Dear Sir,<\/p>\n
My husband and I, aged 64 and 62 respectively, intend to transfer our whole property in Costa Blanca , to our daughter. Could you please inform us how we can put her on our Spanish property Deed?<\/b><\/p>\n
Dear reader, thank you for your consultation about transfer of a property between members of the same family in Spain.<\/p>\n
The first thing that needs to be determined it is what is the best way to proceed in order to transfer the property, that means, which is the cheapest, fastest and easiest way to do it. Unfortunately it is not just a change of names on the Title Deed (escritura), since in Spain a property or a share of a property must be transferred by means of a sale-purchase, gift, inheritance, transfer in payment of a debt (daci\u00f3n en pago), etc. <\/p>\n
Transfer by means of a SALE: you can sell the property to your daughter, on a resale property the present rate of transfer tax (ITP\/TPO) in the Community of Valencia is 8% of the declared purchase price, plus notary fees and land registry fees, in order that the new Title of the property be registered with the Land Registry.
As per the money laundry regulations, it must be shown to the notary how the price for the property has been paid, informing of the details of the bank account used to pay it.
Also, if you would make a gain on the sale, please consider that if you wait until you are 65 years old (tax resident), and the property sold is your main residence, you will not pay Capital Gains Tax.<\/p>\n
Transfer as a GIFT: normally the gift to a relative could be tax advisable if the donee is tax resident in Spain and a close relative of the donor. If the donee is non tax resident, normally the Spanish Gift Tax to be paid (similar to the Inheritance Tax) will be higher than the transfer tax.<\/p>\n
In the case that your daughter is already part owner of the property, it could be signed as a division of common ownership, which will mean that the co-owners decide that only one of them will keep the whole property, compensating the rest with the value of their respective shares. The tax to be paid in this area is of 1.2% Stamp Duty ( AJD) on the whole value of the property.<\/p>\n
There are many other ways to transfer a property. We can study your case in detail and confirm what is the most advisable way to transfer your property to your relative. If you are in this situation, we can help you.<\/p>\n
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.<\/p>\n
Tel: +34 966 426 185
E-mail: info@white-baos.com
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Dear Sir, My husband and I, aged 64 and 62 respectively, intend to transfer our whole property in Costa Blanca , to our daughter. Could you please inform us how we can put her on our Spanish property Deed? Dear reader, thank you for your consultation about transfer of a property between members of the […]<\/p>\n