With the progressive drop in prices in recent years, the Spanish real estate property market has become a strong attraction for foreign investment, for both individuals and companies. Many come to Spain to buy a home, but very often they encounter problems when formalising the purchase. In the following, we shall take a look at the required documents for carrying out said operation:
1. Foreigner Identification number (NIE/NIF).
Both individuals and legal entities must first obtain a Spanish identification number in order to appear before a Notary Public and grant a public deed for the purchase operation.
2. Certificate of ownership and encumbrances issued by the Land Registry (Certificado del Registro de Propiedad de Dominios y Cargas).
The buyer must be assured, by way of the corresponding information note issued by the Land Registry, of the real situation of the property, specially regarding existing mortgages or other third party rights which may be levied on the property for sale.
3. Certificate of occupancy (Cédula de habitabilidad)
All dwellings, both new and used, must have a certificate of occupancy, which guarantees compliance with the minimum levels of habitability required for housing.
4. Energy certificate (Certificado energético)
Any person wishing to buy or rent a dwelling must bear in mind the energy certificate, which is an official document issued by a qualified technician, and which includes objective information about the energy characteristics of a property.
5. Real estate tax (Impuesto sobre Bienes Inmuebles (IBI))
The buyer must make sure that the vendor hands over the receipt for the payment of the most recent annual real estate tax bill, in order to avoid having to pay back payments.
6. Certificate of the owners’ association (Certificado de la Comunidad de Propietarios)
The buyer must obtain from the vendor a certificate indicating that the latter does not have any pending debts with the owners’ association of the building in which the property is located.
7. Opening a bank account in Spain.
In many cases, the vendor may wish that the payment of the property price is made from an account held at a Spanish bank. Although this is not essential for the purchase and sale operation, it is often recommended, especially for the direct debit of utility bills (water, electricity and gas) in the future.
8. Taxes
The tax rate applicable to the purchase of a property depends on the autonomous region in which it is located, likewise, whether it is a new build or a second hand property, and it may be subject to VAT or transfer tax.
Vilá Abogados
For more information, please contact:
13th February 2015
