Dissolution of Joint Property Ownership in Spain

Raymundo Larrain Nesbitt - Lawbird Legal Services
14th of November 2007

Do you own your property jointly with your spouse, friend, partner or anyone and wish to terminate this situation? Read below and find out how can you save thousands of Euros by avoiding the higher taxes of selling and buying the share of the outgoing joint owner.

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A Deed of Dissolution of Joint Ownership allows joint owners to re-arrange their share on any property in a tax-efficient manner as it enables the outgoing joint owner to transfer his share to the existing joint owner legally avoiding the extreme 7% Transfer Tax plus the complications of having to allow the buyer to make a retention on the value of the share transferred for Capital Gains Tax which is only recoverable many months after the deeds are signed.

The only tax involved under this arrangement is of 1% of the declared value of the property, plus the ordinary notary, land registry and legal fees.

This legal procedure is most suitable in a number of cases involving joint property ownership:

The most common scenario occurs when couples owning property in joint names whose relationship has come to an end decide that one of them will assume full ownership.
In many case beneficiaries of an inheritance who have effectively inherited a share in a property may decide to transfer it to another joint-owner.
Also, friends who are joint-owners of property may simply opt out for unspecified reasons.

If you are fiscal resident in Spain you can deduct the legal costs of this procedure on filing your Spanish Income tax as long as the dwelling is regarded legally as your primary residence (“residencia habitual”).

What Happens with the Mortgage?

If the property was subject to a mortgage which is intended to continue after the transfer of the share it will be necessary to obtain the permission of the lender to discharge the outgoing joint owner, who obviously will not be willing to continue guaranteeing the loan. Alternatively, some borrowers may use this opportunity to arrange a new mortgage with a different lender often at a substantially lower cost. Your lawyer should also be able to help you with this.

One of the Co-Owners Refusing to Sell?

There are times in which one of the joint-owners may decide he needs to sell the property and the others refuse to buy it from him, either because they don’t have the money to buy his share or simply because they refuse to sell the property all together. In these cases a dissolution of joint-ownership may be enforced by a law court (arts 406 and 1062 Civil Code). The drawback is that the asset will be sold in a public auction which will fetch a price far below the market value. This is only advisable as a last resort where there is a serious disagreement, as all joint owners stand to lose.

Expenses and Fees Involved

As purchaser the only tax involved is 1% Stamp Duty on the whole declared value, besides notary, land registry and lawyer’s fees.

The vendor of the outgoing share is liable for Cgt at 18% on e.g. the 50% outgoing share (if non-fiscal resident he will be subject to a retention of 3% on the 50% on account of his Cgt liability) and municipal Plusvalía tax. Besides this he will have to pay his own lawyer.

At your request we can provide a study case with a breakdown of expenses and fees as an example.

Arrangement

This process can be arranged in a few days without any need for you to come over to Spain by means of granting your lawyer a specific power of attorney. Your lawyer should be able to undertake the necessary preparations, sign the deed and register the new ownership with the Land Registry.

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Should you be interested in this service, or if you need more information, please visit the Dissolution of Joint Property Ownership service page at the Lawbird site.

Discuss this Article

Jackie Says:

Wed, Oct 15th 2008, 18:34
Hi, I'm divorcing my husband and are in the process of transfering the property into my sole name. My solicitor says I have to pay 7% transfer tax. Is this true? Your article says it's only 1%.
Inigo Says:

Fri, Oct 17th 2008, 12:16
Hello Jackie The subject is rather complex, and further information is needed before an answer can be provided. To simplify things, we will assume that you are non resident, and are transfering just one property (indivisible). Generally speaking, 1% Stamp Duty is applicable if there's payment in money in exchange of the share that is being transferred (after deducting the corresponding part of the mortgage). If no payment is made at all, the transfer will be considered by the taxman as a donation, and taxed accordingly (not recommendable!) There are some circumstances in which 7% transfer tax is applicable, specifically in cases in which payment is done in kind (e.g. a car, furniture, etc), instead of money. In any case, I recommend that you submit your question to a Tax Advisor experienced in Spanish Tax Law.
Sandra Says:

Sat, Nov 1st 2008, 09:36
ey!!! Que cambio de imagen!muy bonito. Congrats!
liz Says:

Wed, Jan 21st 2009, 13:16
We are non-resident and I bought a property in Spain with money I had from the sale of a house I owned alone in England. However, we bought the Spanish house in my and my husband's names thinking it was like the UK. Then my husband was seriously ill and as I am also younger we have considered putting the house in just my name so that our adult children won't be liable for IHT that they can't afford should only one of us die (I appreciate I could go under a bus but we were looking at most likely outcome!). Obviously would not plan to "pay" my husband. So is it 1% or 7%? I can show the money was originally mine in the UK, does this help?
Lawbird Lawyer Says:

Tue, Jan 27th 2009, 11:07
Dear Madam, It would be 1% Stamp Duty as it would be clearly a Dissolution of Joint Property Ownership. If you want an example study case with breakdown of legal fees, expenses and taxes involved contact us free of compromise to request it. Regards, Raymundo Larraín Nesbitt
batty Says:

Thu, Mar 5th 2009, 13:20
Hi I have to comment on your postive responses as i have been struggling and getting responses from other that i have to pay all the ridiculus charges discussed above. my situation is that i have purchased a home in spain and have part of the mortgae outstanding (140e) and my husband and my names are both on the deed and mortgage. i have paid all expenses including the mortage for the last 2and half years as my husband has no work and also got himself into bad debt trying to venture to set up his own company. the problem now is thatmy current bank is refusing to change my mortage it is around 1000 euros for 140k loan and repayment one. refusing to give me interest only. hard to sell property unless i sell it at a loss. i have already invested a 100 euros in it. i also belive it may not be valued at what i bought it for. I have manged to find an english lender with a great mortgage deal on interest only but as my husbands name is on it they want give it to me untill i remove his name. due to his credit history being poor. to take his name off sounds like an expensive exercise and again more expenses for me.he is very willing to give up his name /rights and not looking for anything as the proeprty was bought by me for our little girl as an investment from my savings anyway. i have said this to the bankbut they want have it. switching bank is going to cost me money and will also have to pay my bank for giving up the mortgage . so i am in catch 22 situation . surely there must be an easy way of taking a name of .Spainish law seems to want taxes for everything sorry to say this. i have already paid and not made a penny . help please. thanks
Lawbird Lawyer Says:

