public deed of sale is executed, the earnest money document will be attached as an attachment, and the seller will declare having received the amount of the price corresponding to said earnest money, for the purpose of justifying the receipt and payment of the entire agreed sale price.

What expenses will the deed of sale generate?

Broadly speaking, the granting of the deed of sale will generate the cost of the Notary's fees, which are called tariffs. Beyond this, if you wish to register the deed in the Land Registry (which is highly recommended), this will also have a cost in the form of a fee in favor of the Land Registrar who registers the transaction. Also, the operation will generate some fiscal costs, both for buyer and seller, which will be developed in later sections. Finally, if other professionals contracted by the buyer have been involved in the transaction, such as an agency that manages the entire deed (the settlement of taxes and its registration, for example) or a real estate intermediary, the buyer will have to pay them the fees agreed upon.

How much will the Notary Public charge me for the procedure?

The fees of the Notaries, which are called tariffs, are regulated and priced by a public regulation, so that the Notary will not be able to charge us whatever he wants for his services, but only the tariff that the regulatory norm in question establishes for the specific operation, taking into account its specific characteristics. In any case, if you wish to know the exact cost of your transaction, you can request a quote from the notary's office of your choice or, if necessary, use the calculator that Jesús Benavides Notary's Office makes available to you to find out the specific cost that you will have to assume.

Who pays the Notary Public who formalizes the sale of the property?

In accordance with the provisions of the Civil Code (specifically, Article 1455 of the aforementioned law), the cost of the deed of sale of a property should be paid by the selling party. However, the rule in question leaves open the possibility of agreement between the parties, so that, if an agreement is reached between them, the cost is distributed in the agreed manner or assumed exclusively by the purchasing party, for example. Likewise, it is necessary to take into account that, in certain Autonomous Communities, their foral civil regulations establish that the cost of the deed of sale must be assumed by the purchasing party, as is the case, for example, in Catalonia (art 531.6 of Book V of the Civil Code of Catalonia). In any case, it is necessary to indicate that, in practice, in the immense majority of occasions the cost of the public deed is assumed by the purchasing party.

What taxes will the seller of the property have to pay?

Broadly speaking, the seller of the property must take into account that he will have to pay two types of taxes, namely, the so-called "municipal capital gain" (strictly speaking, the Tax on the Increase in Value of Urban Land) as well as, in his Personal Income Tax (IRPF) return, whatever corresponds to the capital gain generated. Further details are set out below:

Tax on the Increase in Value of Urban Land: Given its particular characteristics, a specific clause is dedicated to it, so that this issue will be developed in detail later on.

Capital gains derived from the sale of a property in the Personal Income Tax (IRPF): Likewise, the seller of the property must pay tax, if applicable, on the capital gain obtained in the transaction, in the Personal Income Tax of the year in which the sale takes place. This capital gain will be determined by the difference between the acquisition value (i.e. the purchase price of the property that was paid at the time) and the transfer value (i.e. the sale price of the current transaction). Thus, if a positive balance is obtained from this operation, i.e., the transfer (or sale) value is higher than the acquisition (or purchase) value, this capital gain is generated and will be taxed by IRPF at a rate of 19%. In any case, it is necessary that the taxpayer knows that there are certain tax benefits applicable to this case, as for example if the capital gain is destined to the reinvestment in the taxpayer's habitual residence.

In any case, in order to know more details in this regard, taxpayers are once again recommended to seek the specialized services of a tax advisor, in order to provide legal certainty to the operation and avoid unpleasant surprises with the Tax Administration.

What taxes will the homebuyer have to pay?

As far as the buyer is concerned, as a general rule, he will have to pay either the Value Added Tax (popularly known as VAT) or, as the case may be, the Transfer Tax (known as ITP). In the following, we will try to detail which tax is payable depending on the type of transaction:

Value Added Tax: Value Added Tax (VAT) is payable when the property purchased is a new construction, i.e. a newly built property that is delivered for the first time to its first owner. In these cases, and without prejudice to tax benefits for particular cases, a tax rate of 10% must be paid.

Transfer Tax: On the other hand, the Transfer Tax and Stamp Duty (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados), in its modality of Transmisiones Patrimoniales Onerosas, will be payable when the acquisition of the property refers to a property already in use. In relation to this tax, bear in mind that it is a state tax but assigned to the Autonomous Communities, so that it will be necessary to analyze the autonomous regulations corresponding to the place where the property is located in order to know in detail what the applicable tax rate is and, therefore, the amount to be paid for the tax in question.

Thus, for example, in the case of the Autonomous Community of Catalonia (where the notary office of Notaría Jesús Benavides Lima is located), the applicable tax rate will be 10% for homes up to 1,000,000 euros, and 11% for the amount of the sale price exceeding 1,000,000 euros.
In any case, there are exceptional cases in which the rate will be lower, for example:
~7% for subsidized housing.
~5% when, for example, the buyer purchases a primary residence, is under 32 years of age and has an annual personal income tax income of less than 30,000 euros.
~5% when a habitual residence is acquired by a large family, provided that certain income requirements are met (personal income taxable income of less than €30,000 per year, minus the corresponding personal and family minimums).
~5% when a habitual residence is acquired by a person with a recognized disability (requirements of Law 21/2011 and 31/2002) and the income of the family unit does not exceed €30,000 per year.

