ABOUT THE PURCHASE

 

Which are the most important taxes we have to take into account when we buy a property from a development company in Spain?

The tax we must pay in Andalusia (it varies according to the regions) when we buy a first hand property is 7% VAT.
Besides it we must pay 1% from the registered price as Actos Jurídicos Documentados (deeds) providing that we are buying directly from the development company and this is the first purchase of the property.

 

Which are the taxes we must pay if we buy a secondhand property in Spain?

When we buy a secondhand property or any property not subject to VAT we must pay the Impuesto sobre Transmisiones Patrimoniales (purchase tax): in Andalusia 7% of the registered price.

 

What is the Impuesto sobre Bienes Inmuebles / IBI (real estate tax)?

It is an annual local tax related to the cadastral value of the property.

 

What must the title deed include?

The title deed must include the parties that take part in the transaction (vendor and purchaser); the physical description of the property, the registration of the title deed in the land register in the name of the vendor, the value of the property, the charges the property could have, the situation of the payments to the community of property owners, the official sale price of the property and the way of payment. Once the title deed has been read and explained by the notary, it must be signed by both the vendor and the notary.

 

How is a title deed processed?

The corresponding taxes according to the sort of property (first hand or secondhand) must be paid to the Spanish Treasury. Once these taxes are paid the title deed must be presented at the Land Registry for its registration.

 

Who must pay the expenses?

The expenses are agreed freely, they can be distributed according to the agreement of the parties.

 

At any case the buyer must demand the signing of the public title deed.