Whether you pay IVA (Value Added Tax) or ITP (Property Transfer Tax) depends entirely on the status of the property you are purchasing. As a strict rule, you pay IVA if you are buying a brand-new property directly from a developer, and you pay ITP if you are buying a resale property from a previous owner. The First Question Every Buyer Must Ask When American buyers calculate their budget for a luxury...
Key Takeaway for US Buyers: Illegal extensions are rampant in Mallorca, especially on rural country houses and older estates. Discovering these infractions requires cross-referencing the Land Registry with the local town hall's urban planning files. Our VIP Dedicated Buyer's Agent Service coordinates rigorous technical and legal due diligence to ensure you never buy a property facing demolition orders or...
You cannot pay for a Spanish property by transferring cryptocurrency directly to a seller's digital wallet, as the Spanish Notary system requires all real estate transactions to be executed in Euros. However, US citizens can legally buy property in Mallorca by converting their crypto wealth into fiat currency through regulated European exchanges, provided they pass extremely rigorous Anti-Money Laundering...
Key Takeaway for US Buyers: The Nota Simple is an official extract from the Spanish Land Registry that reveals the true legal owner of a property and any hidden debts, mortgages, or embargoes attached to it. Requesting and analyzing this document is the most critical first step of legal due diligence. Our VIP Dedicated Buyer's Agent Service works with top lawyers to scrutinize the Nota Simple, ensuring you...
While you cannot illegally evade taxes, United States expats can legally minimize or completely eliminate their Spanish inheritance tax exposure through proactive estate planning. The most effective strategies involve leveraging the Balearic regional tax exemptions, utilizing bare ownership structures, and drafting a dedicated Spanish Will. The Difference Between Evasion and Planning When American buyers...
Yes, there are inheritance taxes in Spain, but thanks to sweeping legislative changes in the Balearic Islands, the inheritance tax has been practically abolished for direct family members. Furthermore, under current legal frameworks, United States citizens who are non-residents enjoy the exact same massive tax deductions as local Spanish residents. The Golden Era of Estate Planning in Mallorca For...
Key Takeaway for US Buyers: In the United States, a Notary Public simply verifies signatures. In Spain, a Notario is a highly trained, elite legal professional representing the State who authorizes and drafts the final property deeds. However, the Notario is impartial and does not actively protect the buyer's financial interests. Hiring our VIP Dedicated Buyer's Agent Service ensures you have your own...
Key Takeaway for US Buyers: Traditional third-party escrow companies do not exist in Spain. The standard local practice requires transferring the massive 10 percent Arras deposit directly into the seller's personal bank account, which represents a terrifying risk for US buyers. However, by utilizing our VIP Dedicated Buyer's Agent Service, we aggressively negotiate to hold your funds in a secure Spanish...
Yes, if you become a tax resident of Spain, you are legally required to declare your US bank accounts, investment portfolios, and American real estate to the Spanish government using the Modelo 720 form, provided the total value in any of these specific categories exceeds 50,000 euros. What is the Modelo 720? The Modelo 720 is an annual informative declaration designed by the Spanish Tax Agency (Hacienda)...
The Foreign Account Tax Compliance Act (FATCA) is a powerful United States federal law that obligates all foreign financial institutions, including Spanish banks, to report the assets and identities of their American clients directly to the IRS. For US citizens in Spain, this translates into rigorous banking compliance, mandatory W-9 forms, and the necessity to provide US tax returns to open a local...
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