The Land Registry & Cadastre (Registro de la Propiedad & Catastro) are 2 different Andalusian authorities for the registration of real estate in Andalusia. They both have their own functions and procedures. It´s, quite common that the registrations of the square meters of the built constructions and the parcel don´t match. Especially in the countryside. Therefore the lawyer in his legal investigation checks if it´s necessary and possible to correct these data. Mostly this an architect or topographer provides a technical report for this. The lawyer (or bank in case of mortgage) takes care of the correct inscription after the purchase at the notary during the after-sales phase.
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Land Registry (Registro de la Propiedad)
The Land Registry files ownership and debts like mortgages, seizures and also tax debts. The 2 page extract of the Registry is called the Nota Simple. Inscription of a property through the Title Deeds or a New Build Declaration (D.O.N.) is not obliged, but absolutely recommendable as it makes the ownership unquestionable. This in contrary to private contracts that might be singed for the purchase of a property.
A valuation of the furniture, by the way, won´t be inscribed as part of the purchase price of the house. This means that there are tax consequences for the Capital Gain Tax if you sell in future.
The Town Hall (Council) will be notified by the Land Register if a Title Deed has been inscribed. Some towns in the country side will therefore automatically start the DAFO procedure.
New Build Declaration (Declaracion de Obra Nueva / D.O.N.)
If not all square meters are inscribed correctly, then it´s advised to sign a New Build Declaration (Declaracion de la Obra Nueva / D.O.N.) before completion at the notary. Herefore you´ll need an architect´s report, possibly with a Declaration of Antiquity. Through the inscription in the Registry you can also later update the Cadastre . Mostly in this case the lawyer arranges a retention on the purchase price as compensation for later costs. For this afterwards a balance is made based on the real paid bills.
The Catastro (Cadastre) is part of the Financial Department of the Government and it determines the cadastral value based on aerial photos. This cadastral value has relation to the minimal fiscal value and therefore also to the IBI (yearly local council tax). For this you multiply the cadastral value with a coefficient that varies per municipality.
Minimal fiscal value
It´s important that the lawyer before completion checks if the minimal fiscal value might be higher than the sales price. In this case the 8% ITP transfer tax (from 28/05/2021 to 31/12/2021 temporally 7% for the total purchase price) is calculated over the highest of both. This means that you´ll need to take an additional tax payment of the Tax Office into account. This of course isn´t pleasant, but you could also see it as having negotiated a very sharp purchase price. In some cases your lawyer can fight the minimal fiscal value. Of course you need to comply with the deadline for objection.
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©2021, Ariane van Wijk