Tue, Mar 10th 2009, 16:19
Dear Madam, To take your name off the deed Transfer tax and associated expenses have to be paid. This is just not simply having your name removed from it.
john evans Says:

Fri, Mar 20th 2009, 14:49
Bought a house in spain in joint names with my wife in 1983. We divorced in england 1989 with clean break settllement with my wife giving up her share in the house in Spain. The house is still registard in both names. I wish to sell the property and my ex agrees to give me power of attorney to sell her half. If I should die before this happens I can see all sorts of problems arising. I was told years ago by a spanish abogado that there was no need to change anything as since Spain joined the EEC English divorce papers were reconised. The agent tells me I need to change it officialy, but my concern with that is, will I lose the benifits of nil capital gains tax as it was bought before 1986 and not having to leave 3% holding fee. Also would there be charges, by changing it into my name only via the divorce papers other than legal fees?
buddy Says:

Sun, Apr 12th 2009, 21:41
My mother bought an apartment in spain with her partner 7 years ago, he died 5 years ago. In his will he left his share to her, but nothing has been done officially to change the ownership. She may need to sell the apartment in the next two years. Should she change the deeds/ownership to her name before she sells, and if so how much tax would she have to pay? Or should she wait until she sells? what tax would she be liable for then? Thank you for yur help in this
Lawbird Lawyer Says:

Tue, Apr 14th 2009, 11:56
Dear Sir, Your mother cannot sell what's not hers. She first has to lodge the 50% bequeathed by her partner under her name at the land registry prior to selling on the property. No Spanish Notary will allow the sale of a property whose not under the name of the vendor, it's a criminal offence ruled by art 251 of Spain's Criminal Code. Your mother would have to hire a Spanish lawyer and do as follows: 1.- Depending on the nationality of her partner, a grant of probate. 2.- Deed of Declaration of Heirs by which she's appointed as the sole beneficiary of the remainding 50%. 3.- Lodge this deed at the land registry and pay any associated taxes such as Death duties. As 5 years haver already gobe by she will not have to pay Spanish Inheritance Tax albeit her lawyer will still have to fill in the tax model otherwise the property will not be registered under her name. 4.- Once the proeprty is fully under her name she's free to do with it as she pleases. I take the opportunity to offer her our legal service on Estate Transfer to Heirs: Estate Transfer to Heirs This service is intended for those who are inheriting the Spanish assets of a deceased person, whether as the legal heir to an estate or by means of a will The Estate transfer to heirs service includes • Requesting of copies of the Death Certificate, in the event that the death took place in Spain. • Requesting of a Will Certificate information and location from the Central Registry of Wills in Madrid. • Obtaining of the Will from the Notary Public where it was signed / Estate Heirs Statement (in those cases where there is no will) • Inheritance Acceptance • Partition of the inheritance according to what the will states, or, where there is now will, to the desires of the inheritors . • Inscription at the Land Registry of the new owners of the Estate inherited. • Arrangement of payment of the applicable Inheritance Tax.
Carolyn Says:

Wed, Apr 15th 2009, 15:27
I am selling my share of a spanish property to my ex-partner. Because of the fall in the property market the amount he is paying me is the same as we purchased the property for approx 4 years ago - based on valuations by local estate agents. Please can you confirm: 1. that I will therefore not have to pay 18% CGT as there is no gain, and the 3% will not be withheld, 2. will plusvalia tax still be payable, and 3. as the mortgage is only in his name will we have to pay fees for a new escritoria and should I have to pay for this or is it his cost? If there are any other costs I should consider please could you advise what these would be. Many thanks
mark evans Says:

Fri, Apr 17th 2009, 00:59
hello,i have 5% of a villa and my friend had 95%,he recently passed away ,do i have to sell my villa or do i now own the whole villa,many thanks.
Lawbird Lawyer Says:

Fri, Apr 17th 2009, 18:30
Dear Sir, The beneficiaries of your friend will presumably inherit the villa, not yourself. Why did you think you would inherit it? Are you the beneficiary of his last will? Perhaps it may be a good idea if you add more information in your next post so we can advice better.
John Says:

Sun, May 10th 2009, 19:49
My ex-wife and I owned a property in Spain together. We have since divorced and she left her part of the house to me in the divorce settlement in exchange for a property in the UK which I bought for her. The deeds are still in both our names and when I saw a lawyer in Spain he said that we needed to pay about 8000 euros to transfer the deeds solely into my name. This seems an awful lot of money. This figure is based on a value of 400,000 euros but I think the house is now worth a lot less. Is there any way we can avoid paying this amount?
Lawbird Lawyer Says:

Wed, May 13th 2009, 15:03
Dear Sir, 8,000€ seems about right. It's 1% of 400k= 4.000€ Land registry & Notary fees plus lawyer's fees= 3.000/4.000€. The alternative is to pay 7% Transfer tax plus all the additional expenses.
tinska Says:

Tue, Jun 16th 2009, 16:46
Can anyone put my mind at rest - I am in the middle of a rather nasty divorce & we jointly own a property in Spain, without a mortgage & both names on the deeds (we live in the UK). Can my husband have my name taken off without my knowledge? Please put my mind at rest someone & let me know................Many thanks
Lawbird Lawyer Says:

Thu, Jun 18th 2009, 10:33
Dear Tinska, No, your husband cannot have your name removed from the Title deed unless you expressly authorise it either yourself in person at a notary or else by way of a proxy (i.e. lawyer with a POA). You are both joint owners of a property in Spain with equal rights. Please contact us if you are interested in following a dissolution of joint property ownership. We will explain in detail what this procedure involves. Signing a deed of dissolution of joint property ownership is the most cost effective and tax efficient way in cases as yours when divorce proceedings are being followed. Yours faithfully, Raymundo Larraín Nesbitt
Sue Says:

