What does it consist of?
This procedure is one of the most common in notarial practice. Essentially, it occurs when a person sells real estate or shares/participations in a company in exchange for a pre-agreed amount of money. In this way, ownership and all associated responsibilities transfer from one party to another.
In other words, the deed of sale is the official document detailing the agreements between the buyer and the seller, recording all conditions and arrangements related to the transaction.
Finally, it should be noted that agreements involving capital increases or reductions in a company can 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 operation. If the property is sold for the first time, VAT will apply; if it is second-hand, the Onerous Property Transfer Tax (TPO) applies. Additionally, the buyer must pay costs related to registering the property in the Property Registry and the Documented Legal Acts (AJD) tax, 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, known as the Tax on the Increase in Urban Land Value (IIVTNU), as well as income tax (IRPF) and non-resident income tax (IRNR) if residing abroad.
Who covers the cost of the deed?
The party that pays for the deed depends on the agreement between the parties. In Catalonia, the buyer generally covers notarial fees, while in other regions, it is common for the seller to assume them.
Who pays the Property Tax (IBI) in a sale?
The IBI is paid by the property owner as of January 1 each year. In purchase transactions, a proportional division between the parties is usually agreed upon. Therefore, if established accordingly, the seller pays the IBI until the day of the sale, and the buyer assumes responsibility from the following day.
Required Documentation
Real Estate Sales
Sellers’ property documents.
National Identity Document (DNI) of sellers and buyers.
Information about the marital property regime of both parties.
If a company is involved, valid powers of attorney or appointments of administrators.
Registration details in the Commercial Registry if a company participates.
For urban properties, a certificate from the homeowners’ association confirming payment of community expenses.
Cadastral reference (latest IBI receipt).
Rental status of the property.
Agreed sale price.
Details of transaction costs: notary fees, municipal tax on land value increase (Plusvalía).
Sale of Shares or Participations
Sellers’ ownership documents.
DNI of sellers and buyers.
Information about the marital property regime of both parties.
If a company is involved, valid powers of attorney or appointments of administrators.
Company bylaws and registration data in the Commercial Registry.
Company Tax Identification Number (NIF).
Agreed price for the transaction.
Details of transaction costs.
Situations in which this service can be used
The real estate sales service can be used in various situations, such as:
Purchase of a house or apartment as a primary residence.
Acquisition of property for investment purposes.
Transactions involving land or plots.
Purchase of commercial properties, such as stores or offices.
Sale of property to move to a new residence.
Inheritance of real estate.
Separation of property in case of divorce or dissolution of joint ownership.
Transfer of property between family members.
Sale of foreclosed properties or those in mortgage enforcement.
Purchase of properties in public auctions.