From 1 February 2024, a new mandatory rule came into force to declare investments by non-resident foreigners (both individuals and legal entities) in real estate located in Spain whose amount exceeds €500,000 (previously this limit was €3,005,060.52). It is also compulsory for investments from countries classified as tax havens, in … Continue reading
1. Income tax (capital gains tax) for the seller Capital gains, such as profits from the sale of real estate in Spain, are subject to taxation. On this capital gain, progressive tax rates will be applied which will determine the amount to be paid. A distinction must be made between … Continue reading
From 11 February 2022, due to the huge boom in the number of properties applying for licenses and the tourist overcrowding, the authorities decided to temporarily suspend new tourist license concessions for a period of 4 years, until 2026. During this period it will be studied how many tourist places … Continue reading
The new government has approved a decree law, Decree Law 3/2024, of 24 May to allow the legalisation of irregularities of buildings, constructions, installations and uses on rural land that are time-barred, i.e. on which the administration can no longer act. This will allow the regularisation of buildings, constructions, installations … Continue reading
The transfer tax is a tax that the buyer of a property must pay during the first month after signing the public sales-purchase deed (escritura de compraventa) and is calculated by applying a percentage depending on the purchase price. The tax rate in Ibiza was, until 2022, between 8 and … Continue reading
In order to help in the event of any questions and doubts on the part of property buyers and owners regarding tourist rentals of their flat, we provide you with this official information sheet from the Consell d’Eivissa (Island Council of Ibiza), which explains the new law 6/2017 in a … Continue reading
Dear Customers, since 27 June 2018 notaries have been obliged to check the existence of the certificate of occupancy (Cédula de Habitabilidad) in the notary purchase certification of a property. The fact of the absence is expressly stated in the contract and the buyer must agree in written form that … Continue reading
Cédula de habitabilidad (Certificate of Occupancy) WHAT IS THE CEDULA DE HABITABILIDAD? This is a certificate of occupancy, a document the size of a postcard which provides evidence that a property has been built according to technical regulations and has also been accepted after inspection. Only with evidence of this … Continue reading
“Residencia fiscal”, Tax residence According to the Spanish Income Tax Law, a person is considered a resident when staying more than 183 days per year in Spain and therefore being fully taxable in this country. In this case the country where the person is registered is not relevant. Notwithstanding the … Continue reading
– GENERAL Foreigners wishing to buy or sell a property in Spain must be in possession of a tax identification number (Número de Identificacion para Extranjeros), NIE number in short. 1. LAND TRANSFER TAX (Impuesto sobre Transmisiones Patrimoniales) When buying real estate, which is not composed of new buildings, you … Continue reading
GENERAL: Although there is no legal obligation in Spain to have sales-purchase contracts notarized, it is nevertheless highly recommended to do so. When buying real estate a private contract is usually signed before issuing the public sales-purchase deed (escritura de compraventa). In general there are three types of written sales … Continue reading
escritura de compraventa GENERAL The so-called “escritura” is a purchase contract signed before a notary. It is not an indispensable requirement for the transfer of ownership, but necessary for the registration in the Spanish Land Registry (Registro de la Propiedad) and also highly recommended. The Spanish notary certifies what the … Continue reading
WHY LAND REGISTRY (Registro de la Propiedad)? In Spain, real estate can effectively be acquired by signing only a private contract, without entering it into the Spanish Land registry (Registro de la Propiedad). However, the registration in the name of the buyer is highly recommended, as with regard to third … Continue reading
WHAT IS A “GESTORIA”? The term gestoría derives from gestor, which translates as processor, operator, manager. The company managed by a “gestor” is known as a Gestoría. Due to Spain’s very complex bureaucratic system, almost impenetrable for foreigners, Gestorías help you to find your way in this administrative jungle. In … Continue reading
WHAT DOES N.I.E. MEAN? The NIE (Número de Identificacion para Extranjeros) is a tax identification number for any foreigner who does not have the Spanish nationality but would like to do business in Spain. This includes, for eg. buying or selling real estate or vehicles, bank transactions, etc. WHAT DO … Continue reading
TAX INCREASE Right at the beginning of 2013 tax increases were approved by the Spanish Government and the Government of the Balearic Islands which equally relate to resident and non-resident property buyers and owners: Real estate transfer tax for buyers The new tax rate is between 8% and 10% and, … Continue reading