Sun, Jun 21st 2009, 13:53
Hi, My situation is the other way round. My partner has bout some land in Spain and signed the paperwork in his sole name. He has not yet paid the notary so we are keen to get it paid as the cost is increasing with interest being added. My partner would like to add my name to the paperwork so tha the land is jointly owned. Can you please advise how we would go about doing this.
Lawbird Lawyer Says:

Mon, Jun 22nd 2009, 11:44
Dear Madam, You only have to hire a lawyer to have the land under joint names in the Title deed signed at completion. The plot of land will be lodged at the land registry under joint names. Please let us know if we can assit you in the conveyance. Yours faithfully,
oly Says:

Tue, Jul 14th 2009, 21:48
Like the previous poster, we have a property in Spain which is in my husband's sole name. We would like to add my name to the deed. Are there any issues since he has owned this property for several years already? Thank you.
Lawbird Lawyer Says:

Fri, Jul 17th 2009, 13:05
Dear Oly, Your case would not be a dissolution of joint property ownership as you were not joint owners; your husband was the sole propietor. Your husband would have to sell you outright his 50% share on the property. You would pay 7% Transfer tax plus all the associated fees and expenses. You can read our article on the matter of taxes to be paid on buying a resale: Buying Property in Spain: An Overview - 3rd of April 2000 The article is almost ten years old now, so quite a few things are outdated, specifically the tax figures mentioned. I take the opportunity to offer you our conveyance service should you be interested. You can contact us for more details on this legal service. We act nationwide. Yours faithfully, Raymundo Larraín Nesbitt
Paul Says:

Thu, Aug 6th 2009, 17:59
Hi Me and my sister equally own an appartment in Majorca with no out standing morgage and we are both UK residents. My sister no longer wants to be on the deeds of the appartment and is will to sign full ownership over to me with no payment in exchange. What is the process to take her name off the deeds and what taxes/ fee are applicable. thank you for your assistance
Barbara Says:

Tue, Aug 25th 2009, 12:45
Hi, Im separating from my husband and we own a house in Spain but are non residents I wish to keep my half of the house and my ex wishes to sell to my sister and husband. We owe no debt on the house. Could this not be a private exchange of money in England and just pay in Spain for name change on the deeds ?
Lawbird Lawyer Says:

Tue, Aug 25th 2009, 12:56
Dear Paul, Money must be exchanged otherwise it's a gift and you shall be taxed under Gift tax sliding scale which is the same as for Inheritance Tax.
Lawbird Lawyer Says:

Tue, Aug 25th 2009, 13:02
Dear Barbara, His purchasers have to pay in Spain 7% Transfer tax and your ex partner, as a vendor, will have to pay both Capital Gains Tax and Plus valía tax on his 50%. Please read our articles on the mater: Buying Property from a Private Seller - 15th of March 2000 Taxes when Selling Spanish Property - 2nd of May 2002 Buying Property in Spain: An Overview - 3rd of April 2000 Yours faithfully,
David Says:

Tue, Aug 25th 2009, 17:14
My business partner and I own a property jointly in Spain (50/50) in our personal names but with the beneficial ownership in favour of our UK company, which in turn had borrowed the funds from another company to facilitate the purchase. Since the property was purchased in 2003 it is assumed that there has been a negligible change in value plus the original loan is still outstanding and therefore equivalent to the value of the property, hence there is no residual value (equity). It is intended that I sell my shares in the UK company to him (subject to UK CGT) to him and transfer the ownership of the property to him for no money (i.e. because there is no residual value above the outstanding mortgage). Am I correct in my understanding that we can do this through a dissolution of joint ownership with him paying the 1% stamp duty instead of the 7% transfer tax (both plus fees)? Because we have assumed no change in value and therefore no capital gain will I avoid Spanish CGT on my outgoing share in the property? It there anything else we should consider, other than ultimately taking specific legal advice? Thank you
Lawbird Lawyer Says:

Wed, Aug 26th 2009, 09:02
Dear Sir, I don't see why you cannot follow a dissolution of joint property ownership and pay 1% Stamp Duty on the full value of the property. Money will have to be exchanged in Spain for the 50% otherwise it could well be understood this transaction is subject to Gift tax which follows the same sliding scale as IHT. Regarding the comments you make on equity left in the property, they are unrelated to CGT and you are confusuing it with IHT mitigation. The outgoing share will be subject to both CGT taxed at 18% and Plus Valía tax. Let me know if you need our assistance to make it work. Yours faithfully, Raymundo Larraín Nesbitt
melvyn Says:

Wed, Aug 26th 2009, 21:58
I purchased a property (apartment) on the Costa Blanca for an investment and a holiday home, therefore I am a non resident in spain. I paid in full and all taxes/ bills etc myself and have no mortage. However, when I bought it I placed my partners name on the deeds thinking it was the right thing to do and be an investment to her if in the event anything happended to me. Unfortunately she has MS which has now worsened and now is unable to work and of course she lives alone and has no money. She is worried now that she cannot claim UK benefits (housing and council tax benefits) because her name is on the title deeds as if she owns a property abroad even though she has not paid a penny to any costs. I have proof of payments from my UK bank account for the purchace of the property. To put her mind to rest she desperately wants her name off of the title deeds. I thought it would be no problem like the UK but now I am worried its going to be an expensive 7% tax for me(again) or a reasonable 1% with costs.
Lawbird Lawyer Says:

Thu, Aug 27th 2009, 09:10
Dear Melvyn, From your post I understand that the property is solely under the name of your partner. In that case only she is entitled to the sales proceeds regardless of who paid for the property, in other words, you have no rights on this property. If you want to buy it outright from her, you are going to have to pay the full costs of an associated conveyance procedure, that is including 7% Transfer tax. You cannot follow a dissolution of joint property ownership because you don't even hold 1% of the property. I take the opportunity to offer you our conveyance service if you are interested. We act nationwide. Yours faithfully,
melvyn Says:

Thu, Aug 27th 2009, 10:04
Now you are really worrying me. I paid for the property and BOTH our names are on the title deeds. All she wants is to opt out and have her name removed.
Lawbird Lawyer Says:

