What is a power of attorney used for in practice?

The taxes depend on the type of housing:

Second-hand housing:

• ITP (Property Transfer Tax): between 6% and 10% of the purchase price according to the autonomous community. Madrid applies 6%, Catalonia 10%, Andalusia 7%, etc.

New-build housing (from the developer):

• VAT: 10% of the price (4% for Official Protection Housing)
• Stamp Duty: between 0.5% and 1.5% according to the autonomous community

Other buyer's expenses: notarial fees, registration costs, and management agency fees.

The earnest money contract is a preliminary sales agreement where the buyer provides a financial deposit to reserve the property. There are three types:

• Confirmatory earnest money: they constitute an advance on the price. If any party breaches, the other may demand enforcement of the contract or claim damages.
• Penitential earnest money (art. 1454 CC): the most common. If the buyer withdraws, they lose the deposit. If the seller withdraws, they return double. No party can be compelled to buy or sell.
• Penal earnest money: functions as a penalty clause; the deposit is a penalty but does not prevent demanding enforcement of the contract.

It is essential to clearly specify the type of earnest money in the contract. Our team reviews and drafts the earnest money contract to protect your interests.

The seller must provide:

• Valid DNI/NIE
• Deed of ownership of the property
• Updated simple land registry note (current charges)
• Energy certificate of the property (mandatory for sale)
• IBI (receipt for the Property Tax) for the current year
• Certificate from the homeowners' association confirming that payments are up to date
• Habitation certificate (in communities that require it: Catalonia, Valencian Community, etc.)
• If there is a mortgage: certificate of outstanding debt from the bank

The Hague Apostille is an official seal that authenticates a public document (such as a notarial power of attorney, a judicial sentence, or a birth certificate) so that it has legal validity in the countries that are signatories to the Hague Convention of 1961.

Without Apostille, a Spanish public document would need to go through a consular legalization process in the destination country (much slower and more expensive).

With Apostille: the document is directly recognized in more than 120 signatory countries without additional procedures.

Who issues the Apostille in Spain:

• The Ministry of Justice for notarial, judicial, and Civil Registry documents
• The Superior Courts of Justice of each autonomous community