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Buying and selling a property under construction in Spain

Welex, law firm in La Costa del Sol and experts in buying and selling in Spain, is pleased to explain in this blog the legal guarantees for the buyer of a property under construction in Spain.

If you are interested in buying a property under construction in Andalusia, you should know that there are a series of legal guarantees for the buyer established in both regional and national legislation.

These guarantees for the purchase of a property under construction in Spain include:

  1. The right to receive detailed information about the property
  2. The protection of sums advanced
  3. Specific measures in the event of non-compliance by the developer or seller, such as the return of these amounts plus interest.

At the autonomous level in Andalusia, there is an obligation for the developer to deliver an Abbreviated Information Document (DIA) which will contain the relevant information for the signing of your purchase contract in Spain, such as:

  1. Identification details of the seller
  2. Identification details of the construction company
  3. Plans of the property and details of its surface area.
  4. Building specifications
  5. Purchase price
  6. Your method of payment.

The Courts in Spain have also reinforced the application of the legal guarantees in the purchase of properties under construction, highlighting the importance of delivering the property in a habitable condition and obtaining the licence of first occupation as a condition for the delivery of the property and cancellation of these guarantees.

Therefore, the developer must deposit the amounts advanced by the buyer in a special account. After the signing of the private purchase contract, he must provide the buyer with an insurance or guarantee to ensure the repayment of these amounts.

With regard to the taxes that you must pay as a buyer of a property in Andalusia, we must distinguish whether it is a first transfer, i.e. a newly built property sold by the developer, or whether it is a second or subsequent transfer of the property by a private individual.

In the case of the purchase of the property from the developer, the purchaser will have to pay two taxes on the purchase.

  1. On the one hand, the VAT applicable to the purchase of a property in Spain is generally 10%.
  2. On the other hand, in addition to the aforementioned VAT, the buyer will have to pay the stamp duty, with a rate of 1.2% on the purchase price.

If the purchase of the property is from a private individual, in Andalusia the purchase of a property is subject to Transfer Tax and Stamp Duty, with a general rate of 7% on the purchase price, or a reduced rate if certain specific conditions related to business activities in the real estate sector are met.

This would therefore involve the purchase of the property for resale by a natural or legal person carrying on a business activity to which the rules for adaptation of the General Plan for the Real Estate Sector are applicable.

If you have any doubts about the guarantee for the purchase of a property under construction in Spain, or any other legal, accounting or fiscal matter in Spain, please do not hesitate to contact us, we will be delighted to help you.

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The private document of Acceptance of Inheritance in Spain

Welex, law and accountant firm in Spain, will explain in detail information about the private document of acceptance of inheritance in Spain.

An inheritance in Spain can be accepted tacitly, through the performance of acts that imply an unequivocal will to become an heir.

It can also be accepted expressly, through the signing of a public document (Spanish Deed of Distribution and Acceptance of Inheritance) before a notary, or the signing of a private document.

The private document of Acceptance of Inheritance in Spain

Below, one of our professionals at Welex, leading law firm in Spain explains how to accept an inheritance by means of a private document, also known as a private request.

This is a document drafted by a manager, advisor or lawyer, whose content is similar to the deed that would be signed before a notary, without the need for a notary to intervene.

The private document of acceptance of Inheritance in Spain must contain at least:

  1. Details of the deceased and date of death
  2. Details of the will or declaration of heirs.
  3. Details of those interested in the inheritance, as well as their relationship with the deceased.
  4. An inventory must be drawn up of all the assets that the deceased had at the time of death, as well as a valuation of these.
  5. The distribution of the assets among the heirs must be made, following the instructions set out in the will.
  6. It must be signed by all the heirs, thus showing their agreement.

For this document to be valid, effective and legal in Spain, it must be accompanied by the following documents:

– Death certificate.

– Certificate of last will and testament.

– Will or, if applicable, Declaration of heirs.

– To accredit the family relationship, family record book.

