The order of registration and conduct the real estate transactions in Spain
Spain is the kingdom of tourism of all the types. The magnificent beaches, ski slopes, spectacular national events, international exhibitions and architectural heritage monuments attract a lot of visitors. During the last few years, the fact of having Real Estate in Spain has become a reality and a highly profitable investment.
The stages of the buying and selling of property in Spain
The Real Estate in Spain and anywhere on the luxury in Ibiza or on the more accessible Costa Brava is chosen according to the objectives and the budget.
Signing the contract.
Once the buyer and seller have discussed all the details of the agreement, it proceeds to the signing of the notarial contract.
The payment by the buyer is carried out in accordance with the conditions specified in the contract.
The payment of fees.
The competent authorities set the fee that is a mandatory expenditure.
The final step is the registration of the property.
The documentation required for the transaction
A notary signs the main agreement. It contains detailed information about the purchased property:
- The location data with the plane.
- The surface.
- The inventory.
- The price.
- The payment terms.
- The date of signing the contract.
- The period of transfer of ownership
Sometimes, some of this information is specified in the supplementary agreement.
After the payment of the amount according to the contract, the notary, who leads the transaction, reports the transaction details to the tax authorities. The fee is calculated according to those details. A little later all the documentation of the transaction enters to the Registry of Properties and it performs the temporary registration.
The payment terms and conditions
The payment terms are mainly indicated in the notarial contract. It is not mandatory to make the payment immediately. You can sign a deposit agreement; it is usually 10% of the total agreed price.
The transaction price of buying and selling of property in Spain
In Spain, as in other countries, there is the concept of "second-hand real estate market." The prices of processing the transaction of new homes and resale properties acquisition are different. Sometimes is used the opportunity to reduce the amount of registration tax. To do this, the price indicated in the main contract must be lower than the real price of the property. But this method of saving is not very good, because it can cause problems later.
Transaction costs are composed of:
- The notary fees.
- The registration fees.
- The taxes.
All of them depend directly on the value of the property.
- The VAT is currently 21%
- The AJD, documented legal acts are 1.5%
- The ITP, the transfer tax is currently 8% if the transaction price does not exceed € 400,000, 9% if not exceed € 700,000 and 10% thereafter or for the purchase of new homes.
Furthermore there is a municipal tax of the City Hall, called Plusvalía that falls to the home seller.
As in any other country, there are circumstances that make it impossible to purchase a property, such as existing debts or judicial proceedings that are reflected in the Registry of Properties.
To help our customers the «Ibizahouserentals» Real Estate in Ibiza select the most convenient and profitable options of real estate, and also provide the legal support for buying and selling a property in Spain.