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Ease of Doing Business in

Spain

Spain Download Profile (1780.2KB, pdf)
Region OECD high income
Income Category High income
Population 46,418,269
GNI Per Capita (US$) 28,520
City covered Madrid

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 32 33 up
1
75.73 75.02 down
0.71
Starting a Business 85 79 down
6
86.61 86.30 up
0.31
Dealing with Construction Permits 113 111 down
2
65.95 65.89 up
0.06
Getting Electricity 78 71 down
7
72.99 72.96 up
0.03
Registering Property 50 50
-
73.88 73.88
-
Getting Credit 62 60 down
2
60.00 60.00
-
Protecting Minority Investors 32 30 down
2
65.00 65.00
-
Paying Taxes 37 45 up
8
83.80 82.74 up
1.06
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 29 36 up
7
69.48 67.63 up
1.85
Resolving Insolvency 18 25 up
7
79.62 75.83 up
3.79

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

50

DB 2016 Rank:

50

Change in Rank:

0

DB 2017 DTF (% points):

73.88

DB 2016 DTF (% points):

73.88

Change in DTF (% points):

0.00

STANDARD PROPERTY TRANSFER
Property value EUR 1,163,363
City Madrid
Indicator Spain OECD high income
Procedures (number) info_outline 5 4.7
Time (days) info_outline 12.5 22.4
Cost (% of property value) info_outline 6.1 4.2
Quality of the land administration index (0-30) info_outline 22.5 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Notary requests property information from the Property Registry

    Agency: 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. The consultations can be done on-line at www.registradores.org and the printout from the internet is valid.

    This document is an “Informative Land Registry Extract” containing the same information as an Ownership and encumbrances Certificate, and bearing the same responsibility of the Registrar in case of mistake as a formal certificate would provide. This is an information product specifically foreseen by the Mortgage Law to answer the Notary's requests of Information related to registrable acts and contracts. The Notary submits an electronic request and receives the information also by electronic means. From that moment and for the next ten days, the Registrar must inform the Notary about any Document submitted to the Land Registry related to the same property, within the maximum term of 24 hours since such document was submitted to the Land Registry Office. This procedure is aimed at preventing any surprises or unexpected situations while the contract is being formalized. This scheme is supplemented with the electronic submission to the Registry of a Notarial Attestation covering the essential features of the contract in relation to which the Information was requested, sent by the Notary by electronic means at the time of the document’s signature, in order to secure the priority of that document right after being signed.

    1 day (simultaneous with procedure 2)
    EUR 9.02
    * 2

    Notary obtains cadastral description

    Agency: Cadastre

    Less than a day (online procedure) no cost if obtained electronically
    3

    Execution and delivery of the public deed of purchase of the property

    Agency: Notary

    Property transfers are valid with a private contract between the parties, plus the handing over of the possession of the property to the buyer (ie. the "traditio" through, for example, the handing over of the keys to the property to the buyer). However, in order to make the property transfer opposable to good faith third parties, it has to be registered at the Land Registry, and in order to be registered, the contract between the parties has to be notarized. Notary fees are on a cumulative scale, as follows: • Property value up to 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: EUR 90,151816. for the excess amount between EUR 6.010,13 and 30.050,61: 0,45%. for the excess amount between EUR 30.050,62 and 60.101,21: 0,15%. for the excess amount between EUR 60.101,22 and 150.253,03: 0,1%. for the excess amount between EUR 150.253,04 and 601.012,10: 0,05%. for the excess amount over EUR 601.012,10 until 6.010.121,04: 0,03%.
    4

    Payment of the Transfer Tax (ITP) and obtain the confirmation of payment at tax authority

    Agency: Tax Office

    First transfers of property or transfers made between entrepreneurs are subject to VAT and Stamp Duty. Second and subsequent property transfers are not subject to VAT, but to the Transfer Tax ("Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados", ITP).
    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 some autonomias, like Madrid, Catalunya, and Andalucia, the tax may be paid online, although the buyer needs to obtain a stamp from the tax authority confirming the payment.
    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. The VAT paid would become a credit that the company would deduct from subsequent transactions, such as those related to the normal business of the company.

    1 day 6% of purchase price (ITP)
    5

    The public deed is registered at the Land and Property Registry

    Agency: Land and Property Registry

    The notary submits the public deed to the Land Registry. The Land Registry will review and register the transfer within the legal time limit of 15 business days. 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. With the introduction of technology and online Procedures due to Law 24/2005 of November 18, in particular 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. The documentation to be presented to the Land Registry 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)

    8 days According to decree 1427, the cost is calculated as follows:

    a) property value up to 6010.12 euros, 24.040484 euros.

    b) 0.175% of the property valuebetween 6.010,13 and 30050.61 euros,.

    c) 0.125% of the value between 30050.62 and 60101.21 .

    d) 0.075% of the property value between 60101.22 and 150253.03 euros.

    e) 0.03% of the property value between 150.253,04 and 601.012,10 euros

    f) 0.02% for values above 601.012,10 euros.

    A 5% discount is applicable to the cost. Also, an administrative fee of EUR 9.02 is added to the cost.

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 22.5
    Reliability of infrastructure index (0-8) 7.0
    What is the institution in charge of immovable property registration? Registros de la Propiedad de Madrid
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? No 0.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Only intermediaries and interested parties 0.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.registradores.org/nota_simple.jsp
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.registradores.org/nota_simple.jsp
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: There is a deadline set by law of 15 days. http://www.mjusticia.gob.es/cs/S...
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes 0.5
    Number of property transfers in the largest business city in 2015: 51.604
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? No cost 0.5
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 6.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? Yes 2.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 6.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Notary.
    Is there a national database to verify the accuracy of identity documents? Yes 1.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? First Instance Judge of Madrid (Juzgados de Primera Instancia)
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0