[et_pb_section fb_built=”1″ _builder_version=”4.3.2″][et_pb_row _builder_version=”4.3.2″ custom_margin=”-64px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_image src=”https:\/\/byboservice.com\/wp-content\/uploads\/2020\/03\/compra-de-una-casa-en-Espa\u00f1a-costa-del-sol.jpeg” align=”center” _builder_version=”4.3.2″ width=”100%” max_width=”100%” min_height=”340px” height=”152px” max_height=”1000px”][\/et_pb_image][et_pb_text _builder_version=”4.3.2″ custom_padding=”0px|||||”]<\/p>\n
When we want to buy a house in Spain<\/strong>, whether it is the purchase of an apartment, a villa, an apartment or a townhouse, or any type of real estate, we must carry out different specific procedures to carry out the purchase and sale. These formalities, expenses and tips for buying a house in Spain<\/strong> are the subject of this article. For it we are going to make use of classification of the formalities, advices, resources and expenses, dividing in aspects related to non-taxable<\/strong> formalities (without fiscal effects) and taxable<\/strong> (with fiscal effects). <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ min_height=”2181px” custom_margin=”-31px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ min_height=”2136px”]<\/p>\n As for the non-tax formalities, this means those formalities necessary to carry out in the purchase-sale, so they have to do with the process, but not with the tax administration. Concepts such as knowing what municipal regulations exist in the area of the property, and\/or the conditions of the property to be purchased become very important. In this case, as non-tax formalities for the purchase of a property, we can highlight the following: <\/p>\n The Registry of the property<\/strong> serves to register and to give publicity when we acquire the property of the real estate and of the rights that relapse on the same ones. It is for that reason that first we have to verify the situation of the housing in the Registry of the Property that corresponds to us. With this we will be able to check if the seller is the current owner of the property, as well as to find all the relevant information of legal aspects<\/strong> about the property, such as the existing charges (liens, mortgages…), the surface<\/strong> that appears in the registry, as well as diverse administrative regimes<\/strong> that could affect it among other aspects. We will be pleased to help you to check all this information. <\/p>\n Secondly, we find the need to obtain information about the cadastral data, and we can find them in the real estate cadastre<\/strong>. In this case going to the Real Estate Cadastre in question, we will be able to consult everything with respect to the cadastral data as the cadastral cartography through which the form and the boundaries of the house<\/strong> or of the property of the sale and purchase and the number of square meters according to the Cadastre among others are indicated to us. It is necessary to say that the square meters and the surface to valid effects are those that appear in the Registry of the Property. It can exist the situation in which the data of the Registry and of the Cadastre of the property do not coincide, it is for that reason that we advise to verify each and every one of them before the process of purchase and sale. <\/p>\n Thirdly, if we want to buy a subsidized housing<\/strong> we must meet specific requirements. These different requirements that must be fulfilled in order to be able to buy a subsidized housing, can change depending on each autonomous community, which can specify its own requirements. Specifically for Andalusia, within the legal regime that governs we find, among the most important requirements<\/strong>: <\/p>\n – The dwellings must be the habitual and permanent residence<\/strong> of the owners.<\/p>\n – The buyer must move<\/strong> in within a maximum period of 6 months<\/strong> from the delivery of the keys in the case of sale<\/strong> properties and three months in<\/strong> the case of rental<\/strong> properties.<\/p>\n – The term<\/strong> of duration of the legal regime of Andalusian housing as Officially Protected Housing is 30 years<\/strong>.<\/p>\n – Any transfer during the legal protection period will be subject to a maximum price.<\/strong><\/p>\n – Government subsidized housing may not be transferred inter vivos<\/strong> nor may its use be transferred for 10 years<\/strong> unless authorized, during the legal period of protection it will be subject to the legal rights of first refusal and all limitations must be expressly stated in the deeds of sale, adjudication or declaration of new construction.