PURCHASE CONVEYANCING

GM Legal Experts provides his clients with free advice in the first meeting to make the right legal, fiscal and financial planning, adjusted to the client’s profile.

Before completion GM makes the following checks to confirm that the property fulfils with the Spanish Law and you are investing in the right property:

• The Ownership and the confirmation that the property is free of all charges and liens (Property Registry). Also, if the Seller is a LTD Company, we check the Company profile.


• The Building Permit and Town Planning situation.


• The Bank Guarantee on stage payments (for new properties).


• The Purchase Contract: We check all the required clauses an annex are included.


• Supplies and Community of Owners: We check that Building certificates are issued for most services such as electricity and water, and that the bills for electricity and water are paid up to date (if the property is a resale).

On completion the seller and the buyer sign the Public Title Deed in the presence of a Notary, who is a public official who arrange the Title Deed and certifies that the contract has been signed by both parties properly. The purchase taxes and expenses calculation is based on purchase price. The taxation is different for new and re-sale properties:

• New Properties: The V.A.T., which is 8% (18% for commercials); and the Stamp Duty Tax, which is 1% (depending on Spanish Region).


• Re-sale Properties: The 7% Transfer Tax (depending on Spanish Region).

After completion we manage the Tax payments and get the property inscribed at the Registry of Property. We also contract the water and electricity supplies if required.

SALE CONVEYANCING

From the very beginning of the process, the GM Legal Experts legal staff will secure the sale transaction arranging the required documents in coordination with the buyer.

The sale process before completion involves:

• Reservation / Purchase contract checking, taking control of the payment schedule.



• Property’s Paperwork: We will arrange the required paperwork and information in coordination with the Buyer.



• Mortgage Cancellation (if required).

On completion the seller and the buyer sign the Public Title Deed in the presence of the Notary. When the Title Deed is signed, GM Legal Experts arrange the Tax payments for the Sale, which are:

• The 3% Tax Retention for Non Residents.



• The 18% Capital Gain Tax on net profit, discounting the amount given as 3% retention.



• The Increase of the Value of the Land Tax.