1. The purchase of properties in Spain

The purchase contract for a property in Spain need not be in writing and must not be notarized. For registration in the Land Registry, the notarization is however mandatory. However, just the title deeds to the buyer guarantees a secure legal status, the notarial deed of conveyance and certification is essential.

The notarial deed of conveyance and purchase agreement can theoretically be made immediately. In practice, however, are still some issues to address, and obtain documents Get things done. In general, this include: applying the tax number by the purchaser, legal examination of the property by a lawyer, clarification of the funding, seeking the deletion approval, submission of the certificates of paid property taxes and / or community costs, etc.

Normally go by so again about four weeks to prepare the notary appointment. The parties for this transitional period, different contract forms are available which are suitable to fix the mutual declaration of intent for sale or purchase of the property in writing. The legal situation is unique and secured the funding usually comes the private law contract of sale application. Are to be provided by seller to have services or produce documents or the buyer still has to clarify financing or wait for the release of funds, either a reservation contract or a purchase option is selected.

The most common forms of contract are:

The reservation contract (contrato de Reserva)

is used when the buyer would like to express a real buying interest, but as the financing of the purchase price is not yet assured. For a small down payment on the purchase price, the Seller undertakes to reserve the property for a few days authentic. As a rule, the reservation will be charged when making a purchase decision on the purchase price. If no agreement of purchase, the amount paid reservation is lost, however.

The option contract (contrato de Opción de Compra)

is a binding declaration of intent in which the encoder option to the option holder upon payment of a sum option grants the right within a specified period to purchase the property at a certain price. Depending on the term of the option moves sum of between 10% and 20% of the purchase price, which will be deducted in the case of purchase on the total purchase price. If the purchase is not within the agreed period, for reasons inherent in the person by the buyer to bear, for this sum option is lost. Are the reasons for the non-fulfillment of the call option on the seller, this has to pay double the amount of the option to sum to the purchaser as compensation.

The private purchase contract (contrato privado de Compraventa)

If this type of contract chosen by drawing of the contract the property is sold legally. This form of contract is e.g. then elected if the two parties are in agreement, all of the property papers in order and the financing has been secured, but for organizational or personal reasons, one of the parties for a period of time for a notarial deed purchase is not available. Even with the drawing of the privately written sales contract, a deposit flows freely tradeable on the purchase price of the property.

The notarial deed of sale (Escritura Pública)

The notarial deed of conveyance and certification is a prerequisite for the registration of the new owner in the land register. The notary is obliged within 24 hours after drawing the deed communicate this to the Land Registry. Usually this is done via the Internet. So goes a reservation in the land along which for a period of 10 days blocked any further registration. Within this period, the buyer should submit the certificate in the land registry (unlike in Germany it does not happen automatically by the notary). On presentation of the bill of sale, the deadline for entries blockade further extended once by 60 days. Within 30 days of notarization of the deed of sale, the buyer has to pay the real estate transfer tax (ITP) at the tax office. After paying taxes, the registration of the new owner made in the Land Register.

2. Purchase taxes to be paid by the buyer

There is a distinction between the one-time tax on the purchase of a property and the current taxes.

One Off taxes:

When buying a property for the buyer to fall either land transfer tax (ITP) or value added tax (VAT).

Real estate transfer tax or transfer tax (Impuesto sobre Transmisiones Patrimoniales, short ITP)

For all real estate sales that are not subject to VAT, falls to the real estate transfer tax (ITP). This is graded depending on the Balearic Islands and the purchase price is between 8% and 13%.

The revision of the land transfer tax on Majorca from 01.01.2023:

Property up to a purchase price of € 400,000 are subject by 8% real estate transfer tax.

Property with a purchase price of € 400,001 to € 600,000 are subject by 9% real estate transfer tax.

Property with a value of € 600.001 to 1.000.000 € are subject by 10% real estate transfer tax.

Properties with a purchase price of 1,000,001 € to 2,000,000 € are subject to 12% real estate transfer tax.

Properties with a purchase price of more than € 2,000,001 are subject to 13% real estate transfer tax

VAT (Impuesto sobre el Valor Añadido shortly IVA)

The VAT is payable on the initial sale of a property in the sale of land and business property or when the sale of a legal person. With effect from 31.10.2012, the law for the removal of VAT (Ley del IVA, 7/2012, Article 84) has been changed so that the property buyer has the IVA directly remitted to the Tax Office. On first sale of newly built homes is a value added tax (VAT) in the amount of 10%. Land and commercial properties are subject to value added tax in the amount of 21%. 

Current taxes:

Than current taxes for homeowners fall to the ground, income and property taxes.

Local tax (Impuesto sobre Bienes Inmuebles, or IBI short Contribucion).

In Spain, one of the German property owners pay property tax levy comparable. The property tax is based on the cadastral value of the property and varies from municipality to municipality. For tax years 2012 and 2013, the government has laid down a blanket IBI increase. By Article 8 of the Law, the municipalities are authorized to turn over a flat percentage of the property tax. Depending on the date of the last amendment to the assessed value by the municipality is now the flat-rate increase from 4% to 10%.

Income Tax (Impuesto sobre la Renta de las personas físicas shortly IRPF)

Property owners in Spain are generally subject to income tax declaration. Is not a property of the primary residence is also on property occupied by income tax. The taxable income in this case is between 1.1% and 2% of the cadastral value. In rented properties, the rate is 24.75% on the uniform rental income if the landlord is not resident in Spain. When resident landlords, the tax rate depends on the total income and is subject to progressive taxation. When resident landlords, usually only 50% of the income from rent will be taken to approach.

Property tax (Impuesto sobre el Patrimonio)

On 17 September 2012, the Law 13/2011 came into force, which introduces the property tax in Spain again, both for those who have their tax residence in Spain (residents) but also for those who have real estate or other property here. The collection of property tax in Spain is the various autonomous Regions that have the ability to control the assets in a certain context, to define himself or even to waive the property tax. In real estate, we, the highest of the following three values ​​are used: cadastral value, acquisition value, the tax office set value. In cash or savings and wealth funds, etc., the respective 31.12. existing balance taxed. The central government Spain has established an allowance in the amount of € 700,000 per person. Used as a main residence property is tax-free up zu300.000 € per person. <s></s>