Actions to be taken in relation to the acquisition of property in Spain, once the property to be acquired has been identified

ABOGADOS · ECONOMISTAS · ASESORES FISCALES · CONSULTORES Pau Clarís, 139 – 08009 BARCELONA – Tel.: 934871126 – Fax: 934870068

[email protected] – www.agmabogados.com – CIF: B58987025 Socios de LAWROPE con oficinas en: Alemania, Austria, Bélgica, Brasil, China, Estados Unidos,

Francia, Holanda, Italia, México, Polonia, Portugal, Reino Unido y Suiza. Corresponsalía en México: DTCA Abogados. México.

Oficina de representación en Xian - China

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Description of actions to be taken in relation to the acquisition of property in

Spain, once the property to be acquired has been identified:

FIRST PHASE: Legal and urban analysis of the investment to be made

Analysis of the registry and urban situation of the property to be acquired

by the client, by obtaining information from the public registry and local

councils.

SECOND PHASE: Formalization of the client's investment operation

Collaborating in the preparation of the necessary documents and contracts

to be formalized for the acquisition of the property, both preparatory

(deposit contract) and purchase contracts, so that the operation can be

performed with maximum legal certainty.

Representing the client, where necessary, before the State Administration

and the relevant regional government and local councils, both in the stage

prior to purchase and following the purchase, in order to register the

property in the client's name in all necessary government agencies and

private entities.

(Where necessary) Obtaining the client's foreign national identification

number (NIE) from the tax office, which is a prerequisite for carrying out

economic operations in Spain.

Opening a bank account within Spain on behalf of the client, so that direct

debits for any bills and charges relating to the property can be set up.

(Where necessary) Obtaining bank finance to carry out the investment in

Spain.

Study, analysis and opinion regarding the conditions of the loan proposed

by the financial entity to the client.

Assisting the client with the signing of deeds related to the purchase of the

property, as well as of preparatory contracts, before a notary.

(Where necessary) Statement before the Ministry of Economy. Department

of Foreign Transactions for investments made by non-residents.





THIRD PHASE: Bank financing for real estate investments

Obtaining bank finance to carry out the investment in Spain.

Study, analysis and opinion regarding the conditions of the loan proposed

by the financial entity to the client.

Signing of deeds related to the mortgage of the property, as well as of

preparatory contracts, before a notary.

FOURTH PHASE: Registration of property acquired in public records and

subsequent procedures

Preparation, development and management of the settlement of indirect

taxes generated by the purchase of the property before the competent

administrative authority.

Settlement of Property Transfer Tax and Stamp Duty following the

purchase of the property, and provision of the necessary documents before

the relevant regional government, within the mandatory term, unless the

financial institution is entrusted with the management thereof.

(Where necessary) Settlement of non-resident withholding tax, in the

event of a transfer of the property to a non-tax resident in Spain.

(Where necessary) Settlement of capital gains tax before the relevant local

council, in the event that the seller is not a tax resident in Spain.

Notifying the property records office of the change in ownership of the

property.

Managing the registration of the title deeds with the Land Registry on

behalf of the investor, in order to protect their rights erga-omnes.

Communicating with the relevant local council regarding the setting up of

direct debits for taxes generated by the acquisition of the property that are

payable at regular intervals.





FIFTH PHASE: Various procedures related to ownership of the property

Changing the account holder with energy suppliers for any bills (water,

electricity, telephone, etc.) for the property acquired, as well setting up

any direct debits for bills issued by suppliers.

Managing paperwork from the Homeowners' Association, where necessary,

in order to communicate the change of ownership and monitor Community

agreements related to the property at the time of acquisition.

Jordi Rovira Esteve Associate – Tax Law Department AGM Abogados - Barcelona

Real Estate

Actions to be taken in relation to the acquisition of property in Spain, once the property to be acquired has been identified