– Bank certificates, to accredit the accounts and the amounts held at the time of death.

– To accredit the real estate, deeds of sale or simple notes of the same.

In short, documentation must be provided for all the assets included in the inventory in Spain.

However, if what is desired is the registration in the Land Registry of the assets in the name of the Heir in Spain, the only documents that the Registry accepts are public notarial deeds, so that, for this, the inheritance must be accepted before a notary, not being valid the private request, with only one exception, when it is a single heir.

In the latter case, when there is only one heir, the law allows the private document where the inheritance is accepted to have access to the Land Registry, and the ownership of the assets can be changed, without the need for a deed signed before a notary in Spain.

In order to do this, it will be necessary for a notary to legitimize the signature of the heir, thus attesting that the signature contained in the private document belongs to the heir.

 

If you have any queries about the private document of acceptance of inheritance in Spain, or about any accounting or tax issues, please do not hesitate to contact our offices, we will be happy to advise you.

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The Purchase Sale Title Deed of a property in Spain

If you have decided to buy a property in Spain and the time has come to sign your deed of purchase, Welex, a law and accountant firm in Marbella, is pleased to explain the details relating to your deed of purchase in Spain: The Purchase Sale Title Deed of a property in Spain.

 

Buying a property in Spain is an exciting event in anyone’s life. However, behind the excitement of finding the home of your dreams and taking the step towards ownership, lies a fundamental legal process: The Purchase Sale Title Deed. At Welex, Marbella’s leading law and accountant firm, we understand that this process can be both exciting and overwhelming.

 

The Purchase Sale Title Deed of a property in Spain is a document that will be executed by the selling party and the buying party before a Spanish notary public.

 

The notary is an independent public official and as the buyer, you can choose the notary before whom you wish to sign your deed in Spain. With reference to notary fees, these are set out in a Tariff of 17 November 1989, which are applied by all notaries, who will provide an invoice for their services and costs.

 

The deed of sale is a public document different from the private purchase contract, which is executed by the parties to conclude the purchase transaction, at which time the remaining purchase price is usually paid and possession of the property is handed over to the buyer in Spain.

 

The authorized copy of the deed will be presented to the Land Registry in Spain to register the property in the name of the owner after payment of the taxes applicable to the transaction. It is advisable to distinguish this authorized copy, signed by the Notary and with the corresponding stamps that guarantee its authenticity, from the simple copy, which is a copy that does not incorporate the signature of the Notary, but does incorporate the full content of the signed deed.

 

In this way the Notary will identify the parties by means of their valid identity documents or passports and will check the document by virtue of which the seller is the owner of the property he is selling in Spain.

 

In addition, information from the corresponding Land Registry in Spain will be incorporated into your deed of sale, in order to verify the ownership of the seller and possible encumbrances registered on the property in Spain.

 

The deed of sale in Spain will also include other documents, such as the cadastral reference of the property and verification of IBI debt, certificate issued by the Community of Owners to verify the payment of the Community fees and Energy Efficiency Certificate. It is the responsibility of the seller to deliver these last two documents, the certificate of the Community of Owners and the Energy Efficiency Certificate.

 

In relation to the payment of the purchase price in Spain, the means of payment of all the payments of the price made, including those made prior to the signing of the deed, by cheque or transfer, will be stated in the deed, and both the debit account and the credit account of said payments will be identified.

 

Finally, the notary will advise you of the obligations to pay the taxes that arise on the occasion of the sale in Spain, these being the payment of the Capital Gains Tax (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) which must be paid by the seller and the Transfer Tax (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados) which must be paid by the buyer.

 

If you wish to know more about the signing of your deed of sale, please do not hesitate to contact our offices.  We will prepare your document, obtain a draft of the same for your review and we will assist you at the Notary’s office for the signing of the deed in Spain.

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Taxes on the purchase of a property in Andalusia, Spain

In this blog, Welex, leading law and accountant firm in La Costa del Sol, is going to explain real cases of expenses and taxes in the purchase of a property in Andalusia, Spain: Taxes, notary and registry.