Likewise, it should be noted that, in order to pay the tax generated by the transaction, a period of one month will be available as from the signing of the deed of sale, and for its payment the corresponding self-assessment must be filed with the relevant regional tax authorities.

What is deed management?

The management of the deed consists of determining who is going to be in charge of managing the payment of the taxes derived from the sale and purchase, as well as the registration of the deed in the Land Registry. This task can be assumed by the buyer of the property or, in its case, entrusted to the notary's office or to an agency.

Is it advisable to entrust the management of the deed to the notary's office itself or to an agency?

Indeed, the purchase and sale of a property entails a series of administrative and tax formalities which, as we have seen, may entail a certain complexity. The registration of the deed in the Land Registry or the liquidation of the taxes accrued by the operation are some examples of these subsequent acts that every buyer and/or seller will have to carry out. Thus, to avoid mistakes in the management of these procedures, the most advisable thing is to count on a professional to carry out all these tasks, since this way we will make sure that the operation comes to a good end, that the rights of the parts are correctly protected and that also all the taxes are liquidated correctly, thus avoiding unpleasant surprises that could suppose surcharges. To this effect, the majority of notary offices offer the service of management of the deed, so that if we entrust its management to the same one, in exchange for the fees that are agreed, we will make sure that all these steps are carried out correctly, and also we will save valuable time that we should use in carrying out all these tasks.

What is the telematic filing of the deed?

Once the deed of sale has been concluded, the Notary Public authorizing the deed of sale will immediately send, by telematic means, a copy of the same to the Land Registry where the property is registered, for the purpose of generating the corresponding filing entry. This will ensure that no other transaction that may have been entered into subsequently can affect the right of the new owner, since the Land Registry works on the principle of prior in tempore, potior in iure, which means that if our purchase and sale is communicated first, it will be registered before any other subsequent legal transaction.

What do I have to do if I want to buy a property?

If we have taken the transcendental decision to buy a property, so that it will become our home for the next years, and who knows if the rest of our life, taking into account the high cost of housing at present in our country, undoubtedly this decision must be qualified as extremely important in the life of any person, because most probably this will be the most important economic operation that we will face in our existence. Thus, if we have enough money to buy the house we want (either through our own funds or by resorting to external financing), and we have reached an agreement with the current owners for its acquisition, it will be appropriate to formalize this agreement through the corresponding contract of sale, through which this agreement of wills for the transfer of full ownership of the property in question, in exchange for a certain amount of money previously agreed to be received by the seller, will be embodied. Therefore, and in short, if I want to buy a property and I have reached an agreement with the current owner, it will be appropriate to formalize the transaction through a contract of sale.

How is the contract of sale of a real estate property formalized?

In principle, for the acquisition of real estate, as in most areas, the so-called principle of freedom of form applies, so that, contrary to what many people think, it is possible to transfer the ownership of a property through a private contract, that is, a written contract concluded between the parties, privately, without the intervention of any other person. Nevertheless, it is not less certain that, given the importance of the operation, there are other much more interesting alternatives, as it is undoubtedly the granting of a public deed before a Notary, since this will provide a greater legal security to the operation, as it is developed below.

Why is it advisable to convey the purchase of my home through a public deed?

Undoubtedly, the purchase of a house is an operation, given its usual amount, of extreme importance for any person, so that at the time of materializing the same one, it is necessary and advisable to look for the form to realize it of the surest possible way. Thus, if we require the services of a Notary Public for the purchase of a property, we will ensure that the operation is carried out with the maximum guarantees of legal security, since a public official, impartial and independent, specialist in Private Law, will intervene in it, who will watch over the legality of the operation and of all the clauses and agreements that are embodied in the contract. Thus, if we convey our purchase through a deed authorized by a Notary, we will ensure that an impartial third party watches over the rights of all parties, thus avoiding unpleasant surprises that may arise in the future. Also, if we resort to the services of a Notary and we grant the corresponding public deed, we will be able to register the same one in the Registry of the Property, thing that will allow us to enjoy the own benefits of the registry publicity, as is its effectiveness in front of third parties.

What do I have to do if I want to formalize the purchase of my home in a Notary Public?

If I wish to formalize the purchase of my home in a Notary, the process will be very simple, since I only have to contact the notary office of my choice, and they will assign me an officer in charge of the operation who will advise me on everything necessary to properly sign the purchase of my future home on the agreed day and time.

What happens if, as a buyer, I obtain financing from a bank or savings bank to pay the purchase price of the property?

If, in order to pay the purchase price, the buyer needs to obtain financing from a bank or savings bank, the most usual thing will be that, together with the deed of sale, the buyer will sign a mortgage loan deed with his financial institution. For more details on this other mortgage loan transaction, it is recommended to go to the corresponding section of this web page.

How will the deed of sale be executed?