<\/p>\n We must obtain the information of the legality<\/strong> of the housing that we are going to acquire. For it in the legal system exists a series of documents with the objective to certify the legality of the housing, and that we recommend to the buyer that it possesses them at the moment of the acquisition to avoid unpleasant surprises. Among the most important information that we can not fail to check is: <\/p>\n – Building permit and certification of the<\/strong> competent technician<\/strong> on the adequacy of the building to the granted license and to the project approved by the city council.<\/p>\n – License of first occupation<\/strong>, certificate of occupancy.<\/p>\n – Bulletins<\/strong> subscribed with the supply companies.<\/p>\n – Registration and certificate of the<\/strong> land registry<\/strong> and community statutes.<\/p>\n Gathering in the Town Hall of the municipality of the house, of specific information to buy our house in Spain. We must go to the Town Hall<\/strong> of the municipality in question to consult the current municipal regulations<\/strong>, especially in tax and urban aspects (General Plan of Urban Planning in force) and the urban qualification<\/strong> of the land where the building is located, permitted and existing forms of building<\/strong>, special zones, or archaeological zones. It is very important in the aspect of the purchases of real estate in Spain to verify this information to avoid unexpected surprises, there are cases of purchases of houses in which the buyers have been surprised once all the proceedings have been carried out, with that the property had order of demolition for being out of the urbanistic plan and not having legal specific license. In spite of the fact that in the law there are resources for these cases, verifying the information from the first hour we find greater tranquility and we obtain that everything is carried out by the correct way. <\/p>\n Energy Efficiency Certification and Technical Inspection of the Building<\/span><\/p>\n In this section we focus on the Energy Efficiency Certification and the ITE<\/strong> (Technical Inspection of the Building). We must check the energy efficiency certificate that will help us to inform us of the qualification<\/strong> of the property in terms of energy efficiency. We advise that for the sale and purchase of the property in Spain it is required to obtain the certificate, as it must be shown by the seller. As for the Technical Inspection of the Building, the request will always be necessary when we buy a property with more than 50 years old<\/strong>. The accreditation through this report of the past inspection will be needed, to avoid sanctions on the part of the Administration. <\/span><\/p>\n Regarding the constitution of mortgage loans and the purchase of mortgaged homes<\/strong>, it should be noted that since 2018 the bank is responsible for the payment of the IAJD tax caused by the granting of loans. Therefore, we cannot let any bank ask us to pay said tax when we constitute the mortgage loan. When we buy a mortgaged property, (we always advise to check the property in the Land Registry to avoid surprises and disappointments at the last moment) we must also ask the seller for a certificate from the bank through which the mortgage is extinguished or which specifies the outstanding amount to be amortized of the loan. <\/p>\n Security Amounts delivered and Notary<\/span><\/p>\n Regarding the security of the amounts paid<\/strong> on account and the deed of sale before a Notary Public<\/strong>, it should be noted that when we buy newly built homes, and whenever the case arises, the developer must give us the guarantees of an insurance or bank guarantee to ensure the return of the amounts paid plus the legal and advanced interest during the construction period. Until the deed of sale has been signed before a Notary Public, even though the parties have signed a private document, it will not have all the legal guarantees if it is not notarized before the Notary Public. This deed is essential for the registration of the sale and purchase in the Land Registry and to be able to benefit from the legal security that we will only get through it. That is why we advise that once all the corresponding taxes have been paid, to register the deed in the corresponding Land Registry, which will send the deed to the land registry (we recommend to check this last step to avoid surprises). <\/p>\n It is worth mentioning the existence of aid for renovation<\/strong> and the importance of the protection of the acquisition of homes and hidden defects in the sale and purchase. Nowadays there are several state aids that are destined to the acquisition of houses, especially for specific groups. If we buy a house and when once