If you have decided to buy a property in Andalusia, Spain, we would like to inform you in a very precise way, as these are real cases, about the costs and taxes paid by several buyers in the purchase of their properties in Spain.

 

Keeping in mind that the taxable base of the transfer tax and documented legal acts is the value of the property transferred, we are going to present several cases with different purchase prices in Spain.

 

 

It is necessary to understand that the Tax Agency in Spain has the power to check the price declared in the purchase and sale transaction by the parties, in accordance with the reference values assigned by the Tax Administration itself, which appear in the official tax registers.

If the value determined by the Spanish Tax Administration is different to that declared by the parties, the Administration will notify a regularization proposal for the payment of the tax in accordance with the reference value assigned, communicating the valuation proposal duly motivated, with an expression of the means and criteria used.

The reference value is determined by the General Directorate of the Cadastre, obtained by examining the prices of all property sales and purchases made before a notary public, based on the data of each property in the Real Estate Cadastre in Spain. The reference value is the minimum amount for the payment of transfer tax and documented legal acts.

 

You should also take into account whether the object of the sale is a single property or several properties, such as garages and storage rooms. When dealing with a larger number of properties, the notary and registry fees will increase.

 

It is also necessary to consider whether we are dealing with the purchase of a newly constructed property transferred by the Developer, in which case the buyer will have to pay 10% VAT and 1.2% in respect of Documented Legal Acts in Spain.  If, on the other hand, it is a second or subsequent transfer, the buyer will have to pay a 7% transfer tax.

 

Having said this, let us look at the following cases in Spain:

1) Purchase of a newly built home sold by the developer.

Purchase price: The amount of 297.500,00 €.

Expenses and taxes in Spain:

– VAT 10%: 29.750,00 €.

– Documented legal acts. 1.2%: 3.570,00 €.

– Notary’s office: 774,86 €.

– Land Registry: 302,45 €.

 

2) Purchase of a property of 340.000,00 €.

 

Expenses and taxes in Spain:

 

– Transfer Tax 7%: 23.800,00 €.

– Notary’s office: 846.45 €.

– Land Registry: 538.29 €.

 

3) Purchase of a property, two garages and a storage room for a purchase price of 435.000,00€.

 

Expenses and taxes in Spain:

– Transfer Tax 7%: 30.450,00 €.

– Notary’s office: 1.529,68 €.

– Land Registry: 1.280,72 €.

 

If you wish to see more examples, keep reading here: https://www.welex.es/taxes-on-the-purchase-of-a-property-in-andalusia-spain/

 

We hope the above information has been useful and of interest to you. If you have any questions regarding the payment of your taxes in Spain we invite you to contact our offices for any legal or fiscal advice you may need.

 

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Ana Sánchez: Lawyer specializing in conveyancing services in Spain.

In this blog, Welex, leading law and accountancy firm in La Costa del Sol, is going to introduce one of its professional lawyers specialized in the purchase and sale of properties in Spain.

My name is Ana Sánchez, and I am a lawyer specializing in property sales and purchases with years of experience in the city of Marbella. Throughout my career, I have had the privilege of assisting and guiding numerous clients through the complex legal world of real estate transactions in Spain. In this article, I would like to share with you a little about my background and how I can help you in your future Marbella real estate transactions.

Since I started my career as a lawyer in Spain, I have been involved in, among other fields, real estate sales and purchases. This specialization has allowed me to develop an in-depth knowledge and solid experience in all legal aspects related to the buying and selling of properties in Marbella and its surroundings.

My main objective is to provide my clients with a comprehensive and personalized legal service tailored to their individual needs in Spain. I understand that every real estate transaction is unique and requires meticulous attention to detail. Therefore, I place emphasis on actively listening to my clients, understanding their goals and concerns, and working closely with them to achieve the desired results in Spain.

