Spain Property Ownership

A property register exists in Spain in which information on real property, including transfers, mortgages, and other liens and seizures.

Spain Trade Associations

Consejo General de los Colegios Oficiales de Agentes de la Propiedad Inmobiliaria (CGCOAPI)
C/Princesa nº 25
6ª planta Puerta 2
Madrid
E-28008
Spain

Phone : +34 91 547 0741
Fax : +34 91 559 3255
e-mail : cgcoapi@consejocoapis.org
Web : www.consejocoapis.org

Consejo General de los Colegios Territoriales de Administradores de Fincas (CGCAFE)
Pl. Marqués de Salamanca
10-3°-Izqda.
Madrid
E-28006
Spain

Phone : +34 91 575 7369
Fax : +34 91 575 1201
e-mail : secretaria@cgcafe.org
Web : www.cgcafe.org

The General Council of Spanish Property Managers’ Colleges, CGCAFE, is a public organisation whose mission is to regulate the profession and represent the corporate interests both on national and international levels.

Spain Land Rights

In Spain, property is real or personal. Personal property is all property which can be moved to another place, either by the owner’s or some other person’s action; real estate is the land and all objects attached thereto. Real estate may be given as a security for a loan, through a mortgage.

The government in Spain retains certain rights in real property such as escheat, the ability to levy property taxes and the control of private property through zoning and the application of police power.

Statutory estates: Dower and courtesy do not exist in Spain.

Spain Forms of Ownership

Spanish law recognizes corporations, partnerships, joint ventures, branches and sole proprietorships the usual forms of business organization. All of these forms may acquire and hold title to real property. Limited liability companies also exist in Spain (sociedad de responsabilidad limitada).

Partnerships also exist in Spain and can hold title to real estate. In a general partnership (sociedad regular colectivea), all partners have unlimited joint and several personal liability for the debts of the entity. In a limited partnership (sociedad en comandita or sociedad comanditaria), there must be at least one general partner (socio colectiveo). The limited partner’s liability extends only to the partner’s agreed capital contribution. Both types of partnerships must be formed by public deed (escritura pública) and registered in the Mercantile Registry.

A joint venture may also be formed to acquire and hold real property in Spain.

Spain Real Estate Info Summary

Title & Contracts in Spain

Deeds: Deeds are issued by a notary public to acknowledge transactions and convey ownership of real property. Public deeds formally acknowledge ownership of real estate, liens and encumbrances, etc. A deed must describe the property, state any liens on it and declare the price of the transfer.

Many formal registrars exist in Spain, including a property register in which transfers, mortgages and other liens and encumbrances are recorded.

There are many types of contracts recognized under Spanish law. In general, a valid contract must contain the basic elements of: mutual consent, a certain object, and a lawful purpose.. Any contract lacking one of these requirements is not valid. Contracts obtained by fraud or mistake are void. Spain has no statute of frauds, however, it is advisable to have real property contracts and leases in writing.

Property Taxes:

Ad valorem: A local land tax is levied on the ownership of real properties and certain related rights. The tax is based on assessed property values, which approximate current market values.

Ad valorem taxes are 0.3% for rural property and 0.4% for urban property, although each municipality may increase the tax rates of its jurisdiction up to certain limits.

Transfer Tax: A transfer tax applies to all transfers of real property, or rights to real property. Transfer taxes also apply to certain transfers of persona property. The person acquiring the property or rights is liable for payment of the tax. The tax is levied on the market value of the property or rights transferred at rates that range from 1% to 6%.

Capital Gains and Losses: Capital gains are calculated as the difference between the selling price and the historical acquisition price. Capital gains may be taxed at rates as high as 50% of the capital gain.

Capital losses may be offset only against capital gains. Any excess may be carried forward and offset against any capital gains that arise in the following five fiscal years.

Tax on Real Estate Owned by Non-resident Entities

A 5% tax is imposed on real estate located in Spain owned by non-resident entities. This tax is assessed on the value of the property. Certain exemptions may be granted to avoid payment of this tax.

Spain Mortgages & Financing

Real estate can be mortgaged. The mortgage must be executed in a public deed before a notary public and entered in the Registry of Deeds. Crops, leases, and insurance policies on real property can also be mortgaged. Mortgages automatically expire after 20 years.