This document provides a basic guide to acquiring property in Mallorca, Spain. It outlines the steps to purchase including obtaining legal documentation like a NIE number within 30 days, signing a purchase contract, registering the ownership transfer, and paying various taxes. It also summarizes taxes and considerations related to owning the property like annual property taxes, income allocation if it's a secondary residence, capital gains tax, and regulations for tourist rentals.
AFFECTED NEIGHBOURHOOD IN EL CUARTON-TARIFA-CADIZ-ANDALUCIA-SPAIN PropietariosCuarton5
AFFECTED NEIGHBOURHOOD IN “EL CUARTON” TARIFA- CADIZ- ANDALUCIA- SPAIN
Spain a state subject to the rule of law? Did you come to Spain believing that it signed the E.U. Treaty?
Pérez Parras Economists & Lawyers is a firm located in Nerja town centre and Málaga town centre, comprised of highly qualified and specialised Lawyers, Economists and Engineers. This presentation was made to general public and professionals, at Nerja Town Hall, to explain the law and fiscal matters that apply to Holiday Rentals in Andalucia.
Pérez Parras Economistas y Abogados works in many different areas: conveyancing, inheritance and wills, non.residents, accounting, contracts, civil law, fiscal and (international) taxation, holiday rentals, criminal law, labour law, family law, procedures, leases, etc.
Our website: www.perezparras.com
Contact: international@perezparras.com
AFFECTED NEIGHBOURHOOD IN EL CUARTON-TARIFA-CADIZ-ANDALUCIA-SPAIN PropietariosCuarton5
AFFECTED NEIGHBOURHOOD IN “EL CUARTON” TARIFA- CADIZ- ANDALUCIA- SPAIN
Spain a state subject to the rule of law? Did you come to Spain believing that it signed the E.U. Treaty?
Pérez Parras Economists & Lawyers is a firm located in Nerja town centre and Málaga town centre, comprised of highly qualified and specialised Lawyers, Economists and Engineers. This presentation was made to general public and professionals, at Nerja Town Hall, to explain the law and fiscal matters that apply to Holiday Rentals in Andalucia.
Pérez Parras Economistas y Abogados works in many different areas: conveyancing, inheritance and wills, non.residents, accounting, contracts, civil law, fiscal and (international) taxation, holiday rentals, criminal law, labour law, family law, procedures, leases, etc.
Our website: www.perezparras.com
Contact: international@perezparras.com
Local Accommodation Guide (Alojamento Local [AL] ) – Learn all requirements a...UWU Solutions, Lda.
Local Accommodation Guide (Alojamento Local [AL] ) – Learn all requirements and obligations
The traditional lease and local accommodation (LH) are different and have their own legislation.
The main difference between the two is that, unlike the traditional lease, the Local Accommodation provides a service that demands much more than the simple accommodation. The Local Accommodation requires assets like furniture, home appliances, bed sheets, bath towels, kitchen equipment and other facilities, very similar to the hotel industry.
Given its particularities, people usually have doubts, especially concerning the taxation of their profits and legal requirements. In order to help you, we have created a Local Accommodation Guide.
- Learn more at http://www.uwu.pt
Legal and tax implications when purchasing real estate in Spain, EnglishDe Micco & Friends Group
Here you will get all important information when you sell or buy real estates in Spain and Mallorca,
It is generally recommended that buyers of real estate in Spain instruct a qualified lawyer to represent them and hire a financial advisor knowledgeable in local and international taxes and dues to take care of the tax aspects. Spain does meanwhile provide a relatively high amount of legal protection for real estate purchases, but there are still cases in which the buyer has to battle enormous problems or unexpected expenses after the acquisition because certain processes were not adhered to, documents weren't checked or contracts were drafted which include substantial disadvantages for the buyer. It still happens more often than not that acquired objects or extensions have to be dismantled because renovations or extensions were not properly authorised or the authorisation was not registered with the different agencies involved. Subsequent permits are possible in some cases, but they do require a special process and incur substantial expenses.
Local Accommodation Guide (Alojamento Local [AL] ) – Learn all requirements a...UWU Solutions, Lda.
Local Accommodation Guide (Alojamento Local [AL] ) – Learn all requirements and obligations
The traditional lease and local accommodation (LH) are different and have their own legislation.
The main difference between the two is that, unlike the traditional lease, the Local Accommodation provides a service that demands much more than the simple accommodation. The Local Accommodation requires assets like furniture, home appliances, bed sheets, bath towels, kitchen equipment and other facilities, very similar to the hotel industry.