Thu, Aug 27th 2009, 10:11
There's no reason to worry, from your post above it just wasn't clear that it was held under joint names, that's all. If both of your names are in the Title deed you will have no problem following a dissolution of joint property ownership as per the article the starts off this thread. Contact us if we can assit you in this legal service as you will need to hire a lawyer to do it. Regards,
helga Says:

Tue, Sep 8th 2009, 20:27
hi i have a property in spain in my sole name i want to sign it over as part divorce settlement at what cost and how to do this
Cecelia Says:

Thu, Sep 17th 2009, 01:59
Hi. My husband and I were given a house in spain his father for a present. I do not know if the title was put in both our names, or only his. We have since divorced and he has told the courts that he has never owned property in Spain. Is there a way I can do a search to see if any properties are or were owned by my ex-husband if I do not have the address of the property? Is this possible to find out? Thanks!
Lawbird Lawyer Says:

Thu, Sep 17th 2009, 09:43
Dear Cecilia, Yes it's possible to find out. All you need to do is hire a Land Registry Search through us. It normally takes less than 24 hours. Contact us to hire it. Yours faithfully,
Cecilia Says:

Thu, Sep 17th 2009, 18:06
Can you als do a search on what property someone used to own but has sold? I have the date range in which the property would have been owned. Can this be done too? What information do you need on the owner? Full Name and Date of Birth only? I have the region in Spain as wel if that helps the limit the search.
paul Says:

Fri, Sep 18th 2009, 00:02
Hi, my mum recently past away leaving a house in Spain. The house was bought initially by my mum, dad and sister who's names appear on the deeds, my mother has left the her share of the house to dad. My dad has been told he has to pay 3000e to change the deeds but no information of why has been given. The value of the house is around 130K e . could you please advise me? Regards
Lawbird Lawyer Says:

Fri, Sep 18th 2009, 09:29
Dear Cecilia, No, it can not be done. You would have to go personally and request it from the land regisrty.
Lawbird Lawyer Says:

Fri, Sep 18th 2009, 09:33
Dear Paul, Your case relates to a transfer of estate to heirs not to a dissolution of joint property ownership. Please read the following articles: Estate Transfer to Heirs Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd of September 2009 I take the opportunity to offer you our legal service on Estate Transfer to Heirs: Estate Transfer to Heirs This service is intended for those who are inheriting the Spanish assets of a deceased person, whether as the legal heir to an estate or by means of a will. The Estate transfer to heirs service includes: • Requesting of copies of the Death Certificate, in the event that the death took place in Spain. • Requesting of a Will Certificate information and location from the Central Registry of Wills in Madrid. • Obtaining of the Will from the Notary Public where it was signed / Estate Heirs Statement (in those cases where there is no will) • Inheritance Acceptance • Partition of the inheritance according to what the will states, or, where there is now will, to the desires of the inheritors . • Inscription at the Land Registry of the new owners of the Estate inherited. • Arrangement of payment of the applicable Inheritance Tax. __________________ Yours faithfully,
Gerry Says:

Mon, Sep 21st 2009, 12:33
My wife and I bought a property in Spain in 2005 and my wifes mother and step-father moved into the house as permanent residents (we both remain non-residents). Just prior to signing the contract we were advised to add my father-in-laws name to the title deeds on the basis that this would enable him to receive health care, open a bank account etc. Last year my mother-in-law passed away and my father-in-law has now returned to live permanently again in the UK. My wife and I are now considering ways to have my father-in-laws name removed from the title deeds (he is fully agreeable to this). What would be the best way to do this - would we incurr 1% Stamp Duty or 7% Transfer Tax?
Lawbird Lawyer Says:

Mon, Sep 21st 2009, 13:33
Dear Gerry, You would incur in the 1% Stamp Duty on the whole value of the property as per my article, yes. Please contact us if you are interested in hiring this legal service through us: Dissolution of Joint Property Ownership Yours faithfully,
Stephen Says:

Tue, Sep 22nd 2009, 11:53
My mother and i bought a property in the Canaries around 4 years ago. We now want to take my mums name off the property and I to become the sole owner. We have a joint spanish mortgage. Is my case the same as Gerrys above and the transaction will incur a 1% fee? Many thanks.
Lawbird Lawyer Says:

Tue, Sep 22nd 2009, 12:15
Dear Stephen, In your case you could follow a DJPO as you were already a joint owner along with your mother. You would buy her out essentially. You would pay 1% Stamp Duty on the full value of the property. She would pay CGT taxed at 18% and Plus Valía tax. Please contact us if you wish to hire us for this legal service. Yours faithfully, Raymundo Larraín Nesbitt
susan smith Says:

Fri, Oct 2nd 2009, 23:39
my friend and i bought a property together in spain , she has suddenly died and we never made a spanish or english will what will happen to her share of the property and will i be able to sell it.
leslee lewis Says:

Sun, Oct 4th 2009, 17:01
hi my son want s his name taken off out joint spanish mortagage and deeds. is this poss and is it expensive. My partner would like to take over his interest in the small property. Thank u
Lawbird Lawyer Says:

Mon, Oct 5th 2009, 12:00
Dear Ms Smith, An inheritance procedure must be followed. In this case intestacy rules would apply if there is no will. Her beneficiaries must be located to claim her Spanish estate. Please read our article on the matter: Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 Yours faithfully,
Lawbird Lawyer Says:

Mon, Oct 5th 2009, 12:05
Dear Mrs Lewis, Does your partner already hold a percentege of the property? If yes then they can follow a legal procedure known as Dissolution of Joint Property Ownership. Your partner would pay 1% Stamp Duty only on the full value of the property besides expenses thus waiving 7% Transfer tax. He will effectively safe himself 6% tax. If the reply is no then your partner will have to buy his share outright through a normal conveyance procedure which has associated 7% Transfer tax besides expenses. Please contact us if you are interested in hiring this legal service. Yours faithfully, Raymundo Larraín Nesbitt
Luis Vicente - Abogado Says:

