What to do after selling a home
Once the deed of sale has been signed in front of a notary, certain subsequent procedures must be followed, e.g. B. paying taxes, submitting the document in public registers or notifying a change of ownership of the property.
Taxes and Expenses
A person residing in Spain who offers their property for sale at a higher price than what was purchased must pay personal income tax. The tax authority Agencia Tributara believes that the sale of a property constitutes a capital gain and as such must be included in the income statement. The percentage of income tax payable depends on the amount of capital gain. The maximum amount you have to pay is 23%, which equates to a profit of more than € 50,000.
Another tax that must be paid is the municipal capital gain or the tax on the appreciation of residential property. It is a tax payable at the town hall where the property is registered. The percentage depends on the value of the house itself and is calculated based on the cadastral reference and the number of years the house has been. Since it is a council tax, each city council sets its own fees. A July 2018 ruling by both the Constitutional Court and the Supreme Court exempted taxpayers from paying this tax in the event of a sale at a loss, but left the door open to levy it when it comes to profits.
On the other hand, the buyer also has to pay a number of taxes. You have a maximum of 30 working days from the date of the deeds to make the payment. If it is a newly built home and it is the developer's first sale, then VAT must be paid. The current VAT on home purchases is 10% of the purchase amount, a house with official protection is only taxed at 4%.
If the house is a “second sale”, the property transfer tax will be charged between 8% and 10% (according to the municipalities) of the purchase price or tax value set by the tax authorities for that location.
Ultimately, the buyer must face the tax of the Documented Legal Acts. The percentage between 0.4% and 0.75% of the amount also depends on the act.
Depending on the specific case, you may eventually have to make other payments, e.g. B. Real estate registration, administration, valuation and other costs.
Presentation of the document in public records
Once the tax has been paid, the paper copy of the deed is submitted to the land register for registration. It can be processed by the notary or carried out personally. The buyer registers the property in their name and receives a copy of the deed with proof of payment of the tax and a name change.
The following documents must be presented in the registration:
- Authorized copy of the public deed.
- Proof of income for the relevant tax.
- Last IBI receipt.
With all these documents, the registry carries out the necessary checks within a period of about three weeks.
The buyer bears the notary's fees. It's about the deed of purchase, and if a mortgage has been applied for, you have to pay for the two deeds and the home valuation.
Change of ownership
- Change supplies such as water, electricity, gas and others that affect the house on your name. In the case of direct housing by a building contractor, ensure that the bulletins for the allocation of water, electricity and gas are also delivered.
- Go to the president or administrator of the real estate community to identify yourself as the new owner, keep you informed of the current situation and give him an address for any notification.
- Keep all certificates, documents, energy efficiency certificate, invoices, receipts and original guarantees for your purchase as you may need these if you decide to sell.
- Check the property in the cadastre. You just need to know within 6 months that you have received the confirmation letter for the change in your habitual residence.
A certificate of occupancy (cédula de habitabilidad) is essential when selling. This document guarantees that your property meets the minimum requirements for its habitability. The following is a summary of Decree 141/2012 of October 30th, which regulates the minimum living conditions of housing and the certificate of habitability, with the requirements being considered habitable:
The house must have a usable area of at least 36 m².
It must have at least one living or dining room, a toilet and a kitchen.
If the space is a single room, it must allow the subdivision of an 8 m long room.
If it is not a single room, the minimum space must be 6 m².
The minimum living height between the finished floor and the ceiling must be 2.5 m. However, in the kitchen, bathrooms and circulation areas it can be at least 2.20 m, and in the dining room, living room and bedrooms, exceptionally, 2.30 m can be allowed for the passage of facilities and structural elements.
Sustainability and energy saving:
Houses must be designed in such a way that they use the natural conditions of the climate and meet the current energy efficiency criteria.
The subdivision of the rooms is completely free, but must allow the rooms and the access for the toilets to be independent.
No room in the house can serve as mandatory access to rooms that are not intended exclusively for the house.
The bathrooms must not be used as mandatory access to other rooms.
Every house must at least be accessible and, if there are several floors, practical access to the bathroom, kitchen, common room and bedroom must be guaranteed.
The entrance door and the passage to the “basic rooms” must have a minimum passage width of 0.80 m. and a minimum free height of 2 m. The access doors to the rooms of the house that are impractical must have a minimum passage width of 0.70 m. and a minimum free height of 2 m.
The corridors connecting the entrance to the house and the various rooms must have a minimum width of one meter and allow a maneuvering circle of 1.20 m.
