Who is what in Spain.
Notaries
In Spain a Notary is a public official authorized by the government, whose job is to check and make sure the legal documents people sign in front of them are according to the law, they are also engaged in property transactions, establishing limited companies and witnessing documents previously verified which they eventually sign and stamp giving them legal validity ( wills, matrimonial acts and others).
They also certify the validity and safety of contracts and deeds. If you need rock solid proof of delivery of a letter or other documents, they should be sent via a NOTARIO, as nobody can deny receiving a document delivered through their offices.
They only deal with civil law. He doesn’t deal with criminal cases or offer advice concerning criminal law. In Spain, property conveyance is strictly governed by Spanish law and the last step can only performed only by a NOTARIO, the signing of the sale and purchase deed.
Land Registry
Property Conveyance
In property conveyance, after signing the title deed at the Notary, the next and final step is to inscribe it into your name at the Land Registry. After checking all the documents and making sure that the proper tax has been paid to the Junta de Andalucía, they inscribe the property into the name or names of the new owner/s and issue a sort of an identity document of the property with all the information regarding location, measurements, neighbors, debts or encumbrances and ownership.
Property Administrators
Administrador de Fincas
A property administrator ( ADMINISTRADOR DE FINCAS) is a licensed professional who’s qualified to handle all matters concerning owning and managing property in Spain, particularly property in an urbanizations where there’s a community of owners. Their duties include calling meetings, writing and publishing minutes, advising residents, collecting fees, paying taxes and paying bills while making sure the common areas are properly looked after.
Courts
Junta de Andalucia
Unlike case study based Commonwealth law, Spanish law just like French, Italian, Portuguese and Romanian derive from the NAPOLEÓN CODE. The lowest court is the justice of the peace (JUEZ DE PAZ), dealing with simple matters such as property complaints between neighbors.
The civil cases are decided by a JUZGADO DE PRIMERA INSTANCIA, where most cases start. The court above it is a district court presided over by a district judge.
Criminal cases are held before a local TRIBUNAL DE PRIMERA INSTANCIA E INSTRUCCIÓN, followed by the AUDIENCIA PROVINCIAL, AUDIENCIA TERRITORIAL, AUDIENCIA NACIONAL, TRIBUNAL SUPERIOR DE JUSTICIA and the Supreme Court ( EL SUPREMO) residing in Madrid.
Junta de Andalucía
It is the Regional Government of the region called Andalucía.
If you are in trouble in Spain
Incase of complaints or arrest.
Complaints
If you have a complaint against someone, a neighbor making too much noise, public services not properly fulfilled by your local authority, you can make an official complaint (DENUNCIA) to the police. There are OMBUDSMEN/DEFENSORES DEL PUEBLO in most regions who handle certain complaints and queries; they might speak English and other foreign languages.
If the complaint is concerning the way EU laws are implemented, interpreted or because they are being broken in Spain, you should complain to your European member of parliament.
Arrest
If arrested you have the right to make a statement in the presence of your lawyer or one provided by the police if you don’t have one. You also have the right to an interpreter if you don´t speak the language of Cervantes.
Buying a property in Spain
CONTRATO DE ARRAS
The conveyance process takes place in several stages.
What happens usually is the seller agrees with the buyer a certain price after which the property should be reserved and taken off the market. This agreement is formalized in a private contract that includes the payment of a deposit for whatever amount is agreed by both parties, usually the 10% of the price of the property. This contract also contains the basic conditions for the future:
names and full details of the parties involved
extensive and accurate description of the property
the purchase price
the deadline of the signature
agreement on the payment of expenses and taxes
consequences of failure to comply with some of the conditions of the contract or to formalize the future sale altogether:
if the buyer is at fault: the loss of the deposit
if the buyer is at fault: the return of twice the amount paid.
This is the so called formalized in a private documents, EARNEST MONEY CONTRACT (CONTRATO DE ARRAS), PURCHASE OPTION (OPCIÓN DE COMPRA), RESERVATION DOCUMENT (DOCUMENTO DE RESERVA)…
Banking and NIE
Opening a bank account and obtaining an NIE number
Opening a bank account in Spain and obtaining a NIE number (Número de Identificación de Extranjero) are both essential steps if you are planning to buy a property in Spain as a foreigner.
To open a bank account in Spain, you will need to provide proof of identity, such as a passport, and proof of your address. Some banks may require additional documentation, such as proof of income or a Spanish phone number. It is worth shopping around for the best deals, as different banks offer different types of accounts and services. It may also be helpful to have a basic understanding of Spanish banking terms and procedures.
A NIE number is a unique identification number that is issued to foreigners in Spain. It is necessary for various legal and administrative procedures, including buying property. To obtain a NIE number, you will need to apply at a Spanish embassy or consulate in your home country or at a police station in Spain. You will need to complete an application form, provide proof of identity and pay a fee. It is advisable to apply for a NIE number as soon as possible, as the process can take several weeks.
Both opening a bank account and obtaining a NIE number can be complex processes, so it may be helpful to seek advice from a professional, such as a lawyer, who is familiar with Spanish law and regulations.
Expenses when buying a property in Spain
NEW PROPERTIES
Paid by the buyer:
– Value-added tax, VAT (Impuesto sobre Valor Añadido, IVA):
10% in the case of houses and garages attached to housing;
21% in the case of independent garages and premises.
– Stamp Duty Tax (Impuesto sobre Actos Juridicos Documentados- I.A.J.D.): 1,5 % on the price of the sale.
Paid by the seller:
– Tax on the increase in value of urban field sites that is a local taxpaid to the Town Hall (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana)
– Plusvalía: An amount to be determined by the Town Hall in accordance with the cadastral value of the land and other factors.
SECOND HAND PROPERTIES
Andalusia conveyance taxes:
Paid by the buyer:
Tax on property transfers (ITP – Impuesto sobre Transmisiones Patrimoniales): 7% of the price of the sale.
Paid by the seller:
Tax on the increase in value of urban field sites, local tax (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana)
Plusvalía: An amount to be determined in accordance with the cadastral value of the land and other factors by the Town Hall.
Notary fees:
To be established after the signing of the title deed by the Notary, subject to agreement between the two parties
Land Registry fees:
To be established after the signing of the title deed by the Notary, paid by the buyers
Lawyer fees:
Buyer and seller will pay the bill of their respective attorneys, or will split the fees between them if only one lawyer is hired by mutual appointment.