Legal and Fiscal Aspects of buying a new property in Spain
Welcome, foreign homebuyers! In this article, we are going to explore the main legal and fiscal aspects that need to be checked when buying a new property in Spain. It is essential to take these aspects into account to ensure a safe transaction without any unpleasant surprises. Get ready to embark on this informative journey!
Navigating the Spanish legal and fiscal maze
Buying a new property can be an exciting but complex process, especially for foreign buyers. It is important to understand and verify the legal and fiscal aspects to avoid future problems. Below, we will explore the most relevant aspects to consider before closing the purchase.
What to check before buying a property in Spain
The following is a numbered list of the main legal and fiscal aspects to check when buying a new property in Spain:
- Contract of Purchase and Sale: Carefully review the contract of sale before signing it. Check that all agreed details, such as price, payment terms and delivery dates, are correctly reflected in the contract.
- Land Registry: Check that the property is duly registered in the Land Registry. This guarantees ownership and the absence of charges or encumbrances that could affect the property.
- Building book: Technical and legal document that compiles relevant information on the construction, use and maintenance of a building. It contains data on the project report, technical characteristics, installations, construction systems, among other aspects. Its main objective is to provide owners and users with detailed information about the building and to guide them in its correct maintenance. It also includes the developer’s compulsory licences and certificates: building permit, end of works, first occupancy licence or certificate of occupancy, energy efficiency certificate, ten-year insurance…
- Warranties and liabilities of the developer: Obtain detailed information on the warranties and liabilities of the developer of the property. This includes warranties for construction defects, structural damage and other problems that may arise after purchase.
- Taxes and Fees: Know and understand the taxes and fees associated with buying a property in Spain. This includes Value Added Tax (VAT) or Transfer Tax (ITP), as well as Property Tax (IBI) and other related expenses.
- Mortgage: If the purchase is to be financed through a mortgage, it is important to analyse the conditions and requirements of the mortgage loan. This includes the interest rate, payment terms, commissions and associated insurance.
- Community of Owners: If the property is part of a community of owners, it is important to know the rules and regulations of the community, as well as the common expenses and services. This includes knowing the community fees, restrictions on use and any other aspects relevant to living in the community.
The legal and tax journey is like exploring new horizons in space. It requires preparation, attention to detail and the right guidance to navigate the complexities and make sure you get there safely.“
