Spain Homes® assists you in transferring ownership of your Spanish property. You will have all the rights to your new real estate, with a seamless process, under the guidance of our property experts.
The title deed (Escritura in Spanish) is one of the most important documents in the property purchase process in Spain. Title deed transfer is carried out in the presence of an authorized Spanish Notary. The property ownership transfer in Spain is a legally regulated process that requires careful documentation, notarization, and compliance with tax obligations to ensure a smooth transition of ownership.
If you do not give power of attorney, you must be present in person to sign the deeds in a notary public. All parties to the sale must be present at the appointed time or issue the Power of Attorney separately. For example, if you are buying a property in Spain with other people or if the seller is more than one person, you must all be at the notary.
If you are using a mortgage loan, the representative must also be at the notary. Therefore, you need to inform your mortgage lender about the date, time, and place of signing the deeds.
The Initial Process of Transferring a Title Deed in Spain
The process starts with finding the desired property in Spain and coming to an agreement with the seller, which usually includes making a down payment for reassurance.
After deciding on the property, the next step is to gather and translate the necessary documents into Spanish. These required documents include:
- Tax Identification Number (NIF), residence card or NIE number.
- Receipt of the real estate tax (El Impuesto de Bienes Inmuebles) a.k.a IBI receipt.
- The property’s energy certificate document.
- Proof that community expenses are up to date.
- The deposit or reservation contract if it is applicable.
- Proof of payment for utilities, such as electricity, water and gas.
- A document providing there is no debt on the property.
- The draft of the deed.
If you work with Spain Homes® professionals, you will have a simple and quick deed title transfer process. In order to make it easy for you we have prepared all the steps of the Spanish title deed conveyance process below.
- Choosing a notary public and determining the date and time of signature.
- Preparing legal documents, such as title deed transfer form, and checking with a lawyer.
- Planning your trip if you are going to attend in person.
- Agree on the payment method and arrange the necessary funds.
- On the date of the appointment, the notary checks and certifies the identity documents. They read the deed aloud (in Spanish) to make sure everything is correct.
- The notary approves the payment made by the buyer to the seller.
- If there is no objection by either party and the payments are correct, the notary signs the deeds.
- You receive an unofficial copy (Copia Simple) from the clerk, while the notary keeps the original document for several days for registration.
- After the deed is signed, the property is registered in the land registry.
- You are officially a homeowner in Spain!
It should be noted that making the required transaction payments is also part of the initial process.
The Cost of Title Deed Transfer in Spain
When you are budgeting for a new property, it’s important to consider all property purchase expenses in Spain, including notary fees, land registry costs, and taxes such as VAT or the Property Transfer Tax.
The total cost of a title deed transfer in Spain involves several fees and taxes including notary fees, land registry fees, acquisition taxes (which can be VAT or ITP), and stamp duty.
The cost of title deed registration varies depending on the type of the property, however, it is usually around €750. This fee is necessary to ensure legal security regarding property ownership and fixed by Spanish regulations based on the property's value.
The average price for notary services in Spain is about €300, which is officially regulated on the property's sale price, but this doesn't include other taxes or mortgage loan formalization costs.
Acquisition taxes include either VAT (Value Added Tax) for new properties or ITP (Property Transfer Tax) for resale properties. VAT (IVA in Spanish), is generally 10% of the deeded amount on new-build properties, but can be 4% for special regime social housing or public developments.
For second-hand properties, the property transfer tax (ITP) ranges from 6% to 10%, depending on the autonomous region. This tax (Impuesto de Transmisiones Patrimoniales in Spanish) is calculated based on the value in the Cadastral Registry or the price declared in the title deeds.
When VAT is due, buyers typically also pay Stamp Duty (Impuesto sobre Actos Jurídicos Documentados in Spanish), which is around 1.2% of the property value.
The buyer must pay all taxes arising from the sale of a property in Spain within 30 banking days of signing the public title deed
It's significant to note that these tax rates and regulations may change over time, so when you work with us, it’s easier for you to ensure compliance and accurate calculations. After the notary transfers the property deed, we also help you get subscriptions such as water, gas, and electricity as well.
How to Check for Property Debts in Spain
When you want to learn if the property you are interested in has debts, there are some ways to check it supported by Spanish legislation;
- Request a document named “nota simple” from the local Spanish Land Registry (Registro de la Propiedad in Spanish). Nota Simple is a document which holds information about a property such as, the type, name, ownership, size, boundaries, etc. This way, you will have information about the property’s ownership and any existing debts or charges against the property. The document can be requested both online and in person.
- With the help of the document, you may check for liens, which are crucial as they state if the real estate is encumbered by debts affecting ownership.
- If it is possible, you may also consider reaching out to previous owners to inquire about any known debts tied to the property you are interested in.
- You can also request a mortgage certificate from the lender to verify if there are any outstanding mortgage debts on the real estate as well.
Frequently Asked Questions about Title Deed Transfer in Spain
Q: How long does the property deed transfer process in Spain take?
A: For the general timeframe, the process of Buying Real Estate in Spain which includes the transfer of a title deed, can be concluded from six weeks to three months in general. Obtaining the title deed specifically, can take time between one month to three months.
Q: Why do names on the title deeds need to be changed?
A: Sometimes names on the title deeds need to be changed in order to correct inaccuracies or due to major legal changes in life, such as marriage, divorce, death of a property owner, inheritance, voluntary name change, correction of a misspelling, refinancing, adding a spouse or changes in the legal structure of the real estate.
Q: What are common reasons for changing ownership of a property in Spain?
A: There are also some other reasons for changing ownership of a property excluding the changing in the legal structure of the property as mentioned in the previous question. These may include donation, ending co-ownership, and selling the property in Spain.
Q: Is legal advice needed for a title deed change?
A: Yes, legal advice is beneficial and often recommended when you are changing the ownership of a title deed. Because it is a complex legal and administrative process, however, seeking legal support for property purchase in Spain can help buyers navigate complex regulations, ensure all documents are in order, and prevent potential issues.
Q:What happens if there are issues with the title deed transfer in Spain?
A: If there are issues with your title deed transfer, by seeking professional assistance, you can navigate and resolve any issues related to title deed transfers in Spain. Almost all issues related to deed transfers can be resolved.
Q: What happens if there is a debt on the property?
A: If there are discrepancies or unresolved debts related to the property, you can try negotiating with creditors or resolving boundary disputes.
Q: Can I check the status of my title deed transfer online?
A: Yes, you can utilize online tracking systems provided by deeds offices or Spanish property registration authorities to check the status of your title deed transfer online. By obtaining a tracking number, you can check the status anytime and from anywhere.
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