Purchase Completion

Property purchases are done in Spain with a notary.

However, a private sales contract has to be signed first which includes the description of the property, payment conditions, date of handing over and other agreements.

Before the notary can take care of the process, the buyer has to get a fiscal code from the foreign police which is an identification number for all the other following activities.

The notary records the property purchase by executing the “Escritura de Compraventa” which is the legal base for all records such as the land registry. While doing the “Escritura” the notary has to check the recent land registry. Here you will find all important data about the property. In case there is a mortgage on the property you can either take it on or it will be deleted by an agent of the institute that issued the mortgage when it is being paid.

The notary signs over the property to the buyer after the complete purchase price has been received. The latter then receives the “Copia Simple” of the “Escritura” which is at the same time the receipt for the paid purchasing price.  Later on the land registry administration will issue the “Copia autorizada” which can take up to 3-5 months.

When acquiring land you should check all the data of the plot with the land registry. In doing this you ensure that the description of the plots equals the official registry.

You can find the development plan in the town hall in order to have a look at the development policies.

The architect will, after having planned your dream of a house, produce the base project which will first be checked by the architectural association and then by building authority. After having received the planning permission the architect and the construction engineer are supervising the project. Before that happens though, we will determine the cost for the construction together with you and the architect. Supporting this you will receive a detailed cost plan and the building description of the selected house design.

After finishing the construction of your house the architect and the construction engineer will do the final inspection. The notary will execute a new-construction declaration after receiving the ratification of completion. By doing this the house will also be registered with the land registry.

In the end you will receive the habitation permission.

Now, as your property is registered, you need to pay the following taxes:

• Income tax
• Property tax
• land tax

In case your primary home is in Spain, you are free from paying income tax. The base rate of the fictive income tax usually is 2% of the official land registry value.

Non residing owner have to pay 25%.

Property tax has to be paid up to a threshold of 167.000€ which is calculated at a 0,2% rate.

The land tax is also linked to the land registry value. However the rate can be different from town to town. Usually it is between 0.65% and 1.15.

Subject to change.