in the same one we find hidden defects, calm that the law reserves us a section for it we can consult them in the Civil Code and the Law 38\/1999, of November 5, of Arrangement of the Construction. <\/p>\n The previous steps to buy a house in Spain are very important but not the only ones. If we want to have a complete analysis we must also make sure of other procedures to take into account. That is why before buying the house we must check and take into account other aspects of a non-administrative nature, but very important. We advise specifically, the verification of the quotas of community of neighbors<\/strong> and of the payment of the same ones on the part of the owner, to be up to date of the payment of the IBI<\/strong> (Tax on Real Estate that we will see throughout the article), as well as the verification of possible debts with specific suppliers, water, electricity, etc…<\/strong> <\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ custom_margin=”-59px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ min_height=”280px”]<\/p>\n Among the most important aspects when buying a house in Spain, we find the tax aspects. Specifically those that make reference to the procedures of the valuation of the house for fiscal purposes and the taxes that affect us in the scope of buying a house in Spain, which are the most important expenses associated with this operation and that we must have very clear not to make mistakes that can be very expensive. <\/p>\n As for the valuation of the property, this will be valued by the real value that will indicate us as the taxable base in the consequent taxes. We inform you that the citizen will be able to request to the Tax Agency to issue a previous report of Valuation on the property that is located within the autonomous community that fulfills this action, for example, the Andalusian Community allows this process. <\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ custom_margin=”-11px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ min_height=”342px” custom_margin=”-68px||27px|||”]<\/p>\n When the purchase of the property takes place and both parties, buyer and seller, are individuals, the tax to be paid will be the TPO. It is so because this tax of onerous patrimonial transmissions, refers to those onerous transmissions for acts of sale. <<Inter vivos>> of all kinds of assets, including real estate, as well as rights that are part of the patrimony of individuals or legal entities.<\/p>\n This tax is an assigned tax, i.e. the Autonomous Community in which the property or right is located, will have the competence to regulate the aspects of its configuration in spite of being national.<\/p>\n The taxable base of this tax will be the real value of the property transferred or of the right constituted or assigned, which has the determination depending on the operation to be carried out.<\/p>\n The tax rate of this tax is determined “by brackets”, that is to say, the tax rate will be applied according to the net taxable base of the transaction, taking into account the value to be settled of each transaction.<\/p>\n It should be noted that this tax depends on the autonomous community, each one has its own specifics. In the autonomous community of Andalusia, when the liquidation of the tax of a house by ITP takes place, the following brackets will be applied according to its liquidable base value: <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ min_height=”209px”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ min_height=”194px” custom_margin=”-35px|||||” animation_style=”slide” box_shadow_style=”preset2″ box_shadow_horizontal=”5px” box_shadow_vertical=”7px” box_shadow_color=”#ffb404″]<\/p>\n Liquidable Basis<\/strong><\/p>\n Up to \u20ac up to \u20ac<\/strong><\/p>\n<\/td>\n Integra Quota <\/strong><\/p>\n \u20ac<\/strong><\/p>\n<\/td>\n Other taxable income <\/strong><\/p>\n Up to \u20ac up to \u20ac <\/strong><\/p>\n<\/td>\n Applicable tax rate<\/strong><\/p>\n %<\/strong><\/p>\n<\/td>\n<\/tr>\n [\/et_pb_text][et_pb_text _builder_version=”4.3.2″ min_height=”39px” custom_padding=”27px||0px|||”]<\/p>\n As a brief explanation of the table we point out that, if we buy a house and it meets the requirements to be taxed by ITP, if the value is less than or equal to 400.000.-\u20ac we must pay 8% of that amount for the tax, that is to say 32.000.-\u20ac. If the value is higher than 400.000.-\u20ac, for example 500.000.-\u20ac, we will have to pay the 400.00.-\u20ac at 8%, and the rest at 9%, that is to say, 100.000.-\u20ac at 9%. Therefore we would pay for the tax 32.000.-\u20ac+9.000.-\u20ac=41.000.