The procedures to remove a holder of the housing deed in Spain

When eliminating a holder of the Deed of a home, we can choose three different ways, each one with associated expenses:

Buy and sell

The owner who keeps the house, would have to acquire the part of the other owner through a conventional sale. In addition to the money agreed for the purchase of the proportional part of the house, the buyer would have to assume the following expenses:

• Patrimonial Transfer Tax

• Notary fees

• Property registration

The selling party, for its part, would have to face the payment of the Municipal Capital Gain and declare the capital gain obtained in its income statement.

Donation

Another way to get a holder of a House Deed is by donation. The owner who would come out of the Deed, would donate the part of his home to the other (without financial compensation). This transaction would be associated with the following expenses by the donee:

• Inheritance tax and donations

• Notary fees

• Property registration

• Municipal Capital Gain

For its part, the donor would have to pay taxes on the capital gain generated by the transfer of the property, as in the previous case.

Condo extinction

It is the most widely used alternative because its expenses are cheaper. The termination of the condominium occurs when there is a breakdown of the deed of the house and this happens to belong to only one of the parties. That is, one of the parties cedes its part of the property to the other, becoming the sole owner of the property.

In these cases, the person who gives up her/his part of the property receives financial compensation from the beneficiary. This compensation is what would differentiate a condominium extinction from a donation.

In a condominium extinction, the person who receives full ownership would have to face the following costs:

• Tax on Documented Legal Acts

• Notary fees

• Property registration

• Capital gain