Property Purchase Checklist

From ‘You and the Law in Spain’ by David Searl

1. Advice from a Spanish Lawyer or property consultant.
2. The seller’s escritura publica, or title deeds, as registered in the Registro de la Propiedad.
3. A nota simple from the property registry, showing that no mortgages are registered against the property.
4. Referencia Catastral. The number itself appears on the IBI receipt, but you want the full certification document. the Certificado Catastral, that describes the property in detail.
5. A check on legality and Plan Parcial if you buy in an urbanisation, an assurance of a building permit if you buy a plot.
6. A paid up receipt for the IBI or the Declaracion de obra nueva.
7. Receipt for paid up community charges and copy of the status if you buy in a condominium
8. Copies of owner’s bills for electricity, water, rubbish collection and even the telephone.
9. A contract in Spanish, and a translation into your own language, with terms you understand.
10. A decision about your form of payment, whether in euros or other currency, and be sure on declaring the full amount.
11. An escitura de compraventa signed before Notario.
12. Payment of fees and taxes, and the 3% deposit to Hacienda if you buy from a non resident, using form 211.
13. An idea of how and when you get your final escritura publica, which makes you the real owner.

Drawing up the title deed (escritura)

The title deed is a document that you sign when buying a property. It is formalised in front of a Notary and the purchaser and the seller should be present to sign the terms of the purchase. If you cannot be present, another person can represent you with a notarial power of attorney in Spainsh.

In order for a title deed to have complete validity it must be registered in the Property Registry in Benalmadena, which is a public body where all purchases / sales are registered in this area. It is not sufficient to simply sign the deed; it is essential to register it to the Land registry.

After the signing of the title deed, the Notary will supply you with a Copia Simple, a provisional copy of the deed. You will receive the formal deeds later once it has been inscribed in the Property Registry.

Purchase Expenses

Apart from the price of the property, you will pay approximately an additional 10% for the following purchase expenses:

1. Notary Expenses

These expenses depend on the selling price that appears in the title deed. The Notary expenses are paid according to the agreement between purchaser and seller; however, it is the custom that the purchaser pays all the expenses.

2. Property Registry Fee

This is charged when your escritura is taken to the property registry and registered in your name.

3. Transfer Tax

This ITP, the Impuesto sobre Transmisiones Patrimoniales, the property transfer tax. If you buy a new property from a developer, it will be IVA, Spainsh for VAT. Both are charged at 7% of the declared price.

4. Plusvalia

This is a municipal tax based on an officially assessed increase in the value of the land since its last transfer. This tax can be very little on transfers of small apartments or it can be quite a lot if you buy an old villa on a large plot of land, which has not changed hands for 15 years and so has increased greatly in value. Do not confuse this tax with seller’s capital gains tax, which is from Hacienda, not from the municipality.

After purchasing a property

After completing your purchase, it is essential to change the seller’s name to your name on all the following receipts:

1. 1. Land Value Tax
2. IBI Property Rates
3. Water
4. Electricity
5. Community of Owners (if the property belongs to a community)

In order to effect the change of name, you must present your new title deed in the following offices:

1. Land Value Tax (Plusvalia)
Benalmadena Town Hall
(Rentas Department, Mon – Fri from 9:00 to 14:00)

2.IBI Property Rates
Benalmadena Town Hall
(Tax office, Mon – Fri from 9:00 to 14:00)

3. Water
Company Emabesa Explanada del Tivoli

4. Electricty
Company Endesa C/ Moscatel 35 Arroyo de la Miel

5. Community of Owners
If your property is part of a community, you should find out who is the Administrator in order to notify the change of name.