Wed, Oct 28th 2009, 23:06
Buenos dias compañeros. Un cliente me mando el link porque le extrañó despues que le pedí el 3% de retención al ser el copropietario que cedia sus derechos en la disolución de la comunidad de bienes un no residente. Durante muchos años igual que vosotros yo consideraba que en los casos de sisolución no había retención del 3%. Desde hace meses tanto Joaquin Crespo como Amelia Bergillos (ambos notarios de la plaza como bien sabeis) la realizan dado que elevaron una consulta a la Agencia Tributaria los cuales contestaron que efectivamente era obligatoria la retención en los casos de liquidación de comunidad de bienes porque podía perfectamente existir un incremento patrimonial en el acuerdo de liquidación, incremento sujeto al impuesto. Si quereis podeis contactarme a mi o directamente a los notarios referidos. Un saludo Luis
Lawbird Lawyer Says:

Thu, Oct 29th 2009, 09:27
Estimado Compañero: Gracias por contribuir en este foro. Es un foro abierto a la participación de cualquier compañero que lo estime oportuno. En relación a tu comentario sólo puntualizar que el propio artículo en cuestión, que da origen al presente hilo, hace referencia a la necesidad de retener el 3% en el caso de que el transmitente sea un no residente fiscal: Dissolution of Joint Property Ownership in Spain - 14th November 2007 Expenses and Fees Involved As purchaser the only tax involved is 1% Stamp Duty on the whole declared value, besides notary, land registry and lawyer’s fees. The vendor of the outgoing share is liable for Cgt at 18% on e.g. the 50% outgoing share (if non-fiscal resident he will be subject to a retention of 3% on the 50% on account of his Cgt liability) and municipal Plusvalía tax. Besides this he will have to pay his own lawyer. At your request we can provide a study case with a breakdown of expenses and fees as an example. En todas las extinciones de condominio en las que hemos intervenido se ha practicado la retención del 3% por el copropietario adquirente cuando el transmitente reunía la condición de no residente fiscal. En mi anterior respuesta a la Sra Lewis he omitido mencionarlo por error, de ahí la confusión. Saludos, Raymundo Larraín Nesbitt
angelacatt Says:

Fri, Oct 30th 2009, 12:26
Hi, I bought a property in Spain nearly two years ago with my partner. We have just separated and I would really like to remove his name from the property which we own 50/50. We have a mortgage for nearly the whole amount and my partner has never put in a penny, either with the deposit or the mortgage. He therefore agrees that I do not need to pay his off. Reading above though, am I to understand that there will be a gift tax? How can I get around this? The property was bought for 140,000 and was valued then at 169,000 and we have an outstanding mortgage for 134,000. What other charges would there be? I really need a rough estimate to know how much money needs to be found and who is liable to pay what. We bought the property as residents as we planned to carry on living in Spain but we have moved back to England and have been here for nearly two years. As we bought as residents I am supposed to pay in my 'sueldo' to the mortgage account every month so I transfer money back and forward between our joint account and my account so that there is movement of money. All money has come from me and not my partner. Could this help in proving he has not paid anything? Any help would be much appreciated. Thanks in advance.
Paul Taylor Says:

Thu, Nov 5th 2009, 18:09
Hi, My wife and I have built a property in Spain on Rustic land of 10,000m2 together with another couple, the property conforms with the legislation in that it is 2% of the land size and measures 200m2, the property was passed/signed off as one dwelling however we now want to seperate it into two dwellings, will this be possible and what will it involve. Regards Paul
Lawbird Lawyer Says:

Fri, Nov 6th 2009, 09:49
Dear Sir, I doubt the planning authorities will agree to your proposal. That would imply having to segregate the plot of land to create two separate plots thus dividing legally the estate drawing up a deed before a Notary. I doubt your town hall will agree to this. In any case you don't lose anything by requesting it from them formally. Yours faithfully,
Lady Jane Says:

Sat, Jan 16th 2010, 16:22
is the Disolution of Joint Property Ownership the best efficient and economical way of removing one name from a title deed and land registry for a property inherited 50/50
aflores Says:

Sat, Jan 16th 2010, 18:51
Dear Sir/Madam, This is definetely the best and cheapest form of transferring 50% of the remaining ownership on one property from one property owner to another as all other ways imply having to pay 7% transfer tax. Regards
Lawbird Lawyer Says:

Mon, Jan 18th 2010, 11:11
Dear Madam, As my colleague writes above, a Dissolution of Joint Property Ownership is the most efficient solution from a tax mitigation point of view. Please feel free to request more details from us if you are interested. Yours faithfully, Raymundo Larraín Nesbitt
Mrs G Says:

Mon, Jan 25th 2010, 15:44
My Mum and Partner and I bought a property in Spain 5 years ago. They are both on the deeds and mortgage. I contributed equally to the property purchase since it was purchased but was not reflected on the deeds, yet am benefactor in the Spanish will set up. They have now split and I would like to continue ownership buying out the 33% Share of my mothers ex partner. Please can you advise is DJPO to my mothers sole name the best way to do this or am I best to buy out his share as a normal conveyance and pay 7% Tax meaning that myself and my mother are reflected on the deeds.
Lawbird Lawyer Says:

Mon, Jan 25th 2010, 17:56
Dear Mrs G, You cannot undertake a Dissolution of Joint Property Ownership as you are not a co-owner of the property. Only your mother and her now ex-partner are lodged at the land registry as such. Therefore, regrettably, you don't have the DJPO option. You would have to buy his share outright paying a 7% Transfer Tax on the 50% as you write, yes. Legally it is irrelevant if you are beneficiary of her Last Will or if you contributed with 1% or 100% towards the property. It is only relevant who appears lodged as title holder at the Land Registrar to follow a DJPO (re-arrangement of share ownership). Yours faithfully, Raymundo Larraín Nesbitt
Mrs M Says:

Tue, Jan 26th 2010, 11:33
My Husband and I are both residents in spain. We own 2 properties joint names. We seperated last year and although we are now together again we want to transfer the names on the deeds so we own one property each. Do I understand correctly that we would therefore have to pay 1% of each property plus legal costs plus 18% on the 50% we are signing over to the other?? Therefore if in the future we seperated or Divorced there would be no problems as the properties would be sole owned??
Lawbird Lawyer Says:

