What Does It Involve?
This is one of the most common procedures carried out at notaries. Essentially, it occurs when a person sells real estate, shares, or stakes in a company in exchange for a pre-agreed amount of money. This transaction transfers ownership and all associated responsibilities from one owner to another.
In other words, the purchase agreement is the official document that outlines the terms agreed upon by the buyer and the seller, detailing all conditions and agreements related to the transaction.
Lastly, it’s worth noting that agreements involving capital increases or reductions in a company can also be requested via videoconference.
What Costs Does the Buyer Incur in a Purchase?
The buyer must first pay the Property Transfer Tax (ITP) for the transaction. If it is the first sale of the property, VAT is applied; if it is a resale, the Onerous Property Transfers Tax (TPO) applies. Additionally, the buyer must cover costs associated with registering the property in the Property Registry and the Stamp Duty Tax, which vary by region.
What Does the Seller Pay in a Sale?
The seller must pay the municipal capital gains tax, formally known as the Tax on the Increase in Value of Urban Land (IIVTNU). Additionally, the seller is responsible for Income Tax (IRPF) and Non-Resident Income Tax (IRPNR) if they live outside the country.
Who Covers the Cost of the Sales Deed?
The party responsible for paying for the sales deed depends on what is agreed between the parties. In Catalonia, it is typically the buyer who bears these notarial costs. However, in other regions, it is common for the seller to assume this expense.
Who Pays the Property Tax (IBI) in a Sale?
The IBI must be paid by the owner of the property as of January 1 of each year. In purchase transactions, it is common to agree on a proportional division of this cost. Therefore, the seller usually pays the IBI up to the day of the sale, while the buyer assumes responsibility from the following day onward.
Required Documentation
Real Estate Purchases
Property documents from the sellers.
National Identity Document (DNI) of both sellers and buyers.
Information about the marital economic regime of both parties.
If a company is involved, valid powers of attorney or appointments of current administrators.
Details of registration in the Commercial Registry if a company is involved.
For urban properties, a certificate from the homeowners’ association confirming community fees are up to date.
Cadastral reference (latest Property Tax (IBI) receipt).
Rental status of the property.
Agreed sale price.
Details of how transaction costs will be paid, including notarial fees and municipal capital gains tax (Plusvalía).
Shares or Stakes Purchases
Property documents from the sellers.
National Identity Document (DNI) of both sellers and buyers.
Information about the marital economic regime of both parties.
If a company is involved, valid powers of attorney or appointments of current administrators.
Articles of association of the company where shares or stakes are being transacted, and its registration details in the Commercial Registry.
Tax Identification Number (NIF) of the company.
Agreed transaction price.
Details of how transaction costs will be paid.
In What 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 property for investment purposes.
Transactions involving land or plots.
Purchasing commercial properties, such as retail spaces or offices.
Selling a property to move to a new residence.
Inheriting real estate.
Division of property in cases of divorce or dissolution of joint ownership.
Property transfers between family members.
Selling foreclosed properties or those under mortgage execution.
Purchasing properties at public auctions.