Vendors
property investment - property for sale - legal services spain

Fiscal Obligations

When selling a property, it is important to be aware that the sale will entail certain tax obligations that must be complied with and that will affect the net amount of the proceeds of the sale.

In the first place, it must be borne in mind that non-resident owners/vendors suffer an immediate withholding of 3% of the sale price, irrespective of whether the vendor obtains a profit or a loss on the sale.

Secondly, after the sale, the vendor is obliged to submit a tax return to declare the sale, which will take into account any withholding. If the sale is made at a loss, it is possible to claim by way of this tax return total or partial repayment of the sum withheld, depending on the particular circumstances of the case. However, it must be borne in mind that in this matter the Spanish tax authorities will want to examine the entire fiscal situation of the vendor.

Accordingly, we would strongly advise that a tax impact study of the sale should be performed before proceeding with it. This analysis will enable us to determine the corresponding tax liability and, as appropriate, whether or not there is any right to claim a refund, in whole or in part, of the withholding. Furthermore, if such a right does exist, we can evaluate and calculate its amount, which is extremely important in circumstances where other fiscal obligations may not have been fully complied with. In such a case, the total amount of the debts may be assessed, including any surcharges and interest that may be due because of a delay in payment.

It is therefore advisable to keep up to date in all regular tax obligations and liabilities, so as to avoid any surcharges or penalties that might diminish the level of profit obtained on the sale.

The aforesaid study will set out the total final profit arising on the sale and will thus help to determine more precisely the parameters of the transaction before proceeding with it, and therefore before it becomes too late.

Defence of vendors

In selling, the role of the solicitor is clearly decisive. Our solicitors have the experience that is required to defend our clients' interests throughout the entire purchase process. Our solicitors know which are the mandatory and necessary requirements for each step of the operation. At the time of closing the agreement, the buyer often uses the services of a personal solicitor, who acts as a completions officer and safeguards the buyer's interests.

On many occasions, legal business is delayed for a long time and the client often loses interest in buying.

The success of the operation can depend on the capacity to handle this situation and to have everything under control. Lexland Abogados has more than 15 years of experience and is qualified to create the most appropriate environment for our clients to buy property with the highest benefit.

Administration

In addition, in sale and purchase transactions it is important to have proper para-legal management and support to deal with the various administrative matters that are involved in sales of real estate property.

• Processing deeds
  • Buying
  • Mortgage
  • Cancelling a mortgage
  • Establishing a company
  • Accepting and awarding an inheritance
  • Distribution of marital property
  • End of joint ownership, etc.
• Processing legal warrants and documents
• Journal entry
• Tax return and tax payment
• Registration of property/commercial documents
• Payment of municipal tax on the increase in the value of urban land
• Informative notes and registry certifications
• Contracting/changing ownership and setting up direct debit for gas/water supplies, property owner's community, telephone, alarm, etc