Spain

Registering Property in

Spain

Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standard Property Transfer

  • Property Value: EUR 1,134,315.21
  • City: Madrid

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No. Procedure Time to Complete Associated Costs
* 1 Notary requests property information from the Property Registry

According to the law (Art. 175 of the Decree dated on June 2, 1944), the notary is obliged to duly inform the parties, be aware of the ownership and encumbrances on the property, and consult the Property Registry books before executing the deed. Since the early 2000, the consultations can be done on-line at www.registradores.org (it takes 1-2 hours on average to obtain the information) and the printout from the internet is valid.

Agency: Property Registry 		2 days EUR 9
* 2 Notary obtains cadastral description



Agency: Cadastre 		1 day no cost if obtained electronically
3 Execution and delivery of the public deed of purchase of the property

Notary fees are on a cumulative scale, as follows:

When the property value does not exceed EUR 6,010.12: EUR 90.151816
For the excess amount between EUR 6,010.13 and EUR 30,050.61: 4.5 per 1,000
For the excess amount between EUR 30,050.62 and EUR 60,101.21: 1,50 per 1,000
For the excess amount between EUR 60,101.22 and EUR 150,253.03: 1 per 1,000
For the excess amount between EUR 150,253.04 and EUR 601,012.10: 0.5 per 1,000
For the excess amount between EUR 601,012.11 and EUR 6,010,121.04: 0.3 per 1,000
For the excess amount above EUR 6,010,121.04 the fees are determined by agreement between the notary and client.

The Real Decreto Ley 8/2010, of May 20 2010, modifies the Real Decreto 1426/1989, of November 17th 1989, establishing notary fees. The 2010 decree establishes a 5% discount for notary fees.

According to Royal Decree 45/2007, the notary must issue an authorized copy of the deed on the same or next day and send it to the Registry electronically, unless otherwise requested by the interested party.

The documentation shall include:
Power of attorney granted by the seller and ID of the person in favor of whom the power was granted.
Power of attorney granted by the buyer and ID of the person in favor of whom the power was granted.
The original property title of the Seller (public deed), which shall indicate the following information:
Company tax identification and registration numbers
Means of payment used in the transaction
Cadastral reference

 2 days Notary’s fees (decreasing scale): EUR 730 for a property of this value (minus 5% discount) For property values not exceeding EUR 6.010,12: 90, EUR 151816. for the excess amount between EUR 6.010,13 and 30.050,61: 0,45%. for the excess amount between EUR 3
4 Payment of the Transfer Tax (ITP)

First transfers of property or transfers made between entrepreneurs are subject to 8% VAT and Stamp Duty (0.5-1.0% of the property value, depending on the autonomous region -- it is 1.5% in Madrid). The transfer of property will only be subject to Stamp Duty when it is subject to VAT because the Stamp Duty is incompatible with the Transfer Tax. Second and subsequent property transfers are not subject to VAT, but to the Transfer Tax ("Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados", ITP). The rate of the transfer tax is 6% or 7% depending on the autonomous region of Spain (in Madrid, it is 7% of the property value).

For the Doing Business case study, as it is assumed that the buyer is a company and the property is in Madrid and has been transferred at least once in the past, the applicable tax should be the Transfer Tax (ITP). The ITP is paid at the relevant tax office within 30 working days after the date of granting of the notarial deed of transfer (a copy of the transfer deed is to be attached to the transfer tax liquidation form). In many cities without a specific tax office, the payment can be done at the Registry at the moment of registration, so that those steps could merge into one. In some autonomias, like Madrid, Catalunya, and Andalucia, the tax may be paid online.

However, it has to be noted that under certain circumstances (e.g., that the acquisition of the property is within the scope of the usual activities of the acquiring company), the acquiring company can choose to make the transaction subject to transfer tax or VAT. In the case the company chose to have VAT apply, it would be charged an 8% VAT rate on the sale price, plus a stamp duty of 1.5% . The VAT paid would become a credit that the company would deduct fromsubsequent transactions, such as those related to the normal business of the company.

Note: VAT rates were increased by Law 26/2009 of 23rd December, on Estate General Budgets for 2010. By this law, as from the 1st of July 2010, the general rate increased from 16% to 18% and the reduced rate increased from 7% to 8%.

Agency: Tax office 		1 day 7% of purchase price (ITP)
5 The public deed is registered at the Land and Property Registry

The public deed is presented for registration at the Land and Property Registry to make it opposable vis-à-vis third parties.
The presentation entry’s date gives priority.
The public deed carries the presentation entry's date and it is registered within the legal time limit of 15 business days from that date. If the procedure takes more than 15 business days, the fees will be reduced by 30%, unless there is an objective reason for the delay. However, with the introduction of technology and online procedures due to Ley 24/2005 de 18 noviembre, and the section II on electronic registration, the time to register is in the process of being reduced. The average registration time is currently at 8 calendar days.
Registration of the transfer is necessary in order for it to have effect vis-à-vis third parties but the transfer of the property does not need to be registered in order to be valid. Transfer takes place and is valid as of the execution of the sale in a public deed (granted before a Notary public ), together with the delivery of the property, (unless otherwise specified in the deed, the granting of it implies delivery).
Registration fees cannot exceed €2,181.87. Lower registration and notarial fees apply for the first registration of low-income housing (max 90 m2 per home): around €33 for registration fees and €100 per notarial deed.

The documentation shall include:
Public deed
Proof of VAT or ITP payment (attached to the sale purchase agreement)
Proof of stamp duty payment (in the case that VAT applied and not ITP)

The Real Decreto Ley 8/2010, of May 20 2010, modifies the Real Decreto 1427/1989, of November 17th 1989, establishing notary fees. The 2010 decree establishes a 5% discount for registration fees.


Agency: Land and Property Registry 		8 days EUR 457 (minus 5% discount)
* Takes place simultaneously with another procedure.
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