Notarial purchase and sale services refer to both the purchase of real estate and the purchase of shares or stakes in a company.
Purchase and sale of real estate:
Documentation required:
Purchase and sale of real estate:
Sellers' title deeds.
ID card of sellers and buyers.
Marital property regime of both.
If a company is involved, current powers of attorney or appointment of administrators.
Registration details in the Commercial Registry.
For urban properties, a certificate from the community of owners stating that all community fees are up to date.
Cadastral reference (last property tax receipt)
Whether it is leased or not.
Sale price.
How the transaction costs are paid: Notary fees, municipal capital gains tax.
Purchase and sale of shares:
Sellers' title deeds.
ID card of sellers and buyers.
Marital property regime of both.
If a company is involved, current powers of attorney or appointment of administrators.
Articles of association of the company, of which the shares or stakes are being processed, and its registration details in the Commercial Registry.
The company's tax identification number (CIF).
Sale price.
How the transaction costs are paid.
Costs involved in granting a real estate purchase and sale deed
In the absence of agreement, the costs according to law are distributed as follows:
Seller: The deed (except for the authorized copy), and the Capital Gains tax (Increase in land value).
Buyer: The copy of the deed, the costs of registration in the Property Registry, and the Tax (Property Transfer Tax for private sales and Documented Legal Acts for purchases from a developer, to whom VAT will have been paid).
Property Registry. This is a cost borne by the buyer and is determined by the registry tariff.
Municipal Capital Gains Tax (IIVTNU). This is a cost for which the seller is liable and must be paid within 30 business days following the signing of the purchase and sale deed, using the simple copy provided by the notary. (This cost does not apply if the property transferred is rural land.)
Property Transfer Tax or Documented Legal Acts Tax. Here, the buyer is liable and must also pay within 30 business days following the signing of the purchase and sale deed, using the authorized and simple copies provided by the notary.
Personal Income Tax (IRPF). Please remember that the sale of a real estate property normally represents an increase in wealth for the seller, which must be included in their IRPF declaration in the year following the sale.
Real Estate Tax (Property Tax). Following the Supreme Court ruling of June 15, 2016, regarding the property tax installment corresponding to the current year, the general rule, in the absence of a contrary agreement, will be that the seller who pays the tax – as the liable party by being the owner on January 1st – may pass it on to the buyer, in proportion to the time each party has held ownership and for the time they hold it.