-\u20ac. <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ custom_margin=”-40px|||||” custom_padding=”0px|||||”]<\/p>\n When a transaction is carried out with properties that are classified with an urban qualification as a parking space, they will have different sections. This aspect has a caveat which is when the garages are attached to the dwelling with a maximum of two. <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ min_height=”283px” custom_margin=”-31px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ min_height=”238px” custom_padding=”||0px|||” animation_style=”slide” box_shadow_style=”preset2″ box_shadow_horizontal=”5px” box_shadow_vertical=”7px” box_shadow_color=”#ffb404″]<\/p>\n Liquidable Basis<\/strong><\/p>\n Up to \u20ac up to \u20ac<\/strong><\/p>\n<\/td>\n Integra Quota <\/strong><\/p>\n \u20ac<\/strong><\/p>\n<\/td>\n Other net taxable income <\/strong><\/p>\n Up to \u20ac up to \u20ac <\/strong><\/p>\n<\/td>\n Applicable tax rate<\/strong><\/p>\n %<\/strong><\/p>\n<\/td>\n<\/tr>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ custom_margin=”-33px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ min_height=”279px”]<\/p>\n <\/p>\n There are several reductions when buying a house in Spain. Each autonomous community provides the citizen with measures for the promotion of social housing policy. In the purchase of housing in the autonomous community of Andalusia, we find some such as: <\/p>\n – Acquirer of the property under 35 years of age, habitual residence and value of the property is not greater than 130,000.-\u20ac (ITP 3.5%).<\/p>\n – When the buyer is disabled, it is a habitual residence, the real value is not greater than 180.00.-\u20ac (ITP 3.5%).<\/p>\n – Large family, the property is destined to habitual residence, real value of the same does not exceed 180.000.-\u20ac (ITP 3,5.-%).<\/p>\n We also warn of other situations such as the case of the acquisition of a property by several people, in this case it will be applied to the proportional part of the taxable base that corresponds to the person who meets these requirements. In case of domestic partnership, age under 35 years, disability or marriage, at least one of the spouses or member of the domestic partnership must meet the requirements and be registered in the corresponding registry. <\/p>\n <\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ custom_margin=”-59px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″ min_height=”661px” custom_padding=”0px|||||”]<\/p>\n The expenses such as the taxes that we must pay in the purchase of a house in Spain are complex if we do not know how to proceed to liquidate them. We also find the difficulty of paying more than the account if we do not know how to take advantage of the aids available by the administration. In the case that the purchase is made for the acquisition of a newly built house from a businessman or professional, instead of paying the ITP, the purchaser will be taxed as a general rule on the Value Added Tax (VAT). Also, it will be taxed for the first copy of the deeds as it is a new house where the first transfer of the property is documented. This last step is in charge of liquidating the Stamp Duty (IAJD), which is a state tax but is the responsibility of the Autonomous Community in which the property is located. This tax is levied on the “formalization” of the transaction, and notarial, commercial and administrative documents, and mortgages are subject to taxation. <\/p>\n Since the entry into force of the new mortgage law, in case of formalization of the mortgage loan, the bank is responsible for the payment of the IAJD.<\/p>\n The taxable base of this tax will be the value included in the first copies of deeds of the property. A fixed fee will be paid on notarial documents (0,30.-\u20ac per sheet and 0,15.-\u20ac per page) and a variable fee when the object of the deeds is to be registered in the Property, Mercantile or Industrial and Movable Property registers, in the case of the purchase of a property in Spain will be applicable.<\/p>\n As in many taxes, each community has different reductions by which the tax rate differs. As a general rule, the tax rate for Stamp Duty ranges from 0.5% to 1.5% of the taxable base. But there are specific reductions, specifically in Andalusia: <\/p>\n – If the purchaser is under 35 years of age, the property will be used as a primary residence and its value is less than 130,000.-\u20ac (0.3% AJD).<\/p>\n – The Acquirer is Disabled, and the property is destined to habitual residence, when its real value does not exceed 180.000.-\u20ac (0,1% AJD).<\/p>\n – If the acquirer of the property is a large family, and the property is destined to habitual residence, when the real value does not exceed 180.000.-\u20ac (0,1% AJD).