Property Possession Transfer In Spain Advice and Taxes

You are probably interested in selling a home in Spain, since you have made it this far. We advise getting all the paperwork in order and thinking about the taxes that will need to be paid before looking for a real estate agent to help you find a buyer.

 

Knowing whether or not you are a resident of Spain is also crucial. The Spanish Tax Agency considers a person to be a legal resident of Spain if one of the following conditions is met:

  • He or she spends over 183 days a year in Spain.
  • Your business operations appear to be headquartered in Spain.
  • Or when one spouse and any minor children who live with them regularly reside in Spain but are not legally separated.
  • Required Documents Throughout Spain
  • There is a standard set of paperwork that must be completed in all regions of Spain for a home sale to go through. There are two types of supporting documentation: those that demonstrate ownership of the property and those that demonstrate current payment status.

 

transfer Authorization to ownership

Homeowner’s title deed: The paper you signed when you purchased the property. This deed is the primary legal proof that the property is legally yours. The Land Registry has a record of it (Registro de la Propiedad).

A citizen’s identity can be established unambiguously and with the help of their identity document. “NIE” stands for “Foreigner’s Identity Number.”

 

 

Payment status verification

This is a “Nota simple registral,” which means “a short note.” Document from the land registry: It’s a regular Land Registry form, so it’s official and binding. This certificate verifies the legal ownership of the property. It details the property’s history, ownership, and any liens or other encumbrances.

It’s referred to in Spanish as a “Impuesto sobre bienes inmuebles” (IBI) Tax on Real Estate This is the charge made against the property’s ownership. It is due once a year and can be paid at the appropriate town hall. Last payment receipt must be shown.

“Free of Payments Certificate from the Neighborhood Association” Receipt proving there are no outstanding balances owed to the homeowners’ association: In the case of a community (building) or “urbanización” residential area, a certificate by the property manager certifying that all payments are current is required.

“Pending Debt Certificate and Registration Cancellation” Registry Cancellation Certificate and Statement of Indebtedness: A mortgage certificate is required if the property is still under mortgage at the time of sale.

 

Real Estate in Spain for a Non-Resident: The Costa Blanca Market

  • A non-five resident’s tips for selling a Spanish home in Costa Blanca
  • A non-resident foreigner in Costa Blanca looking to sell their Spanish home.
  • Additional paperwork that may be necessary

“Energy Efficiency Certification” EPC stands for Energy Performance Certificate. This certificate verifies the home’s energy efficiency rating. The energy label grades products on how efficiently they use energy from A to G. Properties built without energy efficiency requirements (represented by “G”) and those with higher efficiency (represented by “A”) require more capital investment.

Technical Building Inspection Report (Certificado de Inspección Técnica del Edificio, or ITE) Condition Report on a Structure: Houses in older structures require documentation attesting to the building’s excellent condition or, alternatively, highlighting any defects or necessary repairs.

“Housing Permit” or “Cédula de habitabilidad” Occupancy Permit or Certificate: A certificate of occupancy is a legal document certifying that a building is fit for human habitation. A technical report from an appropriately trained expert is necessary to obtain it.

Costs for a foreigner selling a home in Spain

Even if you are not a Spanish resident, you must report any gains from selling Spanish property to the Spanish tax authorities.

IRNR stands for “Capital Gains Tax for Non-Residents.”

The IRNR (Capital Gains Tax) is determined by comparing the purchase price and the selling price.

The sum of the purchase price of a property plus any related closing costs (notary fees, land registry fees, etc.). THIS IS CALLED THE “ACQUISITION VALUE.” In addition, the cost of any renovations or upgrades to the property will be factored in.

Property’s sales price plus any fees paid to a broker, a lawyer, a notary public, etc.

When the difference is determined, residents of the European Union, Iceland, and Norway pay 19% tax, while residents of all other countries pay 24% tax.

 

 

A Tax on Capital Accumulation or Appreciation in Real Estate Value (IIVTNU)

The increase in the property’s value over the seller’s ownership period is the capital gain, also known as IIVTNU. A property’s capital gains tax is calculated using the property’s increased value and the local tax rate.

We strongly advise you to speak with a local real estate and tax attorney. An expert will walk you through the steps of selling a home in Spain and assist you in determining the Sales Tax so that you are prepared for any eventuality.

 

 

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