Other aspects that houses must have:
Hot and cold water supply, water drainage and electricity.
A toilet consisting of at least one wash basin, one toilet and one shower.
Kitchen equipment with at least one sink and a cooking device as well as a special mechanical extraction system on the cooking device, with which vapors and vapors can be extracted onto the roof.
The complete installation for laundry equipment.
An electronic intercom or similar system that facilitates access and enables interactive communication from the entrance to the building with the house.
A system for accessing telecommunications services.
A facade that is open to the free space outside the building and that provides ventilation and lighting in at least one of the rooms in the common area of the house.
Each room must have its own individual storage space.
These are just some of the aspects, plus many older homes are subject to earlier regulations with different criteria. For more information, please contact one of our I-VEO consultants. We will put you in touch with one of our technical architects so that they can advise you and apply for the mandatory occupancy certificate (cédula de habitabilidad).
Today, concerns about ecological sustainability have also reached households and buyers are increasingly demanding requirements for the energy efficiency of a property.
The EU Directive 2010/30 / EU defines it as follows: "Accurate, relevant and comparable information on the specific energy consumption of energy-related products should guide the choice of end users towards products that use the least amount of energy or other important resources [...] This information should also indirectly promote the efficient use of these products in order to contribute to the achievement of the EU target of increasing energy efficiency by 20%."
What is an energy label?
The energy label is a graphic document that shows the energy efficiency of goods in a quick and easy way. This energy efficiency classification is intended to provide consumers with information about the energy efficiency of use in accordance with the guidelines approved by the European Commission. All energy-related products are obliged to register their efficiency using a scale of letters and colors.
The energy efficiency classes:
The energy label has seven efficiency levels for consumption, which are divided into three large blocks.
The first block, in green, corresponds to the highest efficiencies, so this device has a significantly lower consumption when performing all of its functions. To confirm this, the letter "A" is included along with a series of positive signs ("+++", "++" and "+").
The second block, yellow and orange, has the letter "A" alone and with the letter "B", which shows that the device has an average consumption according to the EC criteria, to indicate that in certain functions this device can have more energy consume than would be desirable.
The third block made up of the letters "C" and "D", red, denotes a clear sign of the low energy efficiency of the device.
What is the energy label for?
The ultimate purpose of the energy label is to encourage consumption habits that do not negatively affect the environment or that are least possible.
For property owners, having home appliances and electrical appliances displaying labels with positive values means added value to the home, which is expected to receive an equally positive energy certificate. For buyers, this is a guarantee that the energy and maintenance costs will not be high.
Our real estate consultants at I-VEO will be happy to provide you with comprehensive information on what the energy label is and what it stands for.
The Generalitat de Catalunya officially announced last week its exit plan from containment phased in four phases of a duration of fifteen days each. For the moment, it remains forbidden to enter and exit without a justified reason (e.g. emergencies, work, etc.), it is most likely that until December 21st that freedom of movement will not be restored. Below is a summary of the four phases:
Phase 1 until December 6:
The plan to return to "normal" life began with the reopening of hotels and restaurants within the limit of 30% of the maximum number of visitors inside. On the terrace, there is no limit of attendance. Customers are limited to four people per table, and restaurants are allowed to open from 6 a.m. until 9:30 p.m., just before the 10 p.m. curfew. All cultural spaces remain closed, such as museums, theaters, cinemas, concert halls may open within the limit of 50% of the crowd up to a maximum of 500 people. Meetings in the private sphere are limited to six people. Shops of less than 800 square meters continue to open within the limit of 30% attendance.
Phanse 2 from December 7 to 20:
If the evolution of the pandemic is favorable, by next week, the restrictions on attendance will begin to be made more flexible. Shopping centers should then be able to reopen and the maximum authorized traffic will increase to 50%. The confinement imposed every weekend, which prohibits leaving your town from Friday 6 a.m. until Monday 6 a.m., will extend to the limits of the province of residence.
PHASE 3 from December 21 to January 4
As Christmas approaches, the Generalitat should lift all mobility restrictions. Family reunions of ten people will be authorized, to allow two family groups to meet for the holidays. The curfew will however be maintained.
Phase 4: from January 4, 2021
Secondary education will then resume face-to-face. It is also planned that all sports and extra-curricular activities can resume their course from this date, and that the maximum attendance in cinemas, theaters and concert halls increases to 70% within the limit of 1,000 people.
This calendar is provisional, and can be modified according to the evolution of the pandemic. A point will be made every two weeks by the health authorities in order to assess the progress of the situation and the phased plan.
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