Spanish Property Information & Taxes
ESCRITURAS - All deals relating to real estate in Spain require their registration in the Land Registry. This is a Public Office, where they maintain details of the property and record any financial charges or other matters; that may affect the title to, and ownership of the property.
When buying your property through us, you have the security of a correct and safe outcome to your transaction with a guaranteed clean 'bill of health”.
In Spain, all deeds or public contracts are signed in front of a Public Notary; thereby giving you added security for all your dealings.
COMMUNIDAD & LEY DE PROPIEDAD HORIZONTAL - under Spanish Law, any type of development in Spain where there is a common ownership or sharing of facilities between owners; must establish a Community of Owners. This provides the legal means through which the costs of maintaining communal property can be shared proportionally.
It is important that the rules of the community, and also any deed of horizontal division are understood by you, since they form an integral part of your future enjoyment of the property.
N.I.E TAX IDENTIFICATION NUMBER - all property owners will need a Spanish tax identification number. This number identifies you to the Spanish tax authority (Hacienda). All Spaniards have one too! DREAMTIME PROPERTIES can of course advise on obtaining your number
WEALTH TAX - (PATRIMONIO) this is paid by both residents and non-residents alike, and is self-declared. As a property owner, your Spanish property is deemed to have a notional rental value, and thereby earn an income! The tax is calculated as 2 tenths of 1% of the catastral value (rateable value decided by the hacienda).
INCOME TAX - if you become a Spanish Resident i.e. spending more than 180 days in any one year in the country, you will be required to declare and will be liable for Spanish income tax. Of course, there exists a double taxation agreement between the U.K. and Spain; and a booklet that explains this, can be obtained from your local tax office in the U.K.
LOCAL TAXES & CHARGES
These are charged to property owners regardless of their residential status.
RATES (IMPUESTO SOBRE BIENES INMUEBLES) – more easily understood as rates charged on your property by the local town hall.
MUNICIPAL WATER (AGUA MUNICIPAL) - water is charged on the basis of consumption. However, some communities have their own water wells, and include the charges for the water within their own community fees.
RUBBISH (BASURA) - there is an annual charge for rubbish collection and varies from authority to authority. Again, it could also be included within your community charge.
COMMUNITY CHARGES - these are the fees charged by the 'Comunidad de Propietarios' (the community of property owners), a legal body that controls all the elements held in common such as lifts, gardens or swimming pools. Each owner is assigned a quota or percentage, which, by law must be paid.