The name changes of the owners of a property are made before the Property Registry where the house is registered, presenting the pertinent documentation in each case. As for the price, this will depend on the value of the home. It is important to note that since this procedure is a similar process throughout Spain, the costs derived from it may vary from one autonomous community to another. At your request, you can get a quote from the registrar. In general, this operation has four types of costs associated with it:
1) Notarial, the cost of doing the deed
2) Fiscal, the payment of the corresponding taxes
3) Registry, the cost of registering
4) Management, not mandatory, in case you want to pay for the processing of the tax and registration.
In this article discover how much it costs to change the name of a property in any of the cases; even if it is mortgaged.
In which cases is it necessary to change the name of an apartment?
The name change in the deed of a flat is necessary in the following cases. Take note!
For reasons of sale:
The new owners of a property will wonder how much it costs to register a home since they are the ones who will have to face the registration payment. The person who sells must go to the notary to obtain the deeds and must request a simple copy of the deed. With this, the payment of the municipal capital gain is processed. The person who buys needs a simple copy of the deed to make the change of owner in the Cadastre and in the registry.
Due to donation:
Go to the notary to obtain the new deeds with the donation transmission. It should be noted that donations from parents to children, children to parents, married couples, grandparents to grandchildren and grandchildren to grandparents may be exempt from capital gains tax, depending on the autonomous community.
Due to inheritance:
Request from the notary the deed of “acceptance of inheritance”, with it go to the Land Registry Office and then to the property registry.
How much is the notarial expenses for a name change in the deed of a flat?
In Spain, it is not compulsory to make a public deed of housing transfer operations ; however, it is highly recommended. The deed of a home is the document where what has already been agreed in its negotiation is established, and has legal and economic scope. Due to the importance of this agreement, this contract between two parties requires the assistance of a third party to act as a witness. This third party must have impartiality, solvency and legitimacy, to guarantee that the agreement complies with current laws and that it respects the rights of both parties. The third party in public deeds, who is jointly liable, is the notary. The notary is a public official.
The notary does not charge the amount he wants, the rate charged by the Government is set by Royal Decree, the last revision dates from the year 1989 (RD 1426/1989). As we refer, it is the same for all notaries in Spain.
The notary fee or fee varies according to three factors:
- The amount of the property in the document.
- The length of the document.
- Complementary acts carried out.
Notary fees cover notary fees, but also constitute a provision to meet taxes, registrar fees, and other expenses that are generated and that the notary pays on behalf of the client. These expenses are included in what is called complementary actions or directed extra-documentary notarial actions. Based on such complementary actions carried out, the Notarial Associations set the criteria to determine the exact amounts to be charged.
Once everything is perfectly established, the notary must send the agreement to register the property in the Property Registry. On the other hand, changing the name of the owner in the Cadastre is free as long as it is done by the owner of the property. In the event that this change is processed by the notary, it will be an additional expense to be added to the notarial expenses.
How much is paid in the registry for a name change in the deed of a flat?
First of all, it is necessary to bear in mind that you will not be able to register the apartment in your name until you have settled the taxes that may apply, depending on your case.
As with notarial expenses, registration expenses are governed by law, through Royal Decree 1427/1989, approving fees for Property Registrars. The amount to be paid is calculated on the declared value in the deed, the higher the amount the lower the percentage. It is regressive.
The registration of a property in the Property Registry requires the presentation of three regulated documents. These are: the public deed, the Self- assessment Form , which is the document that justifies that the payment of the Property Transfer Tax (ITP) has been carried out, and the proof of payment of the municipal capital gain . Registration is carried out at the Registry office of the town where the property is located, with the presentation of the aforementioned documents.
There are exemptions in the payment of registration expenses, as is the case of officially protected housing.
What are the taxes to pay before registering a flat?
In cases of sale, this will depend on whether the apartment is new or second-hand. If it is a first transfer, that is, of new homes purchased directly from a developer, VAT must be paid. In the case of housing with official protection, public promotion or special regime, the VAT corresponds to 4% of the notarized price, in other cases the VAT reaches 10%. If it is a second-hand apartment, you must pay the Property Transfer Tax (ITP). In this tax it varies between 5% and 10% on the deed value, according to the autonomous community. Tax deductions may apply for reasons of age, large family or disability. The tribute of documented legal acts (ADJ), taxes all legal documents issued on stamped paper necessary to formalize the sale and ranges between 0.5% – 1.5%.
In inheritance cases, the Inheritance and Donations Tax (ISD) is paid, which is a tribute assigned to the autonomous communities. In many communities where the amount to be paid per donation is minimal. The payment of the municipal capital gain also falls on the heirs. In addition, the Tax on Patrimonial Transmissions, and Documented Legal Acts must be paid.
In cases of donation, the Tax on Inheritance and Donations is also paid in the form of Donations. Some Autonomous Communities that apply bonuses of up to 99% on this tax. For the recipient of the donation, the capital gain that is generated by receiving the donation with respect to the initial value of the goods is exempt from paying personal income tax.
Can a flat with a mortgage be renamed?
There is a figure that is unknown to many mortgage holders, it is about subrogation. This mechanism allows you to change the owner of the mortgage , as well as some of the parties to the mortgage contract, whether it is the bank or the owner of the real estate.
In the cases in which the sale of a property already mortgaged is carried out, the buyer can subrogate to that loan contract, in this case a change of debtor is made while maintaining the same bank. It is understood that the buyer accepts the conditions of the mortgage loan that the promoter or the previous owner had. Therefore, the buyer assumes the existing debt.
How much does it cost to subrogate a mortgage?
Among the expenses involved in a subrogation we find: the subrogation commission and also the expenses of notary, agency and registration in the Property Registry.
Until now, the mortgage law establishes the distribution of expenses between the client who will pay the appraisal of the property if required and the bank will be responsible for the tax of documented legal acts, it will also be in charge of the first copy of the notary, of the expenses of the registration and management.
For a property to have legal validity, it is essential that it be registered in the Property Registry, having previously the deed signed before a notary public. Carrying out the property registration of your property is very beneficial, since in addition to protecting the owner, it also facilitates the transfer of the property and the search for financing.
Carrying out a name change in the deed of a flat is a step that may require the advice of a qualified professional. From Sky Marketing we are at your entire disposal to accompany you and clear up any doubts.