Given its particularities, people usually have doubts, especially concerning the taxation of their profits and legal requirements. In order to help you, we have created a Local Accommodation Guide.
- Learn more at http://www.uwu.pt
Legal and tax implications when purchasing real estate in Spain, EnglishDe Micco & Friends Group
Here you will get all important information when you sell or buy real estates in Spain and Mallorca,
It is generally recommended that buyers of real estate in Spain instruct a qualified lawyer to represent them and hire a financial advisor knowledgeable in local and international taxes and dues to take care of the tax aspects. Spain does meanwhile provide a relatively high amount of legal protection for real estate purchases, but there are still cases in which the buyer has to battle enormous problems or unexpected expenses after the acquisition because certain processes were not adhered to, documents weren't checked or contracts were drafted which include substantial disadvantages for the buyer. It still happens more often than not that acquired objects or extensions have to be dismantled because renovations or extensions were not properly authorised or the authorisation was not registered with the different agencies involved. Subsequent permits are possible in some cases, but they do require a special process and incur substantial expenses.
The swedish exhibition & congress centreJosé Martín
March 2013: Company representation at International Property Exhibitions " Buying Properties Abroad"
Www.fairmedia.se
February 23-24, 2013
Svenska Mässan ( The Swedish Exhibition & Congress Centre )
Göteborg, Sweeden
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
1. Contact details: C/ Constitucion, 1 3rd Fl Palma de Mallorca Phone +34971425740, email
guillen@buse.es www.buseinternational.com
BASIC GUIDE TO ACQUIRING A PROPERTY IN MALLORCA
Legal and tax information in force on 25 March 2014
ACQUIRING A PROPERTY
PAYMENT OF TAXES WITHIN 30 DAYS (NIE required)
*The Foreigner's Identification Number (NIE) can be obtained in less than 24 hours if the
interested party visits the immigration office (called Extranjería in Spain) in person.
30 days*
NIE (Foreigner's Identification Number) APPLICATION
Notarized (certified by a notary public) copy of the passport
Forms of application and registration with the tax authorities
Payment of fees
RECOMMENDATION: POWER OF ATTORNEY GRANTED TO A LAWYER
CONTRACT OF SALE / PURCHASE OPTION CONTRACT
It is recommended to pay 10% of the price as a deposit
PUBLIC deed OF SALE executed before notary public
LAND REGISTRY electronic submission SERVICE
Transfer of ownership and possesion
Delivery of dwelling documentation
REGISTRATION IN THE LAND REGISTRY
Protection of registered rights in relation to third parties
2. Contact details: C/ Constitucion, 1 3rd Fl Palma de Mallorca Phone +34971425740, email
guillen@buse.es www.buseinternational.com
SALE AND PURCHASE COSTS
The buyer normally assumes all costs
derived from the transfer except for tax on
the increase in value of urban land (called
plusvalía in Spain). By way of guidance, the
following costs and taxes can be expected:
notary public (between 600 and 2,000
euros); register of property (approximately
half of the notary's fees) and
administration (between 300 and 1,200
euros).
If a lawyer is engaged, their fees are usually
between 0.5 and 1% of the price of the
property, depending on the complexity of
the transaction and the price of the
dwelling. The lawyer's role is to ensure the
development is legal, check ownership and
charges, prepare the agreement and
facilitate proceedings. Sometimes this
includes incorporating company structures
for the purchase as well as providing tax
advice.
The seller is responsible for paying the
estate agent's fees and municipal tax on
the increase in value of urban land
(plusvalía).
TRANSFER TAXES
VAT or ITP
Property transfer is subject to value added
tax (VAT, called IVA in Spain) or to
property conveyance tax (called ITP in
Spain). The two are mutually exclusive.
As a general rule, we might say that the
first transfer of a dwelling and its annexes
(parking and storage rooms) are subject to
10% VAT. In the case of parking or storage
rooms that are not acquired at the time of
buying the dwelling, the VAT is 21%.
Second transfers are subject to ITP, which
is calculated as follows: up to 400,000
euros, payment is 8%; from 400,001 to
600,000 euros, it is 9%, and from 600,001
euros upwards, it is 10%.
The sale of land without a finished
construction is generally subject to this
scale as regards ITP, or to 21% VAT,
depending on whether the seller is a
private individual or a company, among
other considerations.
