Reply To: Payment of property registration taxes on purchase

#189098
Mark Stücklin
Keymaster

Marcus, correct, ITP in Catalonia is currently 10% flat rate.

This is what legal contributor Raymundo Larraín has to say on the subject:

As from the time you complete, you have 30 working days to file and pay either ITP or IVA. Once paid can you then lodge your property at the Land Registry.

Moreover, there is a legal risk. When you complete at a Notary, the Notary Public sends to the Land Registry a copy of the deed so that the place is ‘reserved’ for the buyer. This reservation is only for two months.
So imagine the seller double or triple sells the property (something which happens frequently) during those 12 months; the first person to actually file the taxes and register their deed at the Notary would win. So someone who completes (for the second time on the same property) on the property six months after the first person would have a stronger claim than the first person because they actually lodged their right first (prior in tempore, potior in iure).

As for penalties for late payment on taxes:

1. < 3 months = 5% 2. >3, <6 months = 10%
3.<12 months = 15%
4.> 12 months = 20% penalty plus delay interests

So the tax has to be paid within 30 working days as from completion at the Notary Public so no penalties are accrued. You can of course file the tax in time and register the Title deed at a later date.. .but this makes little sense as you have already paid the tax so I do not see any advantage and there are many legal risks associated such as someone else registering a Title deed on the same property ahead of the other buyer (double sale).