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 LarraÃ*n Nesbitt