Documented Legal Acts Tax (AJD)
Apart from VAT and ITP, public deeds are
subject to a tax called Documented Legal
Acts Tax (called AJD in Spain), which is
1.20% of the value declared on the
document. However, if the transaction is
subject to ITP, then it will not be subject to
AJD, since the two taxes are incompatible.
In practice, purchases subject to VAT will
also be subject to AJD, whereas if they are
3. Contact details: C/ Constitucion, 1 3rd Fl Palma de Mallorca Phone +34971425740, email
guillen@buse.es www.buseinternational.com
subject to ITP, then AJD will not be
payable. If mortgages are taken out, these
are also subject to AJD.
Municipal Tax on the Increase in Value of
Urban Land (plusvalía)
Paid by the seller, unless otherwise agreed.
If the seller is a professional, it is illegal to
charge plusvalía to the buyer. The amount
depends on the time that has passed since
the last transfer and the cadastral value of
the land.
It is important to highlight that deeds of
purchase will not be accepted at the Land
Registry until the municipal plusvalía tax
has been paid.
TAXES RELATED TO OWNERSHIP OF THE
PROPERTY
IMMOVABLE PROPERTY TAX (called IBI in
Spain)
This is a municipal tax that is normally paid
in October or November. The owner on 1
January each year is the person required to
pay it. It is advisable to clarify who will pay
the tax for the year in course in the
contract of sale.
INCOME ALLOCATION
If the dwelling is not your usual place of
residence, i.e. not your permanent home,
the State considers that it is an asset that
could potentially generate income through
letting, since it is not occupied all year. This
means that it is subject to taxation through
personal income tax.
The amount of the tax is normally low,
since it is calculated based on the cadastral
value, which is normally below market
value. It is advisable to remember that
non-residents are required by law to
submit an income tax declaration every
year through Form 211 (Modelo 211).
CAPITAL GAINS
On selling the property, the transferor will
be subject to taxation on any profits made.
Currently, non-residents are subject to 21%
taxation. Residents are subject to 21% on
profits that are less than 6,000 euros, 25%
on profits less than 24,000 euros and 27%
on gains of more than 24,000 euros.
PROPERTY TAX
This tax was re-established in 2011 and
was initially only to remain in force for two
years. However, it has been extended for a
further year.
For both residents and non-residents,
there is an exemption of €700,000, which
means that in principle, only those persons
whose net assets (value of assets reduced
by the amount of any charges) are more
4. Contact details: C/ Constitucion, 1 3rd Fl Palma de Mallorca Phone +34971425740, email
guillen@buse.es www.buseinternational.com
than €700,000 are required to submit a
declaration, and, in any event, those whose
assets are valued at more than €2,000,000
euros. The tax rate is from 0.2 to 2.5%, in
accordance with the Tax scale.
INHERITANCE TAX
Inheritors of immovable property located
on Spanish territory will be subject to
Inheritance and Donation Tax, regardless
of whether they are resident in Spain or
not. The applicable tax will be decided
based on a progressive scale from 7.65% to
34% of the actual value (or market value)
of the assets; the final tax payable also
depends on the degree of kinship between
the inheritors and the deceased.
LETTING DWELLINGS
In the Balearic Islands, the Law allows
short-term letting, though it does regulate
commercialisation through tourist
channels. There are limitations as regards
“tourist lettings”, governed by the General
Tourism Law of the Balearic Islands.
“Tourist lettings” means the temporary
transfer of the use of an entire furnished
and equipped dwelling fit for immediate
use, brought to market and promoted for
financial gain through channels aimed at
tourists.
Tourist letting is allowed only in detached
and semi-detached dwellings with a
maximum of six bedrooms and space to
accommodate 12 people. Tourist stays
must be offered with:
a) periodic cleaning of the dwelling;
b) bedlinen, household linen,
furnishings in general and replacement
of the same;
c) maintenance of installations;
d) customer service during business
hours.
Furthermore, a 24-hour phone service
must be available to the tourist.
The one off fee to obtain a permit for
tourist operations is 25.56 euros per
person lodged
DWELLING DOCUMENTATION
The following documentation may be
requested from the seller: bills for supplies,
proof of payment of Immovable Property
Tax (IBI), certificate of up to date payments
to the owners' association (called la
comunidad in Spain), building plans,
certificate of occupancy (called cédula de
habitabilidad in Spain) and energy
efficiency certificate.