​I bought a house in Spain. What's next?

Have you just sign the deed for your new home, real estate investment or land?

Congratulations for the great purchase, a Notary has already certified that you are the new owner of that real estate investment. It already belongs to you legally, but now you have to let the Spanish local government know and perform certain administrative procedures to communicate the change of ownership and pay the correspondent taxes, as a result from the purchase and sale of the property.

• Spanish Land Registry:

While you were celebrating the sale of your real estate investment, the Notary sent a copy of the deed electronically to the Spanish Land Registry of your city.

Now the Land Registry already knows that the home or plot of land you purchased has a new owner and will extend the presentation seat. You have 60 days to register the house under your name with the same existing charges; if there was one that existed at the time of signing the deed.

• Tax payment:

After signing the deed of sale, you have the obligation to pay some taxes for having acquired that property:

Have you bought a second-hand home? You have to pay the Patrimonial Transfer Tax called “Transmisiones Patriomoniales” in Spanish

Have you bought a new home? You have to pay two taxes: the I.V.A (V.A.T equivalent)and the Documented Legal Acts Tax (Actos Jurídicos Documentados).

The total amount of the tax depends on which Spanish Community you bought the property applied to the total purchase price stipulated by the deed. For example if you buy a new house in Costa Blanca, you will pay 1,5% Documentes Legal Acts and 10% V.A.T.

Ways to make the payment:

• Model 600 or Model 620 of the Tax Agency anywhere in Spain
• Telematic route from the Notary

Term: You have 30 days to self-assess the tax.

Once the tax has been paid, the paper copy of the deed will be submitted to the Property Registry for registration.

• Cadastre (Catastro)

Have you bought a property without physical alteration?

Then you have to go to the Town Council where the house is placed and ask for the “Catastro” (Cadastre) in order to change the ownership of the house. Next to the form that you have to fill out you have to attach a simple copy of the deed of sale.

You have a period of 60 days to complete this process.

There is a computer program of aid called PADECA created by the Economic Spanish Ministry, for individuals to be guides throughout this process.

Have you purchased a property or is there a modification to the property?

This procedure then can not be done by yourself, a Notary must send electronically a comprehensive index of the necessary data to modify and update the cadastral file to the competent Public Administration.

4. City Hall:

Also you must inform the City Council about the transfer of the property that took place, by submitting a simple copy of the deed of the sale. So that the City Council liquidates the Tax on the Increase in the Value of Urban Land.

Nowadays the Notary Office usually does it directly by telematic means.

5. Supplies

Notifies the water, electricity and communications people you are now the new owner. A tip here: request a budget from other alternative companies.

For more guidance and real estate advice, you have us here to help you. We are Naranja Spain, a real estate agency in Costa blanca, we specialise in the sale of new and second-hand properties in Guardamar del Segura and surroundings area.