IBI (Impuesto sobre Bienes Inmuebles) property tax. We should note the following
- We shall certify that the IBI (annual tax on property) has been paid by the seller and has no outstanding debt on this account the day of the deed of sale.
- If the property is new construction will ask the seller a copy of the new statement of work, together with a copy of the Declaration of Alteration of Real Urban Nature. This will be enough to evidence that the property is registered for eventual payment of IBI
Verify the registration of the property
- We will ask the Land Registry, a certification of charges on the property, thus we can see if there are any liens or encumbrances affecting the property. Do not buy a property without first having applied for such certification.
Contract of sale
- Approximately one to two months after the “reserve” of the property expressed by earnest money contract, you should be prepared to sign the Deed of Sale.
- We will ensure that the seller sells the property free from liens, encumbrances and tenants. Both parties or their authorized representatives must sign the deed of sale before a notary.
- We shall receive the last receipt of the expenses of the community regarding the payment monthly or anual and asking for to the president or manager of the community a copy of the minutes of the last meeting of the residents and their regulations, or where appropriate certificate of the community Manager stating that there is no approval, prior to purchase, of major work to do in the building.
Costs and fees
Under Spanish law, the buyer will be responsible for:
- Transfer Tax or VAT if applicable, if the purchase relates to new construction work.
- Registration and Notary costs
The seller will be responsible for the Plusvalía (Capital gain) on the benefit that results from the increase in sales value.
When the client is a foreign seller, it will be retained a 3% in concept of IRNR (Income non-Resident Tax) to pay to the Treasury the capital gains tax on real estate.