What does it consist of?
This procedure is one of the most common in notarial offices. Basically, it occurs when a person sells real estate or shares/holdings of a company in exchange for a previously agreed amount of money. In this way, ownership and all the responsibilities it entails are transferred from one owner to another.
That is to say, the deed of sale is the official document where the agreements between the buyer and the seller are detailed, and all conditions and covenants related to the transaction are recorded.
Lastly, it should be noted that agreements involving increases or reductions of capital in a company may be requested via videoconference.
What does the buyer have to pay in a purchase?
First, the buyer must pay the Property Transfer Tax (ITP) for the transaction. If it is the first sale of the property, VAT will apply; if it is a resale, the Transfer Tax (TPO) will apply. In addition, the buyer must pay the costs related to registering the property in the Land Registry and the Stamp Duty, which vary depending on the region.
What does the seller have to pay in a sale?
The seller must pay the municipal capital gains tax, which is the Tax on the Increase in Value of Urban Land (IIVTNU), in addition to Personal Income Tax (IRPF) and Non-Resident Income Tax (IRNR) if residing outside the country.
Who pays for the deed of sale?
The party responsible for paying the deed of sale depends on what has been agreed between the parties. In Catalonia, it is generally the buyer who covers these notarial costs. However, in other regions, it is common for the seller to assume them.
Who pays the Property Tax (IBI) in a sale?
The IBI must be paid by the property owner as of January 1 of each year. In purchase transactions, it is usually agreed to divide this proportionally between the parties. Therefore, if such an agreement is established, the seller will pay the IBI up to the day of the sale, and the buyer will be responsible from the following day.
Required Documentation
Real Estate Sales
Ownership documents of the sellers.
National Identification Document (DNI) of both sellers and buyers.
Information regarding the matrimonial property regime of both parties.
In case of corporate involvement, valid powers of attorney or appointment of current administrators.
Registration details in the Commercial Registry if a company is involved.
For urban properties, a certificate from the homeowners’ association confirming payment of community fees.
Cadastral reference (latest Property Tax – IBI receipt).
Rental status of the property.
Agreed sale price.
Details regarding payment of transaction expenses: notarial fees, municipal capital gains tax (Plusvalía).
Share Sales
Ownership documents of the sellers.
National Identification Document (DNI) of both sellers and buyers.
Information regarding the matrimonial property regime of both parties.
In case of corporate involvement, valid powers of attorney or appointment of current administrators.
Articles of association of the company whose shares are being transferred, and its registration details in the Commercial Registry.
Tax Identification Number (NIF) of the company.
Agreed transaction price.
Details regarding payment of the operation costs.
In what situations can this service be used?
This real estate sales service can be used in various situations, such as:
Purchase of a house or apartment as a first residence.
Acquisition of a property for investment purposes.
Transaction of land or plots.
Purchase of commercial properties, such as shops or offices.
Sale of a property in order to move to a new residence.
Inheritance of real estate.
Division of assets in cases of divorce or dissolution of the community of property.
Transfer of property between family members.
Sale of foreclosed properties or those under mortgage enforcement.
Purchase of properties in public auctions.