By choosing Welex as your Spanish conveyancing lawyer, you can expect a professional and solution-oriented approach in Spain. I am perfectly familiar with the local legislation and administrative processes necessary to carry out successful real estate transactions in Spain. From reviewing and drafting contracts to conducting thorough due diligence, I ensure that all legal aspects are in order and that your rights are protected at every stage of the process.

But my commitment to clients does not end there. In addition to providing quality legal services in Spain, I pride myself on offering a client-centric approach. I understand that buying and selling can be an emotionally challenging and overwhelming process in Spain. That is why I strive to provide constant support and guidance to my clients, giving them peace of mind every step of the way. My aim is to make them feel safe and supported throughout the entire process, from the initial negotiation to the final signing.

If you are looking for a reliable and experienced lawyer in Marbella for your property sales in Spain, do not hesitate to contact me. With two years of experience in the field and a client-centered approach, I can provide you with the legal support you need to ensure successful real estate transactions in Spain. I am committed to providing a quality service, protecting your interests and providing peace of mind at all times.

 

I look forward to working with you and helping you achieve your Marbella real estate goals! Feel free to contact me to schedule a consultation to discuss how I can help you with your next sale or purchase in Spain. Together, we can make sure your experience is as smooth and successful as possible.

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Donations from non-residents in Andalusia, Spain

At Welex, law and accountant firm in Marbella, we are pleased to explain a topic of great relevance to non-residents in Andalucía, Spain: donations. As experts in this area, we know the importance of understanding the legal and fiscal aspects involved in donations from non-residents in Spain.

Our aim is to provide you with the information you need to make informed decisions and ensure that your donations are made in accordance with current legislation in Spain. Rely on our knowledge and experience in the field of non-resident donations in Andalucía, Spain, as we guide you through this important legal process.

 

 

In the event that you are the owner of a property in Andalusia, Spain, and you are considering the possibility of donating it to a relative, we would like to inform you about the following aspects of the donation that may be of interest to you.

We assume that you are not resident in Spain for tax purposes, therefore you are obliged to appoint a person who is resident in Spain to be your representative in front of the Spanish Tax Office in relation to inheritance and gift tax in Spain.

Inheritance and gift tax are applicable throughout Spain and in the case of the acquisition of real estate located in Spain, the non-resident in Spain who receives the gift has the option to choose between the application of the state tax regulations or the regulations of Andalusia, Spain, in our case.

In the Autonomous Community of Andalusia, Spain, there is a 99% tax rebate for certain family members receiving the donation, which would be the following:

 

– Family members considered as Group I: Descendants, natural or adopted, under 21 years of age.

 

– Family members included in Group II: Descendants and adoptive descendants aged 21 or over. Spouses, ascendants or adoptive parents of any age.

Another factor to take into account when calculating inheritance and gift tax is the compulsory application of a multiplier coefficient for the different groups of family members. In the aforementioned cases of Groups I and II, the multiplier coefficient is 1.0.  In the case of relatives included in Group III (2nd and 3rd degree collateral relatives by blood or affinity, ascendants or descendants by affinity) the coefficient would be 1.5 and in Group IV (more distant degrees of kinship and strangers) 1.9.

 

Keep reading here. 

 

If you need advice on donations from non-residents in Andalusia, Spain, do not hesitate to contact Welex, law and accountant firm in Marbella. We are here to assist you through the whole Spanish legal and tax process.

 

Other articles of interest:

 

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Holiday Homes in Andalusia, Spain

Welex, our leading firm of lawyers and accountants in Marbella, is pleased to detail in this blog information and tax advice on holiday homes in Andalucía, Spain.

Our geography in Spain offers one of the best destinations for sun-seeking travelers among others, so it is not surprising that many see the south of Spain as an opportunity to start their own tourist accommodation business.

In order to assist you in the process of setting up your holiday rental in Andalusia, Spain, we have put together this short guide explaining the differences between flats and holiday homes in Andalusia, Spain.

