Ownership certificate for real estate in Spain

Ownership certificate for real estate in Spain

The purchase and sale of housing in Spain by foreign investors is one of the most common legal transactions. It is very popular to buy a second residence in Spain for holidays or in case of emigration, the main residence to settle in Southern Europe.

We explain how and where to register property in Spain in this article.

CONTENT:

PROPERTY REGISTRATION LAW IN SPAIN

Ownership in Spain is different from other countries. The main differences that you will find if you are a foreigner:

  • Real estate can be transferred informally. This means that the property, if all contractual requirements are met, can be acquired orally and even without an act.
  • There is no general registration principle in the Land Register. Registration of property is only legally binding, not constitutive.

Thus, registration of rights to real estate in Spain is voluntary with some exceptions.

Currently, this still happens in exceptional cases, especially in rural areas, land is not registered in the Land Register.

The rights and obligations of a foreign owner of real estate in Spain are similar to the rights and obligations of country residents. House owner can freely dispose of their property: give, resell, rent, etc.

Moreover, the owner of an apartment in Spain must bear expenses, for example, property tax, calculated on the basis of cadastre data at a rate of 0.4% - 1.1% per year.

The state guarantee of real estate ownership in Spain is expressed in a variety of applicable regulations: the Spanish Constitution, the Civil Code, the Law on Mortgages, the Law on the Right to Personal Property in the Common Property, General Tax Law, Law on Foreigners, Law on Foreign Investment and especially Royal Decree 664/1999.

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HOW IS INFORMATION ENTERED INTO THE SPANISH PROPERTY REGISTER?

The following formalities and requirements must be observed when entering information into the Spanish real estate register:

  • Pre-registration

The first step is to pre-register within sixty working days in the so-called “Log book”

Documentation must be submitted to the appropriate land register depending on property location.

  • Document rating

The registrar then confirms document qualifications within fifteen business days.

If the registration is approved, it is processed and then the document is returned to the applicant with a footnote signed by the registrar.

If the registration is not approved, then an error was found in the document, the response sets out the legal basis and the facts justifying the refusal.

After that, the person applying for registration, the notary certifying the document, or, in appropriate cases, the authority from which the document originates, is notified.

The registrar will extend the registration period by sixty days from the date of the last notification.

If registration is refused, the applicant can correct the error, if possible, or can appeal the decision of the registrar.

Is it obligatory to register real estate in the Land Register?

Property registration in Spain is not compulsory, but it guarantees legal certainty to the owner. As a buyer, you will be protected from any disputes, especially over loans and debts, that the seller may have. In addition, this registration document makes it easy to sell, inherit or obtain a mortgage.

How much does it cost to register a house with the Land Registry?

The costs of registering property are established by regulatory enactments and their amount depends on property price, as well as on its location and characteristics. For reference, the cost of registering property is about 400 € for a payback of about 30,000 € (for example, a garage), about 500 € for a property worth about 200,000 € (for example, an apartment), about 600 € for a purchase of about 300,000 € (for example, a villa) or about 700 € when buying about 900,000 € (for example, a luxury villa in an exclusive urbanization).

Are there any deadlines for registering housing in the Land Register?

Property registration in the Land Register does not expire and there is no need to renew such registration.

REAL ESTATE REGISTRATION PROCEDURE IN SPAIN

Registration of real estate in Spain includes several stages.

Registration of rights to real estate is the last procedure that takes place after the purchase of a house. We must sign a sales contract, sign a deed at a notary and pay all taxes on the operation before that.

3 documents are required to register a purchase and sale:

  • A copy of a notarized deed, where the seller and the buyer are present. The seller will provide a deed of purchase and sale signed by a notary.
  • Calculate related taxes, including those outstanding, that the home may have and taxes related to the purchase, such as property transfer tax.
  • Payment substantiation of municipal value added tax.

Filing in of these documents can be done in the following ways:

  • In person at the property registration authority corresponding to property location.
  • Through Bureau of Services.
  • In the notary office where the deed was signed.

After notarization, it is necessary to register the housing in the Land Register.

What is cadaster?

Cadastral registration is a secondary system created in Spain for property processing, description and boundaries of all lands in the country.

Basically, cadaster records information about the property, where it is on maps, what is the size of the building, what are the boundaries, coordinates, etc.

Information that can be found in the cadastral register:

  • Property plans.
  • Access to property.
  • Cadastral number that gives access to tax information.
  • Land plot characteristics specified in the act signed at the time of purchase.

Cadastral update

Upon house construction completion or extension, such as a new room or any other structure such as a swimming pool, garage, barn, the new change must be reported to the land register as well as to the cadaster.

Sketches and plans for these new structures or new extended portions of the property must be provided to the cadastral office. Otherwise, problems may arise in the future.

A cadastral update is mandatory as property tax is calculated based on the size of the buildings. Therefore, if the size of the property changes, it must be reported to the cadaster so that the property tax invoice can be changed and adjusted accordingly.

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IS SPANISH REAL ESTATE REGISTRY PUBLICLY AVAILABLE?

Registration document is a publicly available document that anyone can access. In fact, when you buy a house, it is advisable to go to the registry to find out who owns the property and if there are any outstanding debts. This information can be obtained through a simple registration note, where it is necessary to indicate the registration number and the register where the property is registered. If these details are not known, you must provide at least the ID, NIE or CIF of the house owner and their address.

PROPERTY IN SPAIN

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