On the day agreed to formalize the sale and purchase, the seller and buyer will appear at the notary's office with all the requested documentation (which will be attached to the deed as annexed documents), after which the deed will be executed. For this purpose, the Notary will read and explain the contents of the deed to the parties, after which, if all the parties agree to the transaction, the buyer will deliver the agreed money, the deed will be signed by both parties, and finally the seller will hand over the keys of the property to the new owner, thus concluding the sale and purchase transaction. Ultimately, a copy of the deed will be delivered to the parties (normally, a simple copy to the seller and an authentic copy to the buyer).

How is the change of ownership of the property's supplies managed?

Beyond the formalization of the purchase and sale transaction, once the buyer takes possession of the property, he/she will have to contact the supplying companies of the property in order to formalize the change of ownership of the corresponding contracts (we are talking here about services such as water, electricity or gas). For this purpose, it is advisable to ask the former owner, beforehand, for a copy of the last bill of all the contracted services, in order to facilitate the change of name with these companies. Likewise, to avoid unpleasant surprises, before the signature, it is recommended to go jointly with the owner to the house and to make a real reading of the water, electricity and gas meters. Thus, knowing the real reading, it will be possible to discern to whom it corresponds to pay an eventual debt that may exist, if any.

What are the particularities to be taken into account if the buyer or seller is a foreign person?

In case the buyer or seller is a foreigner, the following additional requirements must be taken into account:

If the buyer is the person who is a foreigner, he/she must previously obtain a Spanish Foreigner's Identity Number (or NIE), for which he/she must go to a Foreigner's Office, all this for the purpose of having an identification number before the Spanish administration. Having said this, with regard to the means of payment, when payments are made in cash or by means of bearer checks by the buyer, or in favor of the seller, for an amount greater than 10,000 euros, and the origin or destination of these funds is a foreign country, it will also be necessary to provide the Declaration of Means of Payment (or form S-1). Additionally, it is necessary to take into account that, when the funds used for the purchase come from a country classified as a tax haven, or when the investment made in the acquired real estate exceeds 3,005,060.52 Euros, it will be necessary to make the so-called "Declaration of Foreign Investment in Real Estate", presenting the forms DP-2 and D-2A, respectively, to the Ministry of Commerce.
On the other hand, if the seller is the person who is a foreigner, the buyer must take into account that he must take into account that he must:
~Withholding 3% of the price, i.e., keeping it and not paying it to the seller, for the purpose of paying it to the Tax Administration for the Non-Resident Income Tax payable by the seller. With this the Tax Administration assures the payment of what is due.
~It is also recommended that the buyer withhold from the seller the amount corresponding to the Tax on the Increase in Value of Urban Land (known as "plusvalía") and proceed to its payment, since in the event that the seller does not pay it, the property will be subsidiarily liable for said tax debt.

To learn more about all these particularities, the reader is recommended to read the article dedicated to this subject in the blog of this notarial office.

Purchase and sale of real estate

What is a real estate sale and purchase?

What documentation do I need to go to the notary to formalize the purchase and sale of a property?

The purchasing party must provide:

Original and valid national identity card

Nota simple registral

Documentary proof of the payment methods used

The selling party must provide:

Original and valid national identity card

Title to the property

Certificate of occupancy of the property

Energy efficiency certificate

Certificate of debts with the community of owners

Certificate of suitability of the building

Proof of payment of the last Real Estate Tax bill.

How much does it cost to formalize a deed of sale of real estate before a notary?

Notary fees

Registration fee

Table (ITP) by community

More frequently asked questions

Related articles

Where can I consult the applicable regulations?

State regulations

Regional civil and administrative regulations

Tax regulations: State and regional

Make an appointment

Select date and time and make your appointment online.

Thank you very much!

Thank you very much!

Purchase and sale of real estate

What is a real estate sale and purchase?

What documentation do I need to go to the notary to formalize the purchase and sale of a property?

The purchasing party must provide:

Original and valid national identity card

Nota simple registral

Documentary proof of the payment methods used

The selling party must provide:

Original and valid national identity card

Title to the property

Certificate of occupancy of the property

Energy efficiency certificate

Certificate of debts with the community of owners

Certificate of suitability of the building

Proof of payment of the last Real Estate Tax bill.

How much does it cost to formalize a deed of sale of real estate before a notary?

Notary fees

Registration fee

Table (ITP) by community

More frequently asked questions

Related articles

Who pays IBI [Real Estate Tax] in the year in which the sale takes place?

Real estate appraisal: The importance of getting it right when applying for a mortgage loan

What type of mortgage is best for you: fixed, variable or mixed interest rate?

Where can I consult the applicable regulations?

State regulations

Regional civil and administrative regulations

Tax regulations: State and regional

Make an appointment

Select date and time and make your appointment online.

Thank you very much!

Thank you very much!

SCHEDULE

Original and valid national identity card

Nota simple registral

Documentary proof of the payment methods used

Original and valid national identity card

Title to the property

Certificate of occupancy of the property

Energy efficiency certificate

Certificate of debts with the community of owners

Certificate of suitability of the building

Proof of payment of the last Real Estate Tax bill.