We recently received an enquiry from a man saying “I would like to have information on Extinguishing a condominium following a divorce”.
This was our reply, which may help others:
Thank you for your email. Clients may wish to change (for several different reasons, you mentioned divorce) the ownership of a property in Spain, known as a division of joint tenancy.
We can deal with these changes of joint ownership for property all over Spain and are very experienced at this method of changing property ownership.
Capital gains tax does not need to be paid. It is not seen as a transaction for financial gain. If done correctly with the Tax Office this method does not usually incur taxes or capital gains. Sometimes the tax office try but we have the law on our side. We explain further below.
Usually when purchasing a property or a share of a property there are purchase taxes plus if the seller or party with the outgoing share is non-resident, there will be 3% retained at the Notary, so the best way to change ownership is using the division of joint tenancy method. When doing it this way, there is only stamp duty on the tax value of the property. Total costs are therefore a lot cheaper.
The costs are usually paid by the person into whose name the property is being transferred.
As well as stamp duty, there are notary fees, land registry fees, stamp duty, and legal fees, plus if a mortgage,, costs for taking this off the deeds, as the customers would pay off the mortgage and we would deal with the rest. Or we can suggest an alternative.
The process usually takes about a month to six weeks. You both do not need to be present as we can use a power of attorney, done where you both live.