Once the decision to sell is made, the owner should prepare all the documents that will help him carry out the operation successfully. Here is an overview of the required documents and how to get them.
First, the owners who want to sell will be identified through their original and valid national identity document. Foreigners additionally need the Foreigner Identification Number (NIE) that can be requested from the foreigners service of the national police or the Spanish consulate.
The second document is the property title, which is necessary to prove ownership of the property. This document must be in the hands of the
owner from the moment he buys it, although a property can be acquired without the original. Usually it is the public deed of purchase, but it can also be private contracts.
Energy efficiency certificate
Issued after the visit of a technician, this document records the level of carbon dioxide in relation to the dimensions of the home and establishes an efficiency rating. The energy efficiency certificate is mandatory to have it even before the sale. Without this certificate you cannot publish an ad on a real estate portal.
Certificate of occupancy
It is compulsory only in Catalonia and the Balearic Islands, as well as in new-build homes and certifies that the home meets all the minimum conditions for it to be inhabited.
Last IBI receipt
The real estate tax is a municipal tax that we need to show that we have paid it (or it will indicate what is pending). On the day of the purchase-sale, an agreement is reached with the buyer that he must pay the proportional part of the remainder of the year.
Certificate of the community of owners
It is issued by the administrator of the community of owners and it indicates if we are up to date with payments and spills or pending debt.
Building Technical Inspection Certification (ITE)
As it is mandatory for buildings over 45 years old, a technical architect must visit the house and check that the house is in good condition.
Certificate of outstanding mortgage balance
In the case of having a mortgage, this document will indicate the account in which this credit must be paid, in order to cancel it.
Zero balance certificate
If the mortgage is paid but has not yet been canceled from the registry, this document will serve to prove it.
Last receipt of supplies
It is the way to show that the house does not have pending charges.
The Generalitat of Catalonia definitively approved the already announced Protection Plan for the Costa Brava that will prevent the construction of some 15,000 homes and authorized the Department of Territory to start the drafting of a new Urban Master Plan (PDU). The new PDU will imply that in 26 municipalities on the coasts of Barcelona and Tarragona, the developable category of 4,200 hectares will be reviewed with the capacity to house some 100,000 new homes.
With this, the Catalan Government opens the possibility of declassifying urbanizable land that, applying the same criteria as the recently approved Girona Coastal Plan, considers that they are “unsustainable”.
On the other hand, the Generalitat will work on a new plan for the protection and management of the coastline that will affect public land and maritime-terrestrial ecosystems of 89 municipalities and aims to deploy new instruments to deal with climate change. These two new plans are part of the task of "reviewing current planning" throughout Catalonia.
The Government ensures that with the approval of the PDU of the Girona coastline, published on February 11, 2021 in the Official Gazette of the Generalitat (DOCG), the construction of almost 15,000 homes in "spaces with landscape and environmental value" will be avoided, which means half of those that could be built so far. The Plan has been based on two major actions, in addition to the sustainability review of 201 soils in 17 municipalities on the Costa Brava, a series of landscape integration guidelines must be followed when building isolated houses.
If you want to know if your property is affected or if you need advice on the planning of your real estate project on the Catalan coast, our I-VEO agents will be happy to advise you.
Non-resident or Spanish foreigners residing abroad must pay taxes on properties acquired in Spain.
For the income obtained in Spain, non-residents are taxed by the Non-Resident Income Tax and also the Property Tax and in some cases the Wealth Tax. But the first thing to clarify is the tax concept of residence.
1. Tax residence in Spain
A natural person is considered a resident in Spain when:
Reside in Spain 183 days or more throughout the year.
That he has the center of his vital interests in Spain.
Otherwise, he is considered a non-resident when these circumstances DO NOT apply.
2. Non-Resident Income Tax
Natural persons and non-resident entities will be taxpayers of the Non-Resident Income Tax (IRNR) if they obtain income in Spain such as the possession, leasing and / or transfer of non-resident properties:
A) Property for own use
If the property located in Spanish territory is not rented, it must be declared by imputation of income. This is a return for keeping an empty property. The Tax Agency considers that any property that is not a habitual residence allows obtaining an income (a rent for it) and therefore an income is imputed for owning a home even if it is empty.
The income to be declared will be 2% of the cadastral value of the property if said value has not been reviewed in the last 10 years (otherwise 1.1%).
