We are buying a property from the owner who is non-resident. The house was illegally extended more than 6 years ago, but by the closing date all of changes have been registred in the Land Registry. The Catastro is still not updated and hardly will be modified by the Deed date which is in two weeks. We know the spanish tradition to attach the vendor’s debts to the property itself, so we intend to avoid paying any tax for the vendor after the purchase. What kind of retentions from selling price should we make in our case?
3% of CGT
“Plus Valia” – must be payable on the Deed, but there is no new valuation generated at the Catastro yet. How to calculate?
4-years difference in the amounts of IBI after declaration of the extention. Again, by the Deed date the new IBI will be unavailable. Should we make a rough calculation based on a price for sq.m ( if the IBI was 300 eur for 100 sq.m in 2003, and now it is 335 sq.m, the new IBI will be nearly 1000 euro, and so a 4-years retention will be of 2800 euro )? How these statements should be inscribed to the Escritura to have legally sufficient form?
Everything you need to know about property in Spain
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