Necessary Documents for Sale/Purchase
- Property title. Deed of purchase.
- National identity document (DNI) or Passport.
- Latest property tax receipt aka IBI (Impuesto de Bienes Inmuebles).
- Certificate of up-to-date payment of community charges signed by the administrator.
- Power of attorney, when the property belongs to a corporation or another person.
- It is convenient to present the last receipts of utilities: water, electricity and gas, in order to change the direct debit account.
- Latest Buidling Inspection, Inspección Tecnico del Edificio (ITE) issued by the competent authority. The ITE is obligatory for buildings which are over 30 years old, these buildings have periodic reviews every 10 years. Lack of the ITE doesn’t mean the purchase of the building can’t be undertaken but it will result in administrative fines for the buyer. In addition the buyer would have to pay additional charges to get the ITE approved.
- All the keys and remote controls of the property.
- Energy Efficiency Certificate of the property.
Madrid Purchase and Sales Taxes
- Value Added Tax (IVA) 10% is applied on:
- New property.
- Property transfers through companies or professionals to another company or professional that can renounce to the IVA waiver.
- Property transfer tax (ITP) 6% when it is a second hand sale.
- AJD tax on the purchase subject to value added tax (0.50/0,75%).
- Municipal tax (plusvalia).
- Income tax (IRPF) due to capital gain or loss.
- Corporate tax if the buyer is a legal entity.
- Non–resident income (IRPFNR) as capital gain or loss.
*There are applicable waivers depending on different criteria.
OTHER PROPERTY PURCHASE/SALES FEE
- Notary fees: Depend on the amount of the sale, 600.000 Euros sales or more has approximate fees of 560 € plus 0,3% of the amount that exceeds this amount.
- Property registry: for sales higher that 600.000 €, the property fees would be 300 € plus 0,2% of what exceeds 600.000 €.
- Processing agency fee: this applies only if the paperwork is undertaken by an agency. You have a right to process it on your own or you may have the Notary do it.