Categoría: Real Estate International Desk

The process of buying and selling real estate in Spain typically involves two essential elements: the property being sold and the price to be paid for it.

Once an agreement is reached between the seller and buyer, it is necessary to verify if the seller has the capacity to sell, if they are the rightful owner of the property, or if they require authorization from a third party.

Next, the property being sold needs to be evaluated to ensure it meets the indicated characteristics in terms of urban planning, habitability, energy efficiency, outstanding community charges or unpaid taxes, as well as ensuring there are no encumbrances such as mortgages or liens.

On the part of the buyer, it is important to determine how the price will be paid and where the funds for the purchase will come from, whether it is for personal use, within the context of a marital regime, or on behalf of a company.

The real estate transaction must be formalized through a document that proves its execution, typically a public deed that must be registered in the Property Registry and in the Land Registry (Catastro). It should also be communicated to the municipality in order to pay the municipal capital gains tax (plusvalía) and future property tax (IBI) payments.

By following all these steps, the real estate buying process in Spain can be highly secure.

Every property owner or lessor is obligated to provide buyers or users of buildings with an energy efficiency certificate that must include objective information about the energy efficiency of a building.

The energy efficiency certificate of the building or of a part of it shall contain, at a minimum, the following information:

a) Identification of the certified building or part thereof, including its cadastral reference.

b) Indication of the recognized procedure used to obtain the energy efficiency rating.

c) Indication of the applicable regulations on energy saving and efficiency at the time of construction.

d) Description of the energy characteristics of the building: thermal envelope, heating and lighting installations, normal operating and occupancy conditions, thermal and lighting comfort conditions, indoor air quality, and other data used to obtain the energy efficiency rating of the building.

e) Energy efficiency rating of the building expressed through an energy label.

f) For existing buildings, a document containing recommendations for improving the optimal or cost-effective levels of energy efficiency of a building or part thereof, unless there is no reasonable potential for such improvement compared to the current energy efficiency requirements.

Every property transaction must include the energy efficiency certificate.

The habitation certificate is an administrative certificate that attests that a dwelling meets the habitability conditions necessary for it to be suitable for the use and residence of individuals.

Obtaining the habitation certificate implies that the dwelling meets the minimum technical requirements for habitability, but it does not imply the legalization of the construction with regard to its suitability for use as a dwelling or compliance with urban planning regulations.

All dwellings are required to have a habitation certificate and comply with minimum requirements.

The habitation certificate is valid for 25 years for newly constructed dwellings. However, for second-hand dwellings and for newly rehabilitated dwellings, its validity is reduced to 15 years. This document is essential for contracting water, electricity, gas, and telecommunications services.

The habitation certificate includes the following information:

• Identification details of the dwelling (address and location).
• The usable area of the dwelling and its rooms.
• The rooms and spaces that constitute the dwelling.
• The maximum occupancy standards (i.e., the maximum number of people who can reside in the dwelling).
• Identification and professional credentials of the technical person certifying the habitability.

The technical inspection report, indicates whether the building or dwelling is suitable.

The certificate of fitness can have the following results:

• Fit: If the building does not present deficiencies or only presents minor deficiencies.
• Provisionally Fit: If the building presents deficiencies classified as significant.
• Temporarily Fit: If the building presents deficiencies classified as severe or very severe, but these have been temporarily resolved through precautionary measures already implemented.
• Alternatively, it may be issued as a denial of fitness if the building presents deficiencies classified as severe or very severe without any precautionary measures implemented.

The validity of the certificate of fitness varies depending on the presence or absence of deficiencies in the dwelling or building:

• If the building does not have deficiencies or only minor deficiencies, the certificate is valid for 10 years.
• If the building has significant deficiencies, the certificate is valid for 6 years with biennial reviews.
• If the building has severe or very severe deficiencies, but temporary measures have been implemented to reduce the risk, the certificate is valid for 3 years with inspections every 12 months to verify that the implemented measures in the building are being maintained.

The purchase of a property often requires significant financing, which is typically obtained through a bank loan secured by a mortgage that is registered in the Property Registry.

A mortgage serves as a guarantee for the fulfillment of an obligation, usually the payment of a debt. Therefore, it is essential, when conducting a property transaction, to ensure that any existing mortgages are either canceled or will be canceled.

In the event that the mortgages cannot be canceled in time, it is necessary to demand a «certificate of zero balance» or for the buyer to withhold a portion of the price. The certificate of zero balance is a crucial document because the mortgage cannot be canceled without it.

The mortgage cancellation must be recorded in the Property Registry. If it is done at the same time as the property purchase, a representative of the bank must appear before a notary to sign the mortgage cancellation deed along with the payment of the corresponding portion of the price.

It is possible for a single property to have multiple mortgages, liens, and charges, which are prioritized for collection based on their registration dates in the Property Registry.

Furthermore, the issue of who should bear the costs of cancellation should be addressed.

The Property Tax is a tax regulated by local tax laws. It is a local tax that levies on the ownership of a property, usufruct, or concession. Its purpose is to tax the value of real estate properties, and it is collected by the municipality where the property is located.

The taxpayer must pay the Property Tax annually for their property, although the municipality may offer the option to split the payment into different installments throughout the year.

The IBI is accrued on January 1st, which is why all the receipts for the year are issued in the name of the person who was the owner or holder on the first day of the year.

Once a property is acquired, the buyer must go to the respective municipality and, by providing proof of their status as the new property owner (such as a simple copy of the purchase and sale deed that we sent via email on the same day of the signing), request the change of address for the IBI receipt. This way, the following year’s tax and subsequent taxes will be billed to the new owner’s bank account instead of the seller’s.

Todo propietario arrendador tiene la obligación de poner a disposición de los compradores o usuarios de los edificios un certificado de eficiencia energética que deberá incluir información objetiva sobre la eficiencia energética de un edificio.

El certificado de eficiencia energética del edificio o de la parte del mismo contendrá como mínimo la siguiente información:

a) Identificación del edificio o de la parte que se certifica, incluyendo su referencia catastral.

b) Indicación del procedimiento reconocido utilizado para obtener la calificación de eficiencia energética.

c) Indicación de la normativa sobre ahorro y eficiencia energética de aplicación en el momento de su construcción.

d) Descripción de las características energéticas del edificio: envolvente térmica, instalaciones térmicas y de iluminación, condiciones normales de funcionamiento y ocupación, condiciones de confort térmico, lumínico, calidad de aire interior y demás datos utilizados para obtener la calificación de eficiencia energética del edificio.

e) Calificación de eficiencia energética del edificio expresada mediante la etiqueta energética.

f) Para los edificios existentes, documento de recomendaciones para la mejora de los niveles óptimos o rentables de la eficiencia energética de un edificio o de una parte de este, a menos que no exista ningún potencial razonable para una mejora de esa índole en comparación con los requisitos de eficiencia energética vigentes.

Toda compraventa debe incluir el certificado de eficiencia energ