<\/p>\n <\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ custom_margin=”-52px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″]<\/p>\n In this case the IBI (Real Estate Tax) is a Local tax, that is to say, it will depend on the location of the property. This tax is the one that is in charge of taxing the ownership of the real rights over the property, in this case the house that we buy in Spain. In the same circumstance, IBI will be paid if we acquire a commercial premises, a garage or an apartment indifferently. It is a tax that is liquidated annually and with accrual on January 1 of each year. The properties owned by the state, autonomous communities or local entities, diplomatic buildings and official organisms, land occupied by railroad lines, among others, are exempt from this tax. <\/p>\n The taxable base of this tax will be determined on the basis of the cadastral value of the property, determined by the cadastral value of the building and the land on which it is located. It should be noted that the cadastral value of the property depends on several factors such as the location of the property, the urban characteristics of the land, the material cost of the construction, the age of the building and the value of the land or property in the current market. <\/p>\n The City Council establishes a coefficient to be applied to each property, which will be applied to the cadastral value and which is made through the coefficients of the Ministry of Finance. As a general rule, the IBI in Spain ranges between 0.5% and 1.5% of the cadastral value. <\/p>\n As in other taxes, there are also bonuses for the payment of IBI in Spain. We can find some examples such as in the case of subsidized housing, with bonuses of 50% for the first 3 years, and in the case of rustic properties of agricultural cooperatives with bonuses up to 95%. For example, some municipalities take the decision to assume the payment of some rates such as garbage, and raise the payment of IBI to their neighbors, also apply other different discounts for the payment of IBI as reductions for large families. Also bonuses and penalties can be applied according to the period of liquidation made by the citizen. We advise buyers to determine the payment of this tax with the seller, since, in the case of the purchase of a house in Spain, the payment of this tax by the buyer must be the proportional part at the time of the sale. <\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.3.2″ custom_margin=”-50px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.3.2″][et_pb_text _builder_version=”4.3.2″]<\/p>\n In the process of buying a house in Spain, when this house is new or of first delivery, as long as the sale takes place by a businessman or professional, this operation will be taxed by VAT. It is for this reason that the businessman will be obliged to settle through the corresponding form 303 in the tax office, being the buyer a mere party that supports the tax charged. <\/p>\n In spite of this, it is necessary to be clear about many aspects in this type of scenarios, since there are exceptions and options when carrying out the process of liquidation of this tax. In the first place, it is necessary to have clear the concept of first delivery of houses according to the tax agency that will be, “those that are acquired to the promoter when the construction or rehabilitation is finished, except those that have been used continuously for a term equal or superior to two years by people different to the acquirers”. <\/p>\nNON-TAX FORMALITIES<\/strong><\/span><\/h2>\n
What is the Land Registry<\/span><\/h3>\n
Real Estate Cadastre<\/span><\/h3>\n
Social Housing (VPO)<\/span><\/h3>\n
Housing Legal Information<\/span><\/h3>\n
City Hall Information<\/span><\/h3>\n
Purchase of Mortgaged Homes and Constitution of Mortgages<\/span><\/h3>\n
Reform Aids and Hidden Defects<\/span><\/h3>\n
Other Proceedings<\/span><\/h3>\n
Tax Procedures<\/span><\/strong><\/h2>\n
TPO (Tax on transfer of property for valuable consideration)<\/span><\/h3>\n
\n\n
\n \n \n \n \n \n 0<\/td>\n 0<\/td>\n 400.000.-\u20ac<\/td>\n 8<\/td>\n<\/tr>\n \n 400.000.-\u20ac<\/td>\n 32.000.-\u20ac<\/td>\n 300.000.-\u20ac<\/td>\n 9<\/td>\n<\/tr>\n \n 700.000.-\u20ac<\/td>\n 59.000.-\u20ac<\/td>\n From now on<\/td>\n 10<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n \n \n \n \n \n 0<\/td>\n 0<\/td>\n 30.000.-\u20ac<\/td>\n 8<\/td>\n<\/tr>\n \n 30.000.-\u20ac<\/td>\n 2.400.-\u20ac<\/td>\n 20.000.-\u20ac<\/td>\n 9<\/td>\n<\/tr>\n \n 50.000.-\u20ac<\/td>\n 4.200.-\u20ac<\/td>\n From now on<\/td>\n 10<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Tax on Documented Legal Acts (AJD).<\/span><\/h3>\n
Personal Property Tax (IBI)<\/span><\/h3>\n
Value Added Tax (VAT)<\/span><\/h3>\n