What is it about?
This process is one of the most common transactions in notaries. Essentially, it occurs when a person sells a property, shares, or participations in a company in exchange for a pre-agreed amount of money. In this way, the ownership and all associated responsibilities transfer from one owner to another.
In other words, the deed of sale is the official document where the agreements between the buyer and the seller are detailed, and all conditions and terms related to the transaction are recorded.
Lastly, it’s important to note that agreements involving capital increases and reductions in a company can be requested via videoconference.
What must the buyer pay in a purchase?
First, the buyer must pay the Property Transfer Tax (ITP) for the transaction. If it is the first time the property is being sold, VAT will apply; if it is a second-hand property, the Tax on Onerous Property Transfers (TPO) will apply. Additionally, the buyer must cover costs related to registering the property in the Property Registry and the Documented Legal Acts Tax, which vary depending on the region.
What must the seller pay in a sale?
The seller will have to pay the municipal capital gains tax, which is the Tax on the Increase in the Value of Urban Land (IIVTNU), as well as Personal Income Tax (IRPF) and Non-Residents Income Tax (IRPNR) if they live outside the country.
Who pays for the deed of sale?
Whoever pays for the deed depends on the agreement between the parties. In Catalonia, it is generally the buyer who covers these notarial expenses. However, in other regions, it is more common for the seller to assume these costs.
Who pays the Property Tax (IBI) in a sale?
The IBI must be paid by the property owner as of January 1st of each year. In purchase transactions, it is usually agreed to divide this tax proportionally between the parties. Therefore, if this is agreed, the seller will pay the IBI up to the day of the sale, and the buyer will take responsibility from the following day onward.
Required Documentation
For Real Estate Sales
Property documents of the sellers.
National Identity Document (DNI) of both the sellers and the buyers.
Information about the matrimonial property regime of both parties.
If a company is involved, the valid powers of attorney or administrator appointments are required.
Registration details in the Commercial Registry if a company is involved.
For urban properties, a certificate from the homeowners association confirming the payment of community expenses.
Land registry reference (latest IBI receipt).
Rental status of the property.
Agreed sale price.
Details about the transaction costs: notary fees, municipal tax on land value increase (Plusvalía).
For Share or Participation Sales
Property documents of the sellers.
National Identity Document (DNI) of both the sellers and the buyers.
Information about the matrimonial property regime of both parties.
If a company is involved, the valid powers of attorney or administrator appointments are required.
Articles of incorporation of the company in which the shares or participations are processed, and its registration details in the Commercial Registry.
Tax Identification Number (NIF) of the company.
Agreed transaction price.
Details about the transaction costs.
In which situations can this service be used?
This real estate purchase service can be used in various situations, such as:
Buying a house or apartment as a primary residence.
Acquiring a property for investment purposes.
Transaction of land or plots.
Purchase of commercial properties, such as stores or offices.
Selling a property to relocate to a new residence.
Inheritance of real estate.
Division of property in the event of a divorce or dissolution of a marital property regime.
Property transfers between family members.
Sale of foreclosed or mortgaged properties.
Purchase of properties in public auctions.