The tax rate applied is 24%. For residents of the European Union, Norway or Iceland it is 19%.
Income must be declared in form 210 during the entire calendar year following the year in question.
B) Leased property
But in the case of income from leased or subleased properties not subject to withholding, they may be grouped by quarter in a single model 210 for each property.
The taxation of real estate income is very different depending on the country of residence:
i) Residents of the European Union, Norway and Iceland
Deductible expenses may be subtracted from the full returns.
They are expenses that are proven to be directly related to the returns obtained in Spain.
Residents of the European Union, Iceland, and Norway are taxed at 19%.
ii) Residents outside the European Union, Iceland or Norway
These taxpayers cannot deduct any type of expense. And the tax rate applied to them is 24%.
-> The income will be declared in form 210. If it goes out to pay, the term of presentation and entry will be the first 20 days of the months following the end of the quarter in relation to the income accrued in the previous calendar quarter.
C) Transfer of non-resident property
When a non-resident transmits a property located in Spain, the buyer is obliged to make a withholding of 3% of the value of the sale and pay it to the Tax Agency within 1 month from the date of the sale, using form 211. Said withholding is considered a payment on account of the tax that the non-resident must pay for the gain (difference between the transfer value and the acquisition value) obtained in the transfer.
The tax rate is 19%.
The buyer must deliver to the non-resident seller a copy of form 211 so that the withholding tax can be deducted from the resulting full installment. If the amount withheld is higher than the amount to be paid, the excess may be requested to be returned.
The deadline for submitting form 210 in the event of the sale of non-resident properties is 3 months.
-> Finally, it is important to know that in the Non-Resident Income Tax a declaration must be submitted for each type of income and each payer.
D) Double taxation
Residents in a country with which Spain has signed an agreement to avoid double taxation, will have to comply with what is provided in it.
Normally, the agreements signed by Spain consider that income from real estate can be taxed in the State where they are located. In the event of double taxation, the other State will have to eliminate it. If you wish, our lawyers from the I-VEO Synergy group will consult you about the agreements
3. Real Estate Tax
It is a municipal tax that must be paid by owners of real estate. A tax rate is applied to the cadastral value established by each City Council. A receipt is issued annually to make the payment of the Real Estate Tax, also known as IBI. The payment term varies in each municipality. More information about the IBI in one of our articles on the website www.I-VEO.com
4. Wealth Tax
If the assets and rights of which they are holders in Spanish territory exceed the exempt minimum of 700,000 euros, non-resident natural persons are subject to Wealth Tax. The tax is accrued on December 31 of each year. It is declared through form 714.
The filing period is the same that applies to residents in the rental campaign. They should only declare when the fee is to be paid or if the value of the goods and rights is greater than 2 million euros, even if the fee is negative.
If you want more information about the taxes paid by non-residents with real estate in Spain, it is with pleasure that our I-VEO agents will inform you.
I-VEO Synergy SC also has tax specialists who advise you according to your personal situation.
The entry into force of the Resolution SLT /1/2021, of January 4, has raised many doubts in relation to the impact of “comarcal” (local administrative division) mobility restrictions on visits to properties. Although it is requested to restrict movements as much as possible, those that are justified by "compliance with labor, professional, business obligations ..." are allowed, so there is no impediment to the development of the task of the agents in terms of conducting real estate visits.
However, those other trips that are not justified by any of the above reasons, and especially those that want to be made in other “comarcas” different from the habitual residence within the maximum restriction hours, would be affected by mobility limitations.
For this reason, clients visiting properties must do so under their sole responsibility and must justify, if required, the reason for their displacement and this between Monday and Friday.
The model of declaration of self-responsibility provided by the Generalitat of Catalunya does not include any special box that covers travel due to the visit of properties, so it will be the person who wants to make use of it who must prove the reasons that justify the urgent urgency that forces you to move between municipalities in the hours of maximum restriction.
For clients who need to prove the reason for the trip, I-VEO Synergy provides them a scheduling sheet for the arranged visit, stating the day and time of the visit, the address of the property and the contact person of your agency. The urgency or imperativeness corresponds to the clients to justify it. If you have any doubts about the delimitations of your local administrative division, the comarca, iqual to a county, our agents will be happy to inform you about your possibilities of movement.
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