IF YOU ALREADY KNOW WHICH HOUSE YOU WANT, WHAT DO YOU NEED TO DO NEXT?
Once the client, ATIPIKA BARCELONA and the owner have reached an agreement on price, terms and conditions, how is this put into action? Bear in mind that the steps listed here are of a general nature and that all stages of the transaction can be personalised.
This document is drawn up before payment of the deposit, and sets out the agreed price, timescale for payment of the deposit and confirmation that the property will be free of encumbrances by the time the deed is signed. This reserve prevents the property being marketed until the deposit is paid, which normally occurs within a maximum of 15 days but does not commit the owner 100%.
This is a sales contract with a specified time limit, so that if the owner decides not to sell, Article 1454 of the Civil Code is applied. This specifies that the owner must return to the buyer double the amount paid. If, on the other hand, the client decides not to buy, he loses the amount paid. This amount is normally set at 10% of the total purchase price. This deposit may be paid after the reserve, or straight away if the client has immediate access to 10% of the total price.
This is a type of agreement between both parties, with or without a deposit, which specifies a rental price with a longer-term deed. During this time, the amount of the rent paid is deducted as part of the purchase. In short, the owner finances part of the purchase until the client is ready to sign the deed according to the set price. If the client is unable to sign the deed within the agreed period of time or stops paying rent, he loses everything he has paid up to that time. There are several versions of this option that ATIPIKA BARCELONA, the owner and the client may agree depending on the interests of all parties.
Once the owner and the client are ready to sign the deed, an official contract is drawn up before a notary detailing the seller, the buyer, the item being purchased and the taxes arising from this transaction for both parties. This is when the owner presents all the documentation setting out that the property is free of encumbrances and up-to-date with tax and community charges, the certificate of occupancy and the certificate of energy efficiency.
If one of the parties, whether the buyer or the seller, is NOT a resident, he must provide an identity document with photo and signature, as well as his NIE (Foreigners’ Identification Number). He may have a certificate of residence containing his NIE. In all cases, the NIE is obligatory.
If the notary does not receive from the owner the original documents requested or they are not correct, he will not sign. He will also not sign unless the owner is present.
Si el notario no recibe del propietario los documentos originales solicitados o no son correctos, no firmará. Tampoco lo hará si el propietario no se presenta.
DOCUMENTATION THAT THE OWNER MUST PRESENT IN ORDER TO SELL
In order for the sale to be concluded, the owner must provide the following documentation:
Valid certificate of occupancy, which has not expired and is an original copy: we recommend that the owner request this when he decides to sell the house.
Certificate of energy efficiency: In accordance with European regulations and from 1 June 2014, all properties that are either sold or let must comply with European regulations and owners must request a certificate showing the degree of energy efficiency.
Certificate from the residents’ association: This document certifies that the seller is up-to-date with all community payments up to the date when the deed is signed. It must be an original copy signed by the administrator and the secretary.
Certificate of encumbrance: If the house has an outstanding mortgage, this mortgage is cancelled from the moment the deed is signed except for the remaining amount to be paid directly in the transaction. The seller must therefore request a certificate showing the amount outstanding and provide the original copy. However, ATIPIKA BARCELONA will be there throughout the process to prepare for every possible eventuality and avoid any unexpected issues.
IBI: The Impuesto de Bienes Inmuebles [property tax] is an annual tax. The seller must provide proof that he has paid the last quarter. The notary will check with the authorities that there no outstanding payments before signing.
All payments must be made by bank-approved cheque and photocopies must be attached to the deed.
When the deed is signed, a copy of the keys must also be delivered or a date of departure agreed with the current tenants of the property.
Once the transaction is complete, the notary delivers an uncertified copy so that each of the parties can complete tax formalities and pay their taxes.
FOLLOWING THE TRANSACTION, WHAT TAXES AND EXPENSES DO I HAVE TO PAY?
ATIPIKA has the best legal, tax and finance experts to advise on this.
Capital gains tax: The seller must pay this within 30 calendar days. The amount is calculated by the city council and we recommend that you take it into account when working out the cost.
ITP: The seller must also pay capital gains caused by the difference between the price for which he bought the house and the price for which he sold it. This property transfer tax is paid in the following tax year. The first 6000 euros are paid at 19% and the rest at 21%. There are several exceptions depending on the circumstances of the seller: age, dependence, etc. If you have any questions, send us an email. If the property sold is officially the seller’s main residence, and the latter goes on to buy another main residence within the following two tax years, he is exempt from paying this tax. You must also bear in mind that if it is a main residence and the person selling it has a spouse or partner, the non-owning spouse or partner must authorise the sale with his or her signature.
If the seller is NOT a resident, he or she will withhold 3% of the amount to be paid and deposit it with the Spanish tax office. In accordance with the agreement with each country, once there is proof of payment or exemption, the seller may request a refund as appropriate.
Furthermore, the notary will retain the amount of capital gains tax when the deed is signed to avoid non-payment if the seller leaves the country.
In Catalonia, the same percentage of tax is currently paid whether the house is new-build or second-hand; however, VAT is paid on new-builds and property transfer tax on second-hand properties.
VAT (Value-Added Tax):, This is set at 10% of the total value of the property.
ITP (property transfer tax): This is set at 10% of the total value of the property.
AJD (stamp duty): Whenever a public document is issued before a notary, you must pay 1% of the value of the asset.
Apart from these costs, which account for 11% of the total value, you must also take into account the costs of registering and recording the deed, which vary according to the body that carries this out (bank or administrator), and the value of the house. You should factor in at least an additional 1% for each of these, making the total amount between 12% and 13% of the total value.
If the buyer is NOT a resident, he must obtain a NIE (Foreigners’ Identification Number in order to complete the transaction. He must also present a photo document (passport) to prove ownership. Since the tax liability arises in Spain, he will pay the taxes established in Spain.