 

 

In Andalusia, Spain, according to the legislation, there are different types of tourist accommodation depending on their uses and characteristics. We are going to focus on tourist accommodation in Andalusia, Spain.

 

Tourist flat in Andalusia, Spain:

The Junta de Andalucía defines the concept of tourist flat in Decree 194/2010 as a “set of accommodation units […] intended to provide tourist accommodation services, which have adequate furniture and facilities for the conservation, preparation and consumption of food and beverages, and which are subject to exploitation in common by the same owner”.

Tourist flats in Andalusia, Spain, are considered as tourist accommodation establishments that can provide tourist services complementary to accommodation.

 

Homes for tourist purposes in Andalusia, Spain:

In Decree 28/2016 it is defined as “properties located on land for residential use, in which an accommodation service is offered for a price, on a regular basis and for tourist purposes.

The homes for tourist purposes in Andalusia, Spain, according to the regulation will be advertised in tourist offer channels: national rental platforms, tourist service companies, travel agencies, among others.

The number of places is limited to 15 places if rented as a whole, 6 places if rented in rooms, and in no case may there be more than 4 beds per room, with a maximum rental contract period of 60 days.

 

The regulations are made up of a wide range of laws and regulations, the main one being the Andalusian Tourism Law 13/2011, which regulates all tourist activities in Andalusia, Spain. And you will be able to see in detail the requirements that must be met in terms of equipment, accreditation of ownership, occupancy license, complaint forms, etc.

How is income taxed in Spain?

Non-resident taxpayer in Spain:

On a property for tourist purposes in Andalusia, Spain, the income is taxed as income from real estate capital as it is income derived from the letting of real estate. If the owner of the property is resident in another Member State of the European Union, in Iceland or Norway, he will be taxed at a rate of 24% on the income he obtains and will be able to deduct the expenses he incurs in connection with the rental. In addition, you will be taxed at a reduced rate of 19%.

If your accommodation is a tourist flat, the income obtained will have to be declared as income from economic activities.

As a taxpayer in Spain, you will be obliged to file a quarterly tax return (form 210) for the income you receive every quarter and an annual tax return.

 

What income must be declared and what expenses are deductible in Spain?

The total income obtained from the short-term rental of your tourist accommodation and the following expenses that are directly related to the rental of the accommodation, i.e. those that correspond to the time during which the accommodation has been rented, are not included in the long term rentals

 

Practical example:

If you rent a property for tourist purposes in Andalusia, Spain, during the summer months, you cannot deduct the expenses for the whole year, they must be prorated based on the months it has been rented.

To conclude, if you are interested in investing in holiday homes in Andalucía, Spain, you have come to the right place. At Welex, our leading firm of lawyers and accountants in Marbella, Andalucía, we are committed to providing you with the advice and support you need to make the most of this opportunity.

We have a team of highly qualified experts who are fully conversant with the laws and regulations in force in Spain. Whether you need assistance in obtaining the necessary permits and licenses, the fiscal and financial management of your property, or the resolution of any legal disputes in Spain, our firm is here to help you every step of the way. Don’t hesitate to contact us for a personalized consultation and find out how we can facilitate your plans in the exciting world of holiday homes in Andalucía.

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Property conveyancing in Spain: Tips

The first step in property conveyancing in Spain is finding a Property.

It is imperative to get to know the area before you choose a property. You should visit a number of different locations in order to make an educated decision. Additional research into similar properties in various areas will give you different perspectives of what you can

anticipate in terms of price.

The secondary step in property conveyancing in Spain is choosing a expert property lawyer in Spain.

A lawyer in Spain can impart extremely useful advice from the initial beginning of the purchasing process. Your property expert lawyer in Spain will make enquiries to ensure that all the parties involved, including the seller or developer, are acting legitimately. A lawyer will take the necessary measures to safeguard that all the Spanish legal requirements are met. Additionally, a legal firm will ensure that the property is free of any encumbrances that could affect your use of the land.

