The real estate sector is currently regarded as a safe haven. We have seen it in previous economic crises: even if asset values fall from time to time, they always recover. It is therefore no wonder that you are thinking of investing your savings in the purchase of one or more properties to exploit them at a later date. In these cases, the services of a lawyer specialising in real estate investments in the Balearic Islands will be essential to avoid unforeseen events.
What problems can you face in terms of investment and management of real estate businesses?
In most situations, a basic guide to real estate law will not be enough to deal with the various obstacles you encounter. To give you a rough idea, here are the most common legal problems you may encounter if you decide to invest in the sector:
Finding out who the owner is
Does this sound impossible? Well, it is more common than it seems, especially when the property comes from an inheritance. To find out, it is necessary to request a Nota Simple from the Land Registry.
Is it possible to carry out a commercial activity in the property?
This will depend on whether or not the property is authorised to do so, something that can only be checked by making an enquiry at your local town hall or at the corresponding district council. If the answer is no, you will have to take the necessary steps.
The encumbrances on the property
We are talking, for example, about mortgages, non-payments, easements and tax debts, but also about possible encumbrances derived from the state of the property. In order to know them, the IPV certificate (Inspección Técnica de Viviendas) is necessary.
Finding out who the owner is
Does this sound impossible? Well, it is more common than it seems, especially when the property comes from an inheritance. To find out, it is necessary to request a Nota Simple from the Land Registry.
Is it possible to carry out a commercial activity in the property?
This will depend on whether or not the property is authorised to do so, something that can only be checked by making an enquiry at your local town hall or at the corresponding district council. If the answer is no, you will have to take the necessary steps.
The encumbrances on the property
We are talking, for example, about mortgages, non-payments, easements and tax debts, but also about possible encumbrances derived from the state of the property. In order to know them, the IPV certificate (Inspección Técnica de Viviendas) is necessary.
Taxes to be paid
This is another fundamental aspect when investing in a property. The most important are the VAT (Value Added Tax), if it is a new building, and the ITP (Property Transfer Tax), if it is a second-hand property.
To this must be added the IAJD (stamp duty) and, once the property has been purchased, the IBI (Impuesto sobre bienes inmuebles), which depends on the cadastral value. A real estate investment lawyer in the Balearic Islands will advise you on how to manage it and help you find out if the operation is really profitable. Do not hesitate to contact Bufete Frau to receive personalised help in this regard.
Solutions and services provided by a lawyer specialising in real estate investments
Drafting of the LOI (letter of intent)
This is a document prior to the contract by means of which you will agree with the seller on the clauses that, later on, both of you will sign. A property investment lawyer in Mallorca or Ibiza will be of great help in the negotiation.
Fiscal analysis
This study will allow you to know beforehand how much tax you will have to pay for the property investment. This way, you won’t have any surprises and you will be able to easily calculate your profitability.
Contracts and notarial deeds
Our lawyers will guide you through the whole process so that it runs smoothly and as quickly as possible.
Personalised advice
No matter what the characteristics of your investment are. A lawyer specialising in real estate, planning and construction law will meet your needs at every stage of the process. Also with regard to tax and fiscal law.
Drafting of the LOI (letter of intent)
This is a document prior to the contract by means of which you will agree with the seller on the clauses that, later on, both of you will sign. A property investment lawyer in Mallorca or Ibiza will be of great help in the negotiation.
Fiscal analysis
This study will allow you to know beforehand how much tax you will have to pay for the property investment. This way, you won’t have any surprises and you will be able to easily calculate your profitability.
Contracts and notarial deeds.
Our lawyers will guide you through the whole process so that it runs smoothly and as quickly as possible.
Personalised advice
No matter what the characteristics of your investment are. A lawyer specialising in real estate, planning and construction law will meet your needs at every stage of the process. Also with regard to tax and fiscal law.
Lawyer specialised in real estate investments in Mallorca and Ibiza
It seems totally normal to us that, when it comes to making your savings or the capital of your business profitable, you want to enjoy the maximum legal security. We would do the same. Tell us about your case and we will provide you with a lawyer specialised in property investments in the Balearic Islands. There is no better guarantee of success.