When a non-resident buys a property in Spain, as well as declaring property transfer and stamp duty tax (Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados) and/or VAT tax, they must file a declaration of this investment with the Ministry of Economy’s Investment Register (Registro de Inversiones del Ministerio de Economía) when the total amount exceeds €3,005,060.52 euros, or when the recipient of such investments are territories or countries classed as tax havens, regardless of worth (Gibraltar is no longer a tax haven). The declaration must be filed by submitting the D-2A form within one month after the public deed is signed.
- If the a foreign investment holder advances amounts either directly to a developer or to an assignee who is a resident to buy a building under construction, under applicable legislation the D-2A form will not be completed until the public or private deed of purchase has been granted.
- Building work and extensions, renovations and refurbishments subject to registration in the Land Registry in relation to foreign investment property must be declared with the Investment Register by completing form D-2A within three months from the building completion date (unless the deeds are signed by a notary before then, in which case the non-resident must file the declaration within one month after the date of signing).
- Foreign investments originating from tax havens must have been declared before the investment took place by submitting form DP-2, and once the investment has taken place by submitting form D-2A.
If a property is fully or partially transferred, the settlement declaration must be filed by submitting form D-2B. In the case of partial divestment by one or several owners of a pro-indiviso (undivided) property, such as an extinción de condominio (termination of co-ownership), this partial divestment must be declared.
In the case of transfers of property between non-residents, the buyer will declare the investment by submitting a D-2A form and the seller by submitting a D-2B form
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Juan Antonio Rodríguez García, Partner, TempleCambria Lawyers
+34 617073669 info@templecambria.com
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