Notarial services for real estate transactions refer to both the purchase of real estate and the purchase of shares or participations in a company.
Purchase of real estate:
Required documentation:
Seller's property titles.
ID of sellers and buyers.
Marital property regime of both parties.
If a company is involved, valid powers of representation or appointment of administrators.
Registration details in the Commercial Registry.
For urban properties, a certificate from the homeowners' association confirming that community fees are up to date.
Cadastral reference (last IBI receipt).
Whether the property is rented or not.
Operation price.
Method of payment for operation expenses: Notary fees, municipal increase in land value (Plus Valía).
Purchase of shares:
Seller's property titles.
ID of sellers and buyers.
Marital property regime of both parties.
If a company is involved, valid powers of representation or appointment of administrators.
Bylaws of the company whose shares or participations are being transferred and their registration details in the Commercial Registry.
Tax identification number (CIF) of the company.
Operation price.
Method of payment for operation expenses.
Expenses arising from the granting of a real estate purchase deed:
In the absence of an agreement, expenses according to the law are distributed as follows:
Seller: The deed (except for the authorized simple copy) and the municipal increase in land value (Plus Valía).
Buyer: The simple copy of the deed, registration fees at the Property Registry, and the tax (Property Transfer Tax for private party sales and Stamp Duty for sales to developers who have paid VAT).
Property Registry. This is an expense paid by the buyer, the amount of which is determined by the registration fee schedule.
Tax on the Increase in Value of Urban Land (IIVTNU). This is an expense for which the seller is liable and must be paid within 30 business days following the signing of the purchase deed, using the simple copy provided by the notary. (This expense does not exist if the transferred property is rural land).
Property Transfer Tax or Stamp Duty. In this case, the buyer is liable and must also pay it within 30 business days following the signing of the purchase deed, using the authorized and simple copy provided by the notary.
Personal Income Tax (IRPF). Remember that selling a property usually results in a capital gain for the seller, which must be declared in the tax return for the year following the sale.
Real Estate Tax (IBI). Following the Supreme Court ruling of June 15, 2016, regarding the IBI installment for the current tax year, the general rule, in the absence of a contrary agreement, is that the seller who pays the tax – as the liable party for being the owner on January 1 – can pass it on to the buyer, in proportion to the time each party has held ownership and the time they will hold it.