LawTalk
Joint Property Ownership - declaring joint ownership or bringing it to an end
If you are a joint owner with your spouse , civil partner or with a friend it is important to consider the obligations and tax implications if you sell or inherit half of the property . Equally , some married couples or partners were advised to put the property in one name but now find that their partner can have a higher than expected inheritance tax bill . Also , a person may own Spanish property in their own name and wish to transfer half to a new spouse or partner .
In Spain it is possible to bring co-ownership to an end in a Deed of Extinction of Co-Ownership – Extinción de condomino . The ownership must be transferred to only one joint owner so this does not work if there are four owners who want to transmit to two .
A notarial deed is signed by both parties , either in person or by the use of a power of attorney in the Spanish form . The transaction costs are for the notary , land registry and legal fees . The tax authorities in Andalusia charge 1.2 % tax on the fiscal value . If there has been a divorce in Spain and there has been a 50 / 50 split of assets , the transaction should be tax exempt , though there are some issues arising where the couple cannot show they were married in community of property . The tax situation needs to be ascertained because there are also other matters such as the local improvement tax – plus valia – and the question of tax retentions .
Where someone has purchased property in Spain in their own name , and after marriage they decide they want to own the asset jointly , a declaration of community of property can be made before a notary .
In any of the above cases , we can review your particular situation and advise . For more information , please contact Francisco Martín , lawyer / abogado at De Cotta Law : franciscomartin @ decottalaw . net / Telephone 952 527 014 .
De Cotta Law ( De Cotta McKenna y Santafé ) Mijas-Costa / Calahonda – Coín – Nerja – Tenerife
Nerja Office : - Calle Diputación 11 , 29780 Nerja Tel : + 34 952 527 014 www . decottalaw . com - info @ decottalaw . net
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