We assist you all through the process and protect your interests at all times, making sure that all the Spanish legal and formal requirements are met.
In order to buy property in Spain, you require an identification number which in the case of foreign nationals is called N.I.E. (Número de Identificación de Extranjeros). This is the way in which the Central Tax Administration will relate to you onwards here in Spain.
Application for the N.I.E. is carried out at the Local Police Station and you will asked to submit the following documents:
– Application form EX-15.
– Notarised photocopy of passport.
– Statement letter exposing the reasons for applying.
Be also aware, that in the case of non EU residents, you will also require an apostilled copy of passport and sworn translation of passport (into Spanish).
There are two different types of taxes when purchasing property in Spain: “Impuesto sobre el Valor añadido” (IVA) and “Impuesto de Transmisiones Patrimoniales” (I.T.P.)
Liability for payment depends on the vendor of the property:
– If the vendor is a Company (Developers) ______ 10 %(I.V.A.) + 1.5% (A.J.D.) in the Valencian Community.
– If the vendor is a private owner_____________ 10% (I.T.P.)
a) New Builds from Developers: Impuesto de Valor Añadido (IVA) VAT. You will liable for VAT when the vendor of the property is a constructor or developper and the property is a new build. The rate in 2013 is 10% of the value of the property in the Escritura de Compraventa (Title Deeds) in the case of houses and associated buildings and 21% in the case of plots and commercial premises.
In addition to VAT you will also be liable to pay a document tax or stamp duty (IAJD)which in 2013 in the Valencian Community has been settled at a rate of 1.5% of the purchase price, when buying directly from a developer.
b) Second Hand Purchases: Transfer Tax (Impuesto de Transmisiones Patrimoniales). You will liable for Transfer Tax when the vendor of the property is private owner. The updated rate for 2013 is 10% of the value of the property in the Escritura de Compraventa (Title Deeds).
c) Mortage Tax: This has been settled in the Valencian Community at a rate of 1.5%. As you well know, by signing a mortgage, the property covers the capital granted by the bank, who holds the property as guarantee for payment. In Spain, the mortgage will be registered and authorised by a Public Notary, and therefore involves the payment of tax.
2_. NOTARY: The amount payable normally depends on the amount of the transaction, this means on the purchasing price of the property. In general terms it does not exceed the amount of 900 euros.
3_. LAND REGISTRY: The amount also depends on the amount of the transaction and in general terms it does not exceed the amount of 600 euros.
– LOCAL TAX ON INCREASED VALUE OF REAL ESTATE (PLUSVALIA): This is a tax that it is paid by the vendor when selling the property.
This tax which is calculated according to two variables:
1_. Value of the property as in the Catastral Value, which is registered at the local Town Hall and included in the Council Tax receipt (I.B.I.).
2_. The number of years which the vendor has owned the property up to a maximum of twenty years, and the increase of value of the property during that time. The first year of ownership is tax free.
In Spain, the signing of a will is not complusory nor it is considered as a legally binding act, however it is very advisable. It simplifies enormously the inheritance procedure in the event of decesease of an owner of a Spanish property.
We can arrange for your wills to be done and in the event of decease your assets in Spain would be taken care of in accordance with the law of the country, in a more efficient, faster and cheaper manner.
RESIDENCE CARD FOR E.U. CITIZENS ANDRESIDENCE CARD FOR NON-E.U. CITIZENS: Ask us for further information.