 

You will also need to ensure that there are no outstanding debts for local taxes orservice charges attached to the property.

 

Read more………..

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Conveyancing fees in Spain: principal areas to consider

Conveyancing in Spain is considered as a transfer of the legal title of a property in Spain from one person to another.

A typical conveyancing transaction in Spain includes two vital indicators: the transfer of contracts and the completion, whereby the legal title passes.

The system of conveyancing in Spain is constructed to safeguard that of the buyer.

 

Conveyancing fees in Spain, outlines the total payment made to a professional property lawyer in Spain exchange for advice or services.

 

 Conveyancing fees in Spain are dependent on whether you employ a foreign or Spanish lawyer and on the sale price of the property. Supplementary examples of conveyancing fees in Spain are associated with the taxes and legal fees relating to the sale and purchase of the property.  The taxes and disbursements on selling a property in Spain be in the range of 10-13% of the sale price, in total.

 

Read more…………

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Conveyancing in Spain: 7 tips

Conveyancing in Spain

A typical conveyancing transaction includes two vital landmarks: the exchange of contracts and the completion, whereby the legal Title Deed passes.  In addition, the system of conveyancing is generally constructed to ensure that the buyer secures title to the land together with all the rights that govern the land and is advised of any limitations in advance of the purchase.  Moreover, the cost of conveyancing is dependent on whether you employ a foreign or Spanish lawyer.

Legal firms in Spain should further offer all relevant and additional legal information on real estate transactions and acquisitions of properties for residential or business use, payment of  taxes for the registration and transaction of the Land Registry and numerous other services related to real estate such as:

  1. Declaration of new building title deeds
  2. Rentals
  3. Establishment and cancellation of mortgages
  4. Securities
  5. Exchange

All conveyancing matters ascertain that clients are informed and advised on corresponding taxes and costs in the purchase or sale of a property.

 

Conveyancing matters should include:

Obtaining and aiding in all necessary documentation on the property.

Carrying out corresponding searches on the property at the Land Registry, in order to confirm ownership.

Ensuring that all properties are up to date in all its payments.

Liaising with corresponding experts to ensure that the property meets with all therequirements of the Local Zoning Regulations.

Studying and advising on company tax or capital gain tax arising on the sale of the property.

Compiling and issuing a comprehensive report on the property to inform the client on various issues related to the property.

Drawing up contractual agreements between the parties for the sale or acquisition of the property.

Drawing up the Purchase Sale Title Deed to be granted at the notary’s office as well as preparing the completion of the transaction.

 

Collection of the Purchase Sale Title Deed and presenting the deed at the tax office as well as the Land Registry.

Producing a comprehensive and final statement of the account funds received and payments made.

Sending the Purchase Sale Title Deed; duly registered with the corresponding originals of all the tax bills and our certificate on title, to the client.

 

Tips for the sale of your property

  1. A multilingual conveyance lawyer in Spain is recommended in order to obtain the certificate from the Land Registry in Spain, to verify that the property is duly registered in your name.
  1. Review that the payments of IBI (RATES) are up to date and whether there is any debt related to the Spanish property.
  1. Our Spanish conveyance law firm, also recommend to check whether you are holding a copy of the License of first occupation and whether the property has been built in accordance with the planning regulations in the area.
  1. Additionally, we also recommend that you obtain an estimate of the payment of the Plusvalis Tax in order to account for all future costs arising in the sale.
  1. Additionally it is advised that our clients obtain and indicate the capital gains tax arisen.
  2. Clients, need also to obtain the Energy
  3. Finally, if your are a non-resident in Spain, we advise you to present the corresponding non-resident income tax declarations.

 

ADDITIONAL INFORMATION

 

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Do you have any legal question?

At Welex we guarantee you a professional and individual treatment. All our professionals have years of experience in their field, which they put at your service with the aim of attending your affairs quickly and efficiently. Please contact us and we will be happy to advise you. (+34) 952 77 55 21 | info@welex.es

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