Tue, Jan 26th 2010, 13:36
Dear Madam, Basically those are the expenses involved, yes. Quoting an excerpt of my article: Expenses and Fees Involved As purchaser the only tax involved is 1% Stamp Duty on the whole declared value, besides notary, land registry and lawyer’s fees. The vendor of the outgoing share is liable for CGT at 18% on e.g. the 50% outgoing share (if non-fiscal resident he will be subject to a retention of 3% on the 50% on account of his Cgt liability) and municipal Plusvalía tax. Besides this he will have to pay his own lawyer. If you separate or divorce the properties will be already solely under your respective names. If you are both fiscal residents in Spain and are able to provide a letter from the Tax office confirming it, the 3% retention on each 50% transferred will not be enforceable. Yours faithfully, Raymundo Larraín Nesbitt
Angela Says:

Tue, Feb 2nd 2010, 00:02
Hi, I bought a property in Spain nearly two years ago with my partner. We have just separated and I would really like to remove his name from the property which we own 50/50. We have a mortgage for nearly the whole amount and my partner has never put in a penny, either with the deposit or the mortgage. He therefore agrees that I do not need to pay him off. I have been reading into this though and am I to understand that there will be a gift tax? How can I get around this? The property was bought for 140,000 and was valued then at 169,000 and we have an outstanding mortgage for 134,000. What other charges would there be? I really need a rough estimate to know how much money needs to be found and who is liable to pay what. We bought the property as residents as we planned to carry on living in Spain but we have moved back to England and have been here for nearly two years. As we bought as residents I am supposed to pay in my 'sueldo' to the mortgage account every month so I transfer money back and forward between our joint account and my account so that there is movement of money. All money has come from me and not my partner. Could this help in proving he has not paid anything? Any help would be much appreciated. Thanks in advance.
aflores Says:

Tue, Feb 2nd 2010, 09:23
Dear Angela, If you wish to put the property in your name you will need to go through a Notary process. You can claim from you ex-partner what you wish is entitled but this can only be done through the Courts in a lengthy and expensive procedure, which I don’t recommend you pursue. What you can therefore do is agree with your ex-partner that you both attend signing at the Notary Public office and transfer the property to you, after which taxes will have to be paid and the title deeds registered in your name. Typically the cost of this will be: 1% Transfer Duty (Stamp Duty) on the value of the property. Notary fees: 700 Euros approx. Land Registry fees: 600 Euros approx. Legal fees: 950 Euros plus VAT. This can be arranged via power of attorney to us or personally by you coming to Spain to attend signing at the Notary. You will require NIE numbers to be able to sign the deeds.
Lawbird Lawyer Says:

Tue, Feb 2nd 2010, 09:23
Dear Angela, A Dissolution of Joint Property Ownership (DJPO, for short) is the best solution from a cost efficient angle as it's tax efficient. Any other solution implies paying more taxes to the Spanish taxman. Your partner is a registered owner of 50% of the proeprty. Therefore under our laws he is entitled to 50% of the sale's proceeds regardless if he contributed or not to the property. You have three options: 1. If you want to follow a DJPO he (or you) will have to pay 1% Stamp Duty on the full property value. You will of course have to pay him 50% of the value of the property as well as land registry, notary and legal fees. 2. If you want to buy him outright you will have to pay 7% Transfer tax. As well as all teh associated transfer expenses (land registry, notary and lawyer's fees). And of course you will have to pay him the 50%. 3. If he wants to "gift" you his 50% share you will attract Spain's Gift sliding tax scale which is the same for Inheritance Tax albeit with none of it's tax allowances meaning it's the most expensive option from a tax mitigation point of view. As he's only your partner (meaninmg you are not married) you are classified as being in Group IV which means you will pay dearly as there is no kinship. I would recommend you follow option 1 which is why I wrote the article so foreigners were aware that you could wave paying 6% Transfer tax and pay instead only 1% tax. If you are interested in hiring thsi service please contact us and we will explain further. Yours faithfully, Raymundo Larraín Nesbitt
baz howard Says:

Sat, Feb 6th 2010, 11:36
we want to sell our 50% share of our jointly owned house in spain but the other couple refuse to sell,how long and at what cost would it be to achieve the dissolution of joint ownership enforced by court ,thanks baz howard
Lawbird Lawyer Says:

Mon, Feb 8th 2010, 09:33
Dear Sir, Through the law courts it would have a cost in the region of 6,000€. Please contact us if you are interested. Yours faithfully,
Avril Says:

Wed, Mar 3rd 2010, 23:23
is there an upper limit on the transfer duty? My soon to be ex has agreed to give me the villa we jointly own in spain - the villa is probably valued at 1 million euros which means at 1% I would need to find 10,000 Euros plus the other fees which is a lot of money. can you also advise how the property value is established - is it market value or the valor castral ? thanks
Lawbird Lawyer Says:

Thu, Mar 4th 2010, 11:22
Dear Madam, Normally it's the value at which it was bought (the prior Title deed). When you write that your ex has agreed to transfer you his 50% on the property is this as a result of divorce proceeds in the UK? Is there a UK ruling establishing he must hand you over this property? Let me know if I can assist you in the transfer of your property. Yours sincerely, Raymundo Larraín Nesbitt
Joe Says:

Fri, Mar 19th 2010, 00:56
I'm buying a property in Spain from my father. What are taxes for a transaction of this type?
Lawbird Lawyer Says:

Fri, Mar 19th 2010, 10:32
Dear Joe, I take it you do not hold a pre-existing share on your father's property. Otherwise you would only pay 1% Stamp Duty as per the article that starts off this very thread. As I take for granted it's a resale you would have to pay the following: Taxes 1. Transfer tax of 7% on the value of the property Associated Expenses 1. Notary fees 2. Land registry fees 3. Lawyer's fees - usually 1% of the value of the property subject to a minimum legal fee which in our case is €1,300. More details in our article: Buying Property in Spain: An Overview - 3rd April 2000 Plase note the above article was written a decade ago, so all mention to taxes is outdated. Both the taxes and the concepts still remain the same but all mention to figures and percentages (even to Pesetas!) is outdated. If you have further queries just ask them here. I take the opportunity to offer you our Conveyance Service. Yours faithfully, Raymundo Larraín Nesbitt
Nik Says:

Wed, Apr 7th 2010, 01:18
Hello there. i and my wife own a spanish apartment, which is in both in our names, joint owners. i wish to transfer the property (my share in the ownership, of 50%) to my wife. Ive been told that to do this, it will cost in the region of 10,000 EUR. The property is worth around 650,000 EUR. I just find it hard to believe the costs of 10,000 EUR to simply transfer the name/ownership. Please advise. Many thanks
confused scot Says:

Sat, Apr 10th 2010, 15:12
hi My dad is a resisdent in spain and has sadly passed away his estate is too be shared with my sister also in scotland and my brother who lives in spain what taxes will we have to pay
Lawbird Lawyer Says:

Mon, Apr 12th 2010, 11:03
Dear Nik, It sounds about right. If we are talking of a contentious dissolution of joint property ownership it would be at least €10,000 as it involves litigation fees. In reality it will probabably be closer to €15,000. If we are talking of a friendly dissolution of joined ownership for a property worth 650k the expenses and fees should be in the region of €10,000, yes. Only Stamp Duty (AJD) is 1% on the full value of the property which in your case amounts to €6,500. To this you must add lawyer's, notary's and land registry fees which can easily account for a further €3,500 making a total of €10,000 in expenses and fees. If you think 1% Stamp Duty levied on the €650,000 is expensive just think you are waiving Transfer tax at 7%. Yours faithfully, Raymundo Larraín Nesbitt
Lawbird Lawyer Says:

Mon, Apr 12th 2010, 11:13
Dear confused Scot, You as appointed beneficiary would have to pay Spanish Inheritance tax and Plusvalía on the Spanish estate. This is not the right thread to make this question. Thre are other threads with specific articles on the matter: Spanish Inheritance Tax: How much is it? - 1st February 2000 Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 Yours faithfully, Raymundo Larraín Nesbitt
Mike Says:

Thu, Apr 22nd 2010, 00:12
I am trying to get my name and my brothers name added to an apartment my father owns in spain. I see the above post by Nik, but the attorney I spoke to said 10,00 plus transfer tax. Is that possible? Seems outrageous. All we are doing is adding two names to the title
Lawbird Lawyer Says:

Thu, Apr 22nd 2010, 10:26
Dear Mike, Your have been adviced correctly. This thread is for a Dissolution of Joint Property Ownership. This procedure requires you already own a share of the property. You only pay 1% Stamp Duty on the value of the whole property. In yours and your brothers case you don't own a share of your father's property therefor you have to pay 7% Transfer tax plus all the associated expenses (Lawyer's fees, Notary and Land Registry fees). You simply do not qualify for a Dissolution of Joint Property Ownership, you have to buy the property outright. Let me know if we can assist you on your matter. Yours faithfully, Raymundo Larraín Nesbitt
liz and Jean Says:

Sat, Apr 24th 2010, 23:22
i own 50% of a property in spain and co owner is selling his 50% , both have our own deeds as no mortgage . Does he have to have my signature for when he sells his share or can he just sell to anyone he wishes even if i dont agree to it , thank you Liz and Jean
Lawbird Lawyer Says:

Mon, Apr 26th 2010, 14:02
Dear Sir or Madam, He is able to sell his 50% to whomever he pleases following Art 399 of the Spanish Civil Code. He does not need your permission nor your signature. Yours faithfully, Raymundo Larraín Nesbitt
Unregistered Says:

Fri, May 7th 2010, 21:39
Hi I could potentially own a house in spain it is old and ruined but am hoping to rebuild as the structure is good it was my grandmothers who has passed away, it belongs to my Mum her two brothers and her sister. 3 parties involved have said I can have their share and I am waiting to hear from the 4th party. How do I change the house to my name if and when they agree. Please can someone help Clare
Lawbird Lawyer Says:

Mon, May 10th 2010, 11:06
Dear Madam, As per the article that starts off this thread all you have to do is sign a deed of Dissolution of Joint Property Ownership. You will only pay 1% Stamp Duty on the full property value instead of 7% transfer tax. You will need to hire a Spanish lawyer to assist you on this matter. Please contact us if you are interested. We charge 1% of the value of the property plus VAT, subject to a minimum legal fee of €1,300 plus VAT. Dissolution of Joint Property Ownership A Deed of Dissolution of Joint Ownership allows joint owners to re-arrange their share on any property in a tax-efficient manner as it enables the outgoing joint owner to transfer his share to the existing joint owner legally avoiding the extreme 7% Transfer Tax plus the complications of having to allow the buyer to make a retention on the value of the share transferred for Capital Gains Tax which is only recoverable many months after the deeds are signed. This procedure is useful for: Couples owning property in joint names whose relationship has come to an end (separation, divorce, etc.) Beneficiaries of an inheritance who have effectively inherited a share in a property may decide to transfer it to another joint-owner. Friends who are joint-owners of property may simply opt out for unspecified reasons. The service includes 1. Make preparations at the Notary Public for completion of the dissolution of the joint property ownership or any further preparations required relating to the purchase such as preparation of powers of attorney for individuals abroad (duly legalised and translated) which give authority to a physical person/s to act on behalf of the buyers. 2. Assist in the completion process and ensure title deeds are properly registered in the appropriate local Land Registry, and that the property is free from all charges and encumbrances, as well as payment of the relevant taxes associated with the purchase. 3. If the property is Subject to a Mortgage, we assist in discharging the outgoing joint owner, who obviously will not be willing to continue guaranteeing the loan. At this point we can aslo help negotiating a new mortgage at a lower cost. This process can be arranged in a few days without any need for you to come over to Spain by means of granting us a specific Power of Attorney. We will undertake to make the necessary preparations, sign the Deed and register the new ownership with the Land Registry. ---------- * With a minimum of €1,300. * Our Fees do not include VAT (Currently at 16%) Yours faithfully, Raymundo Larraín Nesbitt
Elin Says:

Mon, May 10th 2010, 21:54
Hello, I co own a property with a friend of mine who has just sadly died. We had a Spanish will so hopefull the house is covered. We had a joint bank account which paid the bills - will that account revert to my name as it would in England ? He has a wife and she iis looking at the account to see if she can get the money - there is very little in it and it pays the bills so I need to keep it.
Johanna Says:

Wed, May 12th 2010, 07:42
If someone owned property in Spain and left the country without paying outstanding taxes etc & simply disappeared. If you know where they are is there a way of reporting them?
Lawbird Lawyer Says:

Wed, May 12th 2010, 11:17
You can report them to the Tax office...
Johanna Says:

Fri, May 14th 2010, 02:08
Can you supply the details and I will. Thanks
Lawbird Lawyer Says:

Fri, May 14th 2010, 13:09
Here you go: https://www.agenciatributaria.gob.es/AEAT.sede/Inicio/_otros_/_Direcciones_y_telefonos_/_Direcciones_y_telefonos_.shtml
Charlie L Says:

Wed, Jun 16th 2010, 15:33
My husband and I bought a villa in 2005 as residents, since we were living and working there. In October 2009 I left him in Spain and returned to the UK and I am once again resident here. As part of the divorce settlement we will have to sell the house in Spain, possibly with me getting a greater than 50% share of the proceeds in lieu of maintenace payments for our children. What is the most cost effective way to do this? Is it better to transfer ownership then sell, or sell jointly? can you please advise. the villa is worth approx €525,000, there is outstanding mortgage of approx €250,000 and we bought it for €450,000. Thank you
Lawbird Lawyer Says:

Thu, Jun 17th 2010, 10:42
Dear Madam, It is more efficient to sell jointly and you receiving the full sale proceeds less expenses and taxes rather than first transferring ownership of 50% (following what's known as a Dissolution of Joint Property Ownership) and then selling the property. As you happen to mention that you are selling your property in Spain, I take the opportunity to offer you our legal services. Our legal fees for our conveyance service are 0,75% of the value of the property with a minimum legal fee of €1,300 plus VAT. Our Property Conveyance Service for the sale of your property includes the following: Conveyance for property Sale Conveyance full package 1. Liaise and agree with the purchaser/s and/or lawyers in respect of terms and conditions of the sale, ensuring compliance with current laws. 2. Providing a free escrow account service where deposits will be held safely. 3. Make preparations at the Notary Public for completion of the purchase or any further preparations required relating to the sale such as preparation of Powers of Attorney for individuals abroad (duly legalised and translated) which give authority to a physical person/s to act on behalf of the vendors. 4.- Assist in filing and paying all associated sale's expenses and taxes. 5.- Confirm and obtain copy of the 3% retention withheld by the Notary Public at completion on behalf of the Spanish Tax Office on account of your Capital Gains Tax liability should you be a non-resident vendor. Should you be interested in hiring us please contact me. We act nationwide. Yours faithfully, Raymundo Larraín Nesbitt
ken dean Says:

Sat, Jun 19th 2010, 18:52
my father and mother own a villa in spain how much would it cost for me to have my name put on the deeds the property is valued at 250.00 euros and how do we go about it
ken d Says:

Sat, Jun 19th 2010, 18:54
or could thay sell it to me
Lawbird Lawyer Says:

Mon, Jun 21st 2010, 09:55
Dear Sir, They would have to sell it to you, yes. Gifting it to you is normally not an option as Gift tax is applied which follows the same sliding scale as Inheritance tax but with none of its allowances. There are however some regions in Spain which are lenient on gifting property over to children. A Dissolution of Joint Property Ownership cannot be followed in your case, as you are not a joint owner along with your parents. The expenses on selling the property to you would be more or less 10% of the value of the property. If you want an accurate breakdown of fees and associated expenses I would need you to contact us to supply us with more details. Yours sincerely, Raymundo Larraín Nesbitt
petra meken Says:

Mon, Jun 21st 2010, 14:07
I am a joint owner (name on deeds and mortgage) of an apartment in spain. We are not resident in Spain. My partner and I have now separated and he has changed the locks on the property. He refuses to give me a key. Can he do this?
Lawbird Lawyer Says:

Mon, Jun 21st 2010, 14:15
Dear Madam, No he cannot do this, it is unlawful. I strongly advise you contact us on your matter to find a solution. Yours sincerely,
petra meken Says:

Mon, Jun 21st 2010, 14:31
Re: post about changing the locks. I forgot to mention that he says I am not entitled to the property any more as I am not paying towards the mortgage. Could he have a case in this respect?
Lawbird Lawyer Says:

Mon, Jun 21st 2010, 15:22
Dear Madam, Regardless if you are contributing or not to the mortgage repayments he cannot change the locks and lock you out. You are still entitled to half the sales proceeds (less your contributions) and being a joint owner you can enter the property whenever you want without restrictions. Yours faithfully, Raymundo Larraín Nesbitt
tojo Says:

Wed, Jun 23rd 2010, 12:01
In 2008 I bought a property(1) and lands(30 parcels) with 3 other people in Spain, we have no mortgage or such, each of us owns 25% on Title Deeds, 2 of the other owners, would like to buy me out, the 3rd is none cooperative. Can the other two owners still buy me out, without the 3rd owner being involve or does it require the non-cooperative owners signature. I am resident in UK
Lawbird Lawyer Says:

Wed, Jun 23rd 2010, 12:37
Dear Sir or Madam, It does not require nor the signature, nor the approval of the 3rd owner for you to sell on your 25%. Yours faithfully,
smithy Says:

Wed, Jul 21st 2010, 12:26
we jointly own a spanish property with friends. They want to sell their share which we are happy for them to do We have offered to buy but they have refused to accept our offer as they consider it is not enough money We can't afford any more. Can they force us to sell and if they can how? Who would be liable for the cost of this
Lawbird Lawyer Says:

Mon, Jul 26th 2010, 11:29
Dear Smithy Yes they can force you to sell the whole property as you are all joint owners ex Art 404 of the Spanish Civil Code et ss. They can however sell their share only without forcing you to sell yours if they choose to. Another matter being is if anyone would be interested in buying only a share and not the whole property from them. Yours sincerely Raymundo Larraín Nesbitt

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