In Spain there is no legal obligation to register property at the Land Registry. However, the failure to do so and for the registry to accurately reflect the size and description of the property can have serious and sometimes unforeseen consequences.
If you bought a two-bedroom property in the country for example and then obtained a licence and added a third bedroom, patios and a pool, your Land Registry entry should be updated with a Deed called a Deed of Obra Nueva. The architect will need to provide your lawyer with the certificate of completion and the Town Hall will issue a licence of First Occupation.
One of the most important things now is proving the payments made to constructors and architects, and all expenses must be supported by bills and invoices showing Iva (VAT) has been paid. The lawyer then presents the documents at the notary and a deed of new work is signed, either by you in person, or by a lawyer using a power of attorney. The deed is then registered. Tax is paid at 1.5% on the value of the new construction.
If this is not done and you wish to sell, it is likely to delay the sale or possibly lead to retentions or deductions on the sale price. Another issue that can affect a property sale is the correct catastral or council tax plan. In some cases the authorities have an incorrect size or measurement for your property. This can result in paying an incorrect amount of council tax – IBI. Where there is a dispute between neighbouring properties about the boundary of the council tax plan this has to be settled by obtaining a Notarial Act – Acta de Rectificación de descripción catastral de finca. We are specialists in all aspects of property work and can advise on this as well as purchases, rentals, boundary disputes and property litigation.
For a consultation contact us on [email protected] or call on 952 527014