Notarial services for real estate transactions refer to both the purchase of real estate and the purchase of shares or interests in a company.
Real estate purchase:
Required documentation:
Property titles of the sellers.
IDs of sellers and buyers.
Marital economic regime of both parties.
If a company is involved, the powers of attorney or appointment of current administrators.
Registration data in the Commercial Registry.
In urban properties, a certificate from the community of owners that confirms the payment of community expenses is up to date.
Cadastral reference (last IBI receipt).
Whether the property is leased or not.
Price of the transaction.
How the operation expenses are paid: Notary, municipal increment of land value tax (Plus Valía).
Purchase of shares:
Property titles of the sellers.
IDs of sellers and buyers.
Marital economic regime of both parties.
If a company is involved, the powers of attorney or appointment of current administrators.
Statutes of the company whose shares or interests are being transferred and its registration data in the Commercial Registry.
The company's C.I.F.
Price of the transaction.
How the operation expenses are paid.
Expenses related to granting a real estate purchase deed:
If there is no agreement, expenses according to law are distributed as follows:
Seller: The deed (except for the authorized copy) and the municipal increment of land value tax (Plus Valía).
Buyer: The copy of the deed, the registration expenses in the Property Registry, and the tax (Patrimonial Transmissions in sales between individuals and Documented Legal Acts in sales to developers, to whom VAT has been paid).
Property Registry. This is an expense paid by the buyer and is determined by the registration tariff.
Municipal increment of land value tax (IIVTNU). This is an expense whose taxpayer is the seller and must be paid within the 30 business days following the signing of the purchase deed, with the simple copy delivered by the notary. (This expense does not exist if the transferred property is a rural property.)
Property Transfers Tax or Documented Legal Acts Tax. Here, the taxpayer is the buyer and it must also be paid within the 30 business days following the signing of the purchase deed, with the authorized and simple copies delivered by the notary.
Personal Income Tax (IRPF). Remember that the sale of a real estate property usually represents a capital gain for the seller that must be included in the income tax return made the year after the sale.
Property Tax (Contribución). After the Supreme Court's ruling of June 15, 2016, regarding the Property Tax quota corresponding to the current year, the general rule, in the absence of a different agreement, is that the seller who pays the tax -as the taxpayer for being the owner as of January 1- may pass it on to the buyer, in proportion to the time that each party has held the